Staking is a popular and sought-after option among cryptocurrency investors to obtain a certain passive income. Here we go through the top 4 wallets to make it possible.
Unlike Proof of Work (PoW) blockchains that rely on mining to verify and validate new blocks, PoS chains produce and validate new blocks through staking. This allows for blocks to be produced without relying on mining hardware . So, instead of competing for the next block with heavy computation work, PoS validators are selected based on the number of coins they are committing to stake.
Typically, users that stake larger amounts of coins have a higher chance of being chosen as the next block validator. While ASICs mining requires a significant investment in hardware, staking requires a direct investment (and commitment) in the cryptocurrency. Each PoS blockchain has its particular staking currency.
The production of blocks via staking enables a higher degree of scalability. This is one of the reasons the Ethereum network will eventually migrate from PoW to PoS, in the Ethereum Casper (Ethereum 2.0) upgrade.
Wallets for staking
Staking allows you to earn dividends for holding coins that use the proof-of-stake (POS) algorithm, or its alternatives – DPOS, etc. You may have your cryptocurrencies on the exchange, some already allow staking of many cryptocurrencies, but it is safer to have your crypto on your own wallet, especially in the long term.
The Ledger hardware wallet is one of the most popular. It offers two staking options – using Ledger Live applications or using an external wallet. The first option requires the user to install the cryptocurrency application on the device and create an account on Ledger Live. Staking should start automatically. Ledger’s Mattia Sarfati says that, for example, with the Tezos cryptocurrency, only the Ledger live option is available. In contrast, the TRX can be held and docked using an external TronScan wallet.
Exodus can be integrated with the hardware wallet Trezor. It is available in both mobile and PC versions and supports many cryptocurrencies. The possibility of staking was added after a recent partnership with Switchain. Meanwhile, Exodus wallet offers staking for Onlogs and Neo and more coins are expected to be added soon.
This wallet is compatible with Windows, MacOS, Ubuntu, Debian and Fedora, as well as on Android and iOS mobile devices. Staking is possible after the deposit, but there is also a built-in currency exchange. Meanwhile, Atomic supports staking on cryptocurrencies Tezos, Cosmos, NEO, VeChain and Ontology.
This “safe multi-coin purse” only offers installation on Android and iOS mobile devices. Trust Wallet offers staking for a wide range of cryptocurrencies. Specifically, VeChain, TRON, Callisto, TomoChain, Tezos, Cosmos, IoTeX, Algorand and others to be coming soon.
Although many exchanges already offer a convenient and easy option to stake a variety of coins, it may not be the most appropriate option for long-term holding. Crypto exchanges are a frequent target for hackers and funds are therefore more at risk here. That’s why it’s good to look for alternatives.