Can you imagine making money for growing a financial system that promotes transparency and efficiency above all else? That’s precisely what Crypto staking allows you to do. Now, if you’re wondering how it works, what to stake, and which would be the best wallets for staking crypto, this article is for you.
What Is Crypto Staking?
Crypto staking is a way to make extra earnings by locking certain cryptocurrencies in your own crypto wallet. You can only stake coins running on a Proof-of-Stake (PoS) blockchain. This particular blockchain helps to verify transactions before recording them.
Types of Staking Wallets
Crypto wallets come in two major types, the hot wallets, or the cold ones. Hot wallets operate entirely online, and take the form of an exchange wallet or a mobile wallet. In contrast, cold wallets are used offline. They can either be hard wallets, which are hardware devices that you connect to your PC, or desktop wallets which are softwares you install.
Best Wallets for Cryptocurrency Staking
Your staking platform determines your rewards. Staking on the wrong platform can cost you both your coins, and the regards you’d receive. To avoid this, here’s a list of seven best crypto staking wallets.
The Ledger Wallet is renowned for being a go-to cold wallet. The hardware wallet securely supports a total of 26 different coins and t’s multiple iterations give you varying staking capabilities and pools. For instance, you can stake a maximum of seven different currencies at a go on Ledger. This increases the profit margins you can make, and makes it a very popular wallet for crypto staking.
The Ledger wallet is also a great option for anyone who wants access to their cryptocurrency while still maintaining security. As opposed to using desktop or mobile wallets, the device runs on its own secure element chip that’s isolated from your computer – giving you peace of mind when it comes down between work-related projects and securing funds! You can also purchase new coins directly without needing to go through an exchange which helps make managing all this exciting stuff easier than ever before.
2. Coinbase Wallet
Coinbase wallet is a wallet from the second-largest cryptocurrency exchange company worldwide Coinbase Inc. It is a hot wallet, preferred mostly for its interactive and straightforward User Interface, UI. It’s friendly UI makes it very easy for beginners to navigate, which would explain its popularity.
Besides a great UI, the Coinbase wallet also supports well over 500 crypto assets. It can also hold several Non Fungible Tokens, NFTs, and a myriad of digital collectibles. Despite being a hot wallet, Coinbase’s security features are impressive. The wallet comes with support for multi-signatures and 2-factor authentication. Surprisingly, it even can recover stolen tokens.
Also, Coinbase wallet and Coinbase Exchange are mutually exclusive. This means you don’t need an account in the Crypto Exchange to use the Coinbase wallet. This makes the wallet more accessible.
Exodus is the staking wallet for anyone who values efficiency. Its ever-growing praise for how fast it runs transactions and the number of functionalities it supports is undoubtedly impressive. With over 145 cryptocurrencies, live charts, and the ability to buy Bitcoin using Apple Pay on Android or iOS, this wallet will allow you to stake coins with so much ease.
Another excellent hot wallet is Electrum. Since 2011, Electrum has helped Bitcoin Investors store only bitcoin in their wallets. It can therefore take the title of the oldest and most popular bitcoin wallet in the market.
Electrum offers among the best security features for Bitcoin staking. Yes, its UI isn’t friendly for beginners, and the wallet has zero customer support. However, it has the least possible downtime, and you can customize your transaction fees, which makes it a desirable choice.
Mycelium is yet another bitcoin-enabled staking wallet. But, unlike Electrum, Mycelium can also support Ethereum and several ERC 20 tokens. However, what stands out most about the Mycelium wallet is its cold wallet support system.
Being among the best Android and IOS crypto storage options, this desktop wallet lets its users hold cold tokens while at the same time being able to use Mycelium’s online interface. Add that to its customizable transaction cost and education resources, and you will see why Mycelium is a highly ranked staking wallet.
The Opolo wallet is a fantastic cold wallet. It is available for Android devices and allows you to set up wallets for over 280 thousand cryptocurrencies. When it comes to security Opolo has the best security systems around which makes sure your funds are safe. Its security certification, the EAL6+, is the highest possible in rank.
Unfortunately, the security makes it a more expensive wallet, ranging from about $230. But, if you don’t mind spending some extra dollars this staking wallet should be your go to choice.
For state-of-the art security innovations, ZenGo is the wallet to go with. Using this wallet, you can recover your seed phrase, access web3 and track your portfolio. It also comes with Figment DeFi (Decentralized Finance) and Compound protocols that store your coins for staking.
8. Trezor Model T
The Trezor Model T wallet completes our list. Trezor Model T, which costs about $190, is perfect if you’re looking for a highly secure cold wallet. The wallet is the world’s first-ever hardware wallet to incorporate SLIP39, popularly referred to as Shamir Backup.
This backup makes it possible for you to recover your wallet even when you’ve lost your device. All this, coupled with an intuitive UI and touchscreen for ease of use, Trezor Model T makes for an impressive wallet to stake crypto.
Read more: Ledger vs Trezor: Which is safer?
How Do You Get Started on Stacking Cryptocurrencies?
The first step to stalking cryptocurrencies is knowing what currencies to stake. Unfortunately, you can’t stake all cryptocurrencies, so keep an eye out for those that come with a staking option. Next, you typically want to buy coins from a crypto exchange that has enabled staking. You can go for Binance, Gemini, Coinbase, or Kraken, though these are just a few.
The final step is to know how you intend to stake your cryptocurrencies. You can stake your currencies through a crypto exchange or a staking pool. Whichever the case, you will realize you need a crypto wallet to store your staked funds.
How to Know Which Wallet to Use for Staking Cryptocurrencies
PoS is a great way to increase your crypto holdings without having to buy more tokens. But, you need to know how to do it and which wallets are likely to help you earn more bonuses. So, before you settle on a staking wallet, make sure it’s secure, cost-effective(especially for hardware wallets), and it offers you the features you need to reap the best out of crypto stacking.