Luna is one of the most popular cryptocurrencies for staking in 2022 for a reason. It offers a great opportunity to earn a passive income.
You can expect to earn around 6-7% interest on your deposits each year, depending on how you participate in the staking process. This is much higher than what traditional banks offer.
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What is terra luna?
Terra is a blockchain network that uses Cosmos SDK to specialize in stablecoin creation. Each Terra stablecoin is convertible into the network’s native token, LUNA.
LUNA holders can pay network fees, participate in governance, and stake in the Tendermint Delegated Proof of Stake consensus mechanism. Additionally, they can peg stablecoins to the LUNA network.
Where do LUNA staking rewards come from?
People who hold LUNA tokens can stake them in the Terra ecosystem’s consensus mechanism. By doing this, they receive rewards taken directly from swap fees on the Terra protocol. These fees are paid by users whenever they switch between LUNA and Terra stablecoin.
Best places to stake LUNA in 2022
Terra Station Wallet
The first place to look for when trying to stake LUNA is Terra Station. The Terra team hosts a page on the official website dedicated to Luna staking, including helpful guides and resources for getting started.
You can also download the official Terra Station Chrome extension which allows you to access decentralized applications (DApps) powered by smart contracts on the Terra
Luna uses a delegated proof-of-stake consensus method to run smart contracts and validate transactions on its blockchain. That means that holders who want to stake LUNA have two options: to become a validator or to choose another existing validator to delegate their coins. In order to become a validator, you must first have coins that you can stake.
A validator is a person or group of people who help verify new blocks of transaction data. They are required to keep their computing equipment running all the time.
If you want to delegate your LUNA to someone else, you can use the Terra Station Wallet – the official software for holding Terra assets.
LUNA holders who delegate can earn more than 6% annual interest. However, this yield may change in the future. If you stop staking and want to withdraw your tokens, it will take 21 days for you to receive them.
Read more: 8 Best Cryptocurrencies to Buy and HODL in 2022
Binance
Binance has also offered LUNA staking since September 2021. To stake your LUNA on Binance, create a new wallet and send your tokens to the new wallet address. On the dashboard, go to the Assets tab and choose Luna under Staking Rewards. Select Deposit for Luna.
You will receive rewards automatically in your Binance account as long as you keep at least 1 LUNA in your staking wallet. Expect to earn up to 28% APY for staking your LUNA on Binance.
Kraken
Kraken was one of the first exchanges to offer LUNA staking when it launched in September 2021. To stake your LUNA on Kraken, simply create a new account and deposit your Luna into it. Then go to the Staking tab, choose Luna, and hit “Delegate now”. You can expect to earn up to 6% APY on your staked LUNA, paid out weekly.
Is it safe to stake Terra (LUNA)?
Generally speaking, Terra is a safe cryptocurrency for staking. On the other hand, there is always a risk with using any product based on smart contracts. This includes the risk that you might lose access to your wallet, or that you might get phished.
Can you stake Luna on Crypto com?
Unfortunately, Crypto.com doesn’t offer LUNA staking but you can receive the crypto as a reward for staking CRO tokens into the Supercharger pool. If you’re interested in this, read more here.
If you’re interested in staking cryptocurrencies, take a look at some of the best ones that allow it:
