Are you staking Cosmos yet in 2022? If you are, congratulations; you’ve been earning some amazing staking rewards. If you’re not staking Cosmos, there’s no time like now to get started. It’s hands-down one of the industry’s best blockchains.
In this article, we lay out a step-by-step guide – everything you need to know to get started staking Cosmos. You’ll learn the the whole process; tokens to wallets to rewards. Strap in, dear reader; passive income is only a few button clicks away.
Let’s get started!
This is why you’re here, right? So let’s get right down to it:
Cosmos staking rewards pay out between 10% and 20% yearly.
Why does the rate fluctuate? Great question. The answer is complex but our friends at Figment covered it well. As of the writing of this article, the rate was sitting at 15.5%. Good luck finding that at a bank!
What's the difference between staking Cosmos and staking ATOM?
Staking cosmos means staking its native token, ATOM. When you earn rewards, you earn ATOM rewards. Cosmos is the blockchain, ATOM is the token.
Atom staking rewards are great – free crypto is even better! When you stake cosmos you become eligible for airdrops. If you’re not familiar with the term, an airdrop is when a project gives you free tokens to incentivize your participation.
Airdrops are a major reason for the explosion we’ve seen recently in the Cosmos network. Most airdrops have their own staking platforms. So you can earn that passive income – for free. Crypto is amazing, right?
Before we get into the details of Cosmos staking, it’s important to note that staking is non-custodial. When you stake, your ATOM will appear to have left your wallet, but it’s just a ledger entry on the blockchain network. This ledger entry is what provides cosmos validators voting power. Voting power is required to sign blocks and vote on network proposals. In return, you’re paid staking rewards.
How do I get my stake back?
If you decide to stop staking, you can unbond your coins. Unbond means “unstake”. After unbonding, your coins won’t be available for 21 days. Unfortunately, you will not earn rewards during that period. This is common to a variety of different blockchains and it kind of sucks. But it’s designed to ensure network stability.
At Blocks United we always recommend using hardware wallets. The ledger wallet is our favorite and you can use it as an ATOM wallet. In our opinion the best option is to pair a ledger wallet with Keplr. This pairing gives your private keys cold wallet safety and browser plugin convenience. Please check out our article for a deep dive into Staking from Ledger.
No matter what wallet you use, you earn the same ATOM rewards. This does not hold true for staking on any of the popular cryptocurrency exchanges. Staking Cosmos ATOM, say, on Coinbase – will yield you 1/3 of what you’d earn staking with a validator. Don’t do that.
While Ledger/Keplr is our favorite combo, ATOM staking is available in several wallets. We’ll highlight a few in this article. There’s also at least one we’d stay away from (looking at you, atomic wallet!).
Check out our article The Best and Worst Places To Stake ATOM Tokens.
OK, Blocks United, just tell me how to stake already!
If you’re already setup with Keplr and want to get straight to business staking your ATOM with Blocks United…
If you’re not setup yet, let’s change that!
As promised, here is our step-by-step guide to staking Cosmos ATOM:
How to stake ATOM tokens in Keplr Wallet
If you don’t already have Keplr, install the extension on either Chrome or Brave Browser. Keplr is the preferred way to hold and mange digital assets for Cosmos, and it handles other tokens too. The process is simple.
- Download Keplr browser extension
- Choose a password or log into your existing Keplr, or connect your Ledger
- Write down your recovery phrase if this is the first time using Keplr
- Select the Cosmos network from the drop down at the top of the wallet
- Move the desired amount of ATOM into your wallet
- Click the “stake” button and the main wallet dashboard will open up in a new tab or window
- Scroll down to find Blocks United in the list of active validators and click “manage.”
- A window will pop up that displays your available ATOM. Click “delegate.”
- Enter the amount you’d like to delegate.
- Click “delegate”
- A new window will pop up that allows you to choose the transaction fee. The middle fee should be adequate.
- Start earning rewards!
That’s it. Your ATOM is now staked with Blocks United!
How to stake ATOM tokens in Cosmostation Wallet
Cosmostation is another great choice for staking ATOM tokens. It’s as simple to use as a mobile wallet, and you can connect your Ledger hardware wallet while using a PC.
- Download the Cosmostation app onto your device, or connect your Ledger while using a PC
- If using a connected hardware wallet, open the Cosmos app on your physical Ledger device
- Click “Reward” on the left side
- Scroll down the list of active validators to find Blocks United. Then click “Delegate”
- Enter the amount you’d like to delegate.
- Click “Generate & Sign Transaction”
That’s it! Your ATOM is are now staked with our node and you’re earning block rewards. You should also see your staked coins at the top of the page under the heading “My Validators.”
How to stake ATOM tokens in the Ledger Live application
To use Ledger Live, you must own a Ledger hardware wallet.
If you’ve ever been hacked, then you know the pain of losing funds. With a ledger hardware wallet, crypto assets cannot be moved without device in-hand. Each transaction must be manually signed on the device by its owner. The extra protection for your private keys will help you sleep at night, knowing your funds are safe.
- Buy your Ledger and download Ledger Live
- Open Ledger Live on your PC and enter your password.
- Click “Accounts” on the left hand side of the wallet window.
- Click “Add Account” if you don’t already have ATOM in your wallet
- Click “Choose Crypto Asset” and type in “ATOM”
- Select “Cosmos (ATOM)” and click “Continue”
- Make sure your physical Ledger device is plugged in and the Cosmos app is open
- Name the account, “Cosmos” or “Cosmos Ledger Nano” and click “Add Account”
- A window will pop up that says, “Account added successfully” and click “Done”
- While in the “Accounts” tab click into your new “Cosmos” account
- Click “Receive” to send yourself ATOM from Coinbase, or from wherever you have your coins
- Click “Continue” and then verify the wallet address on your physical Ledger device
- Copy the address onto your clipboard. Then paste it into Coinbase, or wherever you are sending your ATOM from
- Click “Done”
- Verify that your ATOM arrives in Ledger Live. Then, click on your “Cosmos” account while viewing the “Accounts” tab
- Click “Earn Rewards”
- Type, “Blocks United” into the search box
- Type in the number of ATOM you’d like to stake.
- Click “Continue” and verify the transaction on your physical Ledger device
That’s it! Your staked ATOM is now visible in the main wallet “Accounts” page.
How to redelegate to a different validator
Did you know that you can move your Cosmos ATOM to our node without unbonding and waiting 21 days? The process is simple!
- Inside Keplr, Cosmostation or Ledger Live, click “manage” next to your current validator
- A drop down box appears with “undelegate” as the first option. Click the drop down and the second option listed is “redelegate.”
- A pop up box appears that says, “Select Validator.” Click the drop down arrow and then scroll down the list to find Blocks United, or the validator of your choice.
- Enter the amount you’d like to redelegate
- Click “redelegate” and then approve the transaction
That’s it! Your ATOM should be redelegated within a few seconds.
Staking ATOM using Trust Wallet or Atomic Wallet
Blocks United is listed in Trust wallet, but not in Atomic wallet. Atomic wallet runs their own validator node and they don’t like competition. You can stake cosmos atom with them confidently. But we also think there are better options.
Why Keplr and Cosmostation?
- Keplr and Cosmostation give you access to the entire Cosmos ecosystem. You can stake many other coins from these wallets.
- Plus, Keplr and Cosmostation pull from Mintscan. This means you’ll have access to all 150 active validators. Trust and Atomic wallets only offer a limited set of validators.
Can I stake with Blocks United using Trust Wallet?
You can stake start staking ATOM with us in Trust wallet. But you will need to import your seed phrase into Keplr to claim airdrops.
We hope this article has been a useful guide on how to stake Cosmos! We wish you the best in your journey to earn passive income. Good luck, and if you have any questions or comments, please contact us!
Thanks for staking with Blocks United. Welcome aboard!
The Blocks United Promises
To be ethical and trustworthy
To charge minimal commission so you can get the highest yield
100% uptime. Our validator nodes run 24/7/365
Aligning our values with our delegators. We've self-staked tokens alongside yours.
Responding to delegator questions and inquiries in a timely manner.
Contributing to the communities we validate for.
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