Solana is the first blockchain to provide a high degree of scalability with low transaction fees. Solana’s native cryptocurrency ( SOL ) has a market capitalization of over $66 billion and has soared almost 12,000% so far in 2021.
Staking has been a popular way for people to get involved in cryptocurrency. There are several methods, and depending on how much time, money, or resources you’re willing to put into it will dictate your best course of action when getting started with staking, though!
Let’s begin with a clarification. There are two ways to stake Solana, stake on the blockchain and staking on an exchange platform.
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Stake on the blockchain vs. staking on a platform
Your first decision will be to validate transactions using your computer or delegate them. Crypto-staking networks are a way of allowing people who own tokens to provide them for other users, so they can deploy in validating transactions and earn rewards.
Some popular cryptocurrency exchanges offer staking in exchange for a commission. If you’re looking at this from an average user perspective, staking on an exchange platform is the easiest way to earn some extra SOL. But the truth is that when you stake on a platform, you don’t stake but lend your tokens. The exchange rewards you for this with a certain percentage of APY.
If you really want to participate and help the Solana ecosystem, you should buy a ledger and stake it on the blockchain.
Let’s dive into more details and see which are the best places to stake SOL in 2022:
Safest places to stake Solana in 2022
marinade.finance is a great way to stake SOL and participate in the Solana ecosystem. You don’t have to worry about unstaking periods or complicated tracking of validators performances. In the platform, you just select an amount of SOL to stake using Marinade liquid staking protocol and in return, you receive liquid SOL ( mSol ).
Then you can use your mSol in DeFi or swap back to Solana.
As of January 4th, 2022, the APY is 6.67%, with 61.8% Epoch progress.
Binance is a leading global cryptocurrency exchange that provides its users with a vast array of features. These features include fiat-to-crypto currency and cryptocurrency-to-cryptocurrency trading, margin trading, over-the-counter (OTC) trading, and more.
Binance also allows its users to earn rewards for holding its native cryptocurrency, Binance Coin ( BNB ). These rewards can be used to pay for trading fees, receive discounts on trading fees, and more.
You can also stake Solana on Binance in a very straightforward way. You can earn
32.46% APY if you stake your SOL for ten days. This is 100% locked staking, which means you can’t unlock and sell your SOL until the end of the staking contract.
Read more: Best Places to Stake Stellar ( XLM ) in 2022
Kraken is a cryptocurrency exchange based in the United States. It was founded in 2011 by Jesse Powell. The company is one of the largest Bitcoin exchanges globally and has been described as one of the most reliable Bitcoin exchanges available.
Kraken allows its users to earn interest on their deposited cryptocurrencies. These interests are paid out daily and are based on the deposited amount and the length of time it is deposited. The longer the deposit, the higher the interest rate.
Kraken also offers a staking service for its users. SOL can be staked on Kraken for a minimum of 7 days and a maximum of 14 days for an APY of around 6.5%.
Solflare is a fantastic all-in-one digital wallet solution for Solana. It’s super safe, easy to use, and available on desktop, mobile, and as a separate browser extension ( just like Metamask ).
It’s probably the biggest Solana wallet out there, with over 24% of the entire circulating supply of Solana is currently staked via the Solflare platform. In addition to token swapping and storing NFTs, users can also stake their Solana or do whatever they need within the ecosystem. It was recently launched with a significant re-release called ‘Solflare X.’
When you stake your SOL on Solflare with a ledger, you’re staking on the blockchain itself which means you’re supporting the Solana ecosystem.