How to stake Polkadot (DOT) from Australia

By   |   Verified by David Boyd   |   Updated 29th August 2022

  • Find out how to stake Polkadot and start to earn a passive income.
  • See the exchanges and Defi apps where you can stake Polkadot for Australians.
  • Get a step-by-step guide that takes you through the procedure.

Staking Polkadot is a way to earn passive income. As well as the financial reward, staking Polkadot reduces price volatility and helps maintain the blockchain's integrity.

There are a number of options for staking Polkadot from Australia. For most people, especially beginners, staking Polkadot on an exchange is the best option. Scroll down to get started.

Don't let your Polkadot sit around

Where to stake Polkadot

Swyftx Earn

On Swyftx's website

Swyftx Earn

Highlights

  • Earn interest on 21 different digital assets, including large-cap cryptocurrencies such as Bitcoin, Ethereum, Solana, Cardano, and stablecoins like Tether and USD Coin.
  • Interest earned is automatically added to your total balance of that cryptocurrency each day.
  • Withdraw assets at any time with no exit fees, lock-ups, or minimum notice period.

Pros

  • No fees.
  • No lockup periods.
  • Earn interest in select crypto which is compounded on a daily basis.

Cons

  • Earn cap applies.
CoinSpot

On CoinSpot's website

Highlights

  • Buy Bitcoin, Ethereum, XRP and over 370 other digital currencies.
  • Refer a friend and earn $10 BTC.
  • Get 24/7 helpdesk support.

Pros

  • Trade for only 0.1% and withdraw in AUD for free.
  • Multiple deposit options.
  • Access CoinSpot NFT Marketplace.
  • CoinSpot is regulated by AUSTRAC and is ISO certified

Cons

  • Margin trading is not available.
Crypto.com

On Crypto.com's website

Highlights

  • Buy Bitcoin and 250+ cryptocurrencies with 20+ fiat currencies
  • Earn up to 8.5% p.a. staking your crypto, and up to 14% p.a. for stablecoins.
  • Spend with the Crypto.com Visa Card and get up to 8% back.

Pros

  • Get access to additional features including lending, borrowing, debit cards, and more.
  • Start trading with just $1.
  • Interest-earning deposits are available.
  • There is a USD 2,000 referral bonus.

Cons

  • Lack of educational resources.
Binance

On Binance's website

Highlights

  • World's largest crypto exchanges.
  • Buy, sell, trade, stake 1,000's of crypto coins and trading pairs.
  • Zero-fee deposit via PayID or Osko from Australia.

Pros

  • It has some of the lowest trading fees out there. 0.1% for spot trading and 0.5% for instant buy or sell fees.
  • Credit card or debit card deposits are accepted.
  • Provides charting and trading tools suitable for advanced crypto traders.

Cons

  • The platform UI can be complicated to learn for new investors.
Uphold Crypto

On Uphold's website

Uphold Crypto

Highlights

  • Invest in 200+ digital currencies including the majors, altcoins, and stablecoins with 0% commission.
  • Ability to trade crypto against other assets like foreign currency and commodities.
  • Stake a range of coins with competitive yields.

Pros

  • Open an account in less than a minute.
  • Low deposit requirement and commission-free trading.
  • Option to trade fiat currencies and precious metals.

Cons

  • High spreads on low-liquidity assets.

How to stake Polkadot

If you're new to staking in general and haven't staked Polkadot (DOT) before, this step-by-step guide will walk you through the entire process.

Step 1: Choose your staking method

For most people, and particularly first timers, the most convenient way to stake Polkadot from Australia is to use a cryptocurrency exchange. This approach is what we will focus on in this post.

If you would rather not stake on an exchange, you could join a Polkadot staking pool. However, there is a learning curve and probably isn't the best option for those who are new to the game.

Step 2: Select an exchange

Several exchanges offer Polkadot staking, which you can compare in the table above.

Before you decide which one to use, compare staking rewards across a number of exchanges. This is easy to do since they all have yield calculators.

Step 3: Fund your account

If you don't own any Polkadot tokens, you can purchase them on the exchange.

In the event that you already hold Polkadot, you can transfer them to the exchange wallet.

Step 4: Set up the contract

Configure how many tokens you want to stake and for how long. Yields typically increase the more and longer you stake.

You should be clear about the terms for unstaking before setting up the contract. Find out what the penalty would be to take back your tokens before the expiration time.

Pros and cons

Pros

  • Staking Polkadot means your tokens are working for you, as opposed to just holding them in a wallet.
  • Staking helps Polkadot's ecosystem. Not only does it reduce volatility, but it also helps with fundamental blockchain operations.
  • It's the more eco-friendly option since you can earn a reward without having to mine.

Cons

  • Staked Polkadot will be inaccessible. If the price drops substantially, the value of your tokens could be lower at the end of the contract than they were when you began.
  • APY is a projection based on past performance and is not what you will actually earn.

FAQs

Is it worth staking Polkadot?

If you only stake a small number of tokens for a short period of time, the yield will be so small that it will barely be noticeable. If you hold a lot of DOT, staking it could return substantially more than you would earn if you simply deposited cash in a savings account.

What happens if Polkadot’s value decreases while staked?

You could withdraw your Polkadot before the expiration date, but this will incur a penalty. If you are going to stake for a long period of time, it's best to do so with a long-term mindset.

How much Polkadot do you need to stake?

You can generally stake as little or as much as you like, but some exchanges may have minimums.

Can you lose money staking Polkadot?

Yes. If the market drops while your Polkadot is staked, and you don't want to incur fees for unstaking it, then its value could be lower at the expiration date than it was when the contract began.

Do you have to stake Polkadot on an exchange?

No. There are a number of independent staking pools for Polkadot, but they aren't as suitable for beginners.