Different kinds of staking

By yanis | little crypto guides | 7 Aug 2020

Staking is often presented as a miraculous thing that can earn us many. This approach is also used by scams (see my article sbout stakedwallet) for hiding their ponzi scheme. But, no one says what's really staking and different kinds of.

disclaimer : Staking implies buying coins, so it's a riskful activity. I'm not responsible of your potential losses.


So... let's go !


Cold Staking / delegated staking

Cold Staking is probably the most known kind of staking. It's because you only have to lock your coins in wallet for getting interest on them.

I mentionned delegated staking because of, on some blockchains, you've to vote for a masternode (delegate your vote rights) for earning interest.


Wallets supporting cold-staking

thanks to @Igweto for remembering me that awc was stakable



  • No full-node requirement
  • Good yields (from 3 to 15% per year)
  • Low skill requirement
  • U has the private key


  • Lock time
  • Less secure than pow or hot staking


Hot-Staking (solo)

This method is probably the most complex. With this method, you should keep a full node running on your computer.

It's a bit like solo mining, so you gets reward when you find a block (but rewards are lower)


Hot-Staking coins (not exhaustive list)



  • No lock time
  • You has the private key


  • Full nodes store a copy of blockchain (heavy !)
  • You have to hold many coins for finding blocks frequently


Hot-Staking (pool)

Staking follows the same things like mining : pools are now widely used for finding blocks. It's a bit the same thing as delegated staking, but u gives the coins instead of voting rights, it's more dangerous.


Staking pools



  • No need of running full node
  • Block found (and rewards paid) very often
  • Shared masternodes


  • You doesn't control the private key (exit scam, platform hack...)



Trustless Proof of Stake (thanks to @SolarEclipse)

There is also TPoS, Trustless Proof of Stake, invented and used by Stakenet. For TPoS you need a Merchant or you set up a Merchant-Node by yourself. The Merchant want’s some fees to maintain his infrastructure.


Pros :

  • Staking is possible with a cold wallet (soon with Ledger and Trezor too)
  • You have the private key
  • No lock time
  • It’s trustless and secure

Cons :

  • You have to deal with a merchant because of the fees
  • You have to find a merchant with a good uptime
  • If you do it by yourself, you have to pay for a VPS


Staking in smart contracts

Like @MRKWHG remembered me, we also can stake erc20 tokens. The way for staking is depending on the token but it's often in a dapp.


Stakable tokens (not exhaustive)

  • Loopring
  • Dai (lending)
  • SNX (curve) rewards



  • Verified smart contracts
  • Many DEXes (erc20)
  • reliable blockchain


  • ethereum-dependent
  • high gas fee




It is the end of this article, I hope that you learned something in

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I'm not afraid of the matrix, I AM THE MATRIX (pure code here)

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