Cryptocurrency staking is hugely popular around the world. The ability to earn income passively by locking up some of your funds is a no-brainer for many, especially when the rewards look good. You can now stake various crypto coins, including Tezos (XTZ).
So, what is the best platform for staking Tezos?
1. Kraken
Kraken is a popular American crypto exchange that was founded in 2011. It’s now used worldwide for buying, selling, and trading a variety of different cryptocurrencies. On top of this, Kraken offers users the ability to stake several coins, including Tezos.
A great feature offered by Kraken is no lock-up staking. This means that your staked funds won’t be frozen for the staking period, as they would be on a number of other exchanges. If you don’t have any XTZ, you can also buy it on the Kraken exchange. Currently, one Tezos token costs around five dollars, so you won’t be breaking the bank if you want to buy a couple.
At the time of writing, Kraken offers a reward of 4.70% on top of your staked funds. Additionally, Kraken doesn’t charge any kind of staking fee!
2. Binance
Binance has risen through the ranks since its founding in 2017 to become the world’s most popular exchange platform, with a current trading volume of over $7.7 trillion. It’s a great place to stake crypto, with a current selection of 25 staking tokens to choose from, including Tezos.
Currently, there are two different reward categories for staking Tezos on Binance, but keep in mind that these both involve locking up your funds for the entire staking period. The first option is a lock-up duration of 30 days, which offers a reward rate of 6.74%. Alternatively, you can lock your funds up for 60 days to enjoy a reward rate of 8.52%.
You’ll also need a minimum of one XTZ to get started with staking on Binance, but this will only cost you around five dollars at the moment. What’s more, Binance doesn’t charge any fees for staking, so you can keep the entirety of your reward.
3. Atomic Wallet
Unlike Kraken or Binance, Atomic Wallet is not an exchange. As the name suggests, it’s a software wallet. However, that doesn’t mean you can’t stake crypto coins using Atomic Wallet, including Tezos.
Staking your XTZ on Atomic Wallet is super easy, and you can use your desktop or smartphone to do so, given that Atomic Wallet is accessible via its website or mobile app. You only need 1 XTZ as a minimum staking amount, making this kind of staking accessible to almost anyone.
What’s more, Atomic Wallet offers a healthy reward rate of between six and seven percent, but it’s important to note that your funds will be locked up for the required staking period. However, Atomic Wallet doesn’t charge any fees for staking, so that’s a nice little plus to what’s already on offer.
4. Ledger
Ledger is neither a crypto exchange nor a software wallet. Rather, it’s a hardware wallet. These wallets can store public and private keys that are important for accessing your crypto funds. To stake Tezos via Ledger, you’ll need to have purchased a hardware wallet and installed Ledger Live. This can be downloaded for free on both a desktop and smartphone. Ledger Live also has a solid customer support service for any problems you may face using the software.
You can currently earn rewards of around 6% using your Ledger wallet and Ledger Live. But this reward is impacted by validator fees, so keep that in mind. Initially, it’ll take around five weeks to earn your first rewards, but you’ll receive rewards every three days or so after that. On top of this, Ledger doesn’t lock up your tokens, so you can move them as and when you wish, even when they’re being staked.
A big perk of staking using Ledger is the increased security of hardware wallets (given that they store your keys offline). This will protect you from any nasty hacks you may fall victim to by using a software wallet.
5. Exodus
Like Atomic Wallet, Exodus is another example of a software wallet. Exodus offers both a desktop and smartphone app, both of which are free to download. If you want to stake Tezos using Exodus, it’s straightforward and quick regardless of which device you’re using.
Exodus offers a reward rate of around 6% for staking your Tezos, and you only need 1 XTZ to get started. Once you begin staking, you’ll need to wait around five weeks to start earning rewards, but after this waiting period, you’ll start earning your rewards every three days.
However, it’s worth noting that if you want to stake Tezos from your Exodus account, you’ll have to stake the entirety of the Tezos funds present. So, if you don’t want to do this, be sure to move some of your XRT to another wallet before you stake. Additionally, Exodus charges two separate fees for staking.
The first of these is a transactional fee of 0.00284 XTZ. The second is an eight percent fee taken from Exodus’s API provider, Everstake. After the subtraction of these two fees, the remaining funds are yours to keep.
6. Coinbase
Coinbase is another popular and established exchange that offers Tezos staking. It’s a great option if you already use Coinbase for buying, selling, or staking other cryptos, or if you’d rather use an exchange over a wallet to stake.
Coinbase currently offers a reward rate of 4.63% for staking Tezos, and you only need a dollar’s worth of XTZ to get started!
However, there is a glaring downside to staking on Coinbase. Coinbase charges a 25% fee for all its staked coins, which is taken from your rewards. This is considerably higher than the fees of other exchanges and wallets, considering that many platforms don’t even charge a staking fee at all. So take note of this before you stake your Tezos on Coinbase.
Stake Your Tezos to Earn Passive Income
With these exchanges and wallets, staking Tezos allows you to earn rewards passively without having to go through multiple extraneous steps. As soon as you’re aware of the lock-up periods and fees relevant to your chosen platform, it’s quick and easy to get started with Tezos staking, and you don’t need to be an XTZ millionaire to do so!
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