In this quick guide, I'll introduce everything you need to know about Ledger staking.
Staking, validating transactions on the blockchain, allows you to further participate in blockchain ecosystems and earn staking rewards and yield.
Staking is not risk-free, as usually, you have a lockup period during which you can't sell your investment if markets are crashing, exchanges can get hacked, etc.
There are some ways and steps you can take to lower the risk. You can move away from staking your digital assets on crypto exchanges, like Binance, Nexo, or Kraken, and use a hardware crypto wallet instead, known as cold staking. There are more and more (cold) hardware wallets on the market, so you have plenty of different options.
Today we will look at how staking is done with Ledger Wallet.
Why staking with Ledger?
The Ledger Hardware wallet is, besides Trezor, one of the most known players in the hardware wallet industry.
You can read our detailed comparison between these two hardware wallets here: Trezor vs Ledger.
They offer two models, Nano X and Nano S, and you can stake your cryptos using both. In addition, you can stake multiple currencies simultaneously, which enables you to earn rewards with various coins in one wallet.
Ledger is a highly secured and trusted hardware wallet, and you can buy, swap and stake your assets in one place as they support third-party apps, which makes staking very convenient and easy.
How to stake with Ledger Hardware wallet?
You can stake your cryptocurrencies in two ways - with their Ledger Live app for managing your assets or a third-party wallet that offers support for Ledger's hardware devices.
Hundreds of currencies currently operate on Proof of Stake (PoS). And while you can stake a limited number of them with Ledger live app, you can conveniently connect to a third-party app to expand your crypto staking possibilities.
Let's check step-by-step how the staking process goes using both ways:
Staking with Ledger Live:
- Install your Ledger Live to your computer and create the account,
- Select the app you want to install on your device for staking,
- Buy crypto through the app and transfer funds to your device,
- Click the Earn rewards button on the coin you want to stake.
- Select the amount you want to stake, and start staking and earning rewards.
Stake with a third-party wallet:
Here are some of the supported wallets: Electrum, MyCrypto, MyEtherWallet, XRP Toolkit, Electron Cash, Polkadot-JS, Binance, Fairy-wallet Galleon, Stellar Account Viewer, Stellarterm, Yoroi wallet, AdaLite, Tronscan, GUI Wallet, Neo Wallet, Crypto.org chain desktop wallet, Nem Wallet, Firefly, Lunie, Cosmostation, NNS dapp, Glif wallet, OWallet, Elrond Wallet, MyAlgoWallet, VeChain Sync, MyHbarWallet, etc.
- Choose the third-party wallet you wish to stake
- Connect it with your Ledger device
- Add funds to your device and start staking
That's it; you are ready to start earning by receiving staking rewards.
Which cryptocurrencies can be staked with Ledger?
With Ledger Live, you can currently stake 11 cryptocurrencies: MATIC, SOL, ALGO, EGLD, ATOM, CRO, TRX, ADA, XTZ, DOT, and ETH.
Staking your cryptocurrencies can bring you an annual return between 5% to 14%.
Besides the listed above, you can stake many more using third-wallets that you can connect to your Ledger device. If you are interested in any of the coins not listed above, you can review the available staking options and wallet compatibility here.
By connecting your Ledger with the supported third-party wallet, you can also get extra features not yet supported with Ledger Live. E.g., Komodo currency can be managed in Ledger Live, but for claiming rewards, you'd need to use a third-party wallet. You can also backup in case of an unexpected temporary outage of Ledger Live.
Alternative hardware wallets for staking
If you are looking for alternative wallets, we recommend looking at Trezor, another big player on the market. You can read all the details in our Trezor Staking article.
Is it worth Staking with Ledger?
If you are staking a considerate amount of crypto assets, you should look into more secure ways to move from staking on exchanges to more offline possibilities using hardware wallets.
Ledger is a trusted hardware wallet that gives you many staking options using their native Ledger Live app or any supported third-party wallets.
Besides that, both prices are competitive compared to other wallets in the market. You can get Ledger Nano S Plus for 79,00 € and Nano X for 149,00 €. As mentioned, both support staking.
Disclaimer
This website includes information about cryptocurrencies and other financial instruments. All these areas are complex instruments and have a high risk of losing money. We are NOT giving financial or investment advice; this page is for educational and informational purposes only. Please be careful and make sure that you understand how these instruments work. Also, think about whether you can afford to take the risk of losing your money.
Weirdo.Rocks encourage you to do your own research before you make any investment decision.
