#How to Stake Solana (SOL): 9 Different Ways

Solana staking is a powerful way to earn passive income while contributing to the security and efficiency of the high-speed blockchain. Options range from native staking via the Solana wallet to user-friendly exchanges and decentralized platforms. In this guide, we’ll explore how to stake Solana using 9 diverse approaches to help you maximize rewards and confidently navigate the ecosystem.

#What is Solana (SOL)?

Solana is a high-speed blockchain designed for decentralized applications (dApps), non-fungible tokens (NFTs), and cryptocurrency transactions. It’s known for its ultra-fast processing, which can manage up to thousands of transactions per second, based on a unique mechanism called Proof of History (PoH).

Solana’s native token, SOL, powers the network and pays for fees, staking, and governance. The platform's speed and scalability make it popular with users and developers who require faster transactions and low costs.

#What is Solana staking?

Solana staking is the process of locking up SOL tokens with validators to support the Solana blockchain’s consensus mechanism. By staking, holders delegate their SOL tokens to validators, who secure the network and validate transactions, earning them rewards in return.

This process allows SOL holders to earn passive income while contributing to the network’s security and decentralization. Different SOL staking options are available, including independent, custodial, and non-custodial. Depending on the Solana staking type, the process is often simple and doesn’t require technical skills.

#Different types of Solana staking

The following are different SOL staking options, which you can explore for passive income:

• Native Staking: Directly locking your SOL tokens in Solana’s network to validate transactions and earn rewards while securing the blockchain.
• Liquid Staking: Staking SOL to a smart contract or staking pool instead of directly to a validator. The tokens are traded or used in DeFi while earning staking rewards.
• Staking Pools: Combine resources to increase staking power and share rewards among participants. Ideal for smaller holders.
• Running a Validation Node: Operating a node to process transactions. It requires significant SOL and technical resources, with rewards for validating blocks.
• Non-Custodial Hardware Wallet: Staking SOL using a wallet that keeps control of assets without third-party custody.
• Use a Centralized Exchange: Staking SOL through a centralized platform that may hold custody of assets.
• Use On-Chain Staking Platforms: On-chain platforms use Solana-built tools like Solflare to stake directly via smart contracts, eliminating intermediaries.
• Staking through DeFi Protocols: Involves using DeFi protocols to stake SOL and earn rewards while maintaining liquidity.
• Multi-Signature Treasury Tools: Staking managed by wallets requiring multiple approvals, ideal for shared fund security.

Now, let's look at each Solana staking option in detail.

#1. Native SOL staking

How to: Delegate SOL tokens to a validator via wallets such as Phantom, Solflare, or Ledger Live. Alternatively, you can do it through Command Line Interface (CLI), a text-based tool for advanced users to interact with blockchain using code commands. Earn rewards automatically based on validator performance and network inflation.

Requirements:

• A Solana-compatible wallet (Phantom, Solflare, Ledger)
• Sufficient SOL tokens for staking and transaction fees
• Access to a reliable validator’s staking service (choose from Solana’s validator list)
• A stable internet connection

Pros:

• Earn passive income by staking your SOL
• Non-custodial control, you retain control of your funds
• Solana’s network fees are minimal, making the staking process cost-effective
• User-friendly setup as most wallets offer an intuitive staking interface, simplifying the delegation process

Cons:

• Lock-up period: Once staked, your funds are subject to an unbonding period (typically a few days), which reduces liquidity.
• Validator risk: Your earnings depend on the validator’s performance. Issues or misbehavior by the validator can impact your returns.

#2. Liquid staking

How to: Stake your SOL tokens via a liquid staking platform such as Maridade (mSOL), Jito (JitoSOL), or Lido (stSOL) to receive a liquid token that can be used in DeFi while earning staking rewards. This method maintains the liquidity of your SOL tokens.

Requirements:

• A Solana wallet (Phantom, Solflare)
• SOL to stake
• Access to a liquid staking provider

Pros:

• Earn staking rewards while keeping your SOL liquid
• Use liquid staking tokens (LSTs) in DeFi for additional yield opportunities
• No need to manually unstake, as you can trade LSTs any time
• Helps decentralize Solana by distributing stake across validators

Cons:

• Platform-specific risks such as smart contract vulnerabilities
• Fees or slippage when converting LSTs back to SOL

#3. Staking pools

How to: In this method, you delegate your SOL tokens to a staking pool through a Solana-compatible wallet or platform like Everstake. Earn rewards without the need to run a validator node yourself.

Requirements:

• A Solana-compatible wallet
• SOL tokens to delegate
• Research to choose a reliable pool or validator

Pros:

• Low entry barrier: Staking pools work collectively so there’s no need for the minimum threshold required for solo staking.
• Passive rewards: No technical setup as pool operators handle validation.
• Diversification: Some pools split stakes across multiple validators to reduce risk.
• Consistent payouts: Rewards are distributed proportionally regardless of validator performance fluctuations.

Cons:

• Pool/validator fees: Operators often take a commission, which reduces your rewards.
• Centralization risk: Large pools could dominate the network, contradicting decentralization principles.

#4. Running your own Solana validator node

How to: Set up a high-performance server that meets Solana’s specifications. Install and configure validator software and stake your SOL tokens to participate in transaction validation and earn rewards.

Requirements:

• High-end hardware such as 12-core CPU, 128GB RAM, NVMe SSD
• SOL tokens for staking and transaction fees
• Technical expertise in managing servers and software
• Ongoing maintenance for updates and uptime

Pros:

• Maximize rewards: You retain 100% of staking earnings as there are no validator or pool fees
• Network influence: Directly contribute to Solana’s security and decentralization
• Earn transaction fees: Receive a share of fees from transactions your node processes
• Full autonomy: Control stake delegation, hardware setup, and software updates

Cons:

• High upfront and operational costs: Expensive hardware, electricity, and bandwidth requirements
• Steep learning curve: Demands expertise in server management, networking, and blockchain protocols

#5. Use non-custodial hardware wallet

How to: To stake Solana SOL) using a non-custodial hardware wallet, first install the Solana app on your hardware wallet, such as Ledger or Cypherock, and set up a blind signing. Then, connect your hardware wallet to a non-custodial software wallet like Solflare or Phantom to delegate your SOL to a validator. This setup allows you to stake while maintaining control over your private keys.

Requirements:

• A hardware wallet: A secure, cold device like Ledger Nano X, Cypherock, or Trezor
• Software wallet: A non-custodial wallet like Solflare or Phantom
• Validator selection: Choose a reputable validator for staking
• Technical knowledge: Needed for wallet setup and staking

Pros:

• Control and privacy: You maintain full control over your private keys and assets
• Security: Hardware wallets offer robust protection against online threats
• Decentralization: Supports the decentralization of the Solana network
• Flexibility: Staked SOL remains partially liquid, allowing for unstaking when needed

Cons:

• Technical complexity: Requires some technical knowledge to set up and manage
• Responsibility: Losing your seed or private keys results in asset loss
• Unstaking period: SOL may be locked for several days, limiting liquidity

#6. Use a centralized exchange

How to: To stake Solana (SOL) on a centralized exchange, create an account on a platform like Binance, Coinbase, or eToro. Deposit your SOL tokens and select the staking option. The process is straightforward and requires the least technical knowledge. Your preferred exchange will handle the staking process, making it easy for beginners.

Requirements:

• Solana tokens: You need SOL tokens to stake
• Centralized exchange account: An account on a platform like Coinbase, Binance, or eToro
• Internet connection: To access and manage your staking

Pros:

• Ease of use: Simple setup with minimal technical knowledge required
• All-in-one platform: No need for external wallets or manual validator selection
• Passive income: Earn rewards while holding your tokens
• Simplified tax reporting: Exchanges often provide tax documentation
• Low capital requirement: Accessible even for small investors

Cons:

• Counterparty risk: Funds are entrusted to the exchange, which may be vulnerable to hacks or mismanagement
• Limited control: You don’t hold the private keys to your wallet
• Capped rewards: Staking yields may be lower compared to other methods

#7. Multi-sig treasury tools

How to: To stake your SOL tokens using a multi-signature wallet, you’ll need to create a stake account and delegate your tokens to a validator’s vote account. This process involves using tools such as Squads, which manage treasury operations securely through multiple signatures. These tools allow for more controlled and secure staking by requiring multiple approvals for transactions.

Requirements:

• SOL tokens for staking
• Multi-sig wallet for secure treasury management
• A reputable validator

Pros:

• Enhanced security: Multi-sig wallets provide an additional layer of security by requiring multiple signatures for transactions.
• Control and flexibility: You can manage multiple stake accounts and delegate to different validators.
• Decentralization: Supports the decentralization of the Solana network by allowing diverse validator selection.
• Collaborative management: Suitable for group or organizational efforts.
• Risk management: Reduces the risk of single-point failures in managing staked assets.

Cons:

• Complexity: Requires understanding and setup of multi-sig wallets and treasury tools.
• Cost: May involve additional costs for maintaining complex setups.
• Coordination challenges: Requires coordination among multiple parties for signature approvals.

#8. Staking through DeFi protocols

How to: To stake SOL through DeFi protocols, you’ll need to delegate your SOL tokens to validators or use liquid staking protocols like Marinade or Blaze, which provide receipt tokens that can be used in DeFi applications. The process involves locking up SOL to secure the network and earn rewards. You can leverage your liquid tokens for further yield in DeFi protocols.

Requirements:

• SOL tokens
• A Solana-compatible wallet
• Access to a DeFi platform or liquid staking protocol

Pros:

• Passive income: Earn rewards and yields from your staked SOL tokens
• Network security: Like other delegated staking methods, you contribute to the security and decentralization of the Solana network.
• DeFi integration: Use liquid staking tokens in various DeFi applications for additional yield.
• Scalability: Solana’s high throughput supports fast and efficient transactions in DeFi protocols.
• Flexibility: Your SOL tokens remain liquid while earning rewards.

Cons:

• Centralization risk: Concentration of stake among top validators can pose risks.
• Smart contract risks: Vulnerabilities in smart contracts used for liquid staking can expose funds to risk.
• Unstaking delays: Traditional staking requires waiting for an unstaking period of up to 48 hours.

#9. On-chain staking

How to: To stake SOL on-chain, choose a validator through a non-custodial wallet such as Crypto.com Onchain. Assign your SOL tokens to the selected validator, which will then participate in the network’s validation process on your behalf.

Requirements:

• SOL tokens to stake
• A compatible non-custodial wallet such as Solflare, Phantom, or Exodus
• minimum reserve of at least 0.01 SOL in your wallet

Pros:

• Potential governance rights in the Solana ecosystem
• Flexibility to unstake tokens at any time
• Earn passive income through staking rewards
• Low entry barrier with a small minimum staking amount

Cons:

• Risk of slashing penalties if the chosen validator misbehaves
• Rewards can fluctuate based on network conditions and overall participation

#In conclusion

Choosing the right method for staking SOL depends on your level of expertise, desired control, and risk tolerance. Each method offers distinct advantages and considerations, so it’s very important to evaluate them based on your individual needs. This list provides the best ways to stake Solana for beginners and advanced holders.