If you’re just joining my journey–welcome!
I’m Jennifer, and I’m a crypto newbie who’s decided to take the plunge and learn crypto, and I am so grateful for those of you who are helping me by providing feedback and advice along the way.
In my last post, I shared with you some of my research on a few different “hot wallets” that I’m considering moving my crypto into. During my research to learn crypto and evaluate different types of wallets, I have noticed how different the potential rewards opportunities for my investments could be.
Let’s just say that not every wallet offers the same rewards!
Because I’m new to crypto (read more about about why I started here!), I am taking my time to do thorough research, figure out my investment goals, and make decisions that are right for me. If you’re like me, you may be aware of the concept of staking, but aren’t sure about how to do it. I think I’m finally ready to share more with you about what I’ve learned about staking and consider doing it for myself.
So in this post, I’ll be focusing on the available rewards opportunities for the three cryptos I currently invest in: Solana, Avalanche, and Bitcoin. I’ll also look at where these rewards can be found and whether there are any requirements to participate.
Recap: why I’m evaluating a new crypto wallet
The main reason I was looking for wallets on my journey to learn crypto was so I could have greater control and direct ownership over my investments. In addition, it would give me more security over my investments, rather than leaving them on an exchange.
I have been considering a new crypto wallet – specifically a “hot wallet” – because of the potential for greater security, as well as crypto rewards when I’m ready to learn staking. While I knew Solana and Avalanche could be staked, I didn’t know where or how it could be done. I also didn’t know if I could access these rewards because I don’t have enough of either cryptocurrency in order to meet the minimum requirements.
Specifically, in regards to Solana and Avalanche, I’d like to find some great crypto staking opportunities that will help to maximize my long-term investments. And since Bitcoin doesn’t allow staking, I’d like to discover any of the ways I can earn rewards or interest on my investment there.
What features I need for crypto rewards and staking
Currently, Coinbase does not support staking on its platform, though it does allow users to earn interest by holding several different cryptos, such as Algorand and Tezos.
So if I want to find rewards for the cryptocurrency I own, I’ll definitely need to move to a wallet, preferably one that allows staking for both the investments I have so that I don’t need separate platforms.
Also, I’ve specifically been looking for wallets that have delegation opportunities for SOL and AVAX, as I don’t want to validate on my own.
Solana staking rewards
Solana is available for staking
on a couple of exchanges, such as Binance and FTX. It unfortunately cannot be staked on Coinbase. However, there are a number of wallets that SOL can be staked in, both hot and cold.
Additionally, Solana has no minimum requirements for how much SOL can be staked, so you can participate with any amount. This is great for my situation since I currently have less than one SOL!
The Exodus wallet is in my top two considerations for a crypto wallet, so it’s great to know it supports SOL staking.
Why I like Exodus for staking:
- No minimums. You can stake any amount of SOL, there is no minimum requirement. At the moment, you can earn 6.79% APY on your staked funds.
- Ease of use. Staking Solana on Exodus is also easy to set up and can be done in a few clicks, whether you’re on the desktop or app version of the platform. The platform automatically delegates your SOL to the Everstake validator, so you can simply stake your funds and sit back and collect the rewards. (Note: While this is convenient, it isn’t the best choice when it comes to maintaining a truly decentralized system. If that’s your top concern, then it’s generally better to aim for a smaller validator when staking your SOL.)
- Support for multiple cryptos. Another benefit to staking on Exodus is that it supports multiple cryptos, so I can keep everything on one platform.
Phantom is my second choice for a crypto wallet, as it’s specifically tailored to Solana. However, this means I will need other platforms to get rewards for other cryptos.
Why I like Phantom for staking:
- Choose your own validator. Staking on Phantom is just as simple as it is on Exodus, with the added ability to choose a validator.
- Ease of use. Phantom seems just as easy to set up as Exodus, which is important because usability and having fewer “clicks” to navigate through and manage my portfolio can be cumbersome.
A few things to note about having and managing multiple validators:
I like that Phantom will let me choose which validator to use. Though, as someone just getting started in staking, choosing a validator will be an extra step to research.
Also, take note that each validator will have its own commission rate and APY. This is something I need to think about, I need to be sure to check these numbers before staking so I know how the rate I will potentially be earning.
Solflare was another wallet I was considering on my journey to learn crypto. This is because it was also designed specifically with Solana in mind. Staking on Solflare works pretty much the same as with Phantom: create a Solflare wallet, deposit your SOL, then find the staking option and choose a validator. It will take two to three days for your staking account to activate so you can start earning rewards, though.
Why I like Solflare for staking:
- Flexible access across mobile and web devices. The main benefit to staking on Solflare over Phantom is that Solflare also comes in desktop and mobile versions, not just a browser extension.
Avalanche staking rewards
I was hoping to have a few other comparisons to weigh for Avalanche staking rewards, but unfortunately, Avalanche and Bitcoin cannot currently be staked on Exodus or Coinbase. Here’s more about other options
In addition, there are minimum requirements to participate in both staking and delegating which exceed my budget. For those who want to stake and run their own validator, they need 2,000 AVAX. Delegators need a minimum of 25 AVAX.
If I was in a position to stake Avalanche, the amount I’d receive in rewards will depend on which validator I choose to delegate to; on average, this could result in an APY of between 9% to 10%. However, a delegator has to pay a minimum 2% delegation fee, which comes out of the total APY.
Avalanche also has time requirements for validators and delegators: a minimum of two weeks and a maximum of one year.
Bitcoin staking rewards
Because Bitcoin uses a proof-of-work system, it does not offer any staking rewards.
However, this doesn’t mean that I can’t earn rewards in other ways from 3rd party cashback services, crypto savings accounts, or cash back type of credit cards.
I may not have a big enough investment in Bitcoin right now for these to be viable options,. However, here are a few examples that I found in my research about other rewards (non-staking) available for Bitcoin holdings.
- Cash back rewards from 3rd party services. There are opportunities to earn cashback rewards in the form of Bitcoin when making purchases using services like Lolli, Pei, and CoinRebates.
- Crypto savings account. There are cryptocurrency savings accounts that offer interest on Bitcoin holdings. For example, BlockFi has an interest-bearing account that offers up to 9.5% APY in interest on crypto holdings.
- Cash back rewards credit card. BlockFi currently offers a “Rewards Visa Signature” credit card for up to 3.5% in Bitcoin on purchases. Celsius also seems to have a rewards credit card in the works, though it wasn’t available when I did this research; the company has a waitlist sign-up on their website for people who are interested in learning more about the offering.
Will you follow along as I learn crypto?
I’m looking for help on my journey to learn crypto; will you please weigh in online if you have any good wallet recommendations for staking and rewards? To get involved in my journey, take the poll over at Decentral Publishing’s Twitter, Instagram, Facebook, or other social media and share your thoughts with me as I figure out what to use.
And if you’re a fellow newbie, feel free to join me so we can learn more together about the world of crypto and become more confident investing in and understanding crypto together!
In my next post, I will be sharing more about which avenue I decided to pursue for crypto staking and rewards. I’ll also share more with you about which cryptocurrencies I’m researching for my next potential investment. To follow along with my journey to learn crypto and get involved, you can follow any of Decentral Publishing’s social media pages listed below.
And thank you, again, to everyone who be involved in my journey. I’m so grateful for everyone who’s been reading my journal as I embark on my personal journey to learn crypto. Have a safe and happy holiday with your family and friends!
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About the Author
Michael Hearne
About Decentral Publishing
Decentral Publishing is dedicated to producing content through our blog, eBooks, and docu-series to help our readers deepen their knowledge of cryptocurrency and related topics. Do you have a fresh perspective or any other topics worth discussing? Keep the conversation going with us online at: Facebook, Twitter, Instagram, and LinkedIn.
