How to Stake Cosmos (ATOM) - 6 Best Platforms
Crypto Basics

How to Stake Cosmos (ATOM) - 6 Best Platforms

месяц назад

Are you holding Cosmos (ATOM)? Why not stake those ATOMs to earn more tokens? Here is a list of six best platforms you should check out!

How to Stake Cosmos (ATOM) - 6 Best Platforms


How to Stake Cosmos (ATOM) — 6 Best Platforms

Offering around 10.3% nominal yields per year on average, the Cosmos token (ATOM) provides some of the highest staking rewards for any proof-of-stake (POS) cryptocurrency.

As a proof-of-stake blockchain, Cosmos allows validator nodes to participate in network consensus. It also allows users to delegate their stake to one of these nodes to earn a share of the token emission.

By default, there is a 21-day lockup period applied to any staked ATOM tokens. This means the tokens cannot be moved, spent or used in any way during this period. That said, some centralized staking platforms do offer liquid staking, which can allow users to bypass this limit (usually in return for lower rewards).

Since ATOM delegation is a completely non-custodial process, it is largely considered safe (from a security standpoint) — validators cannot spend delegated funds. That said, since Cosmos uses hard slashing to deter fraud among validators, users could see their funds slashed if their chosen validator is found to be operating maliciously.

Because of this, it’s important to make sure you only delegate your ATOM to well-reputed and trustworthy validators to minimize your risk. Most non-custodial platforms allow users to choose which validator they delegate to, whereas centralized exchanges usually offer their own validator.

Here, we take a look at the six most popular platforms for staking ATOM. Let’s dive in!

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How to Stake Cosmos (ATOM) on Coinbase?

One of the most well-known cryptocurrency exchanges and on-ramps, Coinbase is popular among cryptocurrency users due to the wide variety of products it offers and its excellent reputation.

Coinbase can be considered a one-stop shop for almost all things crypto since it offers a wallet, crypto-powered debit card, lending solution, payroll platform, exchange, and more.

The platform also makes it easy to earn staking rewards on a variety of assets through its staking solution. Right now, Coinbase supports five different cryptocurrencies for staking, these are: Algorand (ALGO), Cosmos (ATOM), Ethereum (ETH), Tezos (XTZ), and Cardano (ADA).

Here’s How to Participate:

  1. To begin, log in to your Coinbase account and ensure that you've completed identity verification.
  2. Generate your Cosmos address over in your account dashboard. Deposit your ATOM to your address and wait for it to appear in your account.
  3. In most cases, you will then begin earning staking rewards immediately. Though in some regions you may need to head over to the ‘Settings’ menu to toggle on the ‘staking rewards’ option.
Considerations: Coinbase is unusual among centralized staking providers in that your ATOM tokens will not be subject to a lock-in period. However, it also provides some of the lowest yields — this is currently set at 5% APY.

How to Stake Cosmos (ATOM) with Keplr Wallet?

Billed as the first wallet for the IBC ecosystem, Keplr is a popular self-custodial wallet for Cosmos. The wallet takes the form of a browser plugin or mobile application that can be used to store and manage an array of Cosmos-based assets — including the native ATOM token.

As of writing, Keplr supports more than 20 blockchains in the Cosmos ecosystem, including Agoric, Chain, Kava, Osmosis, Secret Network, and Sifchain. The platform is one of the few non-custodial Cosmos wallets to support ATOM staking, and also boasts hardware wallet support — providing maximum security to users.

Here’s how to participate:

  1. To stake your ATOM using Keplr, load up Keplr, connect your wallet, and select Cosmos Hub from the list of chains on the left.
  1. Here, select the ‘Stake’ option. This will load the list of currently active validators, along with their voting power and commission rate. Select the one you wish to stake with and click the ‘manage’ button.
  1. This will pull up the delegate menu. Click the ‘Delegate’ button. On the subsequent screen, enter the amount of ATOM you wish to delegate to your chosen validator.
  2. Click the Delegate button to process this transaction. This will open up Keplr wallet allowing you to authorize the delegation.

How to Stake Cosmos (ATOM) on Binance?

By far the best-known centralized and one of the most trusted exchanges, Binance offers a huge variety of additional features beyond simple cryptocurrency trading tools.
The platform now provides a wide variety of additional features — including derivatives trading (options and futures), cryptocurrency savings, token launches (via Binance Launchpad), and a comprehensive staking platform.

Binance is unusual among staking platforms in that it provides a variety of ATOM staking periods and variable rewards. Users can opt to stake their ATOM for 30, 60, 90, or 120 days — earning an increased APY by committing to a longer staking period.

Here’s How to Participate:

  1. To get started staking ATOM on Binance, head over to the staking platform and select ATOM from the list of available staking products.
  1. Here, click the ‘Stake Now’ button and choose the amount you wish to stake, enter the amount to lock.
  2. Read and agree to the terms and conditions, before clicking ‘Confirm’ to finalize your stake.
Considerations: Binance applies a maximum staking limit for most staking products. You can find your maximum staking limit under the “Total Personal Quota'' section of the staking interface. Your funds will be automatically returned to your wallet (including any yields) after the lock period elapses, or you can choose the auto-staking feature to automatically restake your assets in the same product upon expiry.

How to Stake Cosmos (ATOM) on Kraken?

The popular centralized exchange known as Kraken is a popular choice among cryptocurrency traders due to its wide variety of funding options and strong reputation. It is also popular thanks to its Earn platform, which allows users to easily stake a wide variety of cryptocurrencies directly from their account balance.

As of writing, Kraken supports staking for 15 different POS and DPOS assets, including Cosmos (ATOM). It is arguably one of the simplest places to earn yields through staking.

Here’s how to participate:

  1. Log in to your Kraken account and head over to the staking dashboard.
  2. Here, find Cosmos in the list of supported assets, and click the blue ‘Stake’ icon on the right.
  1. You’ll then be able to choose how much ATOM to stake from your spot wallet. If you don’t have any yet, you’ll be given the option to either deposit or buy some.
  2. You can then choose how much ATOM to stake. Click the ‘State’ button to submit your selection. You will then begin accruing rewards immediately.
Considerations: Your Kraken account will need to be verified to at least Starter level to participate in staking. This does not involve completing full KYC verification.

How to Stake Cosmos (ATOM) Using Ledger?

Hardware wallets are popular among those with sizeable portfolios due to the security they provide to users.

While early hardware wallets were relatively basic cold storage devices, most popular hardware wallets now operate alongside a dedicated application, which can be used for executing transactions, engaging with DeFi, and in many cases, staking.

The Ledger Nano S and X hardware wallets are by far the most popular options due to the wide variety of features they offer and their accessible price points. But while they are among the most secure wallets for staking ATOM, they can also be one of the most time-consuming — particularly if you are unfamiliar with using hardware wallets.

Here’s how to participate:

  1. Connect your Ledger wallet to Ledger Live and unlock the device with your PIN.
  2. Ensure that the latest version of the Cosmos (ATOM) app is installed on your device.
  3. Head over to your Cosmos account via the Ledger app. Here, click the ‘Earn Rewards’ button and click ‘Continue’ after reading the information pop-up.
  4. Select a validator from the available list and enter an amount of ATOM to stake. Click 'Continue' when ready to proceed.
  1. Verify the operation using your Ledger device and approve the transaction. This will then submit the delegation operation and your ATOM will begin accruing rewards.
Considerations: You will need to have the Cosmos (ATOM) app installed to use the ATOM staking feature. See this official guide for instructions on installing apps on the Ledger Nano S/X.

How to Stake Cosmos (ATOM) on StaFi?

StaFi is different from other cryptocurrency staking platforms in that it allows users to maintain the liquidity of their tokens even while staked — irrespective of the lock-up or enforced staking period many blockchains use.

It accomplishes this through the use of ‘r-tokens’ which are derivatives of staked assets that remain liquid. By staking tokens through StaFi, you will receive an equivalent number of r-tokens which can be sold, traded, or used to redeem your original stake later. This feature is known as “liquid staking”.

Because of this, StaFi can be used to stake ATOM without being subject to the usual 21-day lockup period.

Here’s How to Participate:

  1. To begin staking on StaFi, head over to the platform's staking dashboard and find Cosmos in the list of supported assets. Or click this link to head directly to the ATOM staking page.
  2. Click ‘Stake’ and connect your wallet to the platform. Alternatively, you can create a native StaFi wallet. Ensure that you have enough ATOM to stake.
  3. Enter the amount of ATOM you want to stake and proceed through the prompts until you see the ‘Stake button’ — click this. This will open a prompt in your connected wallet asking you to sign the transaction. Once staked, you will receive the equivalent amount of rATOM in your wallet and you’ll begin earning yields.
  1. You can then exchange this back for native ATM via the rSwap menu.
Considerations: StaFi tends to be one of the more expensive platforms for staking in terms of commission, and rTokens typically trade at a slight discount to spot since they factor in future staking rewards.
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