In 2025 Algorand formally launched its new staking rewards system opening the opportunity for anyone, from casual holders to the most technical experts, of using Algorand to earn real-time rewards by supporting the network. There is a staking method suited for you, whether that’s on a wallet, pool, or node!
What Does It Mean to “Stake” ALGO?
By staking ALGO you help to run and secure the Algorand blockchain and, in return, the network pays you staking rewards a kind of interest, for simply taking part. There are now several ways to stake ALGO from simply holding ALGO in a wallet to being a full node (a computer that is helping to power the network).
6 Ways to stake Algorand and Earn ALGO!
Let’s break down all the ways ALGO tokens can be staked, including wallets and centralized exchanges.
1) Stake ALGO Using a Wallet (No Tech Needed)
The best way to stake ALGO and receive the benefits of contributing to the Algorand DeFi ecosystem is via an ALGO web3 wallet. Algorand Wallet, known as Pera Wallet, is one of the best ways to secure your ALGO tokens and bring them on-chain.
- Download Pera Wallet on your phone or browser
- Buy ALGO on an exchange like Coinbase, Binance, or Crypto.com.
- Send your ALGO to your Pera Wallet address.
- Once your tokens have arrived, hold them in your wallet.
- That’s it! Your staking is active, you’ll automatically start earning rewards just by holding your tokens.
As long as you maintain your ALGO in the wallet, you can stake it in the future once you’ve connected to a staking platform like Folks Finance or Tinyman (more on this below).
💸 Estimate Rewards
| Platform | APR (2025 estimate) |
|---|---|
| Folks Finance | 6%–8% APR |
| Tinyman | 5%–7% APR |
| CompX | ~6% APR |
2) Liquid Staking
Want to earn rewards on your tokens and not lock them? Try liquid staking.
What is Liquid Staking?
Liquid staking allows you to stake ALGO tokens and receive a “tokenized” version of those tokens (for example, xALGO). You can then use that token for DeFi (i.e. lending, farming, trading) all while earning staking rewards.
Best Liquid Staking Platforms for Algorand:
| Platform | Token | Est. APR | Can use in DeFi? |
|---|---|---|---|
| Folks Finance | xALGO | 6–8% | ✅ Yes |
| Tinyman | tALGO | 5–7% | ✅ Yes |
| CompX | cALGO | ~6% | ✅ Yes |
| Messina One | mALGO | ~7% | ✅ Yes |
Why people love it:
- There is No lockups time
- You can earn extra yield by using the tokenized xALGO in other DeFi platforms
- Is very simple to use with Pera Wallet
3) Join a Staking Pool
Don’t have 30,000 ALGO? No sweat. You can pool your ALGO, with others, and join a staking pool. A staking pool is when everyone’s ALGO is pooled together, which allows you to meet 30K Algo, and the pool splits the rewards.
Popular Algorand Staking Pools
| Platform | Minimum ALGO | Control | Notes |
|---|---|---|---|
| Réti | None | Full | Open pooling protocol by TxnLab |
| Valar | None | High | Transparent UI, validator-based |
💸 Estimate Rewards
| Platform | Est. APR |
|---|---|
| Réti | 8–9% |
| Valar | 9–10% |
How it works?
- Connect your wallet
- Choose a validator or pool
- Start earning no technical skills needed
4) Delegated Staking (For Large Holders)
If you have 30,000 ALGO or more, you can delegate your tokens to a validator node to earn block rewards while letting someone else do the technical work
- Minimum required: 30,000 ALGO
- Keep full control of your funds
- Choose from a list of validators
- No slashing, no lockups
Delegated staking works well for someone that wants to earn more but prefers not to run their own hardware.
💸 Estimate Rewards
| Platform | Est. APR | Notes |
|---|---|---|
| Valar | 9–10% | High-reputation validators |
| Direct Delegation | 8–10% | Depends on validator setup |
5) Run a Node (High Rewards, High Effort)
Do you want to make a leap, and be a real player in the Algorand network? You could also run your own validator node, and help propose blocks!
Minimum Requirements
- 30,000 ALGO staked
- A good computer (8 vCPU, 16GB RAM, SSD)
- Stable internet (1 Gbps recommended)
Tools to Set Up a Node
| Tool | Type | Notes |
|---|---|---|
| NodeKit | One-click UI | Great for beginners and pros |
| FUNC | Command Line | Lightweight node installer |
| Manual Install | Dev-level | Full control via official CLI |
| A1CN | One-click UI | The easiest way to stake ALGO on your Windows PC |
What are the Rewards:
- Earn 10 ALGO per block
- Plus 50% of transaction fees
- Plus a bonus period where rewards are extra high (until 2027)
Note: This is for technically confident users with consistent uptime.
6) Staking on Centralized Exchanges
If you would prefer not to deal with wallets, a couple of exchanges offer ALGO staking this is not real staking (they control your ALGO and hand out any rewards they want).
📉 Pros & Cons
✅ Super easy
❌ You don’t control your ALGO
❌ Lower rewards
❌ Risk if the exchange goes offline
💸 Exchange Rates (as of April 2025)
| Exchange | Est. APR | Notes |
|---|---|---|
| Binance | 1.5–2.5% | Fixed staking available |
| Bybit | ~0.8% | Flexible staking only |
| Coinbase | ~1% | Staking paused in some regions |
| Kraken | ❌ | No longer supports ALGO |
✅ Best for: Beginners who don’t mind lower returns and trust centralized platforms.
Summary: Which ALGO Staking Option Should You Pick?
| Method | Easy for Beginners | Minimum ALGO | Rewards | Risk |
|---|---|---|---|---|
| Wallet (Pera) | ✅✅✅ | None | Moderate | Very Low |
| Liquid Staking | ✅✅ | None | Moderate–High | Low |
| Staking Pools | ✅✅ | None | Moderate | Low |
| Delegated Staking | ❌ (Big holders) | 30,000 | High | Low |
| Running a Node | ❌❌ (Advanced) | 30,000 | Very High | Medium |
| Exchange “Staking” | ✅✅✅ | None | Low | High |
If you own ALGO, whether it be a little or a lot, there is a choice for you that aligns with your comfort level and risk tolerance. You can start with simple stake options, such as holding in your wallet or exploring liquid staking options, and as you get comfortable, find ways to engage with the ALGO network in greater depth while earning more along the way.
