How to Stake Algorand (ALGO)

Algorand is an open-source, decentralized blockchain network with a native cryptocurrency, ALGO, designed to achieve scalability, security, and decentralization in one blockchain network. It leverages a two-tiered structure and a unique variation of the Proof-of-Stake (PPoS) consensus mechanism to provide immediate transaction finality, i.e., processing over 1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.

Staking is a significant feature to facilitate the Algorand blockchain’s seamless operation. Algorand’s Pure Proof-of-Stake (PPoS) consensus mechanism has a low minimum staking requirement for participating in and securing the network — only one ALGO coin is needed to participate.

Staking Algorand is one of the easiest ways to earn passive income on your ALGO token holdings.

Read on for our detailed guide on why, where, and how to stake Algorand (ALGO) to earn exciting rewards while helping secure the Algorand blockchain.

Let’s get right to it!

What Is Algorand?

Algorand is a decentralized open-source network built to solve the Blockchain Trilemma by achieving scalability, security, and decentralization in one blockchain network. It uses a unique Pure Proof-of-Stake (PPoS) consensus mechanism to enable complete decentralization with top security and scaling while achieving near-instant finality, i.e., processing over  1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.

Moreover, many DApp developers have turned to Algorand as an Ethereum alternative for creating and deploying decentralized applications (DApps) due to Ethereum’s high gas fees.

ALGO is the blockchain’s native token and one of the top staking coins used for carrying out transactions and securing the network. Algorand is based on ALGO holders and ALGO block producers, i.e., node runners. It distributes validator rewards to all ALGO holders.

In a PPoS mechanism, all users, including holders, are eligible to randomly propose and validate blocks on the blockchain and earn ALGO staking rewards proportional to their stake. The minimum amount of ALGO tokens required for Algorand staking is just one ALGO token. 

To learn more about staking in general, you’re welcome to visit the CoinStats guide “What Is Staking.”

Algorand History

The Algorand blockchain was founded by Turing award-winning cryptographer and MIT professor Silvio Micali in 2017. The protocol’s core development was overseen by Algorand Inc., a private corporation based in Boston. While the Algorand Foundation manages the Algorand network’s ecosystem growth, award funding, cryptographic research primitives, on-chain governance, and decentralization.

The Algorand network went live in 2019. It’s carbon-neutral and has been operating without a second of downtime since then.

Where to Stake Algorand?

Algorand (ALGO) is one of the world’s top 50 cryptocurrencies in terms of market cap and is listed on almost all major crypto exchanges. Some of the popular platforms to use for Algorand staking are Binance, Coinbase, Crypto.com, etc. Moreover, Crypto.com enables users to benefit from its soft-staking feature.

The Algorand blockchain gives out daily rewards for staking Algorand (ALGO). You can also stake Algorand using hardware wallets like Ledger Nano X through a relatively easy staking process. This allows you to earn passive income through Algorand staking while having your ALGO coins stored securely in a hardware wallet. However, the downside of staking Algorand (ALGO) using the Ledger wallet is that you must claim your tokens manually using the Ledger desktop app. So, if you want to earn a small passive income without hassles, staking Algorand (ALGO) on a centralized exchange is a better option. 

How to Stake Algorand (ALGO) on Coinbase?

Coinbase is one of the world’s most popular crypto exchanges that supports ALGO staking. The process of Algorand staking on Coinbase is pretty simple; however, it’s not supported in North America, South America, Australia, Europe, the Middle East, Asia, and Africa.Therefore, residents in these regions with a Coinbase account and Algorand tokens won’t be eligible for ALGO staking rewards.

The minimum requirement to stake Algorand on Coinbase is only 0.01 ALGO. All you need to stake Algorand (ALGO) on Coinbase is to activate Coinbase Earn and start earning Algorand staking rewards of up to 5.75 percent APY.

How to Stake Algorand (ALGO) on Binance?

Binance is the world’s largest crypto exchange in terms of trading volume and one of the best platforms to stake ALGO. Users from most countries can easily stake ALGO on Binance; however, Algorand (ALGO) staking on Binance.us has been discontinued recently. “Locked Staking” is available for 30, 60, or 90 days, withstaking yields ranging from 4,50 to 5.80% and the minimum staking amount of 10 ALGO.

To stake ALGO on Binance, you must:

• Have a sufficient amount of ALGO in your account.
• Go to EARN, search for ALGO, click on your preferred staking product, and Confirm your staking request. 

Algorand Staking With Algorand Wallet

Algorand can also be securely stored and staked on the official Algorand Wallet to earn staking rewards of up to 6% APY. Moreover, the Algorand Network enables you to become part of the governance and automatically start earning staking rewards while simply holding your ALGO coins in the Algorand wallet. The Algorand Wallet is available for both iOS and Android. MyALGO wallet is another common choice among Algorand users. 

Frequently Asked Questions

Is Algorand Good for Staking?

Algorand (ALGO) staking is much more profitable than simply holding your ALGO tokens in a wallet or cryptocurrency exchange. Moreover, it becomes all the more beneficial, especially in times of a bear market when ALGO, BTC, and ETH prices have been down by over 50 percent. 

How Much Can I Earn Staking ALGO?

Interest rates vary depending on the platform you choose to stake ALGO, ranging from 4 to 6 percent. The interest is paid daily, and you can even get your staking rewards every 20 minutes while staking Algorand (ALGO) using a Ledger wallet.

Algorand (ALGO) Current Price

The ALGO token was launched in June 2019 through an Initial Coin Offering (ICO) at the price of USD 2.4 per ALGO. The ALGO token current price has fallen even lower than the ICO price, presenting you with an excellent opportunity to buy ALGO and earn passive income on your investment before the crypto markets recover and enter the next bull run.

You can check the live ALGO price on CoinStats. Currently, ALGO has a circulating supply of 7,019,516,928 tokens, a market cap of USD 2.1 billion, a 24-hour trading volume of USD 100.3 million; and the total supply of ALGO is capped at 7,250,033,192 tokens.

Conclusion

Staking is one of the best ways to earn passive income on your crypto holdings. Algorand (ALGO) is one of the pioneers in staking and even gives out rewards for simply holding ALGO tokens. Although the ALGO price is down significantly, its prospects look bright, as Algorand is one of the few blockchain projects to tackle the blockchain trilemma successfully

. Therefore, ALGO staking is one of the best things you can do right now, and if you don’t own any ALGO, what are you waiting for?

If you’re interested in learning more about crypto tokens, projects, and platforms making waves in the crypto market, visit CoinStats, your learning hub and one-stop shop for crypto.