Yuga Labs Acquires Rival NFT Creator Proof
16 Feb 2024
Are you looking for the best options to stake your SOL (Solana) tokens? Then this is the right place for you as we will discuss and compare the top methods to stake SOL Tokens.
For a quick overview, the following are the best platforms to stake your SOL tokens:
|30 Days – 90 Days
|9.28% – 13.21%
|5.00% – 6.28%
Solana is one of the top Layer 1 Blockchain Networks with an in-house token SOL. And for HODLers, staking is a lucrative option to park their funds and earn those juicy staking rewards.
Read: 10 most profitable proof of stake cryptocurrencies
Personally, there are many reasons for which I would like my SOL tokens staked, such as:
Based on StakingRewards.com, the network currently distributes staking rewards between 5-7% per annum. However, there are few options to earn more than that.
So let’s dive into these methods one by one.
Binance is the World’s No. 1 crypto exchange with the maximum number of users and trading volume. You can read a detailed review of Binance here. In addition to exchange services, Binance also offers Staking Services to its users.
For SOL (Solana) tokens, Binance has the following Locked Staking service:
Following are the conditions for staking SOL tokens on Binance:
But, what’s important to understand is how Binance is better than other available staking options. Let’s have a look at that.
Binance can be your ideal choice for Staking SOL tokens due to following reasons:
However, this staking method also has some limitations.
The limitations of staking SOL token is Binance are as follows:
Once you stake Solana tokens, your funds get locked for a specific period. This can create a liquidity issue for a user who may need these funds immediately. Liquidi Staking with Lido Finance provides that liquidity to a user.
Binance is a Custodial Crypto Exchange. This means that the exchange has custody of your crypto assets. So although very tough, if there is a hack on the exchange, then there is a risk that you may lose all your assets.
In the case of Binance Locked Staking, assets can be withdrawn before the end of the lock-in period. However, all the staking rewards distributed during the period will be taken back by Binance from the principal amount of assets.
So at the time of unstaking (before the end of the lock-in period), you will get
Assets Staked Initially (-) Staking Rewards already Distributed to you
Now, let’s understand how you can stake your SOL tokens on Binance.
Step 1 – Once you are on Binance. Click on “Earn” and Then Click on “Staking”.
Step 2 – Now, in the “Locked Staking” option, type “SOL” in the search bar. You would see various staking options for SOL.
Select the Lock-in-period (30 Days, 60 Days, or 90 Days) and click on “Stake Now.”
Step 3 – Enter the Amount of SOL tokens you want to Stake. Agree to “Binance Staking Service Agreement” and click “Confirm”.
Step 4 – Additional Step
To check your staked Solana tokens, click on “Wallet” and click on “Earn”.
Now Click on “Staking” and you will be able to see your staked SOL tokens.
Similar to Binance, FTX is one of the best Crypto Exchanges in the world. Further, FTX’s CEO Sam Bank Friedman is an early investor in the Solana project.
In addition to exchange services, FTX also provides Staking Service on a few tokens, including SOL Tokens.
Following are the Conditions for staking SOL tokens on FTX:
Now, let’s understand when FTX can be your ideal platform to stake SOL tokens.
FTX can be your ideal choice for Staking SOL tokens due to following reasons:
However, this staking method also has some limitations.
The limitations of staking SOL token is FTX are as follows:
Once you stake Solana tokens, your funds get locked for a specific period. This can create a liquidity issue for a user who may need these funds immediately. Liquid Staking with Lido Finance provides that Liquidity to a user.
FTX is a Custodial Crypto Exchange. This means that the exchange has custody of your crypto assets. So although very tough, if there is a hack on the exchange, then there is a risk that you may lose all your assets.
FTX offers comparatively lower staking rewards than Binance. Further, it charges a 10% Fee to unstake immediately.
Now, let’s understand how you can stake your SOL tokens on FTX.
Step 1 – Once you are on FTX, click on “More” and then click on “Stake”. If you don’t have an account, create your free FTX exchange account here.
Step 2 – On the Staking page, Click on “SOL”
Step 3 – Now click on the “Stake” button
Step 4 – Enter the amount of SOL tokens you want to stake and click on the “Stake” button
Step 5 – Additional Step
Now you can see your staked SOL tokens on the same page.
Phantom Wallet is a Decentralised Non-Custodial Wallet of the Solana Ecosystem. It is similar to the Metamask Wallet, but for the Solana Network.
It allows you to have complete custody of your assets at all times. The private keys of your assets are stored on your device. The wallet is compatible with several browsers, including Google Chrome, Brave Browser, Firefox, and Microsoft Edge.
Further, the wallet can be used with your Ledger Hardware Wallet.
Following are the conditions for staking SOL tokens with Phantom Wallet:
Phantom Wallet can be your ideal choice for Staking SOL tokens due to following reasons:
However, there are a few limitations as well. Let’s look at them.
The limitations of staking SOL tokens on the Phantom Wallet are as follows:
Once you stake Solana tokens, your funds get locked. Liquid Staking with Lido Finance provides you with a derivative token to provide liquidity to a user.
The process of staking SOL tokens on Phantom Wallet s not as easy as on Binance or FTX.
The network fee, although negligible, is an additional cost of staking SOL tokens on Phantom Wallet.
Phantom Wallet offers comparatively lower staking rewards than Binance.
Now, let’s understand how you can Stake your SOL tokens on the Phantom Wallet.
Following are the steps for Staking SOL tokens on the Phantom Wallet:
Step 1 – Open Phantom Wallet and Click on “Solana Tokens”
Step 2 – Click on “Start Earning SOL”
Step 3 – Now, open “StakingRewards.com” and choose a reliable Validator for staking SOL tokens based on the number of users and Balance. The direct link for Solana is here.
Step 4 – Select the chosen validator in the Phantom Wallet.
Step 5 – Enter the “Amount of SOL” to be staked and click on the “Stake” button.
Step 6 – Additional Step
Once the process is complete, you can check your staked SOL tokens as follows:
Further, as you can see that the following status says “Activating”, this can take upto 4-5 Days before this is Activated.
Lido.Fi is one of the best Liquid Staking platforms in the market. Liquid Staking means that while your funds are staked, you are given a derivative token that you can further use on various DeFi platforms. This provides a user with additional liquidity while their funds are locked.
For more information on Lido.Fi, you can read our Lido.Fi Fundamental Research Report.
As such, there are no conditions to stake SOL tokens on Lido.Fi. However, you should note the following:
Lido.Fi can be your ideal platform to stake your SOL tokens for the following reasons:
However, Lido.Fi may also have some limitations.
The possible limitations of Staking SOL on Lido.Fi are as follows:
The staking process on Lido.Fi is not as easy as centralized staking, such as on Binance and FTX
Every time you stake or unstake SOL tokens on Lido.Fi, you need to pay a Network fee (although negligible) which is an additional cost
Now, let’s understand the process of staking SOL tokens on Lido.Fi.
The process of staking SOL tokens on Lido.Fi is as follows:
Step 1 – Go to Lifo.Fi and click on “Stake Now”
Step 2 – In the “Solana” section, click on the “Stake Now” button
Step 3 – Click on “Connect Wallet”
Step 4 – Select the wallet where you have your “SOL tokens”. For this tutorial, I have chosen phantom wallet. Choose the wallet and connect it.
Step 5 – Enter the Amount of SOL tokens you want to stake and click on “Submit”.
Step 6 – Confirmation
In a few seconds, you will receive a confirmation of your tokens being staked, and you will receive stSOL tokens in your wallet.
So this is how you can stake your SOL tokens in 4 different ways. If you are a beginner, then go with Binance or FTX option according to your suitability.
However, if you understand the importance of decentralization and self custody, then you should definitely choose Lido.Fi or Phantom Wallet.
I hope this post was helpful for you. Let us know the tokens for which you want us to create similar staking guides.
Lastly, subscribe to CoinSutra Newsletter to build your edge in the crypto market.News appeared first on: Coinsutra.com