How to Stake AVAX

How does Avalanche Staking work?

By following the Proof of Stake consensus algorithm, there are multiple tokens which get staked including AVAX. When validators lock their AVAX tokens, their probability of validating the next block increases with the total amount they have staked. The reward rate depends on the total staked AVAX but that’s not the only one.

There are multiple other factors for the rewards such as validator’s uptime and accuracy in validating transactions. Also, there is a condition that validators who process transactions correctly with an accuracy rate of 80% will receive rewards. But it’s not that easy to become a validator on the Avalanche network, there are certain requirements which need to be met. Some of them are:

• Validators need to do a minimum stake of 2,000 AVAX
• Delegators must hold at least 25 AVAX
• Staking period should be from minimum of two weeks to maximum of one year

These conditions ensure that the network remains robust and capable of handling transactions. Sometimes the case happens where staking and unstaking occurs at the same time, so security may get compromised in that. So, with these conditions it helps both the network and its participants to stake and get rewards from staking cryptocurrencies with highest APY.

Where to Stake AVAX?

OKX

OKX was launched in 2017 as one of the best crypto staking platforms especially for AVAX tokens. By staking on OKX, users have an option to earn rewards from the platform based on the amount they stake or duration of staking period. It simplifies the whole process without any sort of technical difficulties for the users.

• Minimum amount of AVAX to stake: 25 AVAX as delegator and 2,000 AVAX as validator
• Minimum staking periods: 2 weeks
• Estimated return rate: 9.1% APY

Avax Core Web

Through Core platform, which is currently available in the form of extension to stake the AVAX funds directly either as a delegator or validator. With this Core Stake, users don’t have to rely upon any third-party platform to provide their custody of the wallet. So, overall it contributes to network safety as well as decentralization.

• Minimum amount of AVAX to stake: 25 AVAX as delegator and 2,000 AVAX as validator
• Minimum staking periods: 24 hours
• Estimated return rate: 7.60% APY

Ledger

Ledger is one of the world-class platforms for digital assets which got launched in 2014 and allows users to stake AVAX tokens securely through its hardware wallet. You can stake AVAX directly from your wallet, ensuring safety of the assets while you earn rewards. The complete process on Ledger is very user-friendly and lets you maintain full control over the private keys.

• Minimum amount of AVAX to stake: 25 AVAX as delegator and 2,000 AVAX as validator
• Minimum staking periods: 2 weeks
• Estimated return rate: Approx. 8% APY

Coinbase

Coinbase was launched in 2012 and became one of the renowned platforms to stake AVAX tokens directly from your account. Both validator and delegator can earn rewards without handling any kind of complex technical stuff. It provides a simple and secure way to generate passive income.

• Minimum amount of AVAX to stake: No minimum as delegator, 2,000 AVAX as minimum and 3M AVAX as maximum for validator
• Minimum staking periods: 2 weeks
• Estimated return rate: 8.08% APY

Stakely.io

Stakely.io is also one of the leading liquid staking platforms with more than 45,000+ users and low transaction fees. It supports the safe and secured staking over Proof of Stake algorithm blockchains. It offers an effective return rate of 7.35% in AVAX tokens staking.

• Minimum amount of AVAX to stake: 25 AVAX as delegator and 2,000 AVAX as validator
• Minimum staking periods: 2 weeks
• Estimated return rate: 7.34% APY

How to stake AVAX?

There are multiple steps to be followed for the purpose of staking on AVAX. Staking AVAX on-chain helps secure the network. While staking AVAX on Exchanges is less demanding, and the steps are similar for most exchanges. 

Staking AVAX On-Chain

On-chain staking for AVAX involves locking up AVAX tokens directly on the Avalanche blockchain to support network operations and secure the network. When you stake AVAX, you help validate transactions and maintain the network’s integrity. In return, you earn rewards after holding your AVAX tokens.

Here’s how to do the staking for AVAX tokens on-chain:

Step 1: Setting up for Staking on Avalanche

A platform named Core, which comes in the form of Chrome extension allows users to begin their staking journey. Anyone can easily download this free extension, and for the purpose of staking, a minimum of 25 AVAX should be available with delegators and 2,000 AVAX for the validators.

Step 2: Select the Required Medium of Staking

There are a total of three modes available for staking in Core, namely as a delegator, validator, and cross-chain transfer.

Step 3: Start with the Delegate mode to stake

Download the Chrome extension of Core. Click on the “Get Started” option to start the process of staking or else click on Learn More to know more about the terms and conditions.

Step 4: Sign Up on the platform

You may directly sign up on the Core platform with the help of your mail ID, apple ID, or recovery phrase.

Step 5: Select the Staking Amount

Choose the total amount of AVAX which you want to stake, and your wallet should have 25 AVAX for starting the process.

Step 6: Select the Node for AVAX

You will have to select the node on which you want to delegate your AVAX. There are certain charges for the nodes and you can pick the most efficient one from there. After that, click on “Select” and “Next” to proceed.

Step 7: Select the Staking Duration

Select the total time period for which you want to stake your AVAX and it’ll be depicted through a graph which explains about your reward rate too.

Step 8: Addition of Wallet Address

Lastly, you’ll be asked to enter the wallet address for receiving the staking rewards and finalize the list of all delegations and requests made. Click on the “Submit Delegation” option to submit your request.

Staking AVAX on Exchange

Exchange staking for AVAX offers a convenient and flexible alternative to traditional on-chain staking method. In this custodial method, the exchange holds your AVAX tokens, allowing you to stake smaller amounts without the technical complexities of managing private keys, etc. One of the key benefits is the ability to withdraw your funds at any time, providing greater liquidity compared to fixed staking periods required on Avalanche blockchain.

Let’s understand the complete process to be followed by the users to do staking on OKX platform:

Step 1: Select “Simple Earn” option from Grow

From the official website of OKX, select the “Simple Earn” option while navigating on the Grow option.

Step 2: Search for AVAX and Click on Subscribe

After coming on the Simple Earn page, search for “AVAX” coins. Then, click on the Subscribe button to start the process of staking.

Step 3: Enter Amount and Subscribe

Select the amount of AVAX you want to stake, and then finally click on Subscribe.