Cryptocurrency investors have started staking their coins as it has become more popular. Staking enables holders to earn passively as the value of the cryptocurrency increases.
The increased interest in staking has recently been exemplified in a Binance Research report, which states that the total amount being staked exceeds $6.4 billion. This article will focus on the best wallets for staking cryptocurrencies.
Understanding Staking
Staking requires the investor to “lock” a certain amount of coins that are based on the Proof-of-Stake consensus algorithm or its variants. Token holders who stake a certain amount of their cryptocurrency usually get the right to vote and participate in the governance of the network. As they stake that amount without using it, they are rewarded. This is how staking can become profitable. There are various types of the Proof-of-Stake consensus algorithm, with one of the most popular being the Delegated Proof-of-Stake (DPoS). With DPoS, users can commit their balances as votes, which are used to elect a particular number of delegates. It is these delegates who manage the blockchain operations on behalf of the people who gave their votes for it.
Staking on Wallets
Crypto investors can hold their cryptocurrencies in their designated wallets and take an active part in staking efforts. Usually, this is done as a part of staking pools, but some wallets can easily add coins for staking.
Ledger
The Ledger hardware wallet is one of the most popular ones in the community when it comes to digital asset storage. It provides two options for staking – using the Ledger Live or external wallet apps.
The first option requires the user to install the cryptocurrency app on the device and create an account on Ledger Live. After that, the funds should be migrated, and staking is triggered automatically.
The second option works similarly, but after installing the Ledger Live app, the user needs to choose an appropriate third-party wallet to manage the assets. After that, the funds should be migrated, and users can start earning rewards.
It’s also worth noting that Ledger is a cold-storage wallet, which is generally considered as the more secure option since it’s a physical offline device. According to Ledger’s Growth Marketing Mattia Sarfati, “So far you can only stake Tezos within the Ledger live. However, you can stake other coins using third-party wallets (like TRX using TronScan wallet). Our idea is to develop this future within the Ledger Live in the near future.”
Exodus
Exodus is a popular multi-currency wallet, desktop, and mobile compatible. Its app can also be easily integrated with the hardware wallet Trezor.
The Exodus wallet allows the cryptocurrency staking option, following a recent partnership with Switchain. The latter delivered staking fixed-rate exchange API for the wallet’s users. Besides, Switchain’s system is designed to only hold the information instead of having custody of it; thus, it operates in a “non-custodial” manner.
The wallet creates an exchange on behalf of the user who sends the coins and receives the already-exchanged assets. The whole operation is completed in a few minutes. So far, the Exodus wallet provides staking rewards for Ontology and Neo, and new coins are expected to be added soon.
Atomic Wallet
Atomic Wallet is a multi-currency wallet that supports desktop operating systems like Windows, macOS, Ubuntu, Debian, and Fedora. It’s also available on mobile devices for Android and iOS. The wallet has a user-friendly interface and supports a wide range of cryptocurrencies, including Tezos, Cosmos, NEO, Vechain, and Ontology, which can be staked.
To stake cryptocurrencies on Atomic Wallet, users need to transfer their funds to the staking address provided by the wallet. Once the staking period is over, users can convert their staking rewards to fiat currencies or other cryptocurrencies using the wallet’s built-in exchange feature.
Atomic Wallet allows users to earn staking rewards of up to 10% APY, depending on the cryptocurrency they are staking.
Trust Wallet
Trust Wallet is a secure multi-coin wallet that can be installed on mobile devices working with Android and iOS. The wallet was acquired by Binance last year to increase the security of its growing number of users. Trust Wallet supports a broad array of cryptocurrencies for staking, including VeChain, TRON, Callisto, TomoChain, Tezos, Cosmos, IoTeX, Algorand, and more.
To start staking on Trust Wallet, users need to send their funds to the staking address provided by the wallet. Once the staking period is over, users can manage their staking rewards through the wallet’s interface.
Trust Wallet allows users to earn staking rewards of up to 7% APY, depending on the cryptocurrency they are staking.
Conclusion
In conclusion, the popularity of staking cryptocurrencies has been increasing as more people seek to earn passive income from their digital assets. With the wallets listed in this article, users can easily store and stake their cryptocurrencies to earn rewards. It’s important to do thorough research on the wallet provider and the supported coins before making a choice. However, with the wallets listed here, users can rest assured that their assets are secure, and they can easily convert the rewards earned into fiat or other cryptocurrencies. With the right wallet, staking can be a simple and convenient way to earn rewards on your digital assets.