Celo is an EVM-compatible blockchain, centered around the principles of being mobile-first to make DeFi tools accessible to anyone with a smartphone. Celo has a native asset (CELO) and various algorithmic stablecoins (currently; cUSD, cEUR, and cREAL). The goal of these stablecoins is to provide low-cost transfers of value, such as remittances, cross-border payments, and online payments. CELO provides security through staking and policy through on-chain governance.
As a user, it is important to use a Ledger hardware wallet to self custody your assets. Self custody means that the owner(s) of digital assets control the private key that enables the transfer of their digital assets. It is very important to keep this private key written down, and stored safely offline. Ledger has a blog post here on the best way to store your private keys.
Keep in mind, If your assets are on an exchange, the exchange controls your assets and gives you permission to move those assets off of the exchange. If the exchange is compromised, your assets can be irrecoverably lost. There are many examples of this happening in the past. If you have substantial assets on an exchange, we strongly suggest self custody your assets on a ledger hardware wallet.
Protocol Staking is a way to earn rewards by securing tokens on a Proof of Stake network.
Tokens can be staked, or locked into a protocol in exchange for the chance to produce a block, which in turn you receive a reward. Locking your tokens is essential for the operation, security, scalability, and decentralization of the protocol. Staking your tokens allows you to earn new issuance (also known as inflation) subsidies, and fees generated from the network.
Staking through the Ledger Live app gives the user full control over their assets through self custody.
While there are other staking options available, like utilizing third-party custodial solutions, or staking through exchanges, staking through these methods typically means that you don’t truly own and control your digital assets. Sometimes these staking solutions also have drawbacks such as complexity, security flaws, and lockup periods.
In contrast, staking through Ledger has clear benefits: