Staking Cosmos (ATOM) is one of the top coins for staking using an exchange or wallet to earn passive rewards of up to 10% per year. Here is our list for the best places to stake Tezos which includes crypto exchanges and wallets. Our research is based on assessing the platform's features, estimated annual yield, fees and security.
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 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)
For individuals that want to stake crypto, one of the easiest ways is to use the same exchange they purchased ATOM. They will be comfortable with the exchange’s design and likely already have performed due diligence on its features and other relevant criteria.
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
For a full step-by-step guide on how to stake cryptos, read our article that explains the best methods of staking and the criteria to weigh up before choosing a staking platform.
Best Cosmos Staking Platforms: Comparison
This comparison guide provides an overview of where to stake Cosmos (ATOM) to earn rewards and a passive income.
Best Wallets To Stake Cosmos (ATOM)
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 crypto interest accounts.
Cosmos staking has an estimated reward between 9.47% and 12.78% 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 day. The higher fixed rate staking pool for Cosmos is often sold out as it's on a first-in, first-serve basis.
Binance investors must have at least 1 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. Overall, Binance is one of the best platforms to stake crypto for its flexible plans and zero staking fees.
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% APY. 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 3 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 herein.
3. Ledger Wallet
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 8% to 10% APY, minus validator 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. 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 keeping control over the private keys and maintaining ownership over the asset. This is the preferred option for beginners to earn rewards by staking Cosmos and helping 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.
4. Atomic Wallet
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 experiences 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% APY which is in 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
5. Guarda Wallet
Guarda is a secure crypto wallet that allows individuals to buy, store and sell digital currencies such as Bitcoin, Ethereum and thousands of other coins. The wallet is multi-currency and non-custodial which means investors keep hold of their Bitcoin private keys. The wallet is available using a web, desktop, Chrome Extension or mobile device.
Guarda Wallet supports 50 blockchains and over 10,000 tokens that can be bought, exchanged, staked, delegated, borrowed and transfer to smart contracts. Up to 10 coins including ATOM are available to be stored on a Guarda wallet to earn staking rewards.
Investors that use the Guarda wallet can participate in the Cosmos network by contributing to the security of the ecosystem using delegation. The reward for delegating a deposit to a validator is up to 10% per annum.
For example, holding 1000 ATOM coins within a Guarda wallet that is currently valued at $15,672 will earn a monthly passive income of 7.65 ATOM, or the equivalent of $119.90. The annual income is 91.80 ATOM which equates to $1,438 at current prices, which represents an estimated yield of 9% APY.
To stake Cosmos (ATOM) using Guarda, follow these simple steps:
- Select the ATOM wallet on Guarda and click on “Deposit for staking”
- Enter the amount of ATOM to deposit
- Select a validator based on profitability or reputation
- Click “Next” and confirm the information to start earning rewards
Where To Buy Cosmos?
The best place to buy Cosmos (ATOM) is using fiat to crypto exchange to convert local fiat currency into digital assets. Alternatively, using one of the best exchanges to buy crypto or an instant crypto-to-crypto swap platform can also be used to swap another coin to Cosmos.
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Frequently Asked Questions
Delegating Cosmos to an exchange comes with staking risks 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.
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.
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).
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.
To conclude our article on how to stake digital assets such as Cosmos (ATOM), we have assessed and compared the most popular cryptocurrency exchanges and hardware wallets to store ATOM coins to earn staking rewards.
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.