Polkadot Staking: Step-by-Step Instructions on How to Stake DOT and Maximize Rewards
Staking is one of the best ways of earning passive income in the crypto world. By staking Polkadot (DOT), users can contribute towards the security of the network and get rewarded for it. But what exactly is Polkadot staking, and why are over 50% of all DOT holders staking their tokens?
In this article, we will guide you through all that you need to know regarding staking DOT — stake, reward, and steer clear of the most common mistakes. We will provide you with a thorough understanding of the most popular ways to stake DOT and help you determine whether staking on Polkadot is the right choice for you.
What Is Polkadot Staking and How Does It Work?
Staking in the Polkadot network is all about its Nominated Proof-of-Stake (NPoS) consensus mechanism, with validators tasked with keeping the network safe by verifying transactions and blocks. Nominators, or the people staking DOT, help secure the network by nominating trustworthy validators to delegate their tokens to. By doing this, nominators get a percentage of the reward based on the performance of the validators they nominated their stake to.
In the case of staking Polkadot, there are two main ways to go about it: nomination pools and direct staking.
- Direct Staking lets you choose and delegate your DOT to specific validators (up to 16 of them), where there is greater control in your decision.
- Nomination Pools, on the other hand, are perfect for those who want a hands-off experience. With as little as 1 DOT, you can join a pool and start earning rewards without needing to meet the high minimum requirements of direct staking. Plus, you don’t have to worry about selecting a validator yourself — the nomination pool owner selects validators for you.
Both methods have different levels of control and flexibility, so the decision is yours regarding what to employ for your staking plan.
Different Ways to Stake Polkadot (DOT)
Method 1 — Staking DOT via Nova Wallet (Best for mobile users)
If you’re looking for a simple and mobile-friendly way to stake your DOT, Nova Wallet is an excellent choice. Here’s how to get started:
- Install the wallet and create an account: First, download the Nova Wallet app from your device’s app store. Once installed, open the app and follow the easy steps to create an account. It’s quick and easy, and you can even create a wallet by using your Google or Apple login!
- Stake your DOT: After setting up your wallet, you should head to Nova’s staking screen, select Polkadot DOT, and then enter the amount of DOT you wish to stake. Nova will automatically get you started staking in the best way for you! You can start staking DOT in seconds with as little as 1 DOT!
- Earn Rewards: Once you’ve started staking, you’ll start earning rewards based on your validators’ performance. It’s that easy! You can track your staking analytics directly in the nova Wallet app and watch your rewards grow.
With Nova Wallet, staking Polkadot is made simple, secure, and perfect for anyone who prefers managing their investments on the go.
Method 2 — Staking DOT via Nova Spektr (For Desktop Users)
For those users who prefer to use their desktop and browser extensions for their crypto needs, Nova Spektr is one of the easiest solutions to stake your DOT! Here’s how to get started:
- Connect your Wallet: First, head on over to the Nova Spektr website and connect your wallet. You can connect your Nova Wallet, Polkadot Vault, or browser extension wallet!
- Start Staking DOT: Once you have connected your wallet, head on over to the staking tab, select Polkadot, select manage stake, and then press start staking. Enter the amount of DOT that you want to stake, and select to either restake (compound) your rewards, or send them to another address. Finally, select your validators, and you’re done!
- More about Nova Spektr: Nova Spektr is a powerful desktop application for the Polkadot ecosystem. Using Nova Spektr you can stake DOT using a multisig, or using a complex account setup of a multisig and a pure proxy!
Nova Spektr is perfect for those wanting to stake their DOT using a desktop application or for those using multisigs or other advanced account setups!
Method 3 — Staking DOT via Ledger or Polkadot Vault (Maximum Security)
If security is your top priority, staking DOT via a hardware wallet like Ledger or Polkadot Vault is one of the safest options. Here’s how to set it up:
Connecting Your Ledger Hardware Wallet
First, ensure your Ledger hardware wallet is properly set up. Connect it to your computer and open the Ledger Live app to manage your DOT tokens securely. To interact with Polkadot, you’ll also need to install the Polkadot app on your Ledger device via Ledger Live.
Setting Up Staking with Ledger via Nova Wallet
Nova Wallet offers seamless integration with Ledger, making it easy to stake DOT while maintaining top-tier security. Follow these steps:
- Connect Your Ledger — Open Nova Wallet and select Already have a walletAdd Account → Connect Hardware Wallet to pair your Ledger device.
- Input the amount of DOT you want to stake — Nova Wallet will get you started staking in the best way for you, either via nomination pools or direct staking.
- Sign the Transaction — Confirm and sign the transaction on your Ledger device to finalize the staking process.
For even greater security, Polkadot Vault is another option for managing your DOT with an air-gapped setup, ensuring complete isolation from online threats. You can learn more about setting up your Polkadot Vault with Nova Wallet over at the Nova Wallet Wiki.
For a step-by-step guide, check out the Nova Wallet Wiki for detailed instructions on setting up Ledger for staking.
How Much Do You Make Staking Polkadot?
The amount of rewards you get when you stake Polkadot is based on some conditions:
- Number of DOT: Of course, the more DOT you stake, the greater amount you can receive.
- Validator Commission Fees and Performance: Validators can choose to receive a percentage of your rewards as commission; a reasonable amount of commission is 5% or less. Choose one with reasonable fees, and occasionally check your validators to make sure they have not increased their commission fee above an amount you are comfortable with. Nova Wallet, by default, will automatically assign you to validators with the best profitability and security.
- Network Parameters: The amount of block rewards for validators, and therefore your staking rewards, is based on network parameters that can be adjusted via governance.
The average staking rewards in Polkadot is between 10% and 16% annually. Nova Wallet’s staking tab shows you the current APR, but it is subject to change depending on a variety of conditions.
Staking Risks: Is Polkadot Staking Safe?
Polkadot staking is quite safe, but don’t forget the following:
- Slashing: Poor behaving validators or poorly performing validators who secure the network can get slashed, and some of your staked DOT is gone. It should be noted that this happens extremely rarely.
- Unbonding Periods: DOT unbonding period is 28 days, i.e., it takes a month to unlock your staked DOT so that you can exchange it.
- Market Volatility: The price of DOT can fluctuate, impacting your staking rewards in fiat terms.
To minimize risks, always select safe validators and opt for a hardware wallet to give you the ultimate peace of mind.
How to Unstake Polkadot (DOT) and Withdraw Rewards?
If you are on the verge of unstaking your DOT, the following is what you are supposed to do:
- Begin Unstaking: Use Nova Wallet, Nova Spektr, or whichever service you have chosen to begin unstaking.
- Wait for the Unbonding period to elapse: It will take a maximum of 28 days to fully unbond your DOT.
- Withdraw Your DOT: Since your DOT is now unlocked, you can transfer it as you wish.
Conclusion — Is Polkadot Staking Worth It?
Polkadot staking is a lucrative activity for someone who wants to earn passive returns while contributing to securing the network. With great rewards and many staking alternatives, Polkadot is a great choice for both newcomers and experts.
If you’re ready to start staking, download Nova Wallet now and begin earning rewards today!
About Nova Wallet
Nova Wallet is the ultimate mobile wallet with support for 100+ networks and over 200 assets. With features such as Staking support for 13+ assets, Hardware Wallet integrations for Ledger and Polkadot Vault, DApp Support for both Substrate and EVM chains, Push Notifications, NFTs, and advanced features such as Proxy account support — Nova Wallet is the fastest, most convenient and secure mobile wallet for the Polkadot Ecosystem. Nova Wallet is fully open-sourced and is funded by the Polkadot Treasury.
Developed by Novasama Technologies.
About Novasama Technologies
Novasama Technologies develops user-focused applications for the Polkadot ecosystem. Our portfolio includes Nova Wallet, the leading mobile app for the Polkadot and Kusama ecosystems available on iOS and Android devices; Nova Spektr the full-spectrum Polkadot Desktop Wallet available on macOS, Linux, and Windows; Telenova, the beginner-friendly self-custodial wallet built into Telegram; and Polkadot Vault, the air-gapped hardware wallet for the Polkadot ecosystem.
