In this guide, we explain how to stake Solana tokens and start earning between 6% to 9% interest in passive income.
One way we personally earn around $300 per month in passive income is by staking Solana. Instead of just holding Solana SOL tokens on an exchange like Binance and FTX or on a wallet like Ledger, Trust you can put your Solana to work.
How to Stake Solana SOL Tokens?
By staking your SOL tokens on the Solana blockchain, not only can you earn rewards but you will also be helping to secure the network. To stake your tokens on Solana you’ll first need to have bought or traded for your tokens which will need to be transferred across to the platform that you have chosen to stake your tokens with.
With Solana, there are several platforms or apps that you can choose from. Firstly, you can stake these directly on a supported exchange. Usually, we don’t recommend storing your crypto on an exchange, where you don’t have access to your private keys, but these platforms can offer attractive rates. Alternatively, you can stake Solana within a wallet, where you’ll have access to your private keys.
Here are 6 different methods for staking your Solana SOL tokens in 2022. Before using any of these platforms please do your own research and understand the risk involved.
- Binance Exchange
- Huobi Exchange
- FTX Exchange
- FTX App
- Exodus Wallet
- Phantom Wallet
Want to find the best rates to stake & lend your crypto assets? Check out our DeFi rates table to find the best returns on your crypto
What is Solana?
Solana has one of the fastest-growing ecosystems in the cryptocurrency space with its highly scalable blockchain, which they claim to be the fastest in the world. You can buy or trade for Solana using popular cryptocurrency exchanges such as Binance, FTX, Huobi, or Crypto.com.
With Solana, you can connect to a vast array of DeFi solutions and it’s probably best known for its successful SOL token which has gone from strength to strength since its release and is currently in the top ten on CoinMarketCap.
6 Way to Stake Solana & Earn Passive Income
Staking your Solana tokens is a great way to earn passive income, but like all crypto assets, it can be very volatile. Before you choose your method of staking SOL tokens and making any investment please do your own research, as staking crypto tokens does come with risk.
1. Binance Exchange
For those who are looking for an easy way to earn interest from their SOL tokens, Binance could be a great choice. Binance Exchange is a popular cryptocurrency exchange that has some of the lowest fees in terms of trading. Binance not only offer ways that you can trade SOL, but you can also stake and earn a yield.
With Binance Earn, there are a few methods for staking for SOL tokens. However, you’ll most likely find the best rates with locked staking. At the time of writing this article, with locked staking you 9.20% estimated APY for locking up your tokens for 30 days, 9.90% APY for 60 days or 11.50% for 90 days. However, just be aware that these subscriptions do sometimes run out and the rates do change.
2. Huobi Global
Huobi Global is another cryptocurrency exchange that offers ways for its user’s to earn a yield on their crypto. Again, Huobi Global have low trading fees and ways that you can trade for SOL on their site.
Huobi Earn offers Featured, Fixed, Flexible and First Timer offers for users looking to earn interest. Previously, Huobi has offered limited-time rates as high as 50% APY for SOL. Or you can currently also stake SOL for 3.5% APY under their staking option.
3. FTX Exchange
FTX have ways that you can stake your Solana tokens with both their Exchange and App (which was previously Blockfolio). With FTX, the Crypto Derivatives Exchange, you can trade for Solana tokens with the likes of USD, USDT and Bitcoin. Once you have your SOL tokens, you can also stake them to receive 6% APY. SOL arent the only tokens you can stake with FTX Exchange, as you can also stake their own FTT tokens for free withdrawals from the platform.
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4. FTX App
The FTX App formerly known as Blockfolio is a popular portfolio tracking app, with inbuilt features of trading, tracking and investing. With the FTX App, you can currently earn 8% APY with any type of deposit up to $10,000, then 5% APY on larger amounts. To stake Solana, simply deposit your tokens into the app for trade for them using the trade feature and you’ll immediately start to receive 8% APY.
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5. Exodus Wallet
Exodus is a free desktop and mobile wallet where you can also store and stake your SOL tokens. Under the Rewards tab, you’ll find several tokens where you can stake which include Solana at 6.47% and this is currently with an estimated staking period of 4 days.
If you don’t have any SOL to stake, you can exchange for some within the wallet. However, just be aware, that this won’t be the cheapest way to exchange your tokens, as this inbuilt feature does come with a price tag. But it does mean that you don’t have to swap and send your tokens from one platform to another.
6. Phantom Wallet
The Phantom Wallet is the non-custodial wallet for Solana, similar to the likes of Metamask. With Phantom Wallet, you can safely store your SOL tokens with access to your private keys. Plus you can also connect to a hardware wallet for extra security.
When staking your SOL within the Phantom Wallet, you’ll be presented with a list of validators that you need to choose from. It is important to do your research into these Validators, as you will be entrusting them to earn your interest. In Phantom, you will be shown the commission the validator takes, the number of delegators and the total they are currently staking.
Check out our full Phantom Wallet Review for more information.
Other SOL Staking Options
There are a few other options to stake your Solana SOL tokens we didn’t mention in the tutorial, such as Kraken exchange and Nexo. Check out our staking and lending table to find the best rates.
- Kraken Exchange: Kraken is a popular crypto exchange where you can stake your SOL tokens and currently earn 6.5% APY
- Nexo Finance: Nexo is a lending and borrowing platform where you can earn between 6-8% on your Solana
If we have missed a way to stake Solana tokens, please let us know in the comments below.
How to Choose a Solana Validator?
When choosing a Solana validator, there are a few factors to consider, these include;
- Commission Rate: This will have an impact on your rewards, so choosing a lower commission rate is recommended.
- Uptime: It’s important to find a validator that maintains close to 100% uptime for their services.
- Size: Some users like to delegate to smaller validators to assist in decentralising the network and in the value of your SOL investment long-term. Whilst some will find strength in numbers and prefer the larger validators.
- Values: Consider validators that are committed to adding value to Solana through supporting the platform app development, tooling or educational materials.
Want to find out how we make $15,000 per month staking and lending crypto? Check out our guide and we show you the platforms we use to earn passive income.