What Is Cosmos (ATOM) Staking?
Staking Cosmos (ATOM) token involves storing coins in a cryptocurrency wallet or exchange to support the operation of the blockchain network to earn rewards. The owner of Cosmos is paid out a bonus for their contribution to the operation of the network (similar to mining). Staking is a popular method to earn free cryptocurrency without investing more capital.
Why Stake Cosmos?
Cosmos (ATOM) is a popular digital currency that uses a hybrid Proof-of-Stake protocol to secure its network and allow Cosmos investors to earn a passive income of up to 10% per year.
Investors are rewarded by holding storing the coin and participating in validating transactions on the network through 'validators'. A small reward is then distributed to the owners (or 'delegator') via the validators at the set commission rate.
How To Stake Cosmos (ATOM)
To stake Cosmos (ATOM) coins, follow these steps using a Ledger hardware wallet as an example:
- Visit the Ledger website and download the Ledger Live application
- Install the Cosmos (ATOM) application and create an account or select existing
- Select 'Cosmos' from the staking list and choose a 'validator'
- Enter in the amount of Cosmos to delegate on the network
- Confirm transaction on a hardware wallet and begin staking Cosmos
Best Platforms To Stake Cosmos: Comparison
This comparison guide provides an overview of where to stake Cosmos (ATOM) to earn rewards and a passive income. Our research is based on assessing the platform's features, estimated annual yield, fees and security.
- Ledger wallet (keep control of private keys and stake using own hardware wallet)
- Binance (world's most popular exchange that allows ATOM staking and trading)
- Coinbase (reputable, reliable and safe global cryptocurrency exchange)
- Atomic Wallet (secure and decentralized wallet to store over 300 coins and tokens)
8-10% per year
6-9% per year
5% per year
10% per year
Ledger is a company that has developed innovative products and blockchain applications to store cryptocurrency assets that feature bank-like security. The flagship products are the Nano S and Nano X models which are widely regarded as one of the best hardware wallets to store cryptocurrency.
Cosmos coins stored on a Ledger wallet can be staked through the Ledger Live application to earn a passive income by participating in the Cosmos network via delegation. In return, users that stake Cosmos are rewarded with an annual yield of approximately 8-10%, minus fees.
The easiest way to stake Cosmos using a Ledger wallet is to delegate your staking power on your behalf. You still retain ownership of ATOM coins while staking the asset safely on a hardware wallet. By delegating Cosmos and participating in the proof-of stake protocol allows investors to earn rewards for assisting in the protocol.
Investors can earn rewards by staking Cosmos and keep control over the private keys and maintain ownership over the asset. This is the preferred option for beginners to earn rewards by staking Cosmos and help to accumulate additional ATOM coins while contributing to the operation of the blockchain network.
Investors that stake ATOM on a hardware wallet have the option to earn rewards using two different methods:
- Compounding (newly received ATOM coins are added to the delegation staking pool and compounded over time)
- Cashing in (newly received ATOM coins are paid to the wallet but will not earn staking rewards and can be traded for other assets)
Long term investors and holders of Cosmos should consider staking their investment on the Ledger Nano X hardware wallet to accumulate additional ATOM coins, with the added security of maintaining ownership and up to 10% ROI.
Binance is the largest cryptocurrency exchange by trade volume and has millions of users across the globe. The exchange offers feature-rich products including cryptocurrency leverage trading, lending service and earning rewards with loan and interest accounts.
Cosmos staking has an estimated reward between 6% and 9% to earn extra income by depositing and holding ATOM coins in a Binance wallet. The user's Cosmos balance is assessed each hour to calculate the rewards. Cosmos staking rewards are paid every month.
Binance investors must have at least 0.5 ATOM to qualify for staking rewards. All profits earned are shared with Binance users to maximize staking rewards. Binance staking is not available in all countries, check the website for details.
The benefit of staking ATOM coins on Binance is the ability to stake Cosmos while waiting for a trade opportunity. Users can benefit from the staking rewards in addition to potential trade profits on the spot or margin exchange.
Once a position is filled, the staked balance and associated rewards will automatically adjust to reflect the available balance. There is no fixed plan and users can switch the staking funds to trade Cosmos on Binance.
To stake Cosmos (ATOM) on Binance, follow these steps:
- Login to your account or create a free account with Binance
- Navigate to 'Earn' at the top menu and click on 'Staking'
- Select 'Cosmos (ATOM) Staking'
- Deposit coins from a hardware wallet or buy Cosmos with fiat
- Begin earning Cosmos staking rewards
Coinbase is a popular cryptocurrency exchange that is trusted by more than 35 million people in over 100 countries worldwide to buy, sell, store, use, stake and even earn interest on Bitcoin and other cryptocurrencies. Coinbase has emerged as a popular secure wallet and trading exchange to buy Bitcoin using a credit card or bank transfer.
Coinbase has introduced staking for its US Customers only with staking rewards on Cosmos (ATOM) up to 5.00%. The reward percentage is not fixed and varies over time based on the staking profits distributed by validators on the Cosmos network. Rewards are paid directly into a Coinbase wallet where the users funds are stored.
To earn staking rewards, Cosmos coins need to be stored in a Coinbase wallet. There is a minimum staking amount of 1 ATOM that must be within the wallet to earn rewards. Also, the staking rewards option must also be toggled on in the 'Settings' menu under 'Financial Services'.
Once the coins are staked on the exchange, the users rewards will be credited with the first payment directly to the Coinbase wallet after approximately 7-14 days. After the first payment, the ATOM staking rewards will be deposited approximately every 7 days.
Staking ATOM coins on Coinbase will incur a small commission fee. The amount is deducted from the staking rewards received from the Cosmos network. This results in a slightly lower reward rate of 5% compared to the other staking platforms mentioned above.
Atomic Wallet is a decentralized online cryptocurrency wallet available on desktop and mobile devices that supports more than 500 coins and tokens. The wallet is suited to crypto investors of all experience and provides a simple, safe and convenient means to store digital assets.
The expected ROI for staking Cosmos (ATOM) in an Atomic Wallet is ~10% which is at the upper range of rewards compared to cryptocurrency exchanges and wallets that allow staking. To be eligible for the staking rewards, a minimum amount of 1 ATOM needs to be held in the Atomic Wallet.
Unlike the Ledger Live Application, there is no hardware wallet integration available, so it is important to keep safe the back-up pass phase and password as you are solely responsible for the wallet's security. In our opinion, we prefer the additional security benefits of storing the asset on a hardware wallet while enjoying Cosmos staking rewards.
To stake Cosmos (ATOM) coins in an Atomic Wallet, follow these steps:
- Visit the website and download the Atomic Wallet
- Deposit or purchase Cosmos (ATOM) coins and store in the wallet
- Select Cosmos from the asset list and click on 'Stake'
- Review the list of validators and staking reward percentage
- Select a validator and begin earning Cosmos staking rewards
Where To Buy Cosmos?
The best place to buy Cosmos (ATOM) is using a fiat to crypto exchange to convert local fiat currency into digital assets. Alternatively, using a reputable crypto trading exchange or instant crypto-to-crypto swap platform can be used to swap another coin to Cosmos.
0.5% - 1.5%
Frequently Asked Questions
Are There Risks With Staking Cosmos (ATOM)?
The staking Cosmos using an exchange comes with risk as the investors do not hold control over the private keys which provide access to the funds. Exchanges can be prone to online theft and fraudulent activity which can result in the potential loss of funds.
Furthermore, staking platforms that allow the users to select a validator or baker can introduce the risk the provider does not pass on the full staking rewards to the delegator. The fees can fluctuate from 1% and 25% and depending on the validator.
How Do I Earn Cosmos Staking Rewards With Coinbase?
Users can earn Cosmos (ATOM) staking rewards with Coinbase by holding or purchasing the coins on the exchange to be staked on your behalf. Investors maintain ownership of the ATOM coins within a Coinbase wallet and earn rewards by delegating staking power to Coinbase.
Which Countries Does Coinbase Support For Staking?
Coinbase is a worldwide cryptocurrency exchange that offers its staking service globally in countries such as Belgium, France, the Netherlands, Slovakia, Spain, the UK and the US (except for residents in New York and Hawaii).
What Is The Best Way To Stake Cosmos (ATOM)
The best way to stake Cosmos (ATOM) is using a Ledger hardware wallet. The safety of funds is most important and Ledger allows you to maintain control over the coins and the private keys at all times.
While there are subtle differences between the platforms such as the reward percentages and fees to be aware of, in our opinion, staking ATOM using a Ledger wallet is a safe and profitable way to earn extra ATOM coins without having to sell your coins.
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