A popular method to earn additional income is staking cryptocurrency. One of the best coins to stake with high returns is Tezos (XTZ). In this article, we will explain what Tezos staking is, how to stake tezos, where you should stake the coins and what yield it can return.
Tezos (XTZ) is a popular cryptocurrency that uses a Proof-of-Stake protocol to secure its network. Staking Tezos allows investors to earn passive income up to 7% per year by actively participating in the validating of transactions on the network. Holders of Tezos who stake coins will receive XTZ tokens as a reward.
To stake Tezos (XTZ) coins, follow these steps using a Ledger Nano X wallet as an example:
- Visit the Ledger website and download the Ledger Live application
- Install the Tezos (XTZ) application and create an account or select existing
- Select 'Tezos' from the staking list and choose a 'validator'
- Enter in the amount of Tezos to delegate on the network
- Confirm transaction on a hardware wallet and begin staking Tezos
This comparison guide provides an overview of where to stake Tezos (XTZ) to earn cryptocurrency 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 the private keys and stake using own hardware wallet)
- Guarda wallet (multi-currency non-custodial crypto 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)
|Platform / Wallet||Estimated ROI|
|Ledger Wallet||6% per year|
|Guarda Wallet||6% per year|
|Binance||6-7% per year|
|Coinbase||5% per year|
|Atomic Wallet||6-7% 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.
Tezos coins stored on a Ledger wallet can be staked through the Ledger Live application to earn a passive income by participating in the Tezos network via delegation or setting up a node and baking. In return, users that stake Tezos are rewarded with an annual yield of approximately 6%, minus fees.
The easiest way to stake Tezos using a Ledger wallet is to delegate your staking power on your behalf. You still retain ownership of XTZ coins while staking the asset safely on a hardware wallet. By delegating Tezos and participating in the proof-of stake protocol allows investors to earn rewards for assisting in the protocol.
This means you can earn rewards by staking Tezos and keep control over the private keys and never loose ownership over the asset. This is the preferred option for beginners to earn rewards by staking Tezos and help to accumulate more Tezos while contributing to the security of the network.
The only drawback of staking Tezos on a Ledger hardware wallet is that it can take up to 5 weeks to earn the first reward. Thereafter, the payouts can be expected every 3 days. While this might seem like a disadvantage, the ability to keep control over your Tezos coins on a hardware wallet from hackers and fraudulent activity is far more important.
Guarda Wallet is a secure crypto wallet supporting about 50 major blockchains and thousands of tokens. The wallet is multi-currency and non-custodial which means only investors have access to their funds and no personal information of users is collected. The wallet is available on various platforms: Web, Desktop, Chrome Extension and Mobile.
With Guarda, investors can participate in the Tezos network by contributing to the security of the ecosystem using delegation. The reward for delegating a deposit to a baker is up to 6% per annum.
Thanks to built-in services and support of currency-specific features, investors can also buy, exchange, stake, delegate, borrow funds, and more. More than 10 coins including Tezos are available to be stored on a Guarda wallet to earn staking rewards. Guarda has its own baker node that gives users the opportunity to earn rewards without the need of paying expenses to run a baker node. The benefits of using Guarda to stake XTZ coins are:
- XTZ coins do not leave the wallet
- Baking rewards are distributed at the beginning of every cycle
- XTZ staking is available on Web, Desktop & Mobile platforms
To begin staking Tezos with Guarda, follow these simple steps:
- Open your XTZ wallet on Guarda
- Press 'staking', then 'Deposit for staking'
- Choose the amount you wish to send for baking
- Click "Next" and confirm the information to start earning your rewards
Binance is the largest cryptocurrency exchange by trade volume and has millions of users across the globe. The exchange offers feature-rich products including crypto margin trading, lending service and earning rewards with Binance staking.
Binance offers 25 staking products such as Tezos for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. There are no fees to stake Tezos coins on Binance and must have at least 1 XTZ to be eligible. All profits earned are shared with Binance users to maximize staking rewards.
The benefit of staking Tezos on Binance is that cryptocurrency traders can opt to stake Tezos while waiting for a trade. Users can benefit from the staking rewards in addition to potential trade profit.
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 can sell Tezos at any time while staking on Binance. This makes Binance one of the best platforms for staking crypto.
To stake Tezos on Binance, follow these steps:
- Login to your account or create a free account with Binance
- Navigate to 'Finance' at the top menu and click on 'Staking'
- Select Tezos (XTZ) from the Flexible Staking menu
- Deposit funds from a hardware wallet or buy Tezos with fiat
- Store Tezos coins in Binance wallet and earn staking rewards
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 Tezos in an Atomic Wallet is ~7% which is very comparable to other staking exchanges and wallets. To be eligible for the staking rewards, a minimum amount of 1 XTZ needs to be held in the Atomic Wallet. The website has a Tezos staking calculator to determine the month and yearly earnings based on the amount of XTZ coins staked.
Using the Atomic wallet, users can stake Tezos without any fees and receive rewards directly to the wallet from the baker. The full rewards from the bakers who verify transactions on the blockchain Proof-Of-Stake network are passed onto the crypto holder without any intermediaries. The staking reward does vary and the user can select a Tezos baker to stake.
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 staking rewards.
To stake Tezos on an Atomic Wallet, follow these steps:
- Visit the website and download the Atomic Wallet
- Deposit or purchase Tezos (XTZ) coins and store in the wallet
- Select Tezos from the asset list and click on 'Stake'
- Review the list of bakers and staking reward percentage
- Select a baker and enter in password to earn Tezos rewards
Coinbase is a cryptocurrency exchange that is trusted by more than 35 million people in over 100 countries worldwide to buy, sell, store, use, stake and earn cryptocurrency. Founded in June of 2012, Coinbase has emerged as a popular digital currency wallet and trading platform to buy Bitcoin and coins using a credit card or bank transfer. For beginners, Coinbase is a great place to learn how to stake cryptocurrencies due to its ease of use and compliance with regulations.
Coinbase has introduced staking for its US Customers only with staking rewards up to 5.00%. The reward percentage is not fixed and varies over time based on the staking profits distributed by the Tezos network which are paid directly to the user's Coinbase wallet.
Similar to Binance exchange, Tezos coins need to be stored on a Coinbase wallet to earn staking rewards. This allows flexibility to switch the asset from staking to spot trading and vice versa as the market conditions change. Users can always opt-out of staking Tezos and sell at any time.
Staking Tezos coins on Coinbase will incur a small commission fee. The amount is deducted from the staking rewards received from the Tezos network. This results in a slightly lower reward rate of 5% compared to the other platforms mentioned above.
The best place to buy Tezos (XTZ) is using a fiat to crypto exchange to convert local fiat currency into digital assets. Other ways to buy, trade and sell Tezos is using a top crypto trading exchange or a instant crypto swap service to change coins to Tezos.
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|20% off trading fees||Visit Binance||Binance Review|
|$5 BTC bonus (USA only)||Visit Coinbase||Coinbase Review|
|None available at this time||Visit eToro|
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."
The staking cryptocurrencies involves risks as the users do not maintain control over the private keys of the wallet. Exchanges can be prone to online theft and fraudulent activity which can result in the potential loss of Tezos tokens deposited.
Staking platforms that allow the users to select a validator or baker can introduce the risk the provider does not pass on the full Tezos rewards to the staker. It is important to choose the validator or baker carefully.
Users can earn Tezos staking rewards with Coinbase through a service known as Delegated Proof of Stake (dPoS). This allows users to pass over the asset to another party to stake the coins on your behalf. The users retain ownership of the Tezos coins within the Coinbase wallet and earn rewards by delegating staking power to Coinbase.
The best method to stake Tezos 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 where to stake Tezos, we have assessed and compared the most popular cryptocurrency exchanges and wallets to store XTZ coins to earn staking rewards. While there are subtle differences between the platforms when staking crypto, we found using a Ledger wallet to be the safest way to earn XTZ tokens without having to sell your coins.
Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.