What are the crypto coins that can be staked with Ledger? This guide explains staking with this hardware wallet with the most popular coins in the cryptocurrency market.
Cryptocurrency staking is one of the main financial activities in the cryptocurrency market. Additionally, the cryptocurrency market has enabled a wide range of financial solutions to users over the last few years. Staking is one of the most innovative due to the large number of options available. You can stake different cryptocurrencies that would give you different yields and you would also have a passive income just by holding your favorite virtual currencies.
Moreover, there is not just a single platform that you can use but there are numerous crypto services providers that are already ready to offer you some of the most advanced crypto staking solutions. For example, Binance, one of the biggest crypto trading platforms in the world, is offering options for customers to stake popular cryptocurrencies on their platform.
What if you want to be in full control of your crypto’s / private keys? Is staking crypto’s from an offline wallet also possible? The answer is yes for sure, and this article will be explained 5 crypto coins that can be staked on Ledger without the need to go to an external platform first.
Crypto Coins that can be Staked with Ledger
Ledger Nano is a famous hardware wallet and is offering staking solutions as well. Below is a list of the most popular crypto’s that can be staked with Ledger in just a few clicks.
- Ethereum(ETH2 can be staked at 10% APY)
- Cosmos(ATOM can be staked at 8-10% APY)
- Tron(TRX can be staked at 7% APY)
- Algorand(ALGO can be staked at 5-6% APY)
- Polkadot(DOT can be staked at 10% APY)
Is Crypto Staking risk free?
First, let’s rewind a little here and explain what staking cryptocurrencies are all about. In general, staking cryptocurrencies can be done by locking up your tokens in a wallet for a specific period of time. As a result of locking up your coins, you get rewarded with new crypto’s(interest) and you also hope that your holdings have advanced in value during this locking period.
Earning crypto’s by just holding is a stable investment strategy, but can this be done without any risks? With anything in life, there are some risks involved when it comes to crypto staking.
For example, suppose the market suddenly drops 10 to 25% in value during your lock-up period then you aren’t able to sell until this period ends. Besides market turbulence, there are hackers out there and when there is a security breach on your platform your funds will be at risk. Remember the famous quote in crypto: ‘Not your keys, not your coins‘.
One way to lower your risk to a minimum is using your private hardware wallet or software wallet as a staking wallet for your digital currency.
Offline staking: How Crypto staking with Ledger works
Staking crypto coins with Ledger means that you are using a hardware wallet(USB device) to store the private keys of the crypto coins. In other words, your crypto remains on the blockchain(online) and the private keys offline(cold storage).
When staking crypto in particular, you assign/move your funds to a delegator address on the blockchain. Additionally, this can be done with a simple user interface(Ledger Live) that allows you to transfer your funds to a delegator pool.
Eventually, when you hold these funds at this delegator address you will start to receive rewards for holding your coins there. Meaning, this delegator’s address is ‘marked’ for staking and will receive rewards as long as the funds stay there. Also, because your funds aren’t allowed to move you can store your private key offline (or in cold storage) reducing your risks to a minimum.
Benefits of staking crypto with Ledger
Holding your keys offline and reducing risks to a minimum should give you some peace of mind in these turbulent crypto markets. Besides security, there are some other benefits when staking crypto on Ledger compared to cryptocurrency mining or yield farming(DeFi).
- Low costs(no additional investments required)
- Staking can be done in a few clicks(simple)
- High rewards(up to 10% APY)
- You support and secures your favorite network(by holding)
- Non-custodial(No third party required)
Steps to Start staking Crypto with Ledger
To grow your crypto stack while holding your keys offline with Ledger is by far the most secure option in the cryptocurrency scene. Particularly, to achieve this way of participating in the crypto markets you have to execute three simple steps:
1. Get a hardware wallet(Ledger Nano)
Before you are ready to buy this interesting crypto product first some necessary details considering this hardware wallet.
Specifically, 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 staking from 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.
|⚠️ 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.|
2. Download Ledger Live App
Ledger Live is the one-stop shop for all your crypto needs. You can access a range of crypto services in one app while keeping your crypto totally secure. Like buying, selling, exchanging, staking, and lending your crypto on Ledger Live and with their partners – from the safety of your hardware wallet.
The Live App is part of the entire Ledger ecosystem that enables you to enjoy security, ownership, and ease of use for your crypto. As part of this ecosystem, Ledger Live’s the all-in-one app that, combined with your Ledger hardware wallet, allows you to do everything you want with your digital assets.
What to do when you have installed Ledger Live and want to start staking crypto with Ledger? Below are the necessary steps:
- Create an account with Ledger Live
- Find the app for the coin you wish to stake
- Transfer funds
3. Start staking crypto with Ledger
After you have installed Ledger Live and got some funds deposited the final step will be to lock your funds for a specific amount of time. Specifically, you would need to point your funds to a delegator address which can be arranged within the Ledger Live app. When done, you just have to wait and start receiving rewards while keeping your Ledger Nano device disconnected / offline.
Receiving rewards and Unlocking assets
No matter what coin you choose in the list of ‘crypto coins that can be staked with Ledger’ there are some actions required before you can claim rewards and re-use your funds again.
Suppose you were staking Cosmos(ATOM) and you have reached the end of the staking period. At this point you have your funds pointed to a delegator and you have to ‘undelegate‘ them. How to do this properly?
- In the Ledger Live app find the delegator list for Cosmos(ATOM)
- Click validator ‘Manage‘ button and then ‘Undelegate‘
- Select the amount you want to undelegate
- This amount will be locked for 21 days and then be transferred to your Ledger address
- Click ‘Continue‘ to finalize this transaction
Risks when delegating assets with Ledger
Remember that with any crypto coin that can be staked with Ledger there are some risks involved when delegating your assets. For example, the Cosmos blockchain punishes validators that won’t do their work properly or trying to ‘trick the system’. In this case, the blockchain will slash the delegator as punishment.
In other words, the delegator(and all participants!) will lose a certain amount(5 a 10%) of the assets being held at the delegator’s address. Moreover, the amount of coins being slashed is subject to change and might vary over time.
As a result, it is highly recommended to research the delegator first before using it as a staking delegator when using Ledger Live.
If you do not trade and hold your favorite digital currency for longer and are not staking, you are just leaving free money on the table.
The options for a user of a Ledger hardware device who wants to stake their assets are a bit limited as only a few coins are supported by Ledger directly. Even though, there are a couple of workarounds on how to stake your crypto assets and still have a significant amount of security in place.
For beginners, it is easier to start staking on the major cryptocurrency exchanges like Kraken or Binance. If you have more experience and are staking more significant amounts, I suggest starting to do it on cold storage or Ledger wallet.
Staking ETH with Ledger can’t be done directly. However, to keep your private keys offline it’s possible to use a third party for this. Ledger is partnerring with Lido for this where you will receive stETH tokens by locking ETH there.
No, BTC is not a proof of stake coin and you can’t stake it at all, on any device.
Staking cryptocurrencies when storing private keys offline is supported by Ledger. Also, if you own some of the major cryptocurrencies like Solana or Avalanche then you have the option to ‘Offline staking’ in combination with a hot-wallet that is designed by them. Remember that in this case Ledger doesn’t give customer support for it.
Lending USDT is possible in combination with Aave and Compound safely from your Ledger hardware wallet. Both DeFi platforms are using smartcontracts where you have to deposit your USDT. The private keys will be stored on your Ledger device.
Ledger is the one of the safest solutions when holding or staking crypto assets. Your private keys remain tightly secured within your Nano hardware wallet, guaranteeing a hack-proof experience. All transactions are confirmed from the security of your hardware wallet.
Almost all popular staking coins like ETH, DOT, ATOM, ALGO etc can be staked on Ledger, up to 7 at a time. The only bigger ones missing are Solana and Avalanche which are both in the process of being added to the Ledger Live app.
Staking crypto with Ledger requires you to lock up your coins for a minimum amount of time. During that period, you’re unable to do anything with your staked assets, such as selling them. When you want to unstake your crypto, there may be an unstaking period of seven days or longer.
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