Since its beginning in 2017, Solana has grown to emerge as one of the most well-known open-source blockchains. It has also maintained a position in the top 10 cryptocurrencies both in terms of market capitalization and the amount of staked coins. The proof-of-stake consensus technique is used as the foundation for the Solana protocol.
Due to this, members of the community have the ability to store their tokens in a smart contract (via a wallet or a cryptocurrency exchange), at which point they will be eligible for a variable rewards rate. In this comprehensive, we will go into the myriad of ways in which you may make the most of your investment in Solana and evaluate the top 9 platforms where to stake Solana.
What Is Solana?
Solana is a blockchain network that is open-source and has smart contract capabilities. It is well recognized for the rapid transaction speeds it offers as well as the extensive number of NFT marketplaces and DeFi solutions it provides. In order for smart contracts to be carried out on the blockchain network, Proof-of-Stake and Proof-of-history are utilized.
Validators are given rewards in the form of an annual percentage yield, often known as an APY, which functions in the same way as an interest rate. Rewards are given out to validators as well as participants that stake SOL tokens. In addition, there are many top platforms where to stake Solana.
Can You Stake Solana?
SOL owners can take part in the staking system by providing their tokens to a node. This can be done in one of two ways: either the SOL owner can run the server themselves, or the SOL owner can “delegate” their investment to another pool. They will receive a rewards rate that is variable as a result of this direct contribution to the economic security of the network that they are helping to create.
Solana is one of the best options available for making money through staking because it provides a very competitive staking payout and has an active ecosystem. To summarize, considering the overall amount locked in, which was expected to be 44 billion at the time this article was written, Solana is one of the greatest cryptocurrencies to stake.
As a result of the widespread adoption of staking SOL tokens, Solana’s variable reward rate may occasionally be lower than that of its rivals. It’s possible that other Proof-of-Stake (PoS) staking protocols, like Cardano and Ethereum’s, will produce a higher yield than Solana. However, Sol is still among the best coins to stake and there are a number of good places where to stake Solana.
How Much Can You Earn Staking Solana?
Those who own Solana tokens and stake them will be eligible for a reward, the specifics of which will depend on the manner of staking, the platform or exchange that was utilized, and the number of SOL tokens that were staked. Although various platforms may provide higher or lower rates, the APY for staking Solana can range anywhere from 5–7%. Other elements that have the potential to influence the interest rate for staked tokens include the following:
- How many more people than those already mentioned are betting on the network?
- Validators decide the commission rate, often known as the fee. This can be anywhere from 0% to 10% or more.
- The rate of inflation that is current for SOL
As an illustration, an investor who invests 10,000 SOL at an APY rate of 6% has the potential to earn 600 SOL at the end of the year. Only estimates are provided for the staking reward rate on wallets and exchanges, and these estimates are subject to regular revision.
Where To Stake Solana To Earn Rewards
The most effective methods for staking cryptocurrencies include using crypto wallets and exchanges that provide soft staking to delegate one’s Solana coins in order to make a passive income. Continue reading this article if you want to learn how to stake cryptocurrency by using these platforms.
This article provides a comparison of the leading exchanges that offer support for SOL staking. Even though the information was correct when it was written down, the staking incentive could shift in the future based on the provider, validators, and network.
Top Exchanges For Solana Staking: Reviews 2022
You can choose to stake your Solana tokens on any one of a large number of various platforms in order to gain rewards. Decentralized staking service providers and centralized exchanges like FTX, Binance, or Huobi are examples of these types of companies.
After taking into account the highest yields, the best security, and the deepest liquidity, our analysis has determined that the following are the 9 best places where to stake Solana:
1. Binance
Binance is by far the most popular cryptocurrency exchange in the world; its daily volume routinely exceeds that of its closest competitors by a factor of eight, making Binance the clear winner. A significant portion of its success can be attributed to the abundance of services that it provides, which includes one-of-a-kind earning opportunities, a marketplace for NFTs, and the opportunity to trade derivatives.
Binance, which is one of the best exchanges to buy Solana and which began SOL staking in February 2021 with an initial rewards rate of 43.79% APY, is also one of the best exchanges to sell Solana. This exceptionally high yield gradually decreased as staking gained more popularity. However, Binance continues to its SOL owners with competitive rates and a minimal barrier to entry, making the platform appropriate for all kinds of investors.
Users of Binance have the option of locking up their SOL for durations of 30, 60, or 90 days. When the duration of the lock-up period is increased, the predicted yield also increases. Because the expected profits for staking for the several set durations range from 9.28% to 10.23% to 13.47% APY, respectively, this platform is considered to be one of the best available for staking SOL.
Binance computes its interest on a daily basis. However, users who redeem their staked tokens before the redemption rate will no longer have access to any rewards that have been accumulated up to that point. Binance is our top pick for the best SOL staking platform due to the extensive number of services it provides, as well as the convenience with which it can be used, and the high annual percentage yield it offers.
2. Coinbase
In June 2022, Coinbase added Solana staking to its list of assets, which means that users can now deposit Solana into the platform’s staking wallet in order to earn rewards. Coinbase Solana staking is an excellent innovation that eliminates the requirement of setting up a staking service and becoming a validator. This is a welcome change given that the provision of staking coins was relatively limited in the past.
People who invest their Solana tokens on Coinbase will automatically get SOL token payouts every three to four days. The APY for staking Solana on Coinbase is now around 3.85%, although this number is subject to vary depending on how the market is performing. A low barrier of entry for newcomers is provided by the fact that the minimum amount required to start staking SOL in a Coinbase wallet is merely one dollar.
In addition, the funds are not held hostage during the staking process and can be withdrawn at any time without penalty. The convenience offered by Coinbase makes staking Solana a desirable option for users. There is no need for extensive technical expertise or prior knowledge of staking in order to utilize the exchange because it provides a user interface that is user-friendly for beginners.
Coinbase is the best platform where to stake Solana because the platform takes its security so seriously, investors can rest easy knowing that their Solana investments are protected from harm. The only potential drawback is that the terms and conditions stipulate that the staking costs will be 25% of any winnings.
3. FTX
Sam Bankman-Fried, one of the most well-known figures in the sector, is behind the creation of the cryptocurrency platform known as FTX Exchange. FTX was established in 2019 and has quickly become one of the most prominent cryptocurrency exchanges for spot trading as well as futures trading. Not to mention that the exchange supports a diverse selection of marketplaces and assets that may be traded, such as the possibility to stake four tokens, one of which is Solana.
It is important to note that FTX.US does not directly support staking. Nevertheless, users can send payments through the FTX app in order to stake their coins. Users located outside of the US can take advantage of the foreign FTX desktop version or app to earn an APY of roughly 6%, with rewards being distributed to the SOL wallet on a daily basis. There is a seven-day period after the tokens have been unlocked during which they will not earn prizes.
Alternatively, SOL tokens can be un-staked and released instantly for a cost of 10%, which would effectively wipe out the staking earnings. Despite the fact that the predicted APY for Solana is comparable to the on-chain staking payouts provided by other platforms (with the exception of Binance), the user experience provided by FTX is difficult to navigate and is not appropriate for novice investors.
Above all, please keep in mind what recently happened with FTX exchange.
4. Kraken
Kraken is a well-known and well-developed trading platform that also functions as an exchange for crypto investors and traders. Even though it has an outdated user interface, this cryptocurrency exchange is trustworthy and safe to use for buying, trading, staking, and selling cryptocurrency. In July of 2021, Kraken began offering international support for staking Solana, with an initial APY being offered at 6.5%.
One of the benefits of participating in Kraken staking is the ease with which one can receive rewards on SOL tokens. After Solana has been either transferred or acquired, the wallet can be activated by going to the “Earn” area of the platform, selecting “Staking,” and entering the quantity of SOL to stake. This will cause the wallet to be credited with the appropriate amount of SOL.
When compared to rewards offered by other exchanges such as Binance, the current on-chain staking reward of 6% to 6.5% APY is comparable. Nevertheless, one of the benefits of SOL staking on Kraken is the flexibility of the staking terms. On some other sites where to stake Solana, you are required to go through a “locking period,” during which your coins are effectively frozen and cannot be traded or withdrawn without incurring a fee.
Since Kraken’s staking system is flexible, users who have deposited at least 0.2 SOL into the staking contract are eligible to earn rewards and can withdraw tokens whenever they like. Due to this, Kraken is an excellent choice for cryptocurrency traders who are interested in accumulating rewards on Solana while they wait for time to trade.
5. Crypto.com
In a short amount of time, Crypto.com has established itself as one of the most important apps in the cryptocurrency market. Over the past several years, Crypto.com has significantly increased its prominence by taking steps such as obtaining the naming rights to a stadium in Los Angeles and forming a partnership with the sports team Paris Saint-Germain. Although at first the platform only consisted of straightforward crypto software, it has steadily been expanding its range of financial offerings in recent months.
NFT markets, crypto debit cards, and a robust exchange that supports coin staking are all desirable features for a cryptocurrency ecosystem. The convenience of using Crypto.com to stake Solana is one of the advantages of doing so. Once the soft-staking mechanism has been activated, the assets contained within the wallet will start to collect staking rewards on their own accord. SOL incentives are distributed on a daily basis, and this amount includes any Solana tokens that were used to pay for orders that were placed on the exchange but have not yet been fulfilled.
There is a cap on the amount of Solana that may be staked in order to gain rewards, and it is set at USD 10,000 or the token balance equivalent of USD 100,000. Staking Solana on Crypto.com offers a payout of either 1% APY or 2% APY, the amount of which is determined by whether or not the user is also staking CRO tokens. If more than 100,000 CRO tokens are staked on the exchange, then the larger SOL reward will become available for unlocking.
6. Huobi Global
Huobi Global is a cryptocurrency exchange that has been operating successfully since it was founded in 2013. The popularity of the exchange has skyrocketed, and it now has offices in the United States, Japan, and Hong Kong. Additionally, it provides its services to a wide variety of countries. At first look, the APY that Huobi offers for staking SOL appears to be relatively low, coming in at around 3.5% APY.
For instance, a user who stakes 100 SOL tokens will receive 0.0095 SOL per day, subject to variations in the staking payouts. This amount is subject to change. In contrast to other exchanges where to stake Solana, Huobi distinguishes itself by providing a link to the validator node. This link can be inspected by using a tool called Blockchain Explorer, and it offers complete transparency regarding the tokens that have been delegated within the staking pool. There is also a 5-day period during which you cannot stake your claim.
There are certain time-sensitive special offers available on Huobi, such as ones in which users can win free SOL by taking part in community events. In addition to this, the site will occasionally run staking promotions through Huobi Earn. The APY on these options can often reach as high as 50%, which is an exceptionally alluring interest rate. Even if Huobi might not be the most obvious first choice for staking SOL, it is nevertheless in an investor’s best interest to keep a watch on their various promotions.
7. Exodus Wallet
Exodus is a free wallet that can be used on desktop computers as well as mobile devices, and it allows you to not only store but also stake your SOL tokens. You can stake a number of different tokens by clicking on the Rewards page, one of which is the Solana token, which currently offers an APY of 5.23% and has an anticipated staking duration of 4 days. If you do not currently possess any SOL to stake, you are able to get some through the Exodus wallet’s internal exchange.
However, you should be aware that because of the significant spreads, this will not be the most cost-effective method for exchanging your tokens. On the other hand, this eliminates the necessity of exchanging and transferring your tokens from one platform to another. When you stake SOL using Exodus, you will be using the Everstake API provider for your staking transactions.
8. Phantom Wallet & Ledger Nano
Phantom Wallet is Solana’s alternative to custodial wallets like Metamask. It functions in a manner analogous to that of Metamask. Users of Phantom Wallet are granted the ability to safely store and stake SOL tokens while retaining access to their private keys. In addition, if you want an additional layer of protection, you can connect Phantom to a Ledger hardware wallet.
You will be given a list of validators to select from while you are staking your SOL within the Phantom Wallet. You are responsible for making this selection. It is imperative that you do research on these Validators before leaving them with the responsibility of earning your interest. Before you stake with your validator, all of the information, including the commission rate of the validator and the number of delegators who are active at the moment, will be broken down.
9. Solflare Wallet
One of the most widely used wallets for use with the Solana blockchain is Solflare. The team estimates that at least 24% of the circulating supply of SOL is being staked through the use of Solflare. The Solflare wallet is available in a variety of forms and extents, from which you can select the option that best suits your requirements. You may get to the web version by using the Solflare wallet. There is also a desktop version.
You also have the option of installing the Solflare extension on either your Chrome or Firefox web browser. If you are familiar with other browser extension wallets, such as MetaMask, this will be the most suitable option for you. Additionally, Solflare is working on a mobile wallet, which is expected to be released in the near future. Solflare is our top pick for where to stake Solana because it offers robust security to its users.
Conclusion
The most reliable method for earning interest or income on your Solana tokens is to stake them. In light of this, you should be aware that there is a spectrum of risks associated with the many platforms where to stake Solana and receive rewards. Because centralized platforms offer some type of insurance as a safety net, experts normally advise new users to stick to using them rather than decentralized ones. There is a possibility that decentralized platforms will not provide the same assurances, and as a result, they may present a greater threat to the security of your funds.
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Frequently Asked Questions
What is Solana and why is it popular for staking?
Solana is a fast, open-source blockchain known for low fees, high throughput, and a growing DeFi and NFT ecosystem. Its use of Proof-of-Stake and Proof-of-History enables users to stake SOL tokens to earn passive income, making it one of the top networks for staking.
Can you stake Solana tokens directly?
Yes, you can stake SOL by running your own validator node or by delegating your tokens to an existing validator through wallets or exchanges. Delegating is the most common and accessible option for everyday users.
How much can you earn from staking Solana?
APY for staking Solana typically ranges from 5% to 7%, depending on the platform, validator commission, and network conditions. Some exchanges offer higher promotional rates, but rewards are variable and can change over time.
What are the best platforms to stake Solana in 2022?
Top platforms include Binance, Coinbase, FTX, Kraken, Crypto.com, Huobi, Exodus Wallet, Phantom Wallet with Ledger integration, and Solflare Wallet. These platforms vary in APY, ease of use, lock-up periods, and fees.
What should you consider before staking SOL?
Look at factors such as APY, validator trustworthiness, fees, withdrawal flexibility, and platform security. Beginners may prefer centralized exchanges for simplicity, while advanced users might opt for non-custodial wallets for more control.
