Staking Polkadot for Passive Income

Have you considered staking Polkadot to hedge your guess on what Layer 1 performs over the long term? Polkadot can be a great source of passive crypto income over the long term.

Using a nominated proof-of-stake system to select the validators, the Polkadot network is responsible for securing the Relay Chain. Staking Polkadot ($DOT) is also referred to as nominating.

Investors in $DOT who don’t want to set up a validator node themselves can stake their tokens at places like Kraken and Atomic Wallet among others. When you participate as nominators you earn a share of the validator rewards.

Why Would You Be Staking Polkadot for Passive Income?

You see, when you stake your $DOT tokens as the nominator, you are actively supporting the network, making it more secure. The more the project community uses its funds to back validators, the less likely it is that a single owner of a large number of $DOT tokens can use their leverage to skew votes on governance issues.

With nominating comes with a risk of being penalized and losing some of your $DOT tokens if the validator you choose behaves badly or deviates from their agreements. This increases security in the network as nominators are thus incentivized economically to choose validators with a good performance.

Staking Polkadot tokens can provide a source of passive income and increase the number of tokens you hold. You can stake $DOT instead of leaving them sitting in your wallet doing nothing.

If you would like to stake direct on Polkadot.js – use the below setup and then follow the 8 steps:

Create an account. Actually, it is recommended to create two accounts. One Polkadot account to use as the controller account and another Polkadot account to use as your stash account.

Make sure you leave a small amount of $DOT token transferrable in both accounts for transactions. Do not bond your total amount from your stash. Send a small amount of $DOT to your controller account. This ensures you have enough liquid funds for paying transaction fees when bonding and unbonding your $DOT tokens.

Running Your Own Polkadot Staking Nominator

  1. Head to the Polkadot.js main page.
  2. Choose the “Staking” link in the Network tab.
  3. Click “Account actions” on top.
  4. Click the “+ Nominator button” next.
  5. Polkadot.js by default will try to auto-select a subset of validators for you. It does this by estimating what your profits will be in terms of additional tokens that will be given to you as staking rewards.
  6. To choose your own validators, turn the “automatic selection” button off. Then set up your validator list manually, and click “Bond and Nominate” when you have made your validator selection(s).
  7. Enter the password for your account.
  8. Finally, sign and submit to complete.

Summarizing Easier Ways For Staking Polkadot – Atomic Wallet and Kraken

In summary, if you find staking directly at Polkadot.js is a bit confusing or you prefer more of a “non-technical” way of staking Polkadot for passive income, take a look at Atomic Wallet and Kraken Exchange.

How to Stake on Atomic Wallet

  1. Download and setup Atomic Wallet.
  2. Buy $DOT on any exchange and send it to your Atomic Wallet. You can also exchange inside Atomic.
  3. Choose $DOT from the coin list once you have inside your Atomic Wallet.
  4. Chose “Stake”.
  5. You will see your available balance for staking, staked and unbonding $DOT, and your rewards.
  6. Choose the validator by clicking on the name and see your yearly earnings.
  7. Click “Stake” again.
  8. Your $DOT is now staked.

As a result rewards are automatically generated with every block. You can use the “Claim” button to withdraw $DOT to your address when you want to unstake.

How to Stake on Kraken Exchange

  1. Login to Kraken and navigate to ‘Earn’ at the top of your account.
  2. Read through the instructions carefully and buy and transfer your $DOT if necessary.
  3. Choose “STAKE” and then select your $DOT.
  4. Input the amount of $DOT tokens that you would like to stake, select “Continue”.
  5. Your $DOT is now initiated for staking.
  6. Your transaction will go from “Initiated” to ‘Success’ which means your funds are now staked after the bonding period.
  7. Under Staking assets you will see the amount of $DOT rewards you have earned so far and the total amount staked.
  8. As a result, you will have received your desired amount of $DOT rewards you can Unstake to sell or transfer.

Staking Polkadot (Kraken, Atomic Wallet, Direct)

Staking Polkadot for Passive Income
Staking Polkadot (Kraken, Atomic Wallet, Direct)
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