How to Stake Crypto and Earn Rewards: A Simple Step-by-Step Guide
Staking crypto isn’t magic. It’s not a get-rich-quick scheme. But if you’re holding crypto like Ethereum, Solana, or Polkadot, and you’re not staking it-you’re leaving money on the table. Every week, people earn extra tokens just by leaving their crypto in a wallet or on an exchange. No trading. No timing the market. Just holding and earning. And it’s easier than most people think.
What Is Crypto Staking, Really?
Crypto staking means locking up your coins to help run a blockchain network. In return, you get paid in more crypto. Think of it like putting money in a savings account, but instead of a bank, you’re helping a blockchain verify transactions and stay secure.
Before staking became popular, most blockchains like Bitcoin used something called proof-of-work. That’s where computers race to solve math problems-using tons of electricity. Proof-of-stake replaced that. Instead of power, it uses coins. The more you stake, the more chance you have to be chosen to validate the next block. When you do, you get a reward.
Ethereum switched to proof-of-stake in September 2022. That one change turned millions of people into stakers overnight. Now, over 30% of all ETH is locked in staking. That’s not a niche thing anymore-it’s mainstream.
Which Cryptocurrencies Can You Stake?
Not every crypto lets you stake. Only those using proof-of-stake (PoS) or similar systems like delegated proof-of-stake (DPoS). Here are the big ones:
- Ethereum (ETH) - The most popular. Requires 32 ETH for a full validator, but you can stake less through pools.
- Solana (SOL) - Fast, low fees. Easy to stake on exchanges or wallets like Phantom.
- Polygon (MATIC) - Good for beginners. Rewards around 5-8% annually.
- Polkadot (DOT) - Staking through validators. APY often between 10-15%.
- Cardano (ADA) - Low entry. Stake any amount through wallets like Daedalus or Yoroi.
- Tezos (XTZ) - One of the oldest PoS chains. Rewards around 5-7%.
Bitcoin? No. Dogecoin? No. Shiba Inu? No. Those still rely on other systems. Stick to the ones listed above if you want rewards.
How to Stake Crypto: 5 Simple Steps
Staking isn’t complicated if you pick the right method. Here’s how to do it in five steps:
- Choose your crypto - Pick one that supports staking. Start with ETH, SOL, or ADA if you’re new.
- Buy or transfer your coins - Buy them on Coinbase, Kraken, or Binance. Or transfer from your wallet if you already own them.
- Select your staking method - You have four choices: exchange staking, staking pools, decentralized wallets, or running your own validator. We’ll break these down next.
- Lock your coins - Click the ‘Stake’ button. Confirm the transaction. That’s it.
- Collect rewards - Rewards show up weekly or daily, depending on the network. They’re automatically added to your balance.
That’s it. No coding. No servers. Just five steps.
The Four Ways to Stake (And Which One to Pick)
Not all staking is the same. Your choice affects your risk, control, and rewards.
1. Centralized Exchange Staking (Easiest)
Platforms like Coinbase, Kraken, and Bitpanda let you stake with one click. You don’t need a wallet. They handle everything.
Pros: Super simple. Rewards paid weekly. No tech skills needed. Bitpanda even lets you stake with $1 and pays out every week.
Cons: You don’t own your private keys. If the exchange gets hacked or shuts down, your coins are gone. Kraken froze withdrawals in 2023 during a liquidity crunch-some users lost access to staked ETH for weeks.
Best for: Beginners. People who want passive income without thinking about it.
2. Staking Pools (Middle Ground)
Staking pools let you combine your coins with others to meet minimum requirements. For example, Ethereum needs 32 ETH to run a validator. Most people don’t have that. So you join a pool with hundreds of others. The pool runs the validator. You get a share of the rewards.
Platforms like Lido, Rocket Pool, and Coinbase’s pooled staking handle this for you.
Pros: Stake any amount. Still earn good APY (4-7% for ETH). More secure than exchanges because you keep your coins in your own wallet.
Cons: You’re trusting the pool operator. If they get slashed (more on that later), you lose part of your stake.
Best for: People who want control without the hassle.
3. Decentralized Wallet Staking (More Control)
Use wallets like Phantom (for Solana), Keplr (for Cosmos), or MetaMask (for Ethereum) to stake directly. You control your keys. No middleman.
Pros: Full ownership. No exchange risk. Often higher rewards than exchanges.
Cons: You’re responsible for everything. If you lose your seed phrase, your coins are gone. You need to understand gas fees and smart contracts.
Best for: Intermediate users who want to learn and own their assets.
4. Run Your Own Validator (Advanced)
This is for tech people. You need 32 ETH, a dedicated computer, 24/7 internet, and knowledge of Linux and blockchain software. You’re running a full node.
Pros: Highest rewards. No fees to third parties. Full control.
Cons: One mistake can slash your stake. If your node goes offline for too long, you lose up to 5% of your ETH. Requires constant monitoring.
Best for: Developers, crypto enthusiasts with technical skills. Not for most people.
Risks You Can’t Ignore
Staking isn’t risk-free. Here’s what can go wrong:
- Slashing - If you or your validator node misbehaves (goes offline, signs conflicting blocks), you lose a portion of your stake. This can be 1% or up to 100% in extreme cases.
- Lock-up periods - Some networks lock your coins for weeks or months. Ethereum’s withdrawal system only opened fully in 2023. You can’t sell during a crash if your coins are locked.
- Price drops - You earn 5% in rewards, but if ETH drops 30%, you’re still down overall.
- Regulatory uncertainty - In the EU, staking rewards are taxed as income. In the U.S., the IRS treats them as taxable events. You’ll need to track every payout.
Don’t stake money you can’t afford to lose. And never stake all your crypto in one place.
How Much Can You Really Earn?
APY (Annual Percentage Yield) varies by network and platform. Here’s what you can expect in early 2026:
| Crypto | Exchange Staking APY | Delegated Staking APY | Validator APY |
|---|---|---|---|
| Ethereum (ETH) | 3.5%-4.2% | 4.0%-4.8% | 4.5%-5.5% |
| Solana (SOL) | 5.0%-6.5% | 6.0%-7.5% | 7.0%-8.5% |
| Polkadot (DOT) | 7.0%-8.5% | 8.0%-10.5% | 9.0%-12.0% |
| Cardano (ADA) | 4.0%-5.0% | 4.5%-5.5% | 5.0%-6.0% |
| Polygon (MATIC) | 5.5%-7.0% | 6.0%-7.5% | 7.0%-8.5% |
Example: Stake 10 ETH on a staking pool. You earn about 0.4 ETH per year. That’s $1,400 if ETH is $3,500. Not life-changing-but it’s free money.
What to Do Next
If you’re new: Start small. Buy $100 worth of ETH on Coinbase. Click ‘Stake’. Wait a week. See how rewards show up. Then do it again with SOL or ADA.
If you’re experienced: Use a decentralized wallet like Phantom or MetaMask. Stake directly. Learn how to choose reliable validators. Check their uptime history. Avoid ones with low performance.
Always diversify. Don’t stake all your crypto on one platform. Spread it across exchanges, pools, and wallets.
And always, always back up your seed phrase. Write it down. Store it offline. No cloud. No email. No photo on your phone.
Frequently Asked Questions
Is staking crypto safe?
It’s safer than leaving crypto on an exchange with no staking, but it’s not risk-free. Centralized exchange staking carries exchange risk. Delegated staking has slashing risk. Running your own validator requires technical skill. The safest option is using a reputable staking pool with self-custody wallets like Lido or Rocket Pool.
Can I lose my staked crypto?
Yes. If your validator goes offline or acts maliciously, you can be slashed-losing a portion of your stake. This rarely happens with top-tier pools or exchanges, but it’s possible. Always check validator performance before delegating. Never stake with unknown or low-reputation validators.
Do I have to pay taxes on staking rewards?
Yes. In most countries, staking rewards are treated as income. When you receive them, you owe tax on their value at that moment. Later, when you sell them, you may owe capital gains tax. Keep records of every reward payout. Use tools like Koinly or CryptoTaxCalculator to track this automatically.
How long do I have to lock my crypto for staking?
It depends. On exchanges like Kraken or Coinbase, you can usually unstake anytime-though it may take 1-3 days for withdrawal. On Ethereum’s mainnet, unstaking takes 18-24 hours after you request it. Some networks like Cosmos have 21-day unbonding periods. Always check the network’s rules before staking.
What’s the best platform to stake crypto?
For beginners: Coinbase or Kraken. For control without complexity: Lido or Rocket Pool. For Solana: Phantom wallet. For Polkadot: Polkadot.js or Binance. Avoid platforms with no clear reputation or that don’t allow you to withdraw. Stick to well-known names with years of operation.
Can I stake crypto on my phone?
Yes. Coinbase, Kraken, and Bitpanda all have mobile apps with one-click staking. Wallets like Phantom and Trust Wallet also support staking on mobile. Just make sure you’re using the official app from your app store. Don’t download from random links.
Final Thoughts
Staking crypto is one of the few ways to earn passive income in crypto without trading. It’s not a silver bullet. It won’t make you rich overnight. But if you hold ETH, SOL, or ADA, and you’re not staking-you’re missing out on free tokens every week.
Start small. Learn the risks. Use trusted platforms. Keep your keys safe. And don’t chase the highest APY-chase security and reliability instead. The crypto world moves fast, but staking rewards are steady. That’s the real advantage.
