Where to stake Solana(SOL) tokens and earn passive income? In this guide an exclusive view on the best places to stake Solana tokens!
Passive income was and still is a very popular strategy to become rich and is being used by many investors globally for the last centuries. Additionally, there were 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 Solana or SOL tokens. Also, a detailed plan to start staking SOL tokens on the different platforms.
Best places to stake Solana(SOL)
Where to stake Solana(SOL) and earn passive income rewards 24 hours a day? Below is the list:
- Binance – Worlds most popular cryptocurrency exchange with almost zero fees
- Kraken – US-based exchange that offers the most fiat trading pairs(AUD, EUR, USD, GBP)
- FTX – Worlds fastest growing exchange also specialized in SOL and SRM staking
- Ledger Nano – The most secure cryptocurrency hardware wallet to store your crypto offline.
- Atomic wallet – Software wallet that also stores the private key on your device and stores 300 coins and tokens
- Exodus – Software wallet that stores 30 coins and holds your private key on the device
- Eversol – A staking pool developed by Everstake and backed by Solana Foundation
What is staking Solana? What does staking Solana mean?
Solana 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 SOL tokens, you help secure the network and earn rewards while doing so.
How does Solana staking work?
In general, when you stake SOL from a wallet you do this by delegating your tokens to validators who process transactions and run the network.
Delegating 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 SOL 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 SOL coins in a wallet and get rewarded while you sleep! 😄
Best platforms to stake Solana(SOL): Comparison
This comparison guide provides an overview of where to stake Solana 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 period.
|📈Platform||💶APY||🔒Min. staking period||💰Fees||✔️Rating|
|9.2 / 9.9%||30 – 60 days||0.08%|
|9 / 10%||flexible||1.7 – 4.5%|
Staking Solana(SOL) 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 SOL there. Below I’ll explain the options you have for staking Solana 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 SOL for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees involved when staking SOL tokens on Binance.
POS staking Solana at Binance
The benefit of staking SOL on Binance is that cryptocurrency traders can opt to stake Solana tokens while waiting for a trade. Traders can benefit from the staking rewards in addition to potential trade profit.
Steps to start staking Solana on Binance
To start with staking Solana(SOL) at Binance, follow these steps:
- Create a free account at Binance
- Navigate to ‘Finance’ at the top menu and choose ‘Binance Earn’
- Enter SOL in the Dropdownlist(just below ‘Binance Earn‘ header)
- If you don’t have SOL funds in your wallet ‘market buy’ some or deposit
- Click ‘Stake’ button and store SOL tokens here
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%.
At the time of writing, staking crypto-like Solana can be done at Kraken in 10 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 Solana(SOL) on Kraken
To start with staking Solana at Kraken, follow these steps:
- Create a free account at Kraken exchange
- If you don’t own SOL tokens, you can market buy them at the exchange,
- Otherwise, just deposit your SOL tokens under ‘Accounts’ and then ‘Spot’
- Navigate to ‘Earn’ in the upper menu
- Choose Solana and click ‘Stake’
- Staking should be starting instantly
At any time you can unlock your coins at Kraken. You can simply unlock your coins by going to your wallet and click on ‘Unstake’. It then takes 7 days to get your token out of the pool(unstake period).
FTX is a brand new crypto trading company that has been growing very fast and is therefore the youngest option on the list. On their website they explain their mission:
‘FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products, and leveraged tokens. We strive to develop a platform robust enough for professional trading firms and intuitive enough for first-time users.‘
If you are a US resident then I have to warn you, it’s against their policy to allow US residents on their platform. In addition, they mainly focus on Asia and Europe. However, it’s up to you to use a VPN to try to surpass these restrictions.
How to stake Solana on FTX exchange
To start staking SOL tokens on the FTX platform, follow these steps:
- Create a free account at FTX
- Make sure to do KYC first
- Deposit SOL at FTX
- Or: market buy at SOL the exchange
- Above in the menu click ‘Wallet‘
- Find your SOL funds and click ‘Stake‘
- Next click on SOL tab and ‘Stake‘
- In the pop-up give amount of SOL and confirm
- Staking will start immediately
At any time you can unlock your coins at FTX. You can simply unlock your coins by going to your wallet and click on ‘Unstake’. It then takes 7 days to get your token out of the pool(unstake period).
Staking Solana(SOL) from crypto wallets
Next, a list of popular wallets you can use to stake Solana tokens without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake Solana 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.
How to start staking Solana with Ledger Nano
Firstly, I want to mention that SOL 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 several web wallets.
Particularly, these wallets are designed by the Solana developers or in cooperation with the Serum(SRM) team.
In short, staking from a Ledger is possible with two web wallets(Solflare and Sollet.io) and one Mobile wallet(Moonlet.io).
Solflare web wallet
SolFlare.com is a community-created web wallet built specifically for Solana. Also, SolFlare supports sending and receiving native SOL tokens as well as sending and receiving SPL Tokens (Solana’s ERC-20 equivalent). SolFlare also supports the staking of SOL tokens.
Staking with a Ledger Nano is supported here by the menu option ‘Access a Wallet’. More information on how to configure this can be found here.
Sollet.io is a non-custodial web wallet created by the Project Serum team. Sollet.io can be used to send and receive SOL and any SPL Token. In addition to sending and receiving funds, Sollet also allows you to securely connect and interact with decentralized applications (Dapps) on the Solana blockchain.
Currently, it’s only available as a Chrome extension where it uses your local browser to store the private keys. You can access your Ledger by choosing ‘Account’ and then ‘Import hardware wallet’.
More info on how to start staking at Sollet.io with a Ledger can be found here.
Moonlet is a non-custodial cryptocurrency wallet that allows you to manage, stake, and send smoothly different crypto assets. Moreover, it’s very handy for any long-term investors or “HODLer” in Solana.
In detail, it’s a cross-platform crypto wallet, therefore it works on all iPhone and Android mobile phones, as well on Chrome as an extension.
After you have installed the App on your device you instantly have the option ‘Connect your Ledger’ that allows you to stake offline. More info on this can be found here.
Atomic Wallet is a decentralized online cryptocurrency wallet available on desktop and mobile devices that supports more than 500 coins and tokens. The wallet is suited to crypto investors of all experiences and provides a simple, safe, and convenient means to store digital assets.
Besides staking from the wallet, users can also purchase new crypto because Atomic wallet uses a built-in exchange feature. This feature uses a third party(Changelly) so buying comes at a cost: 2% additional fees at a minimum of $10 each.
All in all, Atomic wallet supports staking for 15 different coins, and Solana(SOL) is one of this list. The annual ROI for staking Solana on Atomic is 7% for a minimum of 90 days.
How to start staking Solana(SOL) on Atomic Wallet
- Visit Atomic Wallet website, start downloading and install
- Start purchasing SOL or deposit SOL here
- Click on ‘Staking’, scroll down to find Solana and click ‘Stake now’
- Give ‘Staking period‘ and submit
This wallet has been there for a while and has a proven track record of being very secure. Therefore, the Exodus Wallet allows you to store your crypto offline(with Trezor) and when needed, connect with their software wallet app.
Another interesting feature of Exodus is the number of cryptocurrencies(130) that can be stored in the app and offline.
Staking is also a feature of this wallet where currently 25 different cryptocurrencies are supported. Finally, staking Solana can be done here at an APY of about 6.13%.
How to start staking Solana(SOL) on Exodus Wallet
The process of staking Solana on Exodus wallet is very simple:
- Visit the Exodus Wallet website, start downloading and install the app
- Deposit SOL or purchase it with the built-in exchange
- Once deposited, staking Solana will start automatically
When you decide to unstake your SOL inside of Exodus, you can only unstake all of your currently staked balance. Your funds may take several epochs to become available for use again. In other words, 1 epoch lasts around 2 days, so don’t worry if you have to wait a week before the funds will be available.
Eversol’s main concept is to dedicate a percentage of the pool rewards (currently, 7%) to fund the best projects developing on Solana.
You can delegate SOL to a stake pool like you usually do with one validator and achieve the best staking conditions. Instant unstake without sitting through the Solana cool-down period.
Finally, Eversol’s stakers get additional income in eSOL tokens and can use one’s in DeFi.
Is staking Solana worth it?
Staking Solana is currently a very popular method among crypto enthusiasts to generate passive SOL income with zero risks. In this guide in which I covered where to stake Solana in greater detail, I also compared the different platforms in terms of rewards and lock-up periods.
Additionally, the idea of staking Solana(SOL) is simple where every single SOL token will generate new ones. Moreover, Solana or the SOL 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, staking SOL is a perfect solution for you to earn additional cryptocurrency while you sleep.
SOL 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 several web wallets(Solflare, Sollet.io, or Moonlet).
If a validator has 50,000 SOL in stake delegated to it across the network, then each year it would generate roughly 50000*. 08= 4000 SOL in rewards for its stakeholders. Rewards are paid every epoch, and there are roughly 134 epochs in the year.
You risk losing SOL tokens when staking through a process known as slashing. Slashing involves punishing a validator’s delegated stake by removing 5 a 10% of the staked funds. This in response to intentional malicious behavior, such as creating invalid transactions or censoring certain types of transactions or network participants.
Short answer: It depends. For instance, if you are a beginner in crypto and don’t know anything about Solana staking or wallets, then it’s advisable to sign up for trading platforms like Binance, FTX or Kraken. On the other hand, if you are more advanced in crypto you should consider staking Solana from wallets or even offline staking with Ledger.
For staking Solana in the USA it’s best you sign up at Kraken crypto exchange. One of their best features is depositing fiat currency like USD there.
The following articles might also be a good read for you:
- Approved: Best Places to Buy Solana(SOL)
- Top 5 Do’s and Dont’s of Cryptocurrency Wallets
- 7 Reasons Why You Should be Staking Your Crypto
- Crypto Lending vs Staking: Which concept generates the most Passive Income?
- Confidential: Best Places to Keep my Crypto Safe
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