Where to Stake Algorand

Where to Stake Algorand

Robert McDougall 

January 2, 2023

Cryptocurrency

One of the most popular methods to earn additional income and delegate coins is by staking. Just like fixing a deposit at a bank, people can delegate their tokens to earn interest on their investment. 

One of the most popular coins people stake nowadays is ALGO (Algorand). In this article, we will talk about some of the best places to use if you are planning on staking ALGO tokens.

Best Places For Staking ALGO in 2023

1. Binance 

With high liquidity, traffic, trading volume, and millions of users worldwide, Binance is a world-leading digital currency exchange. Since it offers an extraordinary variety of services and products, such as Binance Earn, it is also considered the biggest exchange ever. 

Binance Earn allows users to get rewarded with additional tokens and earn interest on their crypto assets. Binance is the perfect choice for people who are interested in staking with locked periods as it doesn’t feature the flexible staking option. 

If you opt for locked staking, there are three duration options: 90, 60, and 30 days. The longer your tokens stay locked, the higher the staking yield will be. For the 90-day option, Binance offers a staking payout of up to 5.80%. The 60-day option provides 4.90% and the 30-day option 4.50%. 

You always need to pay attention to the minimum staking amount. With Binance, the minimum is 10 ALGO, which is around $3,000 by current prices. This 1-click platform offers competitive rewards and the staking pay-out is daily. There are no staking fees, which makes Binance a suitable option for beginners.

Advantages
  • Very simple sign-up process
  • Offers competitive reward rates
  • Daily pay-out
Disadvantages
  • Considerable withdrawal fees

2. Crypto.com 

Staking Algorand on Crypto.com was introduced to in July 2020. Unlike Binance, Crypto.com offers flexible staking without a commitment period. This platform also features Crypto.com Earn, a high-class service that allows users to earn interest on digital assets. 

Traders using Crypto.com can earn rewards for staking 28 different supported tokens held within the wallet. As this platform features flexible staking, the rewards are also significantly lower. You can earn up to 1% APY for staking ALGO. 

There are two different rates for staking ALGO. The rate is determined by the amount of platform’s native CRO token staked. This means that the standard staking reward for ALGO is only 0.5% APY. However, if you stake 100,000+ native CRO tokens, you can increase the maximum rate to 1%. 

Since this is around $18,000, not many investors will be able to obtain the higher staking rate. So, although Crypto.com Exchange offers a reliable and simple platform, those who seek to earn more than 0.5-1% should check out the next one on the list. 

Advantages
  • No commitment period
  • Quite simple and reliable
  • 28 coins supported for staking
Disadvantages
  • Low reward rates

3. Ledger Wallet

Ledger produces some of the best hardware offline wallets. Ledger specializes in the storage of cryptocurrencies such as Algorand. With a Ledger wallet such as the Nano X, your tokens are held offline on a device that you can carry. It also allows you to stake ALGO tokens to earn rewards.

There are many upsides to using this device for staking ALGO. Since the device allows you to unplug it and carry it around as an offline wallet, security is almost bank-like. Plus, when staking ALGO on Ledger, you can choose your preferred validator. 

To stake ALGO with this device, the minimum amount required is 1 ALGO. The staking rewards are calculated and distributed to users in about 20 minutes. To claim the rewards, you have to do it manually with the Ledge Live software. 

Using a Ledger wallet is not ideal for beginners, and there is an upfront cost to purchase the device. As such, we highly recommend that you only use this if you have experience with cryptocurrencies.

Advantages
  • Extraordinary security
  • Small, minimalistic design
  • Quite a lot of coins supported
Disadvantages
  • High upfront cost

4. Coinbase

Coinbase is one of the most well-known exchanges that support ALGO. It allows users to stake, buy, and sell tokens to earn rewards. Coinbase is also arguably the most popular ALGO staking platform, primarily because of its simplicity and ease of use. Coinbase supports ALGO staking since December 2020.

Keep in mind that the ALGO staking option of Coinbase is not supported in some countries. If your region supports ALGO staking, you can stake ALGO tokens and earn 4% APY. Even though the staking reward is significantly lower than the one on Binance, the minimum amount of tokens required is only 0.01 ALGO. 

Since this barrier is quite low, it is accessible for beginners. Moreover, Coinbase offers flexible staking, meaning you don’t have to lock your tokens and you can redeem them at any moment if you want to withdraw or trade them for other coins. 

All in all, if you are looking for a secure, trustworthy and beginner-friendly platform for staking Algorand, Coinbase is the perfect choice. But if you already have a lot of experience and budget to invest, this platform will probably feel limited because of its lower staking rewards and 25% commission fee.

Advantages
  • Quite beginner-friendly
  • Trustworthy and reliable
  • The minimum required amount of only 0.01 ALGO
Disadvantages
  • High commission fee

5. Bitfinex

Bitfinex is a sophisticated trading platform, well-known for its deep liquidity. This exchange became extremely popular in the staking industry after releasing its no-hassle soft-staking program. 

This program includes 10 different cryptocurrencies, along with Algorand. Moreover, just like other exchange platforms in this article, the main advantage of Bitfinex is the ability to not only stake Algorand without a commitment period, but also to trade it using the same platform. 

What makes Bitfinex better than the previous platform is their staking rewards are much higher, ranging between 3% and 5%. However, a little downside to this platform is that the rewards are paid out weekly, not daily. 

Although there are no fees included, Bitfinex keeps a small amount of the rewards as commission for providing the service. Security is also outstanding since the staked tokens are kept in a cold wallet system, which significantly reduces the risks of hacking attacks.

Advantages
  • No commitment period
  • Great reward rates
  • Stores staked tokens in a cold wallet system
Disadvantages
  • Rewards are paid out weekly, not daily

6. Atomic Wallet

This decentralized cryptocurrency online wallet supports over 500 different coins and tokens, and has over 3 million users worldwide. The advertised reward for staking Algorand on Atomic Wallet is 7.2%. However, the actual reward isn’t always the estimated one, depends on several factors, and can vary daily.

Those factors include the number of tokens staked as well as the commission set by a validator. The minimum required amount to earn staking rewards of up to 7.2% APY is 1 ALGO. The rewards are distributed to users once a new block is added to the blockchain. 

The great thing is that the wallet can be installed on both a mobile and desktop device, allowing you to monitor everything, including the rewards and the overall portfolio. Keep in mind that this is not a soft-staking exchange and that it requires a certain level of expertise. That is why Atomic Wallet should only be used by those who have an intermediate to advanced level of expertise.

Advantages
  • Staking rewards can be pretty high
  • Supports over 500 different coins and tokens
  • Can be accessed with both desktop and mobile device
Disadvantages
  • Required an intermediate to advanced level of expertise

How Much Can You Earn Staking ALGO?

Those who decide to stake Algorand can earn anywhere between 1% and 7% APY. However, the exact amount depends on various factors, including the validator, the exchange, crypto wallet, etc.

What Is Algorand?

Algorand was primarily designed to provide decentralized, fast, and most importantly, secure transactions. ALGO is among the most popular digital ecosystems and one of the largest cryptocurrencies on the market, with a market capitalization of around 9.8 billion and a 24-hour trading volume exceeding 390 million. This platform utilizes the PoS validation process before distributing the coins into circulation.

Can You Stake Algorand?

Algorand can be easily staked and securely stored on the official Algorand wallet which allows users to earn up to 6% APY rewards. The ALGO coins you store in the official wallet will start accruing staking rewards automatically and they can be viewed at any moment via an Android or iOS device. You can also choose to stake Algorand using any of the crypto exchanges listed below. 

Our Bottom Line

Some platforms are designed to be simple and straightforward for beginners, while others require a higher level of expertise. Some are suitable for all levels of experiences, such as Binance, Crypto.com, and Coinbase

Serious investors who are more experienced should check out the Ledger Nano X. If that doesn’t seem like a suitable option for you, Atomic Wallet or the official Algorand wallet are other options you can consider. 

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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