If you’re curious about cryptocurrency, you’ve probably heard of staking. Traditional staking entails locking up funds in an exchange, wallet, or similar platform and getting rewards for being a validator. In addition, you can stake various cryptocurrency coins, including Algorand (ALGO). But where should Algorand be staked?
Algorand’s Switch to Governance
In April 2022, the Algorand network abandoned staking in favor of governance rewards. Governance refers to the voting system inside decentralized networks and allows token holders to have a say in the changes and improvements made to the ecosystem. For example, those who have gALGO can vote in the case of Algorand governance.
The governance token of Algorand, gALGO, also can be used as collateral on the Folks Finance lending and borrowing platform. Token holders can earn rewards by voting using gALGO in the governance process. These rewards fluctuate depending on how much gALGO is put forth during a given voting period. However, Algorand offers more rewards through its governance scheme than it did with its passive staking program.
If you wish to learn more, we have a detailed explanation of how to use Algorand’s governance system.
Let’s move on to the places where you can earn rewards with Algorand.
Atomic Wallet is a well-known software wallet that allows users to stake various cryptocurrencies, including Algorand. Atomic Wallet’s staking method is simple; you can even use the Atomic Wallet smartphone app.
The nicest part of Atomic Wallet is that it, like Binance, does not charge staking fees. As a result, you can earn up to 7.49% APR on your staked ALGO without Atomic Wallet taking a cut.
Binance is the most famous exchange platform in the world, including all of the typical exchange functionality and some fascinating extras like staking. You can stake various coins, the most popular of which is Algorand. So, what do you require to stake ALGO on Binance?
If you want to participate in any staking period with Binance, you will need a minimum of 100 ALGO. This is presently worth about $180. Though this may seem inconvenient if you only have a few AGLO or none, Binance currently gives some decent rewards. For example, if you lock up your ALGO for 120 days, you can currently earn an APR of 8.24%.
In this case, the interest rate drops with the staking term. So, if you wish to lock in your funds for a month, you’ll only be eligible for a 2.25% rewards rate. If you only want to risk your ALGO for one week, the reward rate is only 1%. So, if you desire higher interest rates, you should stake for longer periods.
However, because Binance does not charge a staking fee, you can earn rewards passively without incurring any charges.
It is one of the world’s largest cryptocurrency exchanges, processing daily billions of dollars in transactions. Since 2017, Coinbase has provided ALGO staking with various other coins.
You need a dollar’s worth of ALGO to begin staking on Coinbase, making the entry requirements accessible to almost everyone. In addition, the platform pays a 5.75% reward rate on your staked ALGO daily.
Coinbase, on the other hand, charges a hefty 25% staking fee. If you don’t want to pay such an amount, look at other platforms that charge considerably less or none.
Bitfinex began in 2021 as a Bitcoin-only exchange but has since expanded to enable trading and staking of various coins, including Algorand. You can earn 3-5% annual rewards by staking ALGO on Bitfinex. To stake, you must deposit a minimum of one ALGO, which currently equates to roughly $1.80, so you don’t need to buy in bulk.
While Bitfinex’s reward rates for ALGO aren’t as high as some other platforms on this list, they don’t charge staking fees, so you get to keep your entire winnings.
5. Ledger Nano
The Ledger Nano is neither a cryptocurrency exchange nor a software wallet. Ledger, on the other hand, specializes in hardware wallets. But that doesn’t mean you can’t stake ALGO! On the contrary, starting staking with your Nano is easy, and there are few restrictions.
You need at smallest one ALGO on your account to the stake using Ledger. You must also download Ledger Live, a software that works with your hardware wallet. However, it is free and available on Google Play and the Apple App Store. If you don’t like Ledger Live or have a favorite wallet that you’d want to use, you can use a third-party wallet app instead.
Ledger now offers a rewards rate of 7.40%, which is quite healthy compared to other platforms. This attractive rewards rate, however, comes at a cost. Ledger now charges between 1.7 and 4.5% for staking, which is okay but can be avoided by using other free platforms.
6. Trust Wallet
Trust Wallet is a cryptocurrency software wallet that allows you to stake your ALGO. You can accomplish this using a web browser on your computer or the Trust Wallet mobile app. You only need one ALGO minimum to start, and it’s easy.
Trust Wallet now offers an annual reward rate of 5-6%. Furthermore, no fees are deducted from your earnings by the site.
Exodus is a software wallet designed for holding cryptocurrency funds, but you may still use it to stake your Algorand. You can stake your ALGO via the Exodus mobile app or the Exodus website.
To begin staking your funds with Exodus, you’ll need a minimum of one ALGO, but don’t fret; that’s less than fifty cents at the time of writing. The site provides a payout rate of 5.9% on the shelter of your staked ALGO, and the staking process is quick and easy.
Ledger Nano, Ledger Nano S, and Bitcoin are all examples of ledger nano products.
Staking Algorand Is Quick and Easy
Staking Algorand is an alternative to exploring if you want to earn a stagnant income without locking up large quantities of funds. The minimum fund requirements are typically minimal, and you will not be required to freeze your funds, as with many other crypto coins. So, look at the platforms listed above to see if you can discover the ideal venue to begin staking ALGO.