How to Stake ATOM in 2023

Staking cryptocurrencies is a way in which you can potentially generate passive income for yourself, while at the same time taking part in the development of your chosen blockchain.

Cosmos is an ecosystem of interoperable blockchains, apps, and services—and it is secured by staking its native cryptocurrency, ATOM.

In the article below, we will explain what staking is, how it works, and provide a guide on how best to stake ATOM in 2024.

Top ATOM Staking Platforms

	Name	Score	Visit	Disclaimer
	1Coinbase	8.4	Visitcoinbase.com
	2Binance	9.1	Visitbinance.com
	3Crypto.com	8.7	Visitcrypto.com

What is ATOM Staking?

Staking represents a way for people to participate in the blockchain network. It's a process where you “stake”, or “lock” a certain amount of a chosen crypto onto its blockchain. While the crypto is staked, or locked, you can only access it under certain conditions. Through staking you help secure and improve a network, by validating transactions being performed on it.

As an example, let's consider ATOM, the cryptocurrency used in the Cosmos blockchain. To stake ATOM, you would need to hold a certain amount of it in a compatible wallet and delegate it to a validator or a group of validators. Validators are responsible for processing transactions on the network and maintaining the integrity of the blockchain.

By staking your ATOM, you are essentially contributing to the security and efficiency of the network. Validators require a certain amount of tokens to participate in the network, and the more they stake, the more likely they are to be selected to validate transactions. In return for staking, you can earn interest on your staked coin, in the form of more ATOM.

ATOM Staking Glossary of Terms

• Block - A bundle of verified transactions that are linked up together to form a blockchain.

• Stakeholder - An entity that holds and locks up a certain amount of cryptocurrency in order to participate in staking.

• Validator - An entity that takes part in the staking process, responsible for validating new transactions.

• Staking pool - A group of stakeholders that pool their resources together in order to increase their chances of being selected as a validator.

• Staking Rewards - Extra crypto you gain by participating in the staking process.

• Unstaking - The process of withdrawing staked cryptocurrency from the network.

• APY - Annual Percentage Yield, the amount of rewards a stakeholder can expect to earn from staking. Often just Yield.

• Slashing - A penalty imposed on validators who act maliciously or fail to validate transactions correctly.

• Consensus Mechanism - The algorithm or protocol used to ensure that the network can come to an agreement about the state of the blockchain.

Staking vs. Mining - Consensus Mechanisms

Staking and mining are both consensus mechanisms used in blockchain networks to validate transactions and secure the network. However, they differ in their approach to achieving consensus and the rewards they provide to participants.

Mining is a consensus mechanism that involves solving complex mathematical puzzles using specialized hardware to validate transactions and add them to the blockchain. The first miner to solve the puzzle is rewarded with newly minted cryptocurrency, as well as transaction fees. Mining is commonly used in proof-of-work (PoW) blockchains like Bitcoin, where the computational power of miners is used to secure the network.

Staking, on the other hand, is a consensus mechanism that involves holding a certain amount of cryptocurrency and locking it up in a smart contract. This, in turn, is used to validate transactions and secure the network. Stakers are rewarded with newly minted cryptocurrency for their participation in the consensus process. Staking is commonly used in proof-of-stake (PoS) blockchains like Cosmos, where the economic stake of validators is used to secure the network.

How to Stake ATOM

Keep in mind that there are different approaches when it comes to staking any cryptocurrency. These approaches differ in the difficulty of their execution, as well as the required skills and (in some cases) hardware to take them on properly.

Most coins are staked in similar ways, through similar processes, but the devil is in the details. In the section below, you can find ways on how to stake ATOM.

ATOM staking options compared

Where to stake ATOM

Through our research we have come to the conclusion that the following CEXs represent the best and easiest way to stake ATOM.

1. Coinbase - Overall Best Platform For Staking ATOM

Coinbase offers a user-friendly interface that makes it easy for users to navigate and manage their staking activities. Users can easily stake and unstake their ATOM, monitor their rewards, and track their staking history.

Its easy to navigate interface. The many tracking options and quality features it offers, along with its competitive fees, make it our top choice.

How to stake ATOM on Coinbase

In order to stake ADA through Coinbase, before you even begin, you need to create an account, set up the app on your phone, and transfer (or buy) ATOM and place it in your wallet.

Go to the Assets Tab

Log into your account, and find the My Assets tab. Then, scroll down and look for ATOM. Click on it and scroll down on the Cosmos page to find the Stake ATOM button.

Read the disclaimer

Once you have clicked on the “Stake ATOM” option, a disclaimer will show up. Read it thoroughly, don't ignore it, and then click on “Continue”.

Enter the amount of ATOM you want to stake

Now an option will pop up that will give you the opportunity to stake a certain amount of ATOM. You get the choice on whether you want to input a direct amount of ATOM, or if you want to put an equivalent of ATOM by its USD value. Then, click on “Preview Stake”.

Confirm your stake

Finally, once you are sure about the amount you want to stake, look through the expected reward, read all the information on the popup, and then just click “Stake Now”.

2. Binance US - Largest Variety of Crypto

First of all, note that we are reviewing Binance US, which differs from the standard website when it comes to its staking offers.

Binance is a leading cryptocurrency exchange, with some of the lowest fees in the industry. The platform offers a user-friendly interface and mobile app, making it easy for users to navigate and manage their staking activities on the go.

Its security is top-notch, but we do need to mention that Binance.US does offer fewer staking options than the standard website. That being said, it's an excellent choice for ATOM staking.

How to stake ATOM on Binance

First off, visit the Binance.us website and create an account, and fill your wallet with some ATOM.

Go to the Staking page

Once you are logged in, go to the staking page, and choose ATOM.

Read the disclaimer

A pop up explaining staking and its risk will show up. Read it, click on “Next”, then on “I Understand”.

Enter the amount of ATOM you want to stake

Type in how much ATOM you want to stake (or go with a percentage). Also note that you can use the Auto-Restake option, if you want your rewards to be automatically added to your stake. Or, you can just have your rewards be sent directly to your wallet. Then, just click “Preview Stake”.

Confirm your stake

Take a final look at your stake, double-check the info, and then just click “Confirm”.

3. Crypto.com - Highest rewards (if you stake CRO along with ADA)

Crypto.com is a very versatile cryptocurrency platform, with support for over 250 currencies. It's very attractive for crypto traders, and holds a host of useful settings.

ATOM staking on Crypto.com offers an attractive APY, which is updated regularly to reflect the current market conditions. Users can stake their ATOM for different durations, ranging from one month to three months, with the option to extend the staking period.

However, it's a bit complicated to use. While it does give the best yield, it's very influenced by the amount of CRO, its utility token, you are willing to utilize. In other words, the longer you are willing to stake your ATOM, and the higher the amount of CRO you are willing to stake alongside it, the better your returns.

How to stake ATOM on Crypto.com

Step zero is creating an account on Crypto.com, downloading the app, and getting some ATOM into your Crypto.com wallet.

Open Crypto.com Earn

Log into your account and head to the Earn section.

Select ATOM from the list

Scroll down, find ATOM, and click on “Start Earning Now”.

Select the amount you want to stake, and term length

Select the amount you want to stake, the term limit, and the amount of CRO you want to stake as well (if any).

Confirm

Simply press Confirm, review your stake, and you are ready to stake.

ATOM Staking Platforms Compared

How much can you make staking ATOM?

It is impossible to tell anyone exactly how much they can make from staking. It depends, significantly, on the knowledge and skill of the staker, the amount of time and money they are willing to invest, as well as simple luck and market fluctuations.

That being said, we can give you a rough estimate, as well as an overview of what you can expect.

First of all, the average annual percentage rate for the staking of any coin varies, depending on your approach. On average, staking ATOM through a pool gives you an APY of 9.7%. However, this will vary, depending on the staking pool, or the CEX you choose.

The ATOM staking APY varies dynamically with the total amount of ATOM staked. So you may find that this APY varies over time.

We also need to mention that the fiat value of ATOM will vary over time, as does the value of any cryptocurrency. This is dependent on market fluctuations, as well the implementation of any new regulations and laws concerning crypto.

Is there a downside to staking ATOM?

While staking can serve as an excellent source of potential passive income, there are, of course, some downsides. For example:

• Unbonding Period - Unless you're using a CEX that offers instant unstaking, the Cosmos blockchain has a 21-day unbonding period for any staking. In other words, you need to wait 21 days to unstake the crypto you already staked. You won't be able to access them otherwise.

• Slashing - As with most other crypto staking approaches, slashing is always a risk. For ATOM specifically, slashing can occur if the validator of a staking node goes offline or if double-signing occurs. This can then lead to the loss of crypto, as well as a loss of certain privileges (like proposing blocks or earning rewards).

• Price Volatility - As with any other cryptocurrency, there is always a question of price volatility. The fiat currency value of a coin can, and does, change significantly over its lifespan and ATOM is no different.

• Security - The Cosmos blockchain network (which hosts ATOM) has an excellent security framework in place, as do all the CEXs we listed out above. That being said, there is always a risk involved whenever you buy, sell, or stake crypto.

Should I stake ATOM?

Any type of investment and trading carries a certain amount of risk with it. Staking a cryptocurrency is no different. The final choice is always yours.

With that in mind, consider the following:

• Your Experience With Crypto - The entire crypto “market” is famously volatile. While you do not necessarily need to understand the intricacies of how the blockchain actually works (unless you want to set up your own node), you still need to be familiar with basic concepts. Furthermore, you especially need to be familiar with the cryptocurrency you want to stake.

• Taxes - In order to maximize your potential bottom line, and stay safe, you need to be aware of the regulations surrounding cryptocurrencies in your region. It's best you talk to a professional accountant or attorney with experience in this area.

• Risk - First, you need to be aware of the level of risk you can handle, both in terms of finance and stress, before you start staking. Next, you need to understand that the crypto market is still new, and changes within the blockchain, as well as new local regulations, are part and parcel for any type of crypto trading and investment.

• HODLing or Trading - If you want to HODL, ie, simply hold on to ATOM as a long-term investment, then staking it can complement this strategy nicely. If you want to make regular trades or be able to sell at a moment’s notice, then staking ATOM is inconvenient due to the 21-day unbonding period.

Final Thoughts

Staking ATOM is a great way to assist in the further development and decentralization of the cryptosphere, and gain rewards at the same time. It's an excellent example of the democratic nature of crypto - everybody and anybody can take part in the process, you just need to invest some time and effort.

	Name	Score	Visit	Disclaimer
	Coinbase	8.4	Visitcoinbase.com

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