Crypto staking wallets: A review for staking crypto wallets in 2022

  • January 13, 2022
  • Alex Fandino

In a previous post, we reviewed some crypto staking apps for 2022, from centralized to decentralized apps. However, we did not mention crypto staking wallets. What is the difference? Do I need a wallet to stake crypto? Overall, there is very little difference, all things considered. A crypto staking app is like Blockfi or Coinbase, or, where users can stake their assets in a centralized manner. A crypto-staking wallet is a wallet that can yield the power of web3.0 to stake their crypto assets and earn some interest. 

Here you will find the different Defi wallets available out there and how to stake using these wallets. One of the oldest and most popular Defi wallets is Metamask. Still, a few different wallets are worth mentioning due to the recent rise of other coins like Terra ($LUNA) and Solana ($SOL).

Metamask is fairly easy to use, and it can connect to many chains present on Web3.0. Metamask can connect to staking opportunities present not only on Dapps (Decentralized Applications) built on Ethereum ($ETH), and other Dapps built on:

  • Binance Smart Chain ($BSC).
  • Avalanche ($AVAX).
  • Polygon ($MATIC).
  • Phantom ($FTM).

You can connect to a myriad of web3.0 chains in Metamask

How does Metamask work?

Metamask is a browser extension, and can connect to all of these blockchains with the slick of a button. There are also special portfolio Dapps like, where a user can check his entire Metamask holdings from all of his blockchains in one place. This might explain Metamask’s massive adoption by +10M of programmers and users, making it one of the most popular crypto staking wallets. 

How does Metamask hold staking rewards? 

In order to stake assets through Metamask, you need to:

  • Go on a Dapp and connect your wallet.
  • Approve the staking function.
  • Take your assets on the Dapp platform.

There will be a gas fee involved every time that you stake and unstake your assets since you are using web3.0 for the transaction. This gas fee will depend on a few factors, such as current network usage, which blockchain the Dapp is deployed on, and which asset is needed to pay the gas fees. For example, on Ethereum, staking assets can cost as much as $200 (mainly because the price of $ETH is currently high), but on other chains (like MATIC), the price can be lower.

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The staking rewards will depend largely on the Dapp used and the number of people staking. Staking LP tokens will have a very high APY initially but will rapidly decrease as more and more people join the Liquidity farm and stake their LP tokens. This is a concept known as yield farming. An example of this is the new liquidity farms available on Sushiswap: they always tend to offer high interest during the first few days of launch, eventually stabilizing around 10-15% APY on average.

Sushi Swap farming platform via [Sushi]

The risk of these liquidity farms is a permanent loss. There’s potential to secure a 1000% APY for a few days (equivalent to 1-2% gain every day). However, one must be very careful about impermanent loss. This is when the underlying asset that is gaining interest is losing value. Even if the farming yield allows you to double your tokens in 5 days, if the value of the token drops more than 50%, you are still losing money.

There are many more Dapps out there, on many different blockchains, offering staking rewards. As long as the blockchain is EVM-compatible, it will connect to Metamask and offer its staking rewards through it. Of course, other wallets can connect to most EVM-compatible blockchains; the most notable ones are Trustwallet and Coinbase wallet. Overall, these two wallets work just as well as Metamask, but they cannot connect to every Web3.0 chain like the latter. Of course, the main (and most used) chains will work on Trustwallet and Coinbase wallet, but those two wallets are not as customizable as Metamask. 

Looking for crypto wallets? Check some cool staking apps for 2022.

The last few wallets worth mentioning are wallets that connect to blockchains that are not EVM compatible. Apps developed on Solana ($SOL) have grown in popularity over the past few months, but they are not EVM compatible. Therefore they will not work with Metamask. For Dapps developed on SOL, you could use the Phantom wallet. The main DEX on Solana is called Raydium and also offers some farming yields.

The LP farms on Raydium can also offer some APY Via []

One thing to mention about the Phantom wallet is that Solana is still a fairly new ecosystem, and therefore there are not many Dapps that are able to connect to the Phantom wallet for now. However, being one of the early adopters of the Phantom wallet and being familiar with its features may make you better set up if the Dapps on Solana start taking over a large portion of the activity on the other blockchains. The advantage that Phantom has over other wallets is the transaction speed and cheap gas fees. 

The final wallet worth mentioning is the wallet that connects to the Terra($LUNA)  ecosystem. It is the Terra Station and allows users to connect to Dapps on the Terra platform such as Terraswap. The Terra ecosystem is still new, so there is no main yield farming app. However, Stader Dapp is doing something interesting, where it auto compounds the rewards and re-stakes the rewards automatically. This could lead to a higher yield, as the staking pool grows every day after each reward.

The bottom line

Staking protocols are hazardous and could lead to you losing all of your money. Even the most seasoned stakers and liquidity farmers might be prone to some scams and bad investments from time to time. Therefore, if you decide to stake crypto, it is paramount that you do your own research and genuinely understand the staking space before opening a wallet and playing around. Crypto can promise the moon just as fast as it can make a crash. 

The staking wallets mentioned above could help you navigate the world of crypto and enter the world of Defi. There are many more staking wallets out there, but one should be able to connect to over 95% of the staking Dapps that exist today with these three staking wallets. The crypto space is ever-evolving, so it would not be surprising to see some new wallets surface over the next coming years. In general, however, staking is often used by some to hold on to their assets long term.

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