NEAR Protocol is a decentralized application (dApp) framework that works as an alternative to Ethereum. The protocol places a strong emphasis on both development and usability.
Development teams can use NEAR Protocol to construct and deploy decentralized apps by rewarding networks that run the platform.
The most important concept of NEAR Protocol’s architecture is sharding, a method of splitting the network into many sections such that nodes, and computers, may only execute a small percentage of the network’s activities.
Instead of sharing the whole blockchain, sharding will allow users to access network data faster and efficiently while also increasing the platform’s scalability.
Near Protocol’s native NEAR coins cover operational costs and storage. NEAR employs sharding to scale its Proof-of-Stake blockchain.
How to Buy NEAR Tokens to Stake?
NEAR protocol operates on the proof of stake consensus mechanism.
This means validating NEAR transactions requires validators to stake their token. In proof of work, this is known as mining.
Therefore, like mining in PoW, validators in NEAR protocol earn a certain percentage of transaction fees.
Meanwhile, users who aren’t Validators can stake to staking pools to have a share of yield rewards.
Staking NEAR tokens to earn rewards is possible with the NEAR wallet or the Moonlet wallet.
However, before you can stake your NEAR tokens, you must fund your wallet with the token. You can buy NEAR from the Binance exchange.
Here’s how to buy NEAR token on Binance
- Sign up or log in to Binance
- Buy USDT
- Convert USDT to NEAR
- Set up your Near wallet
- Withdraw NEAR tokens
1. Sign up or log in to Binance
Go to Binance.com on your web browser and log in or sign up.
If you’re using Binance for the first time, you need to sign up with your email address and a password.
Then verify your identity to start trading on Binance.
2. Buy USDT
Once you’re in the exchange, you need to buy USDT and convert it to NEAR using Binance convert.
On the top navigation bar, click BUY CRYPTO and choose a preferred payment method.
Proceed by choosing USDT as the token you want to buy. Also, input the amount of USDT and tap BUY USDT.
Supply your payment details and double-check to ensure it is correct. Finally, complete 2FA verifications to approve your purchase.
3. Convert USDT to NEAR
After funding your wallet with USDT, you can now swap them for NEAR tokens.
To swap your USDT, go to Trade > Binance Convert on the top navigation bar.
On Binance Convert, choose USDT in the first field and NEAR token as the token you’re swapping to in the second field.
Input the amount of USDT you want to swap. Finally, review the conversion and swap USDT to NEAR.
4. Create a NEAR Wallet
To withdraw your NEAR tokens, you need NEAR wallet. The official NEAR wallet is a web-based wallet for NEAR protocol. So, there is no need to install any software.
Visit the NEAR Wallet page on wallet.near.org to set up a new wallet.
When it comes to setting up your wallet, you have two choices:
- Create a new account
- Import an existing account
For first-time users, we recommend going with option 1. As an alternative to starting from scratch, you can import an existing NEAR wallet by selecting the second option.
To open a new wallet, click CREATE A NEW ACCOUNT. Creating a new wallet requires you to save and backup a 12-word keyphrase.
Finally, you will need to confirm the phrase. Once you have completed this step, it will proceed with the creation of your wallet.
After setting up your wallet, click on DEPOSIT NEAR on your dashboard and copy the deposit address.
5. Withdraw NEAR tokens
Go back to Binance and go to Wallet > Fiat and Spot.
You should see NEAR on the first spot in your asset list. In front of the token, tap ‘WITHDRAW’ to transfer the assets to your wallet.
On the withdrawal page, paste your Near wallet deposit address and pick ‘Near Protocol’ as the network.
Finally, enter the amount of NEAR you want to transfer and complete 2FA verification. In less than 30 minutes, the transfer will reflect in your Near Wallet.
Steps to Stake NEAR Tokens with NEAR Wallet
The process of staking your NEAR tokens is simple, and it is something you can do in a matter of seconds.
Choosing the correct validator is an essential part of staking.
As mentioned earlier, you can stake NEAR tokens with the Moonlet wallet or with the official NEAR wallet.
Here’s how to stake NEAR token with the official NEAR wallet:
- Log in to your Near wallet
- Go to the Staking tab
- Choose a validator
- Click on “Submit Stake”
1. Log in to your Near wallet
To stake NEAR tokens, you need to login into your NEAR wallet.
2. Go to the Staking tab
On your dashboard, go to the STAKING tab. It’ll show your NEAR tokens balance. Click “STAKE MY TOKENS”.
3. Choose a validator
Now, you’ll see a long list of validators to choose from.
Commission fees are displayed on each validator’s profile. The Validator will retain a percentage of gains to run its business.
Here are a few things to remember when choosing a validator:
- Choose the ones with low fees
- Don’t choose any among the top 10 validators
- Diversify your validators
- Research about the validator
You can research NEAR network validators here: https://explorer.near.org/nodes/validators
To continue, choose a validator from the list.
4. Click on “Submit Stake”
Input the desired quantity of NEAR tokens. Make sure you have enough NEAR tokens in your wallet to cover the transaction cost before staking all of your tokens.
Click “SUBMIT STAKE”. The Staking tab will display your staked information after the procedure is complete.
Steps to Stake NEAR Tokens with Moonlet wallet
Here’s how to stake your NEAR tokens with the Moonlet wallet:
- Download and set up your Moonlet wallet
- Fund your wallet with NEAR tokens
- Go to “NEAR” section
- Click on “Stake Now”
- Choose the validator and enter the amount
- Click “Sign All Transactions”
1. Download and set up your Moonlet wallet
Start by downloading the Moonlet wallet app from your mobile app store.
After downloading, launch the app and start setting up your wallet by choosing to either import a wallet using the 12-word phrase or create a new one.
On the next screen, your 12-word mnemonic phrase that will allow you to backup or restore your wallet will be displayed in three batches, each containing four words.
Once you view four words, tap next to view the next ones. Ensure you back up the phrases because you will need them to verify your wallet.
Finally, choose a six-digit password to secure your wallet.
2. Fund your wallet with NEAR tokens
In the Moonlet wallet, you can change the wallet’s network in the lower part of the dashboard.
To use the NEAR protocol, choose NEAR.
Just below your wallet address, click on the ellipses and tap COPY ADDRESS TO CLIPBOARD.
Then fund your wallet with the deposit address.
3. Go to “NEAR” section
After funding your wallet, go back to NEAR section under the Moonlet wallet.
4. Click on “Stake Now”
Scroll down and click on NEAR > STAKE NOW, as shown below.
5. Choose the validator and enter the amount
Select the preferred validator and enter the amount of NEAR tokens you want to stake. You can also use the percentages to add a fixed percentage of your token.
6. Click “Sign All Transactions”
Finally, tap SIGN ALL TRANSACTIONS to approve your staking. Once the transaction has been executed, you will see your staking under ‘Transaction History.’
The practice of staking is an original method by which users may contribute to the success of a project and the functioning of its associated network while simultaneously receiving a reward.
If you encounter any problem, feel free to contact Near Protocol through their Discord channel. https://discord.com/invite/UY9Xf2k