- Find out how to invest in Polkadot and start to earn a passive income.
- See the exchanges where you can stake Polkadot for Canadians.
- 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 Canada. For most people, especially beginners, staking Polkadot on an exchange is the best option. Scroll down to get started.
Where to stake Polkadot
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 Canada 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
- 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.
- 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.
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.