NEAR protocol Staking Overview
Staking in NEAR protocol has emerged to be a popular choice amongst crypto investors. Its main features are its low transaction fees, high transaction speed, and impressive scalability. It allows you to earn rewards up to 30% of APY. Let’s analyze how can we stake Near using the right mix of custodial and non-custodial wallets.
How to Stake NEAR protocol (NEAR)?
Staking NEAR protocol can be done in two ways – either by a centralized crypto exchange such as ByBit, Binance, KuCoin, etc., or via non-custodial wallets such as a NEAR wallet.
The choice between them depends on your preference. If you wish to stake several coins or regularly trade between them, then the first option would be better.
In contrast, if you want to stake only NEAR, then the second option is better.
Staking NEAR protocol on a custodial wallet
The most popular crypto exchange platforms for staking NEAR are- Binance, ByBit, KuCoin.
You can choose any one from them.
Step 1 – Create an account in an exchange
Step 2- Purchase the required amount of NEAR coins from the exchange
Step 3- Choose the STAKE option with NEAR
Step 4- Enter or choose the staking duration
Step 5- Enter the amount to be staked
Step 6- Click CONFIRM
Step 1 - Create an account in an exchange
Enter your personal and bank details for verification and make payments to create an account on the crypto-exchange.
Step 2- Purchase the required amount of NEAR coins from the exchange
If you don’t have any NEAR coins, then purchase the necessary amount of NEAR tokens, otherwise, you can receive them through another external wallet by transferring the desired number of NEAR coins to the NEAR wallet.
Step 3- Choose the STAKE option with NEAR
After you have a sufficient amount of NEAR coins, select the STAKE option in the exchange platform and choose NEAR as the currency to be staked.
Step 4- Enter or choose the staking duration
You will be shown some options of duration for staking, choose the desired.
Note that in the NEAR protocol, the staking time span ranges from 21, 30, 60, 90, and 120 days.
Step 5- Enter the amount to be staked
After choosing the staking duration, enter the number of NEAR tokens to be staked. Check if the entered value is more than the minimum value for the corresponding duration.
Step 6- Click CONFIRM
Finally, confirm the chosen credentials and accept the Terms and Conditions.
The entered NEAR tokens have been staked for the chosen duration.
Staking NEAR protocol on a non-custodial wallet
The most popular and recommended way to stake NEAR protocol on a non-custodial wallet is via its official NEAR wallet. But there are other options as well. Here we are describing the steps as per the most chosen NEAR wallet.
Step 1- Download NEAR Wallet
Step 2- Create an account in the NEAR wallet
Step 3- Purchase NEAR coins
Step 4- Select STAKE MY TOKENS
Step 5- Choose a validator pool
Step 6- Enter the amount of NEAR to stake
Step 7- Click SUBMIT STAKE
Step 1- Download NEAR Wallet
Download the NEAR wallet on your device on checking the supported devices.
Step 2- Create an account in the NEAR wallet
Enter your personal and other details asked on the software for creating an account. Remember the password and word phrases; they are critical security information.
Step 3- Purchase NEAR coins
In order to stake NEAR coins, you first need to have them, in case you are buying NEAR coins for the first time, make sure that the amount is equal to or more than the minimum value for staking for your desired duration.
In case you have purchased NEAR on a crypto-exchange, then you can send those NEAR to your non-custodial wallet. To do so, copy the address of your recipient wallet in the corresponding address tab of the exchange platform and enter the amount to be transferred.
Finally, click CONFIRM and on just a charge of pennies for transfer, your NEAR will be received in the non-custodial wallet.
Then, stake the desired amount of NEAR and coins as mentioned above.
Step 4- Select STAKE MY TOKENS
After you have a sufficient amount of NEAR tokens, choose the “Staking” tab in the Navigation Bar and click the STAKE MY TOKENS options to stake NEAR.
Step 5- Choose a validator pool
On following the previous step, you will be shown a list of validator pools to choose from. All validators charge a fee as a percentage of staking rewards. Select STAKE WITH VALIDATOR on selecting the one you wish to stake with. You can also enter the validator name if that validator is known to you.
Step 6- Enter the amount of NEAR to stake
On choosing the validator, enter the amount to be staked with the selected validator pool. Make sure the entered value is equal to or more than the minimum amount for the corresponding duration.
Keep in mind to leave at least 35 unstaked NEAR on your lockup contract, for paying storage fees, etc., until the completion of vesting.
Step 7- Click SUBMIT STAKE
Lastly, click the SUBMIT STAKE option to stake with the validator pool for the duration you have selected.
After this step, you will see the amount staked with the chosen validator in the Status bar.
Also read: Where to buy NEAR Protocol?
Popular video guides on Staking NEAR protocol (NEAR)
Best Places to Stake NEAR protocol (NEAR)
1. Binance
Binance is the most well-known and reputed crypto-exchange platform globally. It is used by over 30 Million users. With over 500 coins to trade and stake, you can easily stake NEAR protocol at Binance.
Pros
- The APY offered by Binance for NEAR varies according to the number of NEAR tokens staked, starting from 10.79% APY.
- There are no slashing risks
- It takes a relatively lesser portion of rewards than others.
Cons
- You don’t keep 100% of your NEAR protocol staking rewards.
2. KuCoin
KuCoin is an immensely popular crypto-exchange that is referred to as “People’s Exchange” because it is used by a quarter of the crypto-holders. It has a soft staking option in which users aren’t required to lock their crypto. The rewards are lower than in fixed-duration staking programs and have a redemption period. But not all crypto coins have this feature, which gives NEAR an edge over them.
Pros
- A more risk-free staking environment than other exchanges
- Plenty of advanced tools for crypto-related activities
Cons
- It receives fewer marks in overall customer satisfaction and service
Also read: NEAR Protocol Pricing Prediction
Benefits of Staking NEAR protocol (NEAR)
- Highly scalable and fast
Its prime advantage lies in its scalability, with incredibly fast transactions (faster than some of the highly popular cryptocurrencies).
- Charges lower commission fees
Its commission fees are lower than its counterparts in terms of a fraction of a cent.
- Environment friendly
It is very easy to use providing its users a smooth experience, simultaneously being environmentally friendly.
Most frequently asked questions on NEAR protocol Staking
Can I stake on NEAR?
Yes, you can stake on NEAR. You can do so, either via a custodial or non-custodial wallet by following steps as mentioned in the article. You can do the entire process on your own.
What is the staking reward for NEAR?
The staking reward for NEAR varies, it can go high up to 30%. And overall, it’s quite profitable.
Which is the best place to stake NEAR?
It is best to use a NEAR wallet if you are only staking NEAR tokens. But if you trade with several cryptocurrencies then staking it with crypto exchange platforms such as Binance, ByBit, and KuCoin, is suggested.
Is NEAR a good investment?
Yes, NEAR is a good investment, particularly if you are looking to diversify into Layer 1 networks. It has the potential to give significantly profitable returns over the long run. However, it also involves risk, like in all crypto investments.
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