How to Stake Solana?

Crypto enthusiasts constantly seek ways to grow their holdings, and staking has become a go-to strategy for achieving this.

For SOL holders, staking is the main way to put coins to work and get passive income. It benefits you and Solana's network, so it's a win-win situation for all.

But how to stake Solana, exactly? We'll uncover the specifics in this article. Stay tuned!

What Is Staking Solana?

Solana is a decentralized blockchain platform for speedy, secure, and transparent apps. Solana uses a Proof-of-Stake (PoS) system for security and rewards. Validators stake their SOL to participate.

Solana staking lets you add to the network's security by giving tokens to a validator you trust. Validators with more tokens hold greater influence in the consensus mechanism. And by locking SOL tokens you can passively earn rewards.

So can you stake Solana? Absolutely! You can stake Solana from any compatible crypto wallet.

On average, Solana staking reward allows you to gain around 5.5% APY, but it can change due to network inflation and validator commission.

Ways to Stake SOL

It may seem complex, but staking is rather simple. Here’s how to stake Solana:

• Hold coins in a wallet that supports staking
• Decide how much you want to stake
• Pick a validator
• Confirm the stake and start earning rewards

If you’re planning to get into SOL staking, you’ll need to know how to actually do it. These are the main ways to stake Solana:

• Solo Staking
• Staking Via Centralized Exchages
• Delegateting Funds To A Validator
• Using Staking Pools

Check out this article: Staking Strategies for Maximizing Returns.

There are multiple platforms where you stake SOL tokens. Picking where to stake SOL affects APY and fees, so choose wisely. You can stake Solana via these platforms:

• Jito: up to 6.96% APY
• Coinbase: 4.35% APY
• Kraken: up to 4% APY

You can’t stake Solana on Cryptomus for now, but we’re planning to add it to the list of supported tokens.

So how long does it take to stake Solana? All the staking rewards are computed and provided once per epoch. Epoch in Solana takes around 2 days. Rewards are distributed at the beginning of each new epoch.

To unlock staked crypto, you'll need to unstake it. You can unstake Solana by using an “unstake” command in your wallet. The stake will be available to withdraw after the end of the current epoch. With Solana, it usually takes up to 3 days.

What is the Best Way to Stake Solana?

We’ve already mentioned the ways of SOL staking, but which one will work for you? And what is the best way to stake Solana? Well, it mostly depends on your skill.

• Beginner: Centralized exchange is the easiest option out there.
• Intermediate: You can use a validator to do the job for you, the coins won't leave your wallet in that case. Or pool coins with a provider and receive tradable tokens in return.
• Expert: Feel free to run your own network validator. You’ll get to validate transactions via a machine you control, set commissions, and run a validator node.

Make sure to read: Exploring Liquid Staking in Crypto Markets: What It Is and How It Works.

Benefits of Solana Staking

The main benefit of staking SOL is that you get a hassle-free way to get more income. Plus, it's generally set-and-forget, unless you choose to stake independently. Staking also helps the entire SOL ecosystem. It strengthens Solana's security, decentralization, and stability.

Earning from SOL staking is not fixed. The profit of staking Solana depends on the method you use, the amount of tokens you stake, and market characteristics. For now, the average APY of SOL staking is around 7%.

Risks of Solana Staking

While we’ve already established that staking SOL is quite simple, it’s best to know the risks. The main risks of Solana staking include:

• Volatility: If the SOL price drops, your investment value will go down too.
• Centralization Risks: Centralized platforms have full control, and even decentralized pools can contain bugs, both of which could lead to lost funds.
• Slashing: You can lose your Solana stake via slashing. In slashing, a portion of the stake can be removed if the validator shows malicious behavior. So you can lose your stake by trusting the wrong validator.
• Liquidity: It’s all about ever-changing markets. You can’t unstake SOL immediately and that waiting period can be problematic if you’ll ever need to react quickly.

Tips to Earn Rewards by Staking Solana

Of course, such an article wouldn’t be complete without some tips. Here’s what you can do to maximize rewards by SOL staking:

• Use Multiple Validators: It lets you safely spread funds and lessen the risk of failure.
• Monitor Staking Rewards: It lets you estimate the efficiency of your strategy and find new opportunities.
• Don't Chase The Highest APY: High-yield validators often come with higher risk, so try to balance returns and reliability.
• Stay Safe: Use reputable wallets and keep your keys secured.

To sum up, there are several ways to stake SOL tokens, and if you do everything right, you’ll get a source of passive income through rewards. Profitability depends on various factors, so double-check the platforms and validators you’re using.

Thank you for reading, please share your experience in the comments!