Launched in 2019, Algorand is a blockchain project that provides an enabling platform for other blockchain projects to thrive.
The Algorand blockchain platform is used for creating and deploying smart contracts, tokenized assets, and decentralized applications.
It allows for newer and better use cases and applications for cryptocurrencies via its highly scalable and interoperable network.
Algorand achieves its scalability and high speed by using relay nodes for the efficiency of transactions. It also has an anti-forking system that maintains the originality of transactions. With this system, completed transactions cannot be altered or changed.
Also, there are participant nodes that work like validators in proof of stake. These nodes allow owners to validate new blocks and transactions. Meanwhile, data is maximally compressed and rolled up to prevent data from piling up in the network.
Algorand has a utility token named $ALGO. The token controls an essential aspect of Aogorand’s consensus mechanism.
Algorand features a modified proof of stake consensus mechanism that allows every holder from ALGO’s pool to participate in validating transactions.
Therefore, all ALGO holders can earn token rewards once any block is added to the Algorand blockchain, depending on the amount of the token they hold.
Additionally, holders can lock up their tokens in a time-based contract to earn yield rewards, while their staked tokens help in validating transactions and verifying blocks.
Ways to Stake Algorand Tokens
Staking PoS tokens is the newest passive earning method everyone wants to ape in. Luckily for stakers, the ALGO token is listed on many exchanges.
Meanwhile, some of these exchanges and wallets, including Binance, Coinbase, Kucoin, and Exodus, provide ALGO staking programs for their users.
To stake your ALGO, just create an account with any exchange offering ALGO staking opportunities. Ensure you verify your account, then fund the account with ALGO tokens before dedicating them to staking.
However, if you’re staking with a wallet like Exodus or Ledger Nano, you must fund your ALGO from a CEX like Binance, then stake directly. Here are the 3 most popular ways of staking Algo:
- Staking Algo on Binance
- Staking Algo on Kucoin
- Staking Algo using Ledger Wallet
1. Steps to Stake Algorand on Binance
Binance is a top spot for passive earning from different DeFi activities. Binance offers Flexible and Locked Staking opportunities for Algorand tokens.
All you have to do is fund your wallet with ALGO tokens and stake them on Binance earn. Below is a detail of the Binance ALGO staking program:
- 1% APY yield on min of 1 ALGO staked
- 15 days lock: 2.0% APY
Min lock: 1 ALGO
- 30 days lock: 2.24% APY
Min Lock: 10 ALGO
- 60 days lock: 2.45% APY
Min Lock: 10 ALGO
- 90 days lock: 2.90% APY
Min Lock: Unavailable
- 120 days lock: 8.24% APY
Min lock: 0.01 ALGO
To get started with staking ALGO on Binance, follow the steps below:
- Log in/ Sign up on Binance
- Buy USDT on Binance
- Swap USDT for ALGO tokens
- Subscribe to the ALGO staking program
1. Log in/ Sign up to Binance
Navigate to Binance on your web browser. You can also log in to the Binance app on your mobile device.
However, if you do not have an existing Binance account, simply create an account at Binance.com.
On the homepage, click Get Started to go to the sign-up page. On the Sign Up page, you can create a new account with your email address or phone number.
Choose a strong password and verify your email address afterward.
Once you’re done, log in to your account and complete ID verifications. To verify your ID, go to Account Settings on your Profile.
Submit a clear copy of a government-issued identity document. You will be required to snap a selfie too.
2. Buy USDT on Binance
ALGO is available as ALGO/USDT on Binance. Therefore, you must fund your account with USDT, then convert it to ALGO.
To do this, go to your profile menu by tapping the profile icon in the top left corner of your home screen. Toggle the Binance Lite button to switch your app to Binance Lite.
In Binance Lite, click the arrow buttons in the middle part of the lower navigation bar. Select Buy to purchase USDT.
Select USDT as the currency you’d like to purchase. Input amount and tap BUY USDT.
On the payment screen, choose the preferred payment method and supply your payment details. Finally, double-check the details and approve the transaction.
Complete all 2FA verifications to execute the transaction.
3. Swap USDT for ALGO tokens
After completing the transaction, your account should be funded with USDT.
To swap the USDT to ALGO, just go back to the Binance Lite home screen. Click the double arrow button again and select ‘CONVERT’ this time.
The Binance Convert allows you to swap tokens for another token at an extremely low fee.
Choose USDT in the first field and ALGO in the second one. Input the amount of USDT you want to swap for ALGO and tap ‘PREVIEW CONVERSION’.
A prompt showing a summary of the conversion will pop up. Approve the transaction to finalize the conversion.
4. Subscribe to the ALGO staking program
Once your account is funded with ALGO, it’s time to stake your assets in Binance.
Go back to your profile menu by tapping the profile icon on the top left corner. Toggle the Binance Lite button again to switch back to Binance Pro.
On your home screen on Binance Pro, tap more from the list of Services offered on Binance. On the Services menu, choose STAKING.
Binance offer Locked Staking and DeFi Staking program for eligible coins or tokens. Staking ALGO is only available on Locked Staking.
Under LOCKED STAKING, search for ALGO. Choose a suitable ALGO staking program from the options provided.
On the staking interface, input the amount of ALGO you want to stake. Review and double-check the specific details of the staking program and tap CONFIRM.
2. Steps to Stake ALGO on Exodus
Another place to stake ALGO tokens is through the Exodus wallet. Staking ALGO on Exodus wallet is possible by participating in the Algorand Community Governance program.
With the program, Algorand holders can dedicate their tokens to making important governance decisions within three months. In return, governors earn Algo tokens.
Governors can vote on a wide range of topics during the governance period. Voting sessions are open for two weeks, and governors must vote during voting sessions by sending a zero-ALGO transaction.
Meanwhile, governors do not pay any extra fee for participating in the process.
To participate, users can sign up with their Exodus wallet at the governance site with a zero-ALGO transaction. Then vote till the end of the three-month period.
Here’s a step-by-step guide on how to earn by staking ALGO with the Algorand Community Governance program.
- Sign up to be a governor
- Commit ALGO tokens
- Verify account
- Participate in voting and claim reward
1. Sign up to be a governor
To get started with the process, go to Algorand’s governance website at governance.algorand.foundation.
Scroll down to the ‘BECOME A GOVERNOR’ section and tap ‘SIGN UP AS A GOVERNOR’.
On the top right corner of the Sign Up page, tap ‘Connect wallet’ to link your Exodus Wallet.
To sign up for a governance account, you need to copy your ALGO deposit address from your Exodus wallet. To do this, log in to the Exodus wallet, and tap RECEIVE on ALGO token.
Go back to the Sign Up page and choose OTHER WALLETS. Paste your Exodus ALGO address in the field provided and tap ‘CONNECT WALLET’.
2. Commit ALGO tokens
Once you’ve signed up to become a governor, click COMMIT ALGOS on your dashboard to complete sign-up.
Input the amount of ALGOS you want to commit to the program. The amount of ALGO tokens you commit determines the amount of rewards you’ll earn from the reward pool at the end of the program.
When you commit ALGO tokens, ensure you maintain the same amount throughout the three-month period that each program will last.
3. Verify account
After committing ALGO, finalize your sign-up process by sending a zero-ALGO transaction from the Exodus wallet address you provided to verify the address.
To send the transaction, you will need to send 0 ALGO to the address provided. Also, include the note generated in the transaction.
Copy the address and go to your Exodus wallet. Click on ALGO token and tap SEND. Paste the address in the appropriate field. Then paste the note in the Memo field.
Put 0 in the amount of ALGO you want to transfer and tap SEND.
Go back to your Algorand Governor dashboard and tap I’VE SENT THE TRANSACTION. Once the transaction has been processed, your status will change to ELIGIBLE.
Afterward, you can vote and earn ALGO.
4. Participate in voting and claim reward
Before you can become eligible to collect rewards at the end of the program, you must participate in all voting sessions.
Fortunately, voting lasts for 12 days; therefore, you do not need to panic about missing any process.
To vote, go to your Algorand Governor dashboard and sign in with your wallet.
Once your wallet is connected, you will see active voting sessions and the ones you’re yet to cast your vote on.
To vote on a decision, click on the VOTING SESSION to review voting measures.
Scroll down and cast your vote in the options provided.
Once you’re done, tap SUBMIT and send a zero-ALGO transaction to verify your vote from the wallet.
After submitting the vote, copy the address and note from the zero-ALGO transaction prepared.
Log in to your Exodus wallet again. Under ALGO token, tap SEND. Paste the address and note in their respective field. Leave the transfer amount as 0 and tsp SEND.
Ensure you’re only verifying from your Governor’s wallet address.
After sending the transaction, go back to your Governor dashboard and tap I’VE SENT THE TRANSACTION.
Once the transaction has been completed, you will see a notification that you have participated in all voting sessions.
Once the governance period is over, those governors that participated in all the voting sessions and maintained the ALGO balance for that period will be eligible to collect the rewards.
3. Steps to Stake ALGO on Kucoin
Kucoin is another platform that provides Staking and Earning opportunities for Algorand traders.
Launched in 2017, Kucoin is a cryptocurrency exchange platform that has grown to be a notable trading hub among traders.
It offers a wide range of trading pairs and listed assets with a beginner-friendly environment for crypto trading.
Like a typical exchange, there are DeFi services such as lending and borrowing, saving, staking, P2P market, margin, and future trading.
To stake your ALGO tokens on Kucoin, follow the steps below:
- Log in/Sign up on Kucoin
- Verify your account
- Fund your Kucoin account with USDT
- Swap USDT for ALGO
- Subscribe to the ALGO staking program
1. Log in/Sign up in Kucoin
Getting started with staking ALGO on Kucoin is simple. All you have to do is log in to your account if you have one. Otherwise, you’ll need to create a new account.
To create an account, simply download the Kucoin app from your mobile app store.
After downloading, open the app and click the profile icon on the top left corner. In the profile menu, click LOG IN.
On the log-in page, tap SIGN UP in the top right corner. To sign up, submit your email address or phone number and password.
Verify your email address by inputting the six-digit verification code sent to your inbox.
After verifying your email, you can log in with your details.
2. Verify your Kucoin account
After creating a Kucoin account, you must complete KYC verifications before you can start trading.
To verify, tap on your profile icon from the top left corner. On the profile menu, click on the Account Details that carry the UNVERIFIED badge, then VERIFY NOW.
To verify your account, you’ll need to supply your full name and the type of Identity document you want to use. Tap SUBMIT afterward.
Continue to ‘ADVANCED VERIFICATION’ to submit a picture of your identity document. Approval for Advanced verifications can take days.
3. Fund your Kucoin account with USDT
ALGO tokens are available as ALGO/USDT on Kucoin. Therefore, you need to buy USDT and exchange it with ALGO before staking.
Open your Kucoin app and tap BUY CRYPTO from the home screen. Choose USDT as the token you want to buy. Also, input the amount of USDT you want to buy and select the preferred payment method.
Tap BUY USDT and proceed to provide your payment. Review your purchase and verify 2FA securities to complete the transaction.
4. Swap USDT for ALGO
After funding your account with USDT, go to Markets from your home screen and search for ALGO/USDT.
Select the pair to go to their trading interface. Since you’re swapping USDT for ALGO, tap BUY and input the amount of USDT you want to swap for ALGO.
Change order type from LIMIT to MARKET and click on BUY ALGO.
5. Subscribe to the ALGO staking program
To the last step in staking ALGO, go back to your home screen, and tap EARN from the list of services offered on Kucoin.
In Kucoin Earn, you can stake several tokens, including ALGO, and earn APY or APR reward.
Meanwhile, only Flexible ALGO staking is available on Kucoin Earn. Still, you can earn up to 0.4% APY for staking your ALGO tokens here.
To stake, search for ALGO from the search bar. From the result, tap SUBSCRIBE under ALGO staking.
Input the amount of ALGO tokens you want to stake and select the account that holds your tokens.
Finally, agree to the Savings Service Agreement and tap CONFIRM.
4. Steps to Stake ALGO with Ledger wallet
Ledger Nano wallet is a cold wallet storage device that allows traders and users to store their crypto assets securely.
Thanks to Ledger’s high-security protocols, Ledger Nano devices are highly encrypted and cost-effective wallet devices.
They work by storing cryptocurrency assets offline. Meanwhile, it also allows users to view and trade their assets on their smart devices via its Ledger Live app.
On top of this, the Ledger Nano wallet supports more than 1500 crypto assets and tokens. It also supports several third-party exchange platforms where users can buy cryptocurrencies directly.
The Ledger wallet also provides an opportunity to earn passively by providing staking opportunities for notable listed assets, including Algorand.
1. Buy Ledger and install Ledger Live App
All you have to do is buy a Ledger wallet and download the Ledger Live Companion app on your device.
2. Fund your wallet with ALGO and stake it on the Ledger Live app
Connect your Ledger Nano wallet and fund it with ALGO. Finally, stake your ALGO tokens right from your Live App.
Staking cryptocurrency is getting more and more popular, especially with the larger adoption of the Proof of Stake consensus mechanism.
Alongside Ethereum, staking Algorand and other PoS tokens can ultimately be an excellent investment with the promising potential of the PoS mechanism.
While Algorand is not the most popular blockchain, it definitely has innovative strategies to build a strong network that can contend with Ethereum.
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