Where to stake Avalanche(AVAX) tokens and earn passive income? In this guide an exclusive view on the best places to stake Avalanche crypto!
Over the past decade, we have witnessed the rise of cryptocurrencies and decentralized networks. Also, you may have witnessed the high volatility which is second nature for these very young assets. From an investor’s perspective, this was a good reason to stay away from these risky markets.
As a result of this, the Ethereum blockchain introduced a new way for investors to earn a passive income by holding coins. Moreover, this is a very popular concept that attracts a lot of new investors trying to be profitable in the cryptocurrency markets. Imagine, just the idea of earning additional crypto’s on your bags altogether with high yields makes them willing to take the step to this new industry.
The concept I’m talking about is called staking which in short allows cryptocurrency holders to earn additional cryptocurrency with low risk.
In this guide, I’m going to discuss the best places to stake Avalanche or AVAX tokens. Also, a detailed plan to start staking AVAX tokens on the different platforms.
Best Places to Stake Avalanche
- Binance(Best option for beginners 👶)
- Okex(Best place for Asian investors 🌏)
- Nexo(Best option to lend out AVAX💱)
- Ledger Nano(Best option for offline staking 🔐)
- Avalanche Wallet(Best option for early investors 🐦)
- Avalanche Node(Best option for AVAX whales 🐋)
What is Avalanche staking? What does staking Avalanche mean?
Avalanche employs PoS (Proof of Stake) consensus mechanism, which is different from Bitcoin’s PoW (Proof of Work). If you are not familiar with crypto mining then you must already know that cryptocurrencies are being minted within a decentralized network.
In short, Bitcoin uses a hardware solution for this which is called Proof of Work. On the other hand, there are software solutions called Proof of Stake(PoS) that Ethereum and Avalanche are using to mint new coins.
By staking your AVAX tokens, you help secure the network and earn rewards while doing so.
How does staking Avalanche work?
In general, staking Avalanche from a wallet works by delegating your tokens to validators who process transactions and run the network.
Delegating a stake is a shared-risk shared-reward financial model that may provide returns to holders of tokens delegated for a long period. This is achieved by aligning the financial incentives of the token-holders (delegators) and the validators to whom they delegate.
Additionally, the returns or yield for staked tokens is based on the current inflation rate, the total number of AVAX staked on the network, and an individual validator’s uptime and commission (fee).
Ultimately, no specific technical expertise or investment in costly hardware devices is needed. You just simply lock up your AVAX coins in a wallet and get rewarded while you sleep! 😄
Best Platforms to stake Avalanche Crypto: Comparison
To continue, this comparison guide provides an overview of where to stake Avalanche to earn rewards and a passive income. The research is based on assessing the platform’s features, estimated annual yield, fees for buying crypto, and minimal staking amount.
|📊Platform||💹APY||☑️Min. staking amount||💰Fees||✔️Rating|
|Binance||0.5 to 7.91%||1 AVAX||0.08%|
|Okex||4.95 to 15.59%||1 AVAX||0.10%|
|Nexo||17%(*)||1 AVAX||0.1 – 0.5%|
|Ledger Nano||11%||25 AVAX||1.7 – 4.5%|
|Avalanche wallet||11%||25 AVAX||–|
|Avalanche Validator||11%||2000 AVAX||–|
* Nexo is a Crypto Lending platform and doesn’t offer staking services, however, Avalanche is cooperating with Nexo on this.
Staking Avalanche(AVAX) at Cryptocurrency Exchanges
If you already have an account at Binance or Okex and practice some cryptocurrency trading already, then the easiest way would be to start staking AVAX there. Below I’ll explain the options you have for staking Avalanche on the most popular exchanges in the world.
Based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform on a daily basis. Besides trading, Binance offers several other feature-rich products, including custodian wallets, crypto margin trading, lending service, and earning rewards with staking.
Trading a Binance can be done with almost zero fees(0.075%) and you can use this link when signing up. It will give you an additional 10% discount on fees for life 🙂
At the time of writing, Binance offers 50(+) staking products such as AVAX for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees involved when staking AVAX tokens on Binance.
POS staking Avalanche on Binance
The benefit of staking AVAX on Binance is that cryptocurrency traders can opt to stake Avalanche tokens while waiting for a trade. Traders can benefit from the staking rewards in addition to potential trade profit.
Steps to start Avalanche staking at Binance
To start with staking Avalanche(AVAX) at Binance, follow these steps:
- Create a
- Navigate at ‘Finance’ at the top menu and choose ‘Binance Earn’
- Enter AVAX in the Dropdownlist(just below ‘Binance Earn‘ header)
- If you don’t have AVAX funds in your wallet ‘Market buy’ some or deposit
- Click ‘Stake’ button and store AVAX tokens here
For unstaking Avalanche(AVAX) on Binance, you have to wait one 1 day or 24 hours if you are using the ‘Locked staking’ feature. After this period your funds will be available in your spot wallet.
|🔔 If you are interested in trading, buying, or selling crypto(Solana) but don’t have experience with a trading interface. Read my helpful guide: Start crypto trading at Binance.|
Okex is a trading platform specialized in cryptocurrencies and has its headquarters in Beijing. Besides delivering service for Bitcoin exchanges and trades, the platform is also a payroller and lending app for retailers.
Particularly, Okex is part of the bigger Okcoin consortium specialized in online futures trading. In 2018, Okcoin migrated its futures platform with cryptocurrencies which resulted in the Okex platform. One of the big benefits of this Okcoin migration is that Okex has strong liquidity in BTC/USD and LTC/USD trading pairs.
OKEX a popular platform to stake AVAX
Okcoin maintains two leading entities, whereby one has its focus on the Chinese internal market. In addition, the other entity has a broader focus aimed at the global market and has its headquarters in Hong Kong.
Okex and Okcoin together are one of the bigger cryptocurrency exchanges in the world. For instance, if you take a look at their trading volume which exceeds 4.8 billion US dollars in just 24 hours.
At the time of writing, OKEX offers 50(+) staking products such as AVAX for its users to enjoy free staking rewards by simply depositing and holding coins on their platform. Moreover, there are no fees involved when staking AVAX tokens on OKEX.
Important: Sign up with this link and buy $100 in AVAX. Additionally, you get $15 in AVAX back when trading at Okex.
Steps to start staking Avalanche at OKEX
- Create a
- Navigate at ‘Finance’ at the top menu and choose ‘Earn’
- Scroll a bit down and enter AVAX symbol in search bar
- Now click select button
- Choose the appropriate staking period and click ‘Subscribe‘
- Finally enter the amount of AVAX and click ‘Continue’
- Avalanche staking should start immediately
For unstaking Avalanche(AVAX) on OKEX, you have to wait one 1 day or 24 hours if you are using the ‘Locked staking‘ feature. After this period your funds will be available in your trading account.
|🔔 If you are interested in trading, buying, or selling crypto(AVAX) but don’t have experience with a trading interface. Read my helpful guide: Start trading crypto at OKEX.|
Recently, Nexo which is a crypto lending platform has started to cooperate with the Avalanche team in order to expanse the network. Additionally, the main reason for this is that Avalanche blockchain has the ability to interoperate with several other blockchain networks like Ethereum.
In other words, the Nexo platform doesn’t offer you direct AVAX staking services, however, because of the cooperation and high-interest earnings opportunity(17%!) I decided to add the platform to this guide. So, what is Nexo all about?
Nexo is one of the most recognized and used crypto loans platforms for Bitcoin and stablecoins like USDT or USDC. Particularly the platform is a crypto-backed asset provider where you deposit crypto and earn interest or can get a loan.
How to get 17% APY with AVAX on Nexo
At the moment it isn’t possible for AVAX holders to deposit to the Nexo platform directly. So if you are a holder of AVAX and want to deposit there, I would strongly recommend converting your AVAX to a stablecoin like USDT. The next step will be to deposit these tokens(USDT) to Nexo. So how to get the 17% APY from here?
- On the Nexo platform ‘Swap‘ your USDT to AVAX tokens where you automatically will receive 12% APY
- Become a Platinum Loyalty tier client where 10% of your token balance will be NEXO tokens(14% APY)
- Opt to earn your interest in NEXO Tokens for up to 2% additional interest.
- Create a 1-month Fixed Term for an extra 1% interest.
Example: Value of AVAX assets in your Nexo account: $10,000
Value of NEXO Tokens required for you to get the highest interest: min. of $1,000 in NEXO Tokens
Staking Avalanche(AVAX) from crypto wallets
Next, a list of cryptocurrency wallets you can use to stake Avalanche tokens without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake Avalanche give you full control over your cryptos.
Ledger Nano hardware wallet
If you favor being in full control of your own cryptos then the Ledger Nano hardware wallet should be it. Particularly, the Ledger Nano wallet is a USB storage wallet with Bluetooth connectivity available.
Also, this way it’s possible to store your cryptocurrencies offline which is the most secure option. Furthermore, the wallet enables users to perform a wide variety of functions, including sending and receiving bitcoin from blockchains or running third-party apps on the device.
Besides storing coins on the wallet, users can also purchase new crypto because of Ledger wallet uses a built-in exchange feature. This feature uses a third party(Coinify) so buying comes at a cost: 4.5% credit card fees or 1.7% for bank transfers.
Staking Avalanche with Ledger Nano
Firstly, I want to mention that AVAX staking isn’t officially supported by Ledger and therefore you can only store tokens offline with this device. However, if you favor keeping your private keys offline then you can still do this in combination with the Avalanche web wallet.
Particularly, this wallet is designed by the Avalanche developers community and has a built-in hardware wallet feature. More on this will be explained in the next chapter. More info on configuring Ledger with Avalanche can be found here.
|⚠️ Warning: Always make sure to buy your Ledger Nano devices from the official online store. In fact, third-party sellers have been known to tamper with Ledgers.|
Are you an early bird investor in Avalanche and acquired at least 25 AVAX tokens? If so, then it would be a good idea to use the Avalanche wallet for staking and also keep control over your private keys.
After all, this is the most secure option where you remain owner over your crypto no matter what happens elsewhere. How to stake Avalanche here? The answer is to use delegated staking from within the Avalanche wallet.
What is the Avalanche Wallet?
Firstly, a more thorough explanation of the Avalanche web wallet. Particularly, the Avalanche Wallet is a web-based application with no middleware or any kind of server communication. In other words, it can be accessed by your browser from anywhere in the world and is directly connected to the nodes of the Avalanche network.
Also, if you favor running this wallet on your device then you can install this wallet on your local PC and manage your account from here.
Staking AVAX with the Avalanche Wallet
So how can you stake at least 25 AVAX and earn 11% APY in a very secure way? Below are the steps for delegated staking on the Avalanche Wallet.
- In the Avalanche wallet click on ‘Earn‘ in the left menu
- Staking can be done on the P-Chain so you must transfer you AVAX first
- Enter the amount of AVAX you wish to transfer(Cross Chain Transfer)
- Click ‘Transfer‘ button
- Select a validator out of the list of ‘nodes to delegate’
- Specify staking period and stake amount
- Confirm the details
- AVAX delegated staking should start immediately
Staking AVAX with Ledger Hardware wallet
As stated earlier in this guide, you can also use a hardware wallet like Ledger Nano to store the private keys offline. Also, you can use this device in combination with the Avalanche web wallet to stake AVAX. How to do this?
- Make sure you have at least 25 AVAX stored with Ledger device
- Go to the Avalanche Wallet url
- Click on ‘Acces Wallet’
- Next choose ‘Ledger‘ to access your wallet
- For delegated staking see steps above
Run your own Validator Node
Are you the owner of a big stash(2000+) of AVAX tokens or in other words an Avalanche whale? Maybe it’s time to let this huge crypto capital work for you. Additionally, the best way to do this is by running an Avalanche validator node.
What is an Avalanche Validator Node?
Firstly, to become an Avalanche validator it is necessary to keep a minimum of 2000 AVAX tokens locked in stake. When you run a validator node you become a node operator within the entire network of nodes.
Moreover, each node stores a copy of the blockchain and must perform certain functions to keep the system secure.
At current prices 2000 AVAX is a huge investment and not accessible to everybody, however, the rewards are higher and calculated at an APY of 11%.
Also, you can delegate your stakes to other validators. In both cases, you keep the private keys under your control which is a big benefit if you favor being sovereign at all times.
Other blockchain networks that are using PoS staking like Polkadot for instance, are punishing validator nodes when they are not 24 hours online. Moreover, you could even lose all the rewards you previously collected.
Luckily, Avalanche doesn’t use this penalty mechanism and when a node disappears for a few hours or even days the rewards to this node will be paused.
How to setup a Validator Node?
Configuring a validator node isn’t that easy, however, if you are familiar with running nodes in the crypto space then this isn’t rocket science. For running a validator you have two options: a PC connected to the internet for 24 hours or running the node from a VPS. Below are the minimum specs for setting up your validator node:
- CPU: 8 Core => 2 GHz
- RAM: 16 GB
- Storage: 200 GB free space
- Ubuntu => 18.04
- Mac O.S >= Catalina
IPv4 or IPv6 network connection, with an open public port, capable of at least 30Mbps throughput.
Is staking Avalanche worth it?
Staking Avalanche is currently a very popular method among crypto enthusiasts to generate passive AVAX income with zero risks. In this guide in which I covered where to stake Avalanche in greater detail, I also compared the different platforms in terms of rewards and lock-up periods.
Additionally, the idea of staking Avalanche(AVAX) is simple where every single AVAX token will generate new ones. Moreover, Avalanche or the AVAX token is a rising asset in terms of value where even holding a small amount can make a difference in the long run.
All in all, whatever option you decide to choose, staking AVAX is a perfect solution for you to earn additional cryptocurrency while you sleep.
The following articles might also be a good read for you:
- 7 Best Exchanges To Buy Avalanche Crypto
- Top 5 Do’s and Dont’s of Cryptocurrency Wallets
- Exclusive: Use AVAX with Metamask(3 Options)
- Crypto Lending vs Staking: Which concept generates the most Passive Income?
- 7 Reasons Why You Should be Staking Your Crypto
📣Important: List of top Crypto Projects
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