Do you want to earn passive income with your cryptocurrencies? You have certainly heard of the staking method which remains one of the most affordable for doing this.
Staking is an activity that consists of "locking" a certain amount of tokens for a given period of time in order to secure the blockchain. This is a particularly interesting method for people who wish to generate income regularly, without having difficult technical configurations to carry out.
However, when discussing staking , the distinction between centralized and decentralized, non-custodial staking is often overlooked. This distinction is crucial if you want to maintain control of your funds while staking. Furthermore, the ideal approach is to find trusted validators to whom you can delegate your cryptocurrencies. This method is highly valued by investors due to its simplicity.
We have selected different trusted platforms and validators on the market so that you can do non-custodial staking in a secure and reliable way.
Why should we favor non-custodial staking?
In general, staking is done on centralized exchange platforms for simplicity. This does not require technical knowledge and does not require a minimum deposit or even my need to run a node or find a validator. However, staking on a centralized platform implies that you trust the platform. The platforms generally take a small commission on the rewards generated, but this is perfectly reasonable.
Now, as you know, many centralized platforms have suddenly closed their doors, for multiple reasons, ranging from poor fund management to technical attacks. Indeed, you should NEVER forget that you can lose your funds on these platforms. The recent fall of FTX should remind us of the adage "Not your keys, not your coins".
Thus, many people seek and prefer to do decentralized and non-custodial (non-custodial) staking. This means you remain in control of your funds and are able to move or withdraw your funds at any time.
Finally, it is true that it can be a little more technically complicated to do non-custodial staking, especially for those who are new to the world of cryptocurrencies. You should delegate to a validator or even manage your own node and own a certain amount of tokens. This is not obvious to everyone, let's admit it. Then there is the other method which consists of delegating to a validator, while receiving your rewards in your own wallet.
GardaWallet: the multi-tasking non-custodial wallet
Guarda Wallet is a non-custodial wallet that supports multiple cryptocurrencies and also allows for cryptocurrency exchange and non-custodial staking . The interface is user-friendly and simple, making it easy to use, even for beginners . Furthermore, the application was designed to simplify the wallet creation process, including streamlined key backup downloads.
The Guarda wallet supports several cryptocurrencies and it is even possible to buy cryptocurrencies by credit card directly on the platform. This means that if you are new to cryptocurrencies, this can be a very simple way to go. You have everything on the same platform and you can start staking immediately.
The Guarda wallet is available on PC, mobile and web platforms. The staking procedures are the same regardless of the shape of your wallet.
Staking on a Ledger wallet
Ledger is one of the most reputable hardware wallets on the market. Offering secure protection for your cryptocurrencies, it also allows you to stake them directly on your Ledger device.
To be able to do staking of this type, you will first have to buy a Ledger of course. You will then be able to do non-custodial staking via LedgerLive, the Ledger interface. You will also be able to buy cryptocurrencies directly from the interface or send cryptocurrencies to your wallets.
Unlike staking on centralized platforms like Binance , you can choose the validator to whom you delegate your cryptocurrencies. The process is simple and makes non-custodial staking a straightforward and secure activity to set up.
StakeFish: One of the most famous validators
Stakefish is one of the best-known validators for blockchains operating on Proof of Stake. With support for over 10 networks, with nodes spread across the globe, you'll find premier validators to delegate your cryptocurrencies.
The site provides you with very precise tutorials with screenshots to facilitate your configuration, even if you are new to staking.
Stakely: Validators renowned for non-custodial staking
Stakely is a non-custodial staking platform that provides validators on over 35 blockchains. Currently, yield rates vary between 3 and 87% depending on the cryptocurrencies of your choice. It is certainly one of the platforms that offers the widest choice of non-custodial staking on the market.
You should know that the way of staking will vary from one project to another depending on what you choose.
However, generally speaking, the process is always the same. This involves connecting your non-custodial wallet such as Metamask or another dedicated blockchain wallet, finding the delegations/stakes you want and selecting stakely as the validator.
The Stakely platform is appreciated by users because it offers a wide choice of services and is one of the cheapest staking platforms on the market.
Additionally, the platform has a staking insurance fund, which proves to be a protective measure to cover possible user losses. This is a strong point for Stakely. The platform also sets up a calculator to be able to estimate your possible future earnings.
The other big advantage of Stakely is the quality of the explanations provided on the site for each cryptocurrency you want to stake. You will have the images as well as precise instructions for staking. It is very rare to see such explanations on platforms of this type. Which means that if you are new to non-custodial staking, this is the ideal platform to get started.
MyContainer: Staking, delegation and cold staking
https://mycointainer.com/?partner=B81DDNnkmmUKlPmxXK5Y MyContainer is a website that has been around since 2018 and has become a leader in cryptocurrency staking. It's a very user-friendly site, accessible even to beginner investors. In fact, it's possible to buy tokens directly on the platform using a credit card and start staking immediately.
There are several ways to stake on MyContainer:
- “DeFi Staking”: you can interact directly on the platform Mycointainer by connecting your hardware wallet and executing trades.
- Cold Staking: Here, Mycontainer can provide you with validator nodes and guides for delegating through the different supported wallets.
Cold staking is the most secure form of staking because you can do it on a "cold" wallet, which is not connected to the internet, such as Ledger or SafePal . It is indeed a more secure method of staking because you reduce the risk of hacking, which can more easily occur with online wallets.
However, not all blockchains allow cold staking.
Lido: The most popular staking protocol
Lido gained its reputation and popularity by being the first platform to offer ETH staking, before The Merge 's launch . Lido is a highly regarded staking platform boasting one of the highest TVLs (Total Value Lists) on the market. However, it's a platform best suited for those already familiar with DeFi. Here, you can take staking further and also engage in yield farming , for example.
Today, you can stake various cryptocurrencies, including MATIC and SOL , for example. Using Lido is very simple.
Simply choose the cryptocurrency you want to stake, connect your wallet and select the amount you want to stake. Once you validate the transaction, you will receive your rewards directly on your wallet. You will receive tokens in the form of stETH, stMATIC or even stSTOL.
With these tokens, you will be able to keep them and exchange them at a 1:1 ratio with the original crypto. However, it may happen that these assets lose their indexations even if the risk is low. You might as well use them and make them work on other protocols that support them.
For example, you could become a liquidity provider on Curve or engage in lending/borrowing on Aave. It's up to you to choose the protocols that best suit your strategy.
However, keep in mind that this remains a risky activity because there are technical risks associated with the use of smart contracts which can be subject to hacking. For the moment and since its launch, the Lido platform has not experienced any hacks of this kind. You must remain vigilant all the same.
To learn more, you can read our full article on how to generate income with staking.
FAQ
What are the differences between custodial staking and non-custodial staking?
Recall that custodial means "custodian" in the sense that when you do not have your own private keys, it means that it is the platform/site that is the "custodian" of your funds.
Conversely, a non-custodial (or self-custodial) wallet means that you are the custodian and that you own your private keys for complete possession of your cryptocurrencies.
Staking Custodial (custodian) | Non-Custodial Staking |
|---|---|
| Use a trusted third party as a centralized platform | Use a non-custodial wallet for staking |
| Little or no technical knowledge required | Technical knowledge required |
| A low minimum deposit (from €1 sometimes) | A minimum deposit may be required |
| No need to run a node and ability to delegate to a validator | Need to excuse own node or call validator |
| You do not own your funds; If you lose access, you can find it again | You own your funds and if you lose access, you lose your funds. |
| You pay a commission to the third party | Less costs generally |
Disclaimer: This is not investment advice. Always do your own research. Investing in cryptocurrencies involves risks.
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