How to stake Chainlink (LINK) in 2024
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This page will take you through the process of staking and earning staking rewards with Chainlink. Chainlink is an oracle network that is used to help blockchains bridge external off-chain data onto on-chain smart contracts.
LINK is Chainlink’s native token and can be used to pay for data on the network and is given as a reward for people who provide that data. There are many places for Chainlink staking, from decentralised applications to centralised cryptocurrency exchanges, along with varying yield rates.
It’s easy to get lost in the maze of staking platforms and struggle to decide which platform is better, but this guide will be there every step of the way. We’ll also go through how you can secure your assets and keep them safe if you decide to use decentralised staking platforms.
Frequently Asked Questions
Where can I stake LINK?
Chainlink can be staked on exchanges, brokerages and DeFi staking platforms. Other staking platforms include Nexo, Celsius, Bancor and Yearn Finance.
Is staking LINK safe?
Staking is generally safe, but some DeFi staking platforms are prone to exploits. Before staking, research the platform itself and see what the crypto community thinks about it. See if you can find out whether a platform has been audited by a well-known organization such as Certik.
When will native Chainlink staking be released?
There’s no exact date for when native staking will be available for Chainlink but you can keep up to date and follow news in the Chainlink community here. Being able to stake Chainlink natively has been a request from the Chainlink community for years. Chainlink developers are well aware of the demand, so native staking is certainly not out of the question.
How much does it cost to stake cryptocurrencies?
Staking on an exchange or brokerage is free. Staking on DeFi will depend on what blockchain you are using and how busy the network is. When delegating or withdrawing coins from a staking contract on the Ethereum network you will need to pay gas fees which can range from as low as £10 to over £100, depending on how busy the network is. If you’d like to stake on Ethereum and save money on gas, you can use a gas tracker to see how much it may cost before you delegate/withdraw and make a note when gas prices are the lowest in your area.
Is staking LINK profitable?
It all depends on how much LINK you stake, the applicable interest rate, and how long you’re staking for. Economies of scale apply, so staking a 1000 Chainlink will yield more rewards than staking 100 LINK. Also, the type of interest is important. APR is the average percentage return, while APY is the average percentage yield. APR is what you will get in interest at the end of the year. If you stake 100 LINK at 10% you will end up with 110 LINK after a year. The latter incorporates compounding, which is interest earned on interest. This compound growth can significantly increase your returns depending on how frequently the interest is calculated. Above all, remember that if you buy LINK at a peak and the price goes down and you decide to sell, you may still end up with less capital than you started with, even though you were earning interest,.
How much LINK do I need to stake?
You can stake any amount of Chainlink; it’s uncommon for staking platforms to have limits on individual staking amounts. Most exchanges and brokerages have limits on the amount of a certain asset that can be staked at once. Binance has limits on some of their non-flexible staking contracts where only a certain amount of a particular asset can be staked. When the limit is reached, the staking contract closes, and those who wish to stake will have to wait until a later date when Binance re-opens the pool or creates a new staking program. DeFi staking applications and native staking programs tend to not have limits on how much of a certain asset can be staked before the staking pool is locked.