SOLANA STAKING: HOW TO DO IT AND BEST OPTIONS

SOLANA STAKING: HOW TO DO IT AND BEST OPTIONS

If you want to do Solana Staking, you are in the right place. In this post, we are going to show you how to do Solana Staking and which are the Best OptionsNowadays.

If you want to create your own NFT Staking, we explain how to create Solana NFT Staking in this post.

WHAT DOES STAKING MEAN IN SOLANA

We call Solana Staking the fact of delegating our SOL to network validators who generate returns by validating transactions and keeping the Solana Blockchain decentralized.

To understand it better:

Solana uses Proof of Stake (PoS) to ensure the correct functioning of its Blockchain in a Decentralized way. This mechanism uses transaction validators that depend on the Solana they haveStaked.

SOLANA STAKING - SMITHII

The work of the validators is rewarded by generating revenue in SOL, so we, as users, can give our Solana to these validators to Stake it. This is what we call Solana Staking, which generates the following benefits:

  • We generate profits with the SOL we own
  • Generate extra returns if Solana value is appreciated
  • We generate compound interest automatically
  • We keep the network secure
  • We maintain the network decentralized

We must take into account that we can also Stake with Pools in Solana, that is, an option that allows us to Stake our Solana but keeping the liquidity, being able to use it.

We will see moredetails about Solana's Liquid Staking later.

HOW MUCH MONEY CAN I EARN WITH SOLANA STAKING

It's good to help the Solana network and all that, but the important thing ishow much money will I make if I do Staking in Solana?

By doing Solana Staking we will earn about 7% APY, i.e. a 7% return of investment.

Profits are not fixed, but a calculation that will vary based on the performance of the validator we use for our staking (we will see the best options below).

It is important to emphasize that profit is not assured and that there are risks as in any other investment.

solana staking earnings - smithii

SOLANA STAKING APY

As mentioned above, our current return is around 7% of the investment. We must keep in mind that this is APY, that is, it is the annual return we will obtain thanks to compounding (the staking automatically compounds).

Solana's Staking offers us an APY, which is slightly higher than the APR thanks to the automatic reinvestment every 2-3 days of what is generated.

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HOW TO STAKE SOLANA

Staking Solana is relatively simple, so let's cut to the chase and learn how to do it in just 4 steps.

1. DEPOSIT SOL IN YOUR SOLANA WALLET

To start our Staking we need the amount of SOL we want to Stake in our wallet (if you don't have it already). Once we decide how much SOL, we should send to our Solana wallet.

It is recommended to use a Ledger for Staking, if you don't know how to do it, check this post we explain to you how to Stake Solana with Ledger.

2. STAKING IN THE WALLET

To continue we access our wallet and click on our SOL token. It will open the amount of Solana we have and the recent transactions. In this step weclick on the three dots at the top right, then click on "Stake SOL".

SOLANA STAKING - SMITHII
HOW TO STAKE SOLANA - SMITHII

3. SELECT SOLANA VALIDATOR

We continue with the selection of the validator. We recommend you to use "Coinbase Cloud" or "0% Fee | Melea", although below we explain which is the Best Option in a comparison.

BEST STAKING IN SOLANA - SMITHII

4. SELECT QUANTITY AND START STAKING

To complete our Staking process, we select the amount we want and confirm the transaction, in a matter of seconds, our SOL will be working for us in generatingprofits.

Of course, you can withdraw the funds from Staking whenever you want. Also, the earnings are automatically returned to Staking, taking advantage of compound interest.

HOW-TO-STAKE-ON-SOLANA-BEST-APY-SMITHII

SOLANA STAKING POOLS

If you want to Stake without losing your liquidity, Pools Staking is an interesting option. This allows us toStake our SOL, generateprofits and also have a liquiditytokenthat we can use.

In Solana, we have different DeFi platforms where you can Stake Solana in Pools.

Click on the following link if you want to learn about Staking Pools in Solana.

SOLANA STAKING LIQUIDITY - SMITHII

WHICH IS THE BEST VALIDATOR FOR STAKING IN SOLANA

The performance and security of our investment will depend on the validator to which we are going to delegate our Solana through Staking, that is why we are going to compare the Best Solana Staking Validators.

The factors that differentiate Solana' s Top Validators from the rest are:

  • Number of Solana Staked
  • Commission
  • Trust
  • Recent Activity

For the followingcomparison, we have chosen what we consider to be the best options in Solana based on these criteria.

COMPARISON OF THE BEST SOLANA STAKING VALIDATORS

The percentageindicated in "SOL Staked" is the percentage of the total Solana supply, the commissionis not the APY we will receive, it is the commissionthe validator receives from the total APY generated with our SOL.

After the comparison table, we will talk in depth about each of the Validators.

Staking ValidatorTop/StakeSOL StakedCommissionLocation
Coinbase Cloud12.44% (9,452,937 SOL)8%US
Staking Facilities21.89% (7,318,096 SOL)8%DE
Ledger by Figment 150.94% (3,658,958 SOL)7%CA
Melea190.87% (3,357,465 SOL)0%US
The data in the table is of the date this post was written, to see the updated information check the link below.

Here you can see the information of all Solana Validators.

COINBASE CLOUD - SOLANA VALIDATOR

Coinbase Cloud is Coinbase's Solana Validator, one of the world's most popular centralized Exchanges. It is currently the number 1 validator in Solana, with the highest number of SOLs in Staking.

On the positive side, we can do SOL Stakingdirectly from its exchange and it is one of the safest options.

On the negative side, we have a moderately high commission (8%) and if Coinbase goes down, the validator will go down as well.

It is located in the United States, this can be negative or positive, depending on SEC regulation.

STAKING FACILITIES - SOLANA STAKING VALIDATOR

StakingFacilities is a very popularvalidator of Solana and many other Blockchains for investors.

In this case, it is in the top 2 Solana validators, located in Germany, have an 8% commission.

It is reallysafe and a VERY important option that competes directly with the rest.

LEDGER BY FIGMENT - SOLANA STAKING LEDGER

Ledger, the company behind the well-known cold wallet, also has its own validator in Solana with which we can Stake to generate yields, located in Canada.

Although it does not have as much Staked volume as those mentioned above, it has a slightly lower commission (7%), and has a certain guarantee of security due to the company behind it.

It allows us to do staking directly from the Ledger app. Note that you can keep your funds in Ledger and Staking in another Validator.

MELEA - 0% FEE SOLANA VALIDATOR

Melea is a more than interesting option, even though he has less name and volume in his Solana Staking than the rest, he is still in the top and many people trust this validator.

Its main advantage is its 0% commission, so we maximize our profits.

Melea also has validators in other networks. It is a priori the least secure option, but also the mostprofitable.

Its validator is located in the United States and competes with the rest of the above-mentioned to be the Best Validator for Solana Staking.

PROS AND CONS STAKING SOLANA

The Solana Staking, of course, has its Pros and Cons, analyze your case based on this and decide if it is worth it for you.

✅ SOLANA STAKING BENEFITS

We generate returns

Automatic compound interest

We support network operation

Extra benefits if Solana is appreciated

❌ CONS STAKING SOLANA

There are associated risks

We will lose liquidity*.

Risks per chosen validator

Losses if Solana depreciates

FAQ SOLANA STAKING

SOLANA STAKING IS WORTH IT

Of course, we cannot conclude a decision for you, depending on your personal situation, economic capacity and risk aversion, it is advisable or not to do Solana Staking.

The reality is that if you have Solana that you are not going to use, it is a very good idea, but always be aware of the risks involved.
In addition, Staking in Pools will help us to minimize certain risks while having liquidity.

CAN I DO SOLANA STAKING IN LEDGER

Yes, you can Stake in Solana with your ledger funds. You have two options:

-Staking from the Ledger App in your validator.
-Connect your ledger to an Onlinewallet and Staking through it in the validator of your choice.

HOW TO MINE SOLANA

It's very common to wonder how Solana is mined, but really the simile for mining in the Solana Blockchain is Staking.

If you want to mine Solana you must do Staking in a validator, thus supporting the network and generating returns.

SOLANA STAKING IS DANGEROUS

Of course, the use of crypto itself already has certain risks in terms of value.

If we talk about Staking in Solana, we must add the risk associated with the validators, for which it is advisable to diversify among the Best Options we have for Staking.

HOW IS REVENUE GENERATED

The performance generated by Staking comes from the support we provide to the Solana Blockchain.

Solana works thanks to Proof of Stake, so by Staking our SOL, we generate yield when we validate the transactions that are made.

I HAVE TO DO SOMETHING TO MAINTAIN STAKING

No, once you Stake in Solana, the revenue you generate each "epoch" (2-3 days) is automatically reinvested.

Of course, you can withdraw your SOL from Staking whenever you decide without affecting the yield already generated.

CONCLUSION

Solana Staking is very interesting because of the APY that we will generate passively. What do you think? Which validator will you use? Do you prefer Staking in Pools?

Thank you for reading us, remember to subscribe to our Newsletter to receive valuable content about NFT and Crypto weekly.

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