Maximizing Algorand staking APR/APY and earning more $ALGO is important to any Algorand owner, but it can be difficult to determine which Algorand wallets and exchanges offer the highest staking rewards. This guide will help you determine where to stake your ALGO to maximize your earnings.
Algorand uses a governance protocol which rewards participants that lock up $ALGO for a period of time and vote on important Algorand measures. You can participate in governance on your own or through some exchanges, but doing so with your own Algorand wallet always results in a higher APR.
Note: New to Algorand? Start here.
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Staking $ALGO on Crypto Exchanges
Earning Algorand on Crypto exchanges is the easiest way to stake and still results in a decent APR and rewards percentage. By staking on an exchange, you allow the exchange to participate in Algorand’s Governance Protocol on your behalf, but they take a sizeable chunk of the governance rewards for doing so.
Coinbase Algorand Staking APR/APY: 6.52%
Effort: Very Low
Coinbase $ALGO Rewards APR: The APR for staking on Coinbase is currently 6.52%. They estimate it to be ~5.75% annually. Rewards are paid out quarterly.
Notes: Coinbase is a trusted U.S exchange that holds customer assets 1:1, but is still not self-custody. There are ways to easily earn higher algorand wallet staking rewards, but this is not a bad option for beginners.
Binance Algorand Staking APR/APY: 6.59%
Effort: Very Low
Binance $ALGO Rewards APR: The APR for staking on Binance Earn is 3.29% to 6.59% depending on staking duration.
Notes: Binance is the largest crypto exchange, but is less trusted than Coinbase and other U.S based exchanges. If you hold $ALGO on Binance, it may be worth exploring self-custody wallets where you can both own your crypto and earn higher Algorand APR.
Kraken Algorand Staking APR: ~4%
Effort: Very Low
Kraken $ALGO Reward APR: Kraken’s Staking APR is between 1 and 4%, paid out weekly.
Notes: Kraken is a trusted U.S crypto exchange on par with Coinbase.
Algorand Staking Via Ledger Live
Ledger Live $ALGO Reward APR: Ledger Live no longer supports Algorand Staking. Instead, you will need to connect your Ledger to an Algorand Hot Wallet and participate in governance.
Notes: Using a ledger wallet is the most secure way to participate in Algorand Governance.
Maximize $ALGO Staking Reward APR through Governance
Participating in Algorand Governance through a self custody wallet is the best way to maximize your earned Algorand rewards, and it is only slightly more effort than staking $ALGO on an exchange. In 2022, Algorand governance rewards were between 7.5% and 10% APR, far higher than any exchange offerings.
Algorand Governance APR: Between 7-10% in 2022. Likely to be in the 7% range for 2023.
Notes: Governance is a self-custodial process, meaning you are in complete control of your $ALGO and Algorand Wallet keys at all times. The next governance period starts April 1st.
Participating in Algorand Governance is a simple process through which you connect an Algorand Wallet and commit a minimum balance for a duration of a couple months. In order to remain eligible for the reward at the end of the quarterly period, you must maintain the committed balance of $ALGO and you must vote in all of the governance proposals within the timeframe.
How to Earn Algorand APR in Governance
To participate in Governance, you must move your algo off an exchange and onto a self-custodial hot wallet. Popular choices in the Algorand include Defly, MyAlgo, and Pera Wallet. You can follow my guide for a short primer on how to move algo off an exchange.
Participating in Algorand Governance
Once you have $ALGO in an Algorand Hot Wallet or Ledger, participating in governance is very easy. You can follow the Algorand Foundation’s official guide to governance, which is very easy to follow.
A few things you need to keep in mind for governance:
- If your wallet balance dips below your committed amount, you will be ineligible for that period’s governance rewards. Keep an eye on it! Some people recommend a separate wallet for governance to make sure this does not happen.
- You must vote in the governance session measures within the two week voting period. This is easy to do but important to keep an eye on. You can see the voting schedule here.
- There are ways to use your locked $ALGO for DeFi while remaining eligible for governance! You can do so via third party ecosystem borrow/lending protocols, which my personal favorite being Algofi.
And that’s all! Participating in Algorand Governance maximizes earnings instead of letting them sit on an exchange. Plus, it lets you take an active action towards improving the Algorand Ecosystem. Win-win!
Learn More About Algorand
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