Staking cryptocurrency is a popular method for earning passive income by locking your digital assets in a wallet to support blockchain operations and receive rewards. The Tangem Wallet offers a secure, user-friendly solution for staking crypto directly within its app. This guide walks you through the entire process, from setup to claiming rewards, while highlighting key tips to maximize your staking returns.
What Is Staking?
Staking involves locking a certain amount of cryptocurrency in a wallet to contribute to a blockchain’s security and functionality. In return, you earn rewards, typically paid in additional tokens. This process is central to Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) consensus mechanisms, where your staked tokens help validate transactions and create new blocks. The Tangem Wallet currently supports native staking for networks like Solana (SOL), TRON (TRX), Cosmos (ATOM), Binance Coin (BNB), and Polygon (MATIC), with plans to add Polkadot, Cardano, Ton, Cronos, and NEAR.
Prerequisites for Staking
Before you begin, ensure you meet these requirements:
- Tangem Wallet and App: You need a Tangem hardware wallet (cards or ring) and the Tangem Wallet app installed on your smartphone. Download the latest version from the App Store (iOS) or Google Play (Android).
- Cryptocurrency: Hold the crypto you wish to stake in your Tangem Wallet. Supported assets include SOL, TRX, ATOM, BNB, and MATIC. Acquire these through purchases, exchanges, or transfers.
- NFC-Enabled Smartphone: Tangem uses Near-Field Communication (NFC) to sign transactions. Verify that your phone supports NFC and enable it.
- Internet Connection: A stable connection is essential for app functionality and transaction processing.
- Access Code or Biometrics: Use your access code or biometric authentication (e.g., fingerprint) to confirm transactions.
Step-by-Step Staking Instructions
Follow these steps to stake your crypto using the Tangem Wallet. While we use Solana (SOL) as an example, the process is similar for other supported networks.
Step 1: Open the Tangem Wallet App
Launch the Tangem Wallet app on your smartphone. Ensure you’re logged in and your wallet is set up. If you haven’t created a wallet, follow the in-app instructions to set up a new one or import an existing wallet.
Step 2: Select a Cryptocurrency
From the app’s home screen, browse your list of cryptocurrencies. Tap on the asset you want to stake, such as Solana (SOL). If the token isn’t visible, add it by:
- Navigating to "Manage Tokens."
- Searching for the cryptocurrency (e.g., Solana) and adding it to your portfolio.
Step 3: Initiate Staking
On the token’s page (e.g., Solana), tap the "Stake" button. The app will display key staking details, including:
- APR (Annual Percentage Rate): The estimated annual yield.
- Unbonding Period: The time required to unlock your tokens after unstaking.
- Reward Schedule: How often rewards are distributed.
Review these details carefully and tap "Stake" to proceed.
Step 4: Choose Amount and Validator
Enter the amount you wish to stake. Note that some networks have minimum requirements (e.g., at least 1 BNB for Binance Coin). Select a validator from the list—these nodes secure the network and validate transactions. The app recommends the most profitable validator based on APR, but you can choose another. Consider:
- Validator Performance: Reliable validators have high uptime and low downtime.
- Fees: Some validators charge a commission on your rewards.
Tap "Next" after selecting a validator.
Step 5: Sign the Transaction
Review the staking details, including the amount and validator. Tap "Stake" to begin the transaction. Enter your access code or use biometric authentication. Hold your Tangem card or ring near your phone’s NFC area to sign the transaction. The app will confirm once processing is complete.
Step 6: Monitor Rewards
Once your tokens are staked, they start generating rewards. Track your staked assets and rewards on the token page under "Native Staking." Reward frequency varies by network:
- Solana: Rewards are automatically added to your staked balance but require manual unstaking to claim.
- TRON: You must manually claim rewards, which may incur a small gas fee.
Step 7: Claim Rewards (Example: TRON)
For networks requiring manual reward claims, like TRON:
- Open the Tangem app and go to the TRON (TRX) page.
- Tap "Native Staking."
- Select "Rewards" and then "Claim Rewards."
- Enter your access code and sign the transaction with your Tangem device.
- Rewards will be credited to your wallet after processing.
Step 8: Unstaking Tokens
To unstake tokens, note that each network has an unbonding period (e.g., 14 days for TRON). Follow these steps:
- Open the app and select the staked cryptocurrency (e.g., Solana).
- Go to "Native Staking" and tap "Your Stakes."
- Choose the validator and tap "Unstake."
- Enter your access code and sign the transaction.
- Wait for the unbonding period to end. Your tokens will then be available for transfers or withdrawals.
Staking via DeFi Platforms with Tangem
Tangem Wallet also supports staking through decentralized applications (dApps) using WalletConnect. This is useful for platforms like Benqi (for Avalanche) or other DeFi protocols. Here’s how:
- Open the Tangem app and connect to your preferred dApp (e.g., via WalletConnect).
- Select WalletConnect as the connection method and scan the QR code or copy the connection link.
- Follow the dApp’s instructions to stake your tokens (e.g., AVAX).
- Sign the transaction with your Tangem device.
- Monitor rewards directly within the dApp.
👉 Explore more staking strategies
Remember, DeFi staking carries additional risks, such as smart contract vulnerabilities. Always use reputable platforms.
Tips for Successful Staking
- Choose Validators Wisely: Research validator performance and fees. Reliable validators maximize rewards and minimize downtime.
- Reinvest Rewards: Compound your earnings by regularly restaking rewards.
- Understand Network Rules: Each blockchain has unique rules for minimum stakes, unbonding periods, and reward distribution. Familiarize yourself to avoid surprises.
- Prioritize Security: Store your Tangem cards or ring safely. Losing a card and forgetting your access code could result in lost assets. Use backup cards for protection.
- Update the App: Keep the Tangem Wallet app updated to access new features and security enhancements.
- Consider Taxes: Staking rewards may be taxable in your jurisdiction. Consult local regulations.
Benefits of Staking with Tangem Wallet
- Security: Tangem stores private keys offline on an EAL6+-certified chip, protecting against hacks.
- User-Friendly: The intuitive app interface simplifies staking for beginners.
- Flexibility: Support for multiple networks and partial unstaking (except Solana).
- No Third Parties: Native staking occurs directly in the app without transferring assets to centralized platforms.
- Portability: Compact cards or a ring allow easy transport of your wallet.
Potential Risks
- Validator Risks: Unreliable validators may reduce rewards. In rare cases, validators face slashing (penalties), though Tangem’s provider, StakeKit, covers these losses.
- Unbonding Periods: Tokens are locked during unbonding and cannot be transferred immediately.
- Market Volatility: Crypto price fluctuations can impact overall returns.
- Technical Risks: DeFi staking via dApps carries smart contract risks. Use trusted platforms only.
Frequently Asked Questions
What is the minimum amount required for staking?
Minimums vary by network. For example, Binance Coin requires at least 1 BNB, while Solana has no minimum. Check each network’s rules before staking.
How often are staking rewards distributed?
Reward frequency depends on the blockchain. Solana adds rewards automatically but requires unstaking to claim, while TRON requires manual claims. Review network-specific details in the app.
Can I unstake my tokens at any time?
Yes, but tokens remain locked during the unbonding period (e.g., 14 days for TRON). Plan accordingly to avoid liquidity issues.
Is staking with Tangem Wallet safe?
Yes, Tangem’s offline key storage and EAL6+ certification provide high security. However, validator performance and market risks remain.
Does Tangem support staking for all cryptocurrencies?
Currently, Tangem supports native staking for SOL, TRX, ATOM, BNB, and MATIC, with more networks planned. DeFi staking via dApps expands options.
Are staking rewards taxable?
In many regions, staking rewards are subject to income tax. Consult a tax professional to understand your obligations.
Conclusion
Staking with Tangem Wallet combines security and convenience, making it an ideal choice for earning passive crypto income. By following this guide, selecting reliable validators, and monitoring your rewards, you can maximize your staking returns. As Tangem continues to add support for more networks, its versatility will only grow. For further assistance, refer to the Tangem app or official resources.