Algorand (ALGO) has recently gained significant attention due to its remarkable success in 2021, with its price surging by 9 times. Staking ALGO (Algorand) is a great way to earn passive income while contributing to the network's security. This guide will review the steps to stake ALGO with validators. Staking with validators is one of the best ways to keep your crypto safe and within your own custody compared to staking on crypto exchanges where you may not have full control of your crypto.
What Is ALGO Staking?
Algo staking is a method of earning passive income for crypto users by validating transactions on a network. By participating in Algorand staking, you can receive rewards for taking part in governance, voting, and locking Algorand tokens as required by the project.
Staking ALGO tokens helps the Algorand network's consensus mechanism and helps secure the network while earning rewards through additional ALGO tokens. These rewards are distributed to validators in proportion to the amount of ALGO they have staked and the length of time they have been staking.
A delegator is a token holder who delegates cryptocurrencies to a validator or a staking pool on a Proof-of-Stake (PoS) blockchain.
When you delegate stake to a validator, you specify:
- The ID of the node you're delegating to.
- When you want to start/stop delegating stake (must be while the validator is validating).
- The number of ALGO you are staking.
- The address to send any rewards to.
Algorand Staking Requirements
- The minimum amount that a validator must stake is 1 ALGO
- There is no minimum amount of ALGO to stake for delegators.
- Staking time: There is no lock staking (locking token) for participation rewards, however, it will require 3 months of lock staking for governance rewards.
- Staking options: Wallet, exchange, create liquid staking (governance only).
- Unstaking time: It takes up to 3 days to unstake if using an exchange.
- Staking time to become Algorand governor: Lock staking for 3 months.
- Governance periods: Once per quarter / four times per year.
- Slashing: Algorand does not use slashing.
How To Stake ALGO With Validator: Step-by-Step Guide
How to Stake Algorand through Ledger cold wallet
Some notes before getting started:
- You need to update Ledger Live via notification or download the latest version.
- Update the firmware on your Ledger Nano S / Nano S Plus / Nano X.
After completing the above steps, you can start staking Algorand on the Ledger wallet.
Step 1: Install ALGO app on your Ledger.
- Connect and unlock your Ledger device.
- Open Ledger Live, and go to "My Ledger."
- Select "App catalog."
- Find ALGO, and click "Install."
Step 2: Buy ALGO
You will need ALGO in your wallet to start staking. You can buy ALGO on various cryptocurrency exchanges, such as Binance, Bitfinex, or Kraken, and transfer tokens to your hardware wallet.
Tip: Use our guide on how to buy ALGO tokens on the Binance exchange to get started.
Step 3: Staking ALGO
- Open your browser and visit the Algorand staking website.
- On the website, select an active period. Completed processes will not allow you to participate in staking.
- Select "Select Connect Wallet" > "My Algo Wallet," then unlock MyAlgo with your password and click "Connect."
- Select your Ledger account and click "Connect."
- Choose "Use."
- Before proceeding to the next step, ensure your Ledger device is unlocked and the Algorand app is open.
- Your Ledger will show "Algorand Ready."
- Return to the website, select "Commit ALGOs," select the amount of ALGO you want to commit, then click "Commit Algos."
- Select "Continue" > "Connect."
- MyAlgo is now waiting for you to sign the transaction on your Ledger device.
- Your Ledger will show "Review Transaction."
- To confirm the transaction, review it on your Ledger device, press the right button, then navigate to "APPROVE" and press both buttons to sign it. Once confirmed on the Algorand blockchain, a confirmation message will appear.
- Once done, click "Close" to complete the Algorand staking process on your Ledger cold wallet.
Step 5: Unstaking ALGO
Unstaking Your ALGO If you decide to unstake your ALGO, you must go through a similar process to delegating your ALGO. You will need to select the validator and then unstake your tokens. It is important to note that there is a cooldown period after unstaking, during which you cannot withdraw your ALGO.
Best ALGO Validators For Staking
Not sure about choosing the proper validator for staking your tokens? Check out our guide on the top five validators for staking Algorand tokens based on their staking rewards, node uptime, and the amount of ALGO tokens available to stake.
Our staking validator guides are released monthly to reflect the changing dynamic nature of validator nodes and to provide the best up-to-date validating node info.
Start staking your Algorand tokens today!
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