The most common way to profit from cryptocurrencies is buying low and selling high. But did you know you can generate passive income without selling your assets? Staking allows you to earn rewards simply by holding and supporting blockchain networks.
Think of staking like a high-yield savings account - except instead of earning interest from a bank, you're earning crypto rewards directly from the blockchain network.
Understanding Crypto Staking
Staking is the process of locking up cryptocurrency to support a Proof-of-Stake (PoS) blockchain network. In exchange for helping validate transactions and secure the network, you earn staking rewards.
Proof-of-Stake Explained
Proof-of-Stake (PoS) is a consensus mechanism where:
- Validators are chosen based on the amount of crypto they've staked
- The more you stake, the higher your chances of validating blocks
- Validators earn rewards for their participation
Popular PoS variations include Delegated Proof-of-Stake (DPoS), which lets users delegate their stake to validators without running their own node.
Key benefits of staking vs mining:
- No expensive hardware required
- Lower energy consumption
- More accessible for average investors
Step-by-Step Guide to Earning Through Staking
- Select a stakable cryptocurrency (SOL, TRX, MATIC, BNB, ATOM, etc.)
- Set up Tangem Wallet (supports multiple staking networks)
- Acquire your chosen crypto (buy, swap, or receive)
- Stake your tokens (detailed instructions below)
- Monitor and compound rewards (reinvest for maximum growth)
How to Stake Crypto Using Tangem Wallet
Follow these simple steps to start earning staking rewards:
- Open the Tangem Wallet app
- Select your desired token (e.g., Solana/SOL)
- Tap the Stake button
- Review staking details (APR, unbonding period, etc.)
- Enter the amount you wish to stake
- Select a validator (Tangem recommends optimal options)
- Confirm and sign the transaction
- Track your staked assets in the app
👉 Want even higher yields? Explore advanced staking strategies
Managing Your Staked Assets
Claiming Rewards
Reward claiming varies by network:
- Some auto-compound (Solana)
- Others require manual claiming (TRON)
- May involve small network fees
To claim TRX rewards:
- Navigate to the staked token page
- Tap Native staking
- Select Rewards then Claim rewards
- Sign the transaction
Adding More Stake
- Go to your staked token page
- Tap Stake more
- Enter additional amount
- Choose validator
- Confirm transaction
Unstaking Your Tokens
- Select the staked token
- Tap Native staking
- Choose validator under Your stakes
- Select Unstake
- Wait for unbonding period (varies by network)
Available Staking Options in Tangem Wallet
Currently supported networks:
- Solana (SOL)
- Tron (TRX)
- Polygon (MATIC)
- BNB Chain (BNB)
- Cosmos (ATOM)
Coming soon:
- Polkadot
- Cardano
- Avalanche
- Near Protocol
- Tezos
Understanding Staking Risks
While staking offers great rewards, be aware of:
- Market volatility: Prices may drop during lock-up periods
- Slashing: Penalties for validator misbehavior (Tangem offers protection)
- Inflation: High token inflation can reduce real returns
Pro tip: Diversify your staking across multiple networks to mitigate risk.
👉 Learn how to maximize staking rewards while minimizing risk
Staking Terminology Explained
| Term | Definition |
|---|---|
| APR | Annual Percentage Rate - estimated yearly return |
| Native staking | Staking directly on a blockchain network |
| Unbonding period | Time required to unlock staked tokens |
| Validator | Network participant that processes transactions |
| Warmup period | Delay before staking rewards begin |
Frequently Asked Questions
How do I start staking in Tangem Wallet?
Simply select a supported token in the app and tap "Stake" - the process takes just minutes.
What's the minimum amount needed to stake?
Minimums vary by network, but many have no minimum requirement.
Can I unstake anytime?
Yes, but most networks have an unbonding period (typically 1-14 days).
Are staking rewards taxable?
In many jurisdictions, yes. Consult a tax professional for guidance.
How often are rewards distributed?
Varies by network - some pay daily, others weekly or per block.
Can I stake multiple cryptos at once?
Absolutely! Tangem supports simultaneous staking across multiple networks.
What happens if my validator goes offline?
Tangem's staking provider protects against validator downtime and slashing.
Is staking safer on Tangem vs exchanges?
Yes - Tangem is non-custodial, meaning you always control your private keys.
Final Thoughts
Staking in Tangem Wallet offers a simple, secure way to earn passive crypto income. With support for multiple networks and an intuitive interface, it's an excellent option for both beginners and experienced investors.
Remember to:
- Start small and learn the process
- Diversify across networks
- Reinvest rewards to compound growth
- Stay informed about network updates
Happy staking!
Disclaimer: Staking involves risk. Rewards are not guaranteed and may fluctuate based on network conditions. Tangem provides non-custodial wallet services only.