Last August, CoolWallet Pro, the hardware wallet for DeFi users worldwide, added support for Solana native tokens. Aside from securely storing assets, the app allows you to earn passive income on your SOL with an average yield of 6 to 8% yearly.
This guide will walk you through the SOL staking process while keeping your coins safe and secure. Staking via the Cool Wallet app is available with Everstake, the wallet’s trusted partner. The process is similar to staking Tezos (XTZ).
What is Solana (SOL)?
Solana (SOL) is a high-performance blockchain platform designed for decentralized applications (dApps) and high-speed transactions. It was launched in 2020 by the Solana Foundation and aims to provide a scalable and secure infrastructure for developing decentralized applications.
Solana’s key feature is its ability to handle a large number of transactions per second, currently up to 65,000 TPS, making it one of the fastest blockchains in the industry. This is achieved through its unique consensus algorithm called Proof-of-History (PoH) and the use of parallel processing, which allows Solana to process multiple transactions simultaneously. SOL is the native cryptocurrency of the Solana network and is used to pay for transactions and as a means of exchange on decentralized applications built on the Solana platform.
Learn more about Solana (SOL) staking here.
Is staking safe?
Assigning your tokens to a validator’s stake weight is known as “delegating” your tokens. Delegating your tokens to a validator does NOT give the validator ownership or control over your tokens. At all times, you still control your staked tokens and are able to unstake them at any given moment through the application.
What is CoolWallet?
CoolWallet is a hardware wallet utilizing advanced security technologies like biometric verification and military-grade Bluetooth connection (AES 256). A private key is locked within an EAL6+ secure element, and all transactions must be physically confirmed with a hardware wallet and a phone. Thus, only a wallet owner can withdraw the stored assets.
How to stake SOL
In How to stake Solana SOL: a beginner’s guide we explore the main aspects of Solana staking. Here is the step-by-step:
1. Download the latest CoolWallet App.
2. Prepare your CoolWallet and launch a CoolWallet app. Proceed to the Marketplace page by clicking “Marketplace” on the bottom bar.
3. Hit “Staking” and choose SOL.
4. Click “Activate SOL” (if you have not activated it yet) and hold until ”Hello” pops up. It will take around 30 seconds to activate the SOL coin in the app.
You can purchase SOL coins from the exchange of your choice. Swapping your crypto to SOL in the CoolWallet App is also possible, yet you need to consider possible commission charges.
5. Now, let’s proceed with actual staking! Click “Stake” to begin.
On the Stake page, choose your SOL address in the drop-down selection. By default, Everstake is set as the validator to delegate to. Everstake is one of the largest and the most experienced validators, as well as the #1 delegator choice worldwide, according to numerous Staking Rewards ranking studies. Learn more about Everstake here.
Enter the amount of SOL you want to delegate. Make sure to keep at least 0.01 SOL in your wallet to pay transaction fees! Click “Continue” and follow the instructions.
6. Check if the information about the fee, the SOL amount, and your wallet address on the “Transaction Confirmation” page is correct and click “Confirm.” In order to proceed, connect your CoolWallet card to the CoolWallet App. Press and hold the button on your CoolWallet to connect via Bluetooth.
7. Once your CoolWallet is activated, “Hello” will pop up on the card screen. Make sure that the connection is successful – your CoolWallet will guide you through by displaying the “SOL” coin type, then “STAKE”, the amount of SOL to be delegated, then “PRESS button”, and finally “Sent”. Follow the instruction and press the button on the card to complete the transaction.
Once you have successfully staked your SOL, you’ll see the popup “Your deal was successful” on the screen of the CoolWallet App. Remember that your stake account will be activated and begin earning rewards from the next epoch (you must wait up to 2 days).
In Solana, staking rewards are automatically compounded. The staking rewards are issued once per epoch and are deposited into the initial stake account.
How to unstake SOL
Use the “Unstake” button in your CoolWallet App and follow the instructions.
Consider that the newly un-delegated tokens are considered “deactivating” or “cooling down” and are not able to be withdrawn until deactivated at the epoch boundary (you will need to wait up to two days). Once the stake is deactivated, finalize the process of undelegation by withdrawing tokens.
In order to track your SOL staking rewards, you can use one of the explorers. Use our guide on rewards tracking.
Conclusion
Much like other hardware wallets, CoolWallet ensures added layers of security when it comes to crypto transactions. Using one is generally a reasonable practice regardless of the actual amounts being handled. Being a responsible validator working with over 625k users across 70+ blockchain networks, Everstake recommends using hardware wallets for staking-related transactions in order to minimize the likelihood of accidents and theft.
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