At Kraken, our goal is to deliver the very best products and services to our clients so they can benefit from all the many advantages cryptocurrencies have to offer. This mission began when we started offering bitcoin buy and sell services in 2011 and it has continued as our suite of products has expanded to more advanced offerings, the most recent of which is Kraken Staking Services.
For the first time ever, Kraken clients are now able to earn a share of new coins based on the crypto they stake through the Kraken platform, directly in their accounts.
Because this is such an innovative service, we wanted to take the time to answer some common questions around Kraken Staking so our clients are well equipped to use it in furtherance of their financial goals.
The Basics of Staking
What is Proof-of-Stake?
Cryptocurrencies are created when networks of computers run a shared software with common rules that govern the data (coins) they exchange.
Proof-of-Stake, then, is a type of algorithm that determines how computers running the software will come to agreement on the history of exchanges of these coins.
Specifically, proof-of-stake algorithms enable users to “lock” coins in special contracts so they may be selected to perform roles necessary for the maintenance of this ledger history.
By doing this, these users are rewarded with new cryptocurrency generated by the protocol.
What Are Staking Rewards?
Most cryptocurrencies programmatically issue new coins every time their ledger is updated.
By staking your cryptocurrency, you gain the opportunity to be selected to perform this function, and become eligible to receive newly minted cryptocurrency directly from the software.
Do All Staking Coins Work the Same Way?
No, there are several variants to proof-of-stake.
They may vary based on how long they require users to lock coins for staking, the specific rewards that are paid, and how frequently they are paid out.
Visit our FAQ for the most up-to-date information on staking reward payouts.
Are Staking Rewards Similar to Interest Payments?
Not necessarily. Interest rates are paid by banks as an incentive to depositors who let them hold their money. Although interest rates can vary and will fluctuate over time, they are usually consistent on a month-to-month basis and paid on the same day each month.
Staking rewards are different from interest payments in two major ways.
- Staking rewards are a form of payment from the network as compensation for helping to grow and secure the network
- There is usually no guarantee when it comes to staking, as there is no set order that determines who receives rewards
Kraken has taken the initiative to smooth this revenue stream for our clients by enabling predictable pay-outs as part of our staking services.
Staking on Kraken
Which Crypto Assets Are Available for Staking?
We currently offer:
- ETH 2 (Ethereum 2.0)
- DOT (Polkadot)
- ADA (Cardano)
- SOL (Solana)
- KSM (Kusama)
- ATOM (Cosmos)
- FLOW (Flow)
- KAVA (Kava)
- XTZ (Tezos)
- MINA (Mina)
- SCRT (Secret)
- LUNA (Terra)
- TRX (Tron)
- BTC (Bitcoin)
- EUR (Euro)
- USD (US Dollar)
- ALGO (Algorand)
- MATIC (Polygon)
How Does Kraken Decide When to Enable Staking?
While we don’t disclose our exact process, we make these decisions based on:
- Customer demand
- Token utility and technical sophistication
- Whether the asset is currently listed at Kraken
What Are the Advantages of Staking on Kraken?
Kraken has worked hard to establish our reputation as the premier exchange for staking your crypto assets.
Here’s why Kraken clients love staking on our platform:
No lockup periods
10+ assets (including $DOT, $ADA, $SOL & more) that you can instantly stake or unstake at any time, and get access to your assets instantly.
We put security above everything
A comprehensive approach to securing assets with advanced security features including 2FA, encryption of all sensitive account information, real-time monitoring for suspicious activity and more.
Whether you stake on the Kraken Pro app or our website, it only takes a few clicks to start earning up to a 23% APY on your assets.
Common Support Questions
I’m Ready to Begin Staking on Kraken, How Do I Get Started?
Here’s how you can begin staking:
- Buy assets or fund your Kraken account with one of the assets that are eligible for staking
- Navigate to the “Earn” tab and choose the asset you’d like to stake
- Click the “Stake” Symbol on the right side of the module to stake your asset
Did you know you can now stake within the Kraken Pro mobile app?
It’s never been easier to manage your staked assets on the go, so you can always track your rewards and staking balances. We provide a broad range of assets to stake with no lock-up periods*, ensuring maximum flexibility.
Do I Need to Deposit Funds on Kraken to Stake?
Yes. To stake with us, you either need to buy cryptocurrency on our exchange or transfer cryptocurrency you already own to Kraken from one of your wallets.
How Much Does Kraken Pay in Staking Rewards?
Visit our website for the most up-to-date information on staking rewards.
When Do I Get My Rewards?
Unlike other staking services, you start earning rewards within minutes of staking your funds. Payouts happen twice a week – every Monday and Thursday at 14:00 UTC.
Reward payouts may vary based on staking asset. Visit our FAQ for the most up-to-date information on staking reward payouts.
What Fees Do You Charge for Staking?
Our fee can vary based on the rewards that we earn on behalf of our clients each month. The important point to remember is that our fixed rewards are net of any fees that we charge.
Couldn’t I Stake Myself for Free?
While you are certainly able to stake yourself, that process can be complex, and you will not have the flexibility to instantly unstake and trade your funds.
What Should I Do if I Have Additional Questions?
If you have additional questions, visit our FAQ for the most up-to-date information on Kraken Staking.
If you have any questions, please contact our support team.
The Kraken Team
Last updated on Sept. 19, 2022 at 15:30 UTC.
These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell or hold any digital asset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position.