What is the best hardware wallet for staking crypto offline? This article gives some reliable options for hardware wallets that support staking and earning yields.
When you decide to join the crypto staking process with your funds you become part of the underlying blockchain network. Meaning, with crypto staking you start validation transactions on the blockchain itself. Moreover, by participating in this process you will earn additional rewards in the form of crypto tokens.
However, staking is not risk-free. Usually, you have a lockup period where you can’t sell your crypto investments. Meaning, if markets are crashing you can’t sell. Also, staking at third-party exchanges can get you hacked and risk a loss.
There are some ways and steps you can take to lower the risk. You can move away from staking your digital assets on crypto exchanges, like Binance, Nexo, or Kraken, and use a hardware crypto wallet, known as cold staking. There are more and more (cold) hardware wallets on the market, so you have plenty of different options.
In this article, we’ll deep dive in finding the best hardware wallet for staking crypto offline.
Best Hardware Wallets for Staking
Below is a list of reliable hardware wallets that support offline staking:
- Ledger Nano X – Best hardware wallet for staking(Overall)
- Ellipal Titan – Supports the main PoS coins
- Safepal – Best for staking DeFi coins
Ledger Nano X: Best Cold Wallet For Staking
Ledger was founded in 2014 and had its headquarters in Paris. The founders are eight experts with backgrounds in embedded security, cryptocurrencies, and entrepreneurship.
The company grew to 300 employees spread worldwide with offices in Paris, Vierzon, New York, Zurich, and Singapore. At the time of writing, the company has sold more than 3,000,000 devices worldwide.
Particularly, the Ledger Nano X is a highly secured and trusted hardware wallet, and you can buy, swap and stake your assets in one place. Additionally, it supports third-party apps, which makes staking very convenient and easy.
How To Stake Crypto with Ledger Nano X
To start using this hardware wallet for staking, you have two options:
- Staking crypto with the built-in Live App
- Use a third-party wallet in combination with Ledger Nano X
Staking Crypto with Ledger Live
To start staking crypto by using the Ledger device only you have to follow these steps:
- Install your Ledger Live to your computer and create the account
- Select the app you want to install on your device for staking
- Buy crypto through the app or transfer funds to your device
- Click the Earn Rewards button on the coin you want to stake
- Select the amount you want to stake, and start staking and earning rewards.
Using Ledger with a Third-party wallet
First, you have to find the hardware wallet provider for the coin you wish to stake. Examples are:
The Avalanche wallet, MyEtherWallet, or Electrum, but there are many more! Steps for starting cold staking crypto with a Ledger:
- Choose the third-party wallet you wish to stake
- Connect it with your Ledger device
- Add funds to your device and start staking
Remember that if you want to use the Ledger device only for crypto staking the number of options you have are limited. Meaning with Ledger Live App, you can only stake 11 cryptocurrencies: MATIC, SOL, ALGO, EGLD, ATOM, CRO, TRX, ADA, XTZ, DOT, and ETH.
Ellipal Titan: Cold wallet for Staking POS Coins
Ellipal Titan is a fully air-encapsulated hardware wallet that relies only on QR codes for data transmission. Where other hardware devices are mostly using USB or Bluetooth Ellipal does not rely on these connections. Going with Ellipal Titan as your choice of crypto hardware wallet means choosing an option that is air-gapped.
In particular, the Ellipal Titan is made of a single piece of metal to create a sealed environment. It cannot be opened without destroying the circuits inside. Improved usability with Dark Mode and other updates.
Finally, to send your crypto to this device it will generate a QR code that you can use for the transaction.
Staking Crypto with Ellipal device
To start using this hardware wallet for staking you have to be a more advanced crypto user. Meaning, to start staking crypto you have to delegate your funds to a node-validator. Below are the steps for staking crypto with Ellipal:
- Connect the wallet with the Ellipal Mobile App
- Select or add the crypto you want to stake in the App
- Select Staking and Delegate.
- Choose one in the list of delegate nodes.
- Enter the staking amount.
- Select Delegate, and carefully review the screen with the QR code and the additional information.
- Sign transaction using the QR codes on both the wallet and the app.
- Select Complete on your mobile, and your crypto will be staked.
Finally, it is good to know that the options in staking crypto coins are limited. At the time of writing, the following coins are supported with Ellipal: ADA, KSM, DOT, ATOM, and XTZ.
Safepal: Hardware wallet for staking DeFi
Safepal is another modern crypto cold wallet that uses WiFi, USB, Bluetooth, and Airgapped devices. Particularly, the SafePal S1 enables you to secure, send, buy, swap, and exchange crypto in the easiest way. For storing crypto offline this device supports 54 blockchains. In other words, you can now manage unlimited cryptocurrencies all in one SafePal S1. Finally, paired with the SafePal App, you are able to secure and manage crypto anytime, anywhere.
Staking DeFi coins with Safepal
To start cold staking crypto with Safepal you need to install an App first: SafePal Earn. Even though providing yields with DeFi coin isn’t for beginners, the Safepal earn app makes staking very convenient. In general, you have to follow these steps:
- Select a liquidity pool
- Enable your LP tokens
- Deposit your LP tokens
More details on how to stake DeFi coins offline with Safepal can be found here.
Why use a Hardware Wallet for Staking Crypto?
Using hardware wallets for cryptocurrency staking has some benefits compared to staking with software wallets (like Trust Wallet or Atomic Wallet) and exchanges like Binance or Coinbase.
Generally speaking, hardware wallets provide enhanced security and offer users full control of their digital assets. Staking via hardware wallets allows investors to choose their own validators and maintain ownership over their crypto holdings.
While hardware wallets provide offline storage, it’s important to understand that the crypto itself remains online on the blockchain. Besides, Hardware wallets, such as Ledger, are noncustodial and give users complete control over their private keys and crypto assets.
In detail, here is a short list of advantages of staking with hardware wallets:
Benefits of Staking with Hardware Wallets
- Enhanced Security: Hardware wallets are considered the safest way to maintain control of digital assets. Staking through a hardware wallet provides an additional layer of security compared to software wallets or exchanges.
- Full Control: Hardware wallet staking allows investors to own and control their crypto holdings entirely. Users have full control over their private keys and can choose their own validators.
- Freedom to Choose Validators: With hardware wallet staking, users have the freedom to select the validators they want to support. Additionally, this choice is not available when staking through exchanges, providing more flexibility and control.
- Offline Storage: Hardware wallets offer offline storage, commonly known as “cold staking.” Although the crypto remains online on the blockchain, the private keys stored in the hardware wallet provide an extra layer of protection against online threats.
- Noncustodial Solution: Hardware wallets are non-custodial, meaning users are solely responsible for their private keys and crypto assets. On top of this, it eliminates the need to rely on a third party and reduces the risk of asset loss or seizure.
How Does Crypto staking with a Hardware wallet work?
Staking crypto with a hardware wallet requires you to choose a validator node that does the staking for you. This allows you the freedom to delegate any small amount of cryptocurrencies and earn rewards proportional to the number of tokens you stake. Additionally, you won’t need any equipment, or to keep your computer running all day long; someone else does the technical parts of the job for you.
In other words, by staking with a hardware wallet you keep your coins in your wallet during the whole staking period. Most PoS(Proof-of-Stake) blockchain networks enable delegation. This is where holders of the network’s native coin(Solana, Fantom, or Ethereum) can contribute their coins to a validator node.
The delegator will then earn a percentage of the rewards accrued by that node. This helps the validator node by increasing its chances of being selected by the network to perform work. Meanwhile, the delegator can earn rewards without undertaking the efforts of becoming a validator.
Hardware Staking and Rewards
Consequently, the rewards you earn for delegating your coins to a validator are proportional to your stake. But you’ll also pay a small commission to the validator, as a service fee for the efforts of maintaining the node, etc. Fees vary significantly depending on the validator and the protocol. However, these are clearly stated at the outset, enabling you to understand the yield before bonding your coins.
All in all, staking crypto with a hardware wallet gives you the ability to remain in control over your funds the whole time and you will earn an additional passive income by doing so. Moreover, staking your cryptocurrencies can bring you an annual return between 5% to 14%.
Recommended: Start Liquid Staking Crypto with MetaMask
Conclusion: Best Hardware Wallet for Staking
If you are serious about your crypto investments and want to earn additional passive income, staking with hardware wallets has some benefits. For instance, hardware wallets provide enhanced security and offer users full control of their digital assets. Staking via hardware wallets allows investors to choose their own validators and maintain ownership over their crypto holdings. While hardware wallets provide offline storage of private keys, it’s important to understand that the crypto itself remains online on the blockchain.
Also, it totally depends on the level you are as a crypto user. Meaning, if you already know how crypto transactions work, how to choose validators, or use third-party wallets for staking assets you will be self-sovereign and in full control of everything. Take all of this into consideration and decide which option suits you best. Overall, to start using a hardware wallet for staking crypto you have the following best options:
- Ledger Nano X
- Ellipal Titan
Cheers, and take care 👍
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