Where to Stake Polkadot in 2024

Did you know that Polkadot has over 140,000 users a month? Since its launch in 2020, Polkadot has steadily grown. Many of the users are engaged in helping Polkadot grow and earning money at the same time by staking their DOTs.

Interested in earning passive income on your Polkadot but unsure where to begin? Read on as we explain what Polkadot staking is, where you can do it and how much money you can expect to make.

What is staking?

Staking is a verification process used to make sure that all transactions on a Blockchain are legitimate. It performs the same function that proof-of-work does for Bitcoin. Staking, or proof-of-stake, replaces the need to mine for cryptocurrency and removes the need for electricity-consuming solving of complex mathematical equations.

Staking requires coins of the same cryptocurrency to prove that a transaction is legitimate. When you place your coins in a staking pool to be used for this you will earn currency as a reward. In this way, staking can be used as a way to generate passive income, similar to having fiat money in a savings account which earns you interest.

How much money can you make staking Polkadot?

The best thing about staking is that it is passive income. This means that you can put your coins to work without trading them. This frees you from checking the market constantly, trying to work out the right time to sell. If you are intending to trade but need to wait for a change in the market, staking is a great way to earn money rather than letting your cryptocurrency sit idle. Additionally, you are taking part in a process that helps the cryptocurrency expand.

The current average annual yield for staking Polkadot is 14%. Consider, by contrast, that the average high-street bank in Canada offers a high-interest rate on savings of around 4%. Staking can therefore be a more effective way to inflation-proof your savings.

Let's take a look at some of the leading platforms and the returns they offer on Polkadot staking.

How to stake your Polkadot?

The first step is to buy Polkadot from a crypto trading platform. Not sure where to begin? Dive into our picks of the best crypto exchanges.

Then, you can create your account on a platform that allows crypto staking. All the examples mentioned in the table above provide this service. A full list of platforms that provide this service list and a comparison tool that shows their respective fee structures can be found in our guide to crypto staking.

Once you have purchased your Polkadot and set up an account on a crypto-staking platform you can search for validators you trust enough to stake them. If they accept your Polkadot then your coins will be added to the staking pool and when the verification process is complete you will have earned money.

Where to buy Polkadot?

Polkadot is a popular and well-established cryptocurrency. It can be bought from many crypto exchanges in Canada. Check out the list of sellers below:

Interested in comparing crypto exchange platforms and seeing who has the best fees? Take a look at our comparison tool for crypto exchanges.

Is it a good idea to stake Polkadot?

Getting involved with crypto staking can earn you more money than keeping fiat currency in bank savings accounts. With an average annual yield of around 14%, staked coins earn far more in interest than savings accounts.

Staking Polkadot could be right for people who already own Polkdot coins that they are not ready to trade yet. Rather than letting the coins do nothing while waiting for the market to shift, you can put those coins to work, earning you a passive income. Remember that staking ties up coins, you will not be able to sell them once they are staked until the verification process is complete.

Are you interested in putting your coins to work?

What are the best alternatives to Polkadot for staking?

There are many interesting alternative crypto coins to Polkadot if diversifying your staking is appealing to you. Let's take a look at some of the leaders in Canada and compare their values.

Would you like to branch out and diversify your portfolio of cryptocurrencies?

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Alexandre Desoutter

Alexandre Desoutter has been working as editor-in-chief and head of press relations at HelloSafe since June 2020. A graduate of Sciences Po Grenoble, he worked as a journalist for several years in French media, and continues to collaborate as a as a contributor to several publications.