As cryptocurrencies evolve, staking has become a popular way for holders to earn passive income. This article answers key questions about self-staking, particularly for Ethereum (ETH) and Solana (SOL) holders.
Self-staking allows cryptocurrency holders to participate directly in network validation and earn rewards. However, the process can be complex, especially when considering security and cold storage options.
Contrary to popular belief, you cannot directly stake from a cold storage device. For Ethereum, you need to transfer your ETH to a deposit contract to activate validators. This process requires an online connection, which goes against the principle of cold storage.
However, there are workarounds:
For Ethereum:
Hardware requirements:
For more detailed guides and resources, check out r/ethstaker.
For Solana: Solana staking typically requires running a validator node or delegating to one. The process is different from Ethereum and generally requires an active internet connection.
Hardware wallets are popular choices for cold storage. Some options include:
Alternatively, you can use an air-gapped computer with software like MyEtherWallet to sign transactions offline.
If traditional self-staking seems too complex, consider these alternatives:
These options often allow you to stake directly from your hardware wallet, providing a balance between security and earning potential.
While true self-staking from cold storage is challenging, there are various ways to participate in staking while maintaining strong security practices. Whether you choose to run a full validator node, use liquid staking services, or explore Layer 2 solutions, always prioritize the security of your assets and thoroughly research any platform or service before using it.