Where to stake LUNA tokens and earn passive income? In this guide an exclusive view on the best places to stake LUNA crypto!
Passive income is a very popular strategy that the rich use to acquire additional wealth. In fact, there are many ways to generate a passive income that is still available today. However, there are new options that are growing and expanding in the cryptocurrency market.
One concept 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 LUNA or LUNA tokens. Also, a detailed plan to start staking LUNA tokens on the different platforms.
Best Places to Stake LUNA
- Binance(Best option for beginners)
- Okex(Best exchange for Asian investors)
- Kraken(Best exchange for US residents)
- Trust Wallet(A very popular multi-currency wallet)
- Terra Station(Official wallet of the Terra blockchain)
- Ledger Nano(Offline hardware wallet)
So what is LUNA token all about? In particular, LUNA is the native currency of the entire Terra blockchain network to achieve price stability for all stablecoins that Terra uses. In other words, the Terra network houses different stablecoins and the LUNA coin should protect the integrity of this stablecoin-mechanism.
What is Staking LUNA? What does Staking LUNA mean?
Terra(LUNA) 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 Solana are using to mint new coins.
By staking your LUNA tokens, you help secure the network and earn rewards while doing so.
How does LUNA Staking work?
In general, when you stake LUNA from a wallet you do this 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 LUNA 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 LUNA coins in a wallet and get rewarded while you sleep! 😄
Best Platforms to Stake LUNA Crypto: Comparison
To continue, this comparison guide provides an overview of where to stake LUNA to earn rewards and a passive income. The research is based on assessing the platform’s features, estimated annual yield, staking type, and level(crypto user).
|Binance||9 – 18%||30 – 90 days||Locked||easy|
|Ledger Nano||8%||1 year||Locked||hard|
Staking LUNA at Cryptocurrency Exchanges
If you already have an account at Binance or Kraken and practice some cryptocurrency trading already, then the easiest way would be to start staking LUNA there. Below I’ll explain the options you have for staking LUNA 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 LUNA for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees involved when staking LUNA tokens on Binance.
POS Staking LUNA at Binance
The benefit of staking LUNA on Binance is that cryptocurrency traders can opt to stake the tokens while waiting for a trade. Traders can benefit from the staking rewards in addition to potential trade profit.
Steps to start staking LUNA on Binance
To start with staking Terra(LUNA) at Binance, follow these steps:
- Create a free account at Binance
- Navigate to ‘Finance’ at the top menu and choose ‘Binance Earn’
- Enter LUNA in the Dropdownlist(just below ‘Binance Earn‘ header)
- If you don’t have LUNA funds in your wallet ‘Market buy’ some or deposit
- Click ‘Subcribe’ button and store LUNA tokens here
|🔔 If you are interested in trading, buying, or selling crypto(LUNA) 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 LUNA
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 LUNA 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 LUNA tokens on OKEX.
Important: Sign up with this link and buy $100 in LUNA. Additionally, you get $15 in LUNA back when trading at Okex.
Steps to start Staking LUNA on Okex
- Create a free account at Okex
- Navigate to ‘Finance’ at the top menu and choose ‘Earn’
- Scroll a bit down and enter LUNA symbol in the search bar
- Now click the select button
- Choose the appropriate staking period and click ‘Subscribe‘
- Finally, enter the amount of LUNA and click ‘Continue’
- LUNA staking should start immediately
For unstaking Terra(LUNA) 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 but don’t have experience with a trading interface. Read my helpful guide: Start trading crypto at OKEX.|
Kraken is one of the most reliable and safest cryptocurrency exchanges out there and has been around for a while already. Founded in 2011, Kraken is a US-based cryptocurrency trading platform available in 48 US states and 176 countries. Also, because of its safe reputation, the exchange data is being used as a ticker(BTC/USD) on the Bloomberg terminal.
The Kraken platform specializes in offering Bitcoin trading services for the beginner as well as the professional trader. Besides trading in digital assets, it’s also possible to store your crypto in custodian wallets, crypto lending services, and staking cryptocurrencies.
Spot trading crypto(Bitcoin for example) gives you a fee of 0.16% and this value decreases when USD volume rises. Additionally, margin trading is even cheaper where the rate is set to 0.01%.
Staking crypto-like Terra(LUNA) can be done at Kraken in 15 different cryptocurrencies. The way this works is very simple and straightforward: buy the cryptocurrency you want to stake and transfer it to the staking wallet on the exchange.
Steps to start staking Terra(LUNA) on Kraken
To start with staking LUNA at Kraken, follow these steps:
- Create a free account at Kraken
- If you don’t own LUNA tokens, you can market buy them at the exchange,
- Otherwise, just deposit your LUNA tokens under ‘Accounts’ and then ‘Spot’
- Navigate to ‘Staking’ in the upper menu
- Choose LUNA and click ‘Stake’
- Staking should be starting instantly
Staking Terra(LUNA) from crypto wallets
Next, is a list of cryptocurrency wallets you can use to stake LUNA tokens without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake LUNA give you full control over your cryptos.
Trust Wallet is one of the most popular crypto wallets for users in the crypto space. Moreover, this wallet is built and owned by Binance and it is, therefore, no surprise that you can store your BNB coins here as well.
Another option the Trust Wallet has is that you can browse different DApps that are running on the Binance Smart Chain. A good example is Pancakeswap, a simple way to exchange your BNB for other tokens instantly.
In particular, Trust Wallet is a multi-currency wallet designed to store coins over different blockchain networks on a mobile device. In this way, users that love holding and buying different virtual currencies can hold them all in just one place.
Finally, besides just storing and sending coins you can also stake crypto for additional passive income. Additionally, it is no surprise that Trustwallet also supports LUNA staking here.
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 LUNA with Ledger Nano
Firstly, I want to mention that LUNA 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 Terra Station web wallet.
Particularly, this wallet is designed by the Terra developers community and has a built-in hardware wallet feature.
|⚠️ 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.|
Terra Station Wallet
Terra Station is the official wallet of the Terra blockchain and was developed by the Terra community as an open-source project. Specifically, Terra Station allows you to send and receive LUNA tokens or other crypto coins that use the Terra protocol. On top of that, you can use the wallet to navigate decentralized applications(DApps) powered by smart contracts on the Terra blockchain.
As this wallet is designed to be the official wallet for Terra, it can be used on multiple devices as well. For example, you can download a desktop version of Terra Station or use a lightweight browser extension. This extension enables webpages to connect to the Terra network, allowing them to pull live states and events from the blockchain as well as create new transactions.
Other functionalities that are supported by the Terra Station wallet:
- Swap coins
- Access testnet
- LUNA staking(*)
(*) Staking LUNA coins with the Terra wallet is possible, however, it is advisable that you only do this if you are a more advanced crypto user. For instance, to start staking LUNA with this wallet is only possible through delegated staking(explained earlier).
Stake LUNA coins with Terra Wallet
Before starting to stake LUNA, make sure that you have some LUNA coins in your wallet. Below are the steps for staking:
- Open Terra Station and click Staking
- Choose a node validator in the Moniker column
- Find my delegations section and click ‘Delegate‘
- Now enter the amount of LUNA and click ‘Next‘
- Finalize the transaction
Stake LUNA using Ledger Nano
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 Terra Station wallet to stake LUNA. How to do this?
- Make sure you have some LUNA stored with Ledger device
- Go to the Terra Wallet URL
- Click on ‘Connect’ button above
- Next, choose ‘Ledger‘ to access your wallet
- For delegated staking see the steps above
Final Words: Is staking LUNA worth it?
Staking Terra(LUNA) is currently a very popular method among crypto enthusiasts to generate passive crypto income with zero risks. In this guide in which I covered where to stake LUNA in greater detail, I also compared the different platforms in terms of rewards and lock-up periods.
Additionally, the idea of staking Terra(LUNA) is simple where every single LUNA token will generate new ones. Moreover, Terra or the LUNA 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 LUNA is a perfect solution for you to earn additional cryptocurrency while you sleep.
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