Solana (SOL) is a proof of stake (PoS) blockchain. It allows participants to contribute in the blockchain network for validating transactions and data. Unlike other proof of work (PoW) coins like Bitcoin (BTC), Solana joins the bandwagon of Avalanche, Polkadot, Ethereum, and others. It allows the participants to earn passively without investing in expensive mining rigs. The participants can earn SOL staking rewards as part of the network fees.

Today, Solana is a high-performance blockchain that validates over 50,000 transactions per second. Additionally, it stands out from the competition thanks to its low transaction fees. To make this performance possible, Solana incorporates a number of innovations into the project. A decentralized network of nodes with performance comparable to a single node is what Solana envisions. The Solana network’s native token is SOL.

What is Solana Staking?

Staking Solana can help you earn more passively while you are away from trading hassles and worries. The staking process of Solana helps you win SOL staking rewards.

With staking SOL, you agree to lock your SOL coins for a said period of time. You can choose the duration and amount of Solana you wish to lock. While Solana staking, your coins never leave your crypto wallet and are protected by the exchange. However, if you decide to withdraw within the lock-in period, you will miss out on the Solana staking reward.

When sending or exchanging money, you will only need to wait for a few epochs.

If you agree to stake SOL, that would mean you are actively contributing to the Solana network by allocating resources and providing stability to the network. In return, stakeholders receive Solana staking rewards.

How staking Solana work?

Solana staking works with the help of validators. Staking with SOL means the stakeholders have agreed to delegate a specific amount to the validator. This makes the stakeholders the delegators. The sol validators in SOL staking validate the transaction and data on the solana network.

The number of delegators is completely proportional to the number of validators. This means the more delegators, the more validators will validate the transactions. The said function helps Solana become more efficient and powerful. The delegation of SOL in Solana staking signifies your vote and trust in the network making it more reputable. Moreover, it helps in earning more money and which will help stakeholders to earn more Solana staking yields.

It takes some time for staking to take effect. To begin receiving rewards after staking your SOL, you must wait for a number of epochs.

At epoch boundaries, stakes, and unstakes are both effective. An epoch is roughly equivalent to 2-4 days, but the length of the epoch, the time it lasts, and the warmup or cooldown period all affect how quickly your SOL finishes staking and unstaking.

How to stake Solana (SOL)?

Solana staking is something very easy and straightforward. The investor needs to move SOL from the wallet to an SOL staking compatible exchange and follow the steps.

  • Step 1: Select an SOL staking compatible exchange for an efficient staking process.
  • Step 2: Transfer the SOL coins, keeping in mind the transaction fees of the exchange. Many exchanges or wallets need a minimum of 0.01 SOL for a seamless transfer
  • Step 3: Click on the stake option in the wallet. The wallet will navigate you to the staking process. You can select the amount of SOL you wish to stake.

You’ll be asked to select a delegator by the wallet. Complete the wallet staking process after selecting a validator. There is no need to manually claim stake rewards; they will be automatically added to your balance.

Staking Solana (SOL) on Coinbase

For its users, Solana staking on Coinbase has automated the staking procedure. The user doesn’t need to take any additional steps. Users receive 75% of the staking rewards from Coinbase, while the company keeps 25% as a service charge.

Staking Solana (SOL) on Binance

For SOL coins, Binance offers locked staking. Returns can be significantly better than staking with a validator, where duration is the deciding factor. Binance ensures that the same number of coins as those deposited will be returned to investors in addition to yields being paid out in the same kind of coin. Although interest rates vary and are influenced by market conditions, the principle is always protected. Users who stake SOL with Binance run the risk of losing their coins in the event of bankruptcy due to third parties.

Is staking Solana safe?

Mostly, staking SOL takes place in a non-custodial way. Non-custodial means holding SOL in your wallet even during the staking process. This gives the stakeholder complete control over the coins. They can at any time choose to unstake and give their Solana staking yields.

Therefore, it is wise to use the SOL coins sitting ideal in your wallet and make money while you are asleep. Solana staking rewards have helped many crypto enthusiasts to restart their journey in the crypto world.