Staking AVAX (Avalanche) is a great way to earn passive income while helping to secure the network. In this guide, we'll go through the steps to stake AVAX. Staking with validators is one of the best ways to keep your crypto safe and within your own custody compared to staking with an exchange chain or other platforms where you may not have full control of your crypto.
What is Avax staking?
Avax staking refers to the process of holding and locking up AVAX tokens (the native cryptocurrency of the Avalanche network) in order to participate in the network's proof of stake consensus mechanism and earn rewards for helping to secure the network.
Staking AVAX tokens helps Avalanche network's consensus mechanism and help secure the network while earning rewards in the form of additional AVAX tokens. These rewards are distributed to validators in proportion to the amount of AVAX they have staked and the length of time they have been staking.
A delegator is a token holder, who wants to participate in staking but chooses to trust an existing validating node through delegation.
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)
- How many AVAX you are staking
- The address to send any rewards to
Avalanche staking requirements
- The minimum amount that a validator must stake is 2,000 AVAX
- The minimum amount that a delegator must delegate is 25 AVAX
- The minimum staking period for validation is 2 weeks
- The maximum staking duration for validation is 1 year
- The minimum amount of time one can stake Avax tokens for delegation is 2 weeks
- The maximum amount of time one can stake Avax tokens for delegation is 1 year
- The minimum delegation fee rate is 2%
- The maximum weight of a validator (their own stake + stake delegated to them) is the minimum of 3 million AVAX and 5 times the amount the validator staked. For example, if you staked 2,000 AVAX to become a validator, only 8000 AVAX can be delegated to your node total (not per delegator)
The annual percentage rate (APR) that is paid in return for staking AVAX to a validator is currently about 8.47%.
Get the latest Avalanche staking APR info with the below link:
How to stake Avax validator: Step-by-Step Guide
The below guide will provide details on the staking process, delegating staked tokens & how to get node id for AVAX holders.
Step 1: AVAX wallet
Get an Avalanche Wallet To stake AVAX, you will need to have an Avalanche wallet in order to store your tokens. You can use the Avalanche Wallet, which is available for download on the Avalanche website, or a hardware wallet such as Ledger or Trezor.
Step 2: Buy AVAX
You will need to purchase AVAX. You can buy AVAX on various cryptocurrency exchanges such as Binance, Bitfinex, or Kraken. Use our guide on how to buy AVAX tokens on the Binance exchange to get started.
Step 3: Choose Avalanche Validator
Select a Validator After purchasing AVAX, you will need to choose a validator to delegate your AVAX tokens. Validators are responsible for validating transactions on the Avalanche network and maintaining the security of the network. You can choose a validator from the list of validators available on the Avalanche website or use an Avalanche wallet like the one provided by Ledger.
What are validators?
Step 4: Delegate AVAX
Specify the staking period and stake amount. Pay attention to the end time of the selected validator. The delegation period cannot be set to end past the end date that the validator has set.
Delegate Your AVAX
Once you have chosen a validator, you can delegate your AVAX tokens to the validator. This process involves sending your AVAX tokens to the validator's staking address. This is done from within your Avalanche wallet by selecting the validator and delegating your tokens.
If the validator you delegate tokens to is sufficiently correct and responsive, you will receive a reward when you are done delegating. Delegators are rewarded according to the same function as validators. However, the validator that you delegate to keeps a portion of your reward specified by the validator’s delegation fee rate.
Wait for Confirmation After delegating your AVAX, you will need to wait for the delegation to be confirmed. This can take up to 24 hours, depending on your chosen validator.
Earn Staking Rewards
Earn Rewards Once your delegation is confirmed, you will start earning staking rewards. The rewards are paid out in AVAX and are based on the amount of AVAX you have delegated and the length of time you have been staking.
Step 5: Unstaking AVAX
Unstaking Your AVAX If you decide to unstake your AVAX, you will need to go through a similar process to delegating your AVAX. 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 AVAX.
Best Avax validators for staking
Not sure about choosing the right validator for staking your tokens? Check out our guide on the top five validators for staking avalanche tokens based on their staking rewards, node uptime, and amount of Avax tokens available to stake.
Our staking validator guides are released on a monthly basis to reflect the changing dynamic nature of validator nodes and to provide the best up-to-date validating node info.
Start staking your avalanche tokens today!
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