Best Places To Stake Avalanche Crypto[GUIDE]
In the last ten years, we have seen the emergence of cryptocurrencies and decentralized networks. However, it’s not uncommon for these young assets to experience high volatility. As an investor, this may be a reason to steer clear of these risky markets.
As a result, the Ethereum blockchain introduced a new way for investors to earn a passive income by holding coins. Moreover, this is a very popular concept that attracts a lot of new investors trying to be profitable in the cryptocurrency markets.
Imagine, just the idea of earning additional cryptos on your bags altogether with high yields makes them willing to take the step into this new industry.
The concept I’m talking about is called staking which in short allows cryptocurrency holders to earn additional cryptocurrency with low risk.
In this guide, I will discuss the best places to stake Avalanche or AVAX tokens. On top of that, a detailed plan to start staking AVAX tokens on the different platforms.
Best Places to Stake Avalanche(In 2024)
- Binance(Best option for beginners 👶)
- Nexo(Best option to lend out AVAX💱)
- Ledger Nano(Best option for offline staking 🔐)
- Delegating on Core Wallet(Best option for early investors 🐦)
- Validating on Core Wallet(Best option for AVAX whales 🐋)
What is Avalanche staking? What does staking Avalanche mean?
Avalanche employs a PoS (Proof of Stake) consensus mechanism, which differs from Bitcoin’s PoW (Proof of Work). If you are not familiar with crypto mining then you must already know that cryptocurrencies are being minted within a decentralized network.
In short, Bitcoin uses a hardware solution for this which is called Proof of Work. On the other hand, there are software solutions called Proof of Stake(PoS) that Ethereum and Avalanche are using to mint new coins.
By staking your AVAX tokens, you can both earn rewards and help secure the network.
How does staking Avalanche work?
In general, staking Avalanche from a wallet works by delegating your tokens to validators who process transactions and run the network.
Delegating a stake is a shared-risk shared-reward financial model that may provide returns to holders of tokens delegated for a long period. This is achieved by aligning the financial incentives of the token-holders (delegators) and the validators to whom they delegate.
Additionally, the returns or yield for staked tokens is based on the current inflation rate, the total number of AVAX staked on the network, and an individual validator’s uptime and commission (fee).
Ultimately, no specific technical expertise or investment in costly hardware devices is needed. You just simply lock up your AVAX coins in a wallet and get rewarded while you sleep! 😄
Best Places to Stake Avalanche Crypto: Comparison
To continue, this comparison guide provides an overview of where to stake Avalanche to earn rewards and a passive income. The research assesses the platform’s features, estimated yield, fees for buying crypto, and minimum staking amount.
- ✔️ Binance(Rewards: 0.15–8.5%; Min. staking: 1 AVAX;Fees: 0.08%)
- ✔️ Nexo(Rewards: 8%*;Min. staking: 1 AVAX;Fees: 0.1–0.5%)
- ✔️ ️️Ledger Nano(Rewards: 7.8%;Min. staking: 25 AVAX;Fees: 1.7–4.5%)
- ✔️ Delegating on Core(Rewards: 7.8%;Min. staking: 25 AVAX)
- ✔️ Validating on Core(Rewards: 7.8%;Min. staking: 25 AVAX)
- Remember that yields are not fixed and depend on the inflation rate, the total number of staked AVAX, and commission fees
- (*)Nexo is a Crypto Lending platform and doesn’t offer staking services, however, Avalanche is cooperating with Nexo on this.
Staking Avalanche(AVAX) at Cryptocurrency Exchanges
If you already have an account at Binance practice some cryptocurrency trading already, then the easiest way would be to start staking AVAX there. Below I’ll explain all the options for staking Avalanche on the most popular exchanges in the world.
Binance
Based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform daily. Besides trading, Binance offers several other feature-rich products, including custodian wallets, crypto margin trading, lending services, and earning rewards with staking.
At the time of writing, Binance offers 50(+) staking products such as AVAX for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees involved when staking AVAX tokens on Binance.
POS staking Avalanche on Binance
The advantage of staking AVAX on Binance is that traders can earn staking rewards while waiting for a trade, in addition to potential trade profit.
Steps to start Avalanche staking at Binance
To start with staking Avalanche(AVAX) at Binance, follow these steps:
- Create a free account at Binance
- Navigate to ‘Binance’ at the top menu and choose ‘Binance Earn’
- Enter AVAX in the Dropdownlist(just below ‘Binance Earn‘ header)
- If you don’t have AVAX funds in your wallet ‘Market buy’ some or deposit
- Click ‘Stake’ button and store AVAX tokens here
For unstaking Avalanche(AVAX) on Binance, you have to wait one 1 day or 24 hours if you are using the ‘Locked staking’ feature. After this period your funds will be available in your spot wallet.
Nexo
Nexo, a platform for crypto lending, has recently announced its collaboration with the Avalanche team to expand its network. The main reason behind this collaboration is that Avalanche blockchain can easily connect and work with other blockchain networks such as Ethereum.
In other words, the Nexo platform doesn’t offer you direct AVAX staking services, however, because of the cooperation and high-interest earnings opportunity(8%!) I decided to add the platform to this guide. So, what is Nexo all about?
Nexo is one of the most recognized and used crypto lending platforms for Bitcoin and stablecoins like USDT or USDC. Particularly, the platform is a crypto-backed asset provider where you deposit crypto and earn interest or can get a loan.
How to get 8% APY with AVAX on Nexo
At the moment AVAX holders can’t deposit to the Nexo platform directly. So if you are a holder of AVAX and want to deposit there, I would strongly recommend converting your AVAX to a stablecoin like USDT. The next step will be to deposit these tokens(USDT) to Nexo. So how to get the 8% APY from here?
- On the Nexo platform ‘Swap‘ your USDT to AVAX tokens where you automatically will receive 5% APY
- Become a Platinum Loyalty tier client where 10% of your token balance will be NEXO tokens(6% APY)
- Opt to earn your interest in NEXO Tokens for up to 1% additional interest.
- Create a 1-month Fixed Term for an extra 1% interest.
Example: Value of AVAX assets in your Nexo account: $10,000. Value of NEXO Tokens required for you to get the highest interest: min. of $1,000 in NEXO Tokens.
Staking Avalanche(AVAX) from crypto wallets
Next, a list of cryptocurrency wallets you can use to stake Avalanche tokens without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake Avalanche give you full control over your cryptos.
Ledger Nano hardware wallet
If you favor being in full control of your own cryptos then the Ledger Nano hardware wallet should be it. Particularly, the Ledger Nano wallet is a USB storage wallet with Bluetooth connectivity available.
Storing cryptocurrencies offline is the most secure option. A wallet enables users to perform various functions including sending and receiving Bitcoin from blockchains or running third-party apps on the device.
Besides storing coins in the wallet, users can also purchase new crypto because of Ledger wallet uses a built-in exchange feature. This feature uses a third party(Coinify) so buying comes at a cost: 4.5% credit card fees or 1.7% for bank transfers.
Staking Avalanche with Ledger Nano
Firstly, I want to mention that Ledger doesn’t officially support AVAX staking and therefore you can only store tokens offline with this device. However, if you favor keeping your private keys offline then you can still do this in combination with the Avalanche web wallet.
Particularly, this wallet is designed by the Avalanche developers community and has a built-in hardware wallet feature. More on this will be explained in the next chapter. More info on configuring Ledger with Avalanche can be found here.
❗ Warning: Always make sure to buy your Ledger Nano devices from the official online store. In fact, third-party sellers have been known to tamper with Ledgers.
Core Wallet
Are you an early bird investor in Avalanche and acquired at least 25 AVAX tokens? If so, then it would be a good idea to use the Core wallet for staking while keeping control over your private keys.
After all, using delegated staking from the Core wallet is the easiest and most secure way to stake Avalanche and maintain control over your crypto.
What is the Core Wallet?
Core is your home for exploring the world of Avalanche. The product suite acts as your complete Web3 toolkit. It brings dApps, NFTs, the Avalanche Bridge, and even more directly to your fingertips. As the go-to staking platform for Avalanche, Core provides a seamless and streamlined experience that offers customizability without the need for an intermediary. It provides the opportunity for user-directed, self-custodial staking and delegating directly to the protocol.
If you’re ready to try Core’s Stake feature, download the Core extension on the Chrome Web Store and head to core.app/stake.
For an on-the-go experience, download Core Wallet on the Apple App Store or Google Play Store.
Delegating AVAX on Core Wallet
So how can you stake at least 25 AVAX and earn 7.8% APY in a very secure way? Below are the steps for delegated staking on Core.
On Mobile:
- Download Core mobile for iOS/Android
- Once connected, navigate to “Stake.”
- Followed by inputting a valid amount to delegate, select “Next.”
- Next, set a staking duration
- Last, users can access a summary of their staking information. Maintaining the flexibility to revisit and modify any entered details, cancel the delegation setup, or finalize the delegation process by selecting the Stake Now button.
On Web:
- After heading to the Core.App, click first on ‘Connect Wallet‘
- Connect Core extension or your ledger
- Go to “Stake” then “Delegate” panel
- Click “Get Started.”
- Ensure AVAX is on P-Chain.
- Choose AVAX amount and click “Next.”
- Select staking duration
- Pick a node and click “Next.”
- Enter wallet address for rewards
- Click “Submit Delegation.”
- Approve transaction on Core extension
Staking AVAX with Ledger Hardware wallet
As stated earlier in this guide, you can also use a hardware wallet like Ledger Nano to store the private keys offline. Also, you can use this device in combination with the Core wallet to stake AVAX. How to do this?
- Make sure you have at least 25 AVAX stored with a Ledger device
- Go to the Avalanche Wallet url
- Click on ‘Connect Wallet’
- Next, choose ‘Ledger‘ to access your wallet
- For delegated staking, see the steps above
Run your own Validator Node
Are you the owner of a big stash(2000+) of AVAX tokens; In other words an Avalanche whale? Maybe it’s time to let this huge crypto capital work for you. Additionally, the best way to do this is by running an Avalanche validator node.
What is an Avalanche Validator Node?
Firstly, to become an Avalanche validator it is necessary to keep a minimum of 2000 AVAX tokens locked in stake. When you run a validator node you become a node operator within the entire network of nodes.
Moreover, each node stores a copy of the blockchain and must perform certain functions to secure the system.
At current prices 2000 AVAX is a huge investment and not accessible to everybody, however, the rewards are higher and calculated at an APY of 11%.
Also, you can delegate your stakes to other validators. In both cases, you keep the private keys under your control which is a big benefit if you favor being sovereign at all times.
Other blockchain networks that are using PoS staking like Polkadot for instance, are punishing validator nodes when they are not 24 hours online. Moreover, you could even lose all the rewards you previously collected.
Luckily, Avalanche doesn’t use this penalty mechanism and when a node disappears for a few hours or even days the rewards to this node will be paused.
How to Setup a Validator Node?
Configuring a validator node isn’t that easy, however, if you are familiar with running nodes in the crypto space then this isn’t rocket science. For running a validator you have two options: a PC connected to the internet for 24 hours or running the node from a VPS. Below are the minimum specs for setting up your validator node:
Hardware
- CPU: 8 Core => 2 GHz
- RAM: 16 GB
- Storage: 200 GB free space
Operation System
- Ubuntu => 18.04
- Mac O.S >= Catalina
Network
IPv4 or IPv6 network connection, with an open public port, capable of at least 30Mbps throughput.
Finally, you can use Vultr for VPS setups which cost you about $2.50 monthly.
Then follow the below steps:
- Set up Core extension or Ledger wallet and connect to core.app
- Set up a node manually or use Ava Labs script
- Navigate to “Stake” and then “Validate” panel
- Ensure AVAX is on P-Chain (transfer or purchase if needed).
- Specify AVAX amount for validation
- Choose staking duration
- Provide a node ID to stake AVAX
- Confirm wallet address for staking rewards
- Select a delegation fee (2% to 100%)
- Confirm transaction details and approve on Core extension or Ledger
Conclusion: Where To Stake Avalanche Crypto?
Currently, staking Avalanche is a popular method among crypto enthusiasts to generate passive AVAX income with zero risks. In this guide in which I covered where to stake Avalanche in greater detail, I also compared the different platforms in terms of rewards and lock-up periods.
Additionally, the idea of staking Avalanche(AVAX) is simple where every single AVAX token will generate new ones. Moreover, Avalanche or the AVAX token is a rising asset in terms of value where even holding a small amount can make a difference in the long run.
All in all, whatever option you decide to choose, staking AVAX is a perfect solution for you to earn additional cryptocurrency while you sleep.
