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2022-05-01 08:13:42

How To Stake Solana Token – 4 Best Methods

  • What is the Best Way to Stake Solana Token (SOL)?
  • What are the Staking Rewards on Solana Token (SOL)?
  • How many Solana Coins do I need to Stake?

Are you looking for the best options to stake your SOL (Solana) tokens? Then this is the right place for you as we will discuss and compare the top methods to stake SOL Tokens.

For a quick overview, the following are the best platforms to stake your SOL tokens:

S. No.PlatformMinimum DepositLock-in PeriodRewards APY
1Binance0.0001 SOL30 Days – 90 Days9.28% – 13.21%
2FTX0.00000001 SOL7 Days6.00%
3Phantom Wallet0.002281881 SOL4-5 Days5.00% – 6.28%
4Lido.FiNot Applicable4-5 Days6.1%

Solana is one of the top Layer 1 Blockchain Networks with an in-house token SOL. And for HODLers, staking is a lucrative option to park their funds and earn those juicy staking rewards.

Read: 10 most profitable proof of stake cryptocurrencies

Personally, there are many reasons for which I would like my SOL tokens staked, such as:

  1. Fight SOL inflation rate, which is roughly around 6-8%,
  2. Lock my long term SOL investments so that I don’t sell them in a panic situation,
  3. Have additional rewards during my HODLing period.

Based on StakingRewards.com, the network currently distributes staking rewards between 5-7% per annum. However, there are few options to earn more than that.

1. Staking Rewards - Solana (SOL) Staking
Stakingrewards.com – Solana (SOL) Staking

So let’s dive into these methods one by one.

Top ways to Stake SOL Tokens

1.      Binance

Binance is the World’s No. 1 crypto exchange with the maximum number of users and trading volume. You can read a detailed review of Binance here. In addition to exchange services, Binance also offers Staking Services to its users.

For SOL (Solana) tokens, Binance has the following Locked Staking service:

2. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

What are the Conditions for Staking SOL tokens on Binance?

Following are the conditions for staking SOL tokens on Binance:

  1. Lock-in period of 30 Days, 60 Days, or 90 Days
  2. The minimum Staking amount varies from 0.0001 SOL to 0.01 SOL

But, what’s important to understand is how Binance is better than other available staking options. Let’s have a look at that.

When can SOL token staking on Binance be an ideal choice for you?

Binance can be your ideal choice for Staking SOL tokens due to following reasons:

  1. You are looking to stake these tokens for a medium-term of 1-3 Months,
  2. Binance gives High APY rewards for Staking SOL tokens,
  3. The staking process on Binance is Super-Easy,
  4. Binance has a top-class Security

However, this staking method also has some limitations.

What are the Limitations of Staking SOL tokens on Binance?

The limitations of staking SOL token is Binance are as follows:

  1. No Liquidity

Once you stake Solana tokens, your funds get locked for a specific period. This can create a liquidity issue for a user who may need these funds immediately. Liquidi Staking with Lido Finance provides that liquidity to a user.

  • Custodial Staking

Binance is a Custodial Crypto Exchange. This means that the exchange has custody of your crypto assets. So although very tough, if there is a hack on the exchange, then there is a risk that you may lose all your assets.

Point to note for Binance Locked Staking

In the case of Binance Locked Staking, assets can be withdrawn before the end of the lock-in period. However, all the staking rewards distributed during the period will be taken back by Binance from the principal amount of assets.

So at the time of unstaking (before the end of the lock-in period), you will get

Assets Staked Initially (-) Staking Rewards already Distributed to you

Now, let’s understand how you can stake your SOL tokens on Binance.

How to Stake SOL token on Binance?

Step 1 – Once you are on Binance. Click on “Earn” and Then Click on “Staking”.

3. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

Step 2 – Now, in the “Locked Staking” option, type “SOL” in the search bar. You would see various staking options for SOL.

Select the Lock-in-period (30 Days, 60 Days, or 90 Days) and click on “Stake Now.

4. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

Step 3 – Enter the Amount of SOL tokens you want to Stake. Agree to “Binance Staking Service Agreement” and click “Confirm”.

5. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

Step 4Additional Step

To check your staked Solana tokens, click on “Wallet” and click on “Earn”.

6. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

Now Click on “Staking” and you will be able to see your staked SOL tokens.

7. Binance Locked Staking - Solana (SOL) Staking
Binance Locked Staking – Solana (SOL) Staking

2.      FTX

Similar to Binance, FTX is one of the best Crypto Exchanges in the world. Further, FTX’s CEO Sam Bank Friedman is an early investor in the Solana project.

In addition to exchange services, FTX also provides Staking Service on a few tokens, including SOL Tokens.

What are the Conditions for Staking SOL tokens on FTX?

Following are the Conditions for staking SOL tokens on FTX:

  1. Minimum Staking Amount of 0.00000001 SOL
  2. Staking APY is 6%
  3. Lock-in Period of 7 Days
  4. An unlocking fee of 10% will be charged for immediate unlocking
  5. Once unstaked, no staking rewards will be given for the lock-in period of 7 days

Now, let’s understand when FTX can be your ideal platform to stake SOL tokens.

When can SOL token staking on FTX be an ideal choice for you?

FTX can be your ideal choice for Staking SOL tokens due to following reasons:

  1. When you are looking to stake your SOL tokens for a Long Term,
  2. The staking process on FTX is Super-Easy,
  3. FTX has a top-class Security

However, this staking method also has some limitations.

What are the Limitations of Staking SOL tokens on FTX?

The limitations of staking SOL token is FTX are as follows:

  1. No Liquidity

Once you stake Solana tokens, your funds get locked for a specific period. This can create a liquidity issue for a user who may need these funds immediately. Liquid Staking with Lido Finance provides that Liquidity to a user.

  • Custodial Staking

FTX is a Custodial Crypto Exchange. This means that the exchange has custody of your crypto assets. So although very tough, if there is a hack on the exchange, then there is a risk that you may lose all your assets.

  • Lower Rewards

FTX offers comparatively lower staking rewards than Binance. Further, it charges a 10% Fee to unstake immediately.

Now, let’s understand how you can stake your SOL tokens on FTX.

How to Stake SOL token on FTX?

Step 1 – Once you are on FTX, click on “More” and then click on “Stake”. If you don’t have an account, create your free FTX exchange account here.

8. FTX Exchange - SOL (Solana) Staking
FTX Exchange – SOL (Solana) Staking

Step 2 – On the Staking page, Click on “SOL

9. FTX Exchange - SOL (Solana) Staking
FTX Exchange – SOL (Solana) Staking

Step 3 – Now click on the “Stake” button

10. FTX Exchange - SOL (Solana) Staking
FTX Exchange – SOL (Solana) Staking

Step 4 – Enter the amount of SOL tokens you want to stake and click on the “Stake” button

11. FTX Exchange - SOL (Solana) Staking
FTX Exchange – SOL (Solana) Staking

Step 5Additional Step

Now you can see your staked SOL tokens on the same page.

12. FTX Exchange - SOL (Solana) Staking

3.      Phantom Wallet

Phantom Wallet is a Decentralised Non-Custodial Wallet of the Solana Ecosystem. It is similar to the Metamask Wallet, but for the Solana Network.

It allows you to have complete custody of your assets at all times. The private keys of your assets are stored on your device. The wallet is compatible with several browsers, including Google Chrome, Brave Browser, Firefox, and Microsoft Edge.

Further, the wallet can be used with your Ledger Hardware Wallet.

What are the Conditions for Staking SOL tokens on Phantom Wallet?

Following are the conditions for staking SOL tokens with Phantom Wallet:

  1. The minimum staking amount is 0.002281881 SOL
  2. Staking rewards are in a range of 5.00% – 6.28%
  3. There is no lock-in period of 4-5 Days for staking SOL tokens on Phantom Wallet
  4. Solana Network fee will be charged for Staking and Unstaking of SOL tokens

When can SOL token staking on Phantom Wallet be ideal for you?

Phantom Wallet can be your ideal choice for Staking SOL tokens due to following reasons:

  1. When you want to have complete control of your funds being staked,
  2. When you want to stake your assets for a long term

However, there are a few limitations as well. Let’s look at them.

What are the Limitations of Staking SOL tokens on Phantom Wallet?

The limitations of staking SOL tokens on the Phantom Wallet are as follows:

  1. No Liquidity

Once you stake Solana tokens, your funds get locked. Liquid Staking with Lido Finance provides you with a derivative token to provide liquidity to a user.

  • Ease of Use

The process of staking SOL tokens on Phantom Wallet s not as easy as on Binance or FTX.

  • Network Fee

The network fee, although negligible, is an additional cost of staking SOL tokens on Phantom Wallet.

  • Lower Rewards

Phantom Wallet offers comparatively lower staking rewards than Binance.

Now, let’s understand how you can Stake your SOL tokens on the Phantom Wallet.

How to Stake SOL token on Phantom Wallet?

Following are the steps for Staking SOL tokens on the Phantom Wallet:

Step 1 – Open Phantom Wallet and Click on “Solana Tokens

13. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Step 2 – Click on “Start Earning SOL

14. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Step 3 – Now, open “StakingRewards.com” and choose a reliable Validator for staking SOL tokens based on the number of users and Balance. The direct link for Solana is here.

15. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Step 4 – Select the chosen validator in the Phantom Wallet.

16. Phantom Wallet - SOL (Solana) Staking16. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Step 5 – Enter the “Amount of SOL” to be staked and click on the “Stake” button.

17. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Step 6 – Additional Step

Once the process is complete, you can check your staked SOL tokens as follows:

18. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking
19. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

Further, as you can see that the following status says “Activating”, this can take upto 4-5 Days before this is Activated.

20. Phantom Wallet - SOL (Solana) Staking
Phantom Wallet – SOL (Solana) Staking

4.      Lido.Fi

Lido.Fi is one of the best Liquid Staking platforms in the market. Liquid Staking means that while your funds are staked, you are given a derivative token that you can further use on various DeFi platforms. This provides a user with additional liquidity while their funds are locked.

For more information on Lido.Fi, you can read our Lido.Fi Fundamental Research Report.

CoinSutra – Lido Finance Fundamental Analysis

What are the Conditions for Staking SOL tokens on Lido.Fi?

As such, there are no conditions to stake SOL tokens on Lido.Fi. However, you should note the following:

  1. There is no minimum staking amount,
  2. Staking reward APY is 6.1%,
  3. There is no lock-in period. However, it can take upto 4-5 Days for staking SOL tokens,
  4. Solana network fee will be charged for Staking and Unstaking of SOL tokens.

When can SOL token staking on Lido.Fi can be an ideal choice for you?

Lido.Fi can be your ideal platform to stake your SOL tokens for the following reasons:

  1. Lido.Fi is a decentralized platform, unlike Binance or FTX,
  2. Every time you stake SOL on Lido.Fi, you get a derivative token stSOL which gives you additional liquidity,
  3. Lido.Fi has several Defi Integrations where you can deposit stSOL and increase your earnings in addition to the staking rewards.
21. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

However, Lido.Fi may also have some limitations.

What are the Limitations of Staking SOL tokens on Lido.Fi?

The possible limitations of Staking SOL on Lido.Fi are as follows:

  1. Ease of Use

The staking process on Lido.Fi is not as easy as centralized staking, such as on Binance and FTX

  • Network Fee

Every time you stake or unstake SOL tokens on Lido.Fi, you need to pay a Network fee (although negligible) which is an additional cost

Now, let’s understand the process of staking SOL tokens on Lido.Fi.

How to Stake SOL token on Lido.Fi?

The process of staking SOL tokens on Lido.Fi is as follows:

Step 1 – Go to Lifo.Fi and click on “Stake Now

22. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

Step 2 – In the “Solana” section, click on the “Stake Now” button

23. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

Step 3 – Click on “Connect Wallet

24. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

Step 4 – Select the wallet where you have your “SOL tokens”. For this tutorial, I have chosen phantom wallet. Choose the wallet and connect it.

25. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking
26. Lido Finance - SOL (Solana) Staking
Lido Finance – Phantom wallet connected with Ledger Hardware Wallet

Step 5 – Enter the Amount of SOL tokens you want to stake and click on “Submit”.

27. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

Step 6Confirmation

In a few seconds, you will receive a confirmation of your tokens being staked, and you will receive stSOL tokens in your wallet.

28. Lido Finance - SOL (Solana) Staking
Lido Finance – SOL (Solana) Staking

Conclusion – How to Stake Solana

So this is how you can stake your SOL tokens in 4 different ways. If you are a beginner, then go with Binance or FTX option according to your suitability.

However, if you understand the importance of decentralization and self custody, then you should definitely choose Lido.Fi or Phantom Wallet.

I hope this post was helpful for you. Let us know the tokens for which you want us to create similar staking guides.

Lastly, subscribe to CoinSutra Newsletter to build your edge in the crypto market.

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