How to Earn Passive Income with Tezos Every 3 Days!

For a set-and-forget style of earning interest on crypto, Tezos baking is hard to beat.

Keeping some money in a Tezos wallet is a bit like investing in Ethereum or Bitcoin but you earn interest for doing so, all without the headaches of figuring out complex staking derivatives or bridging across chains.

Tezos has an elegant design that makes earning rewards very simple.

Tezos lets you earn passive income through a process called baking. Baking is similar to staking in other networks where you can earn interest on your holdings. You don't need any special technical knowledge and your funds don't leave your wallet, even while staking/baking.

To get started you need some Tezos in a separate wallet and you need to choose a baker. Here's how in 8 easy steps:

1. Get some Tezos (XTZ) from an exchange like Kraken (referral link) or Binance (referral link). You'll need a bare minimum of about 100 XTZ to get started baking with us which is currently around $90 USD.

2. Decide on a baker on tzkt.io. Bakers are computers that validate transactions on the Tezos network. You need to delegate your XTZ to a baker to earn rewards. Review some bakers and consider going with our baking service, Money Every 3 Days.

3. Download the Naan Wallet on your phone. This is an easy to use wallet for baking your Tezos.

4. Create your wallet by writing down the seed words in a safe place. This will give you access to your wallet in case your device gets lost or damaged.

5. Withdraw your XTZ from the exchange. Copy your Tezos address from your Naan wallet (it starts with tz1) and paste that into the Tezos address field on the 'Withdraw Assets' section of your exchange.

6. Withdraw your XTZ from the exchange into your Naan wallet. Paste your tz1 address to send the funds.

7. In the Naan Wallet, click "Earn" to find a baker to delegate to. Select the baker you chose in Step 2.

8. Hold the "Delegate" button to complete the delegation process.

It's done!

How to check your upcoming rewards

Once delegated, you'll start earning rewards every 3 days which will show up in the Naan Wallet in 23-24 days. A few days after you have delegated, you can check on your upcoming rewards by copying your tz1 address and searching it on Baking-Bad.org

Security concerns

Holding Tezos on a mobile wallet like Naan wallet is quite secure as long as your phone is frequently kept up to date. If you would rather have a dedicated secure cold wallet (not connected to the Internet) you may prefer to use a Ledger Nano S + ($92 USD) or a Trezor T ($219 USD).

Seed phrase

Your funds are secured by a sequence of random words only known by you (called a seed phrase or recovery phrase). Transactions require your approval within the wallet. No one can access your Tezos unless they have your sequence of random words.

Conclusion

Tezos baking is a straightforward way to earn rewards on a blockchain network. You get the benefits of contributing to a decentralized platform along with earning interest on your holdings every few days.

Compared to working out how to stake on other chains or trusting complex DeFi smart contracts, Tezos baking is extremely simple and relatively safe to get started with. Simply buy some Tezos, choose a baker, and delegate - your money will then start working for you earning interest at regular intervals.