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How to stake Terra (LUNA) in 2024

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Terra is a blockchain for maintaining stablecoins known as Terra stable coins, which are pegged to traditional fiat currencies. Stablecoins on the network are backed by Terra’s native token, LUNA.

With LUNA, users can pay for transactions fees, vote on governance decisions and use staking pools. The token also has a vital function which is to reduce the volatility of the dollar-pegged stablecoin, TerraUSD (UST).

Staking LUNA contributes to the upkeep of the Terra blockchain and helps maintain a healthy network with active participants. If you’d like to know how to stake LUNA, then this page is for you.

We’ll guide you through the process of buying and staking LUNA, and reveal the best ways to protect your funds. This article will also cover important things to consider when staking and show how to find the best interest rates.

Frequently Asked Questions

Is staking LUNA safe?

It's safe to stake LUNA using recommended staking platforms and Terra Station. That said, if you are a short term trader, your underlying investment could go down, which means if you panic and sell you will crystallise losses. This is why it’s important to have a clear strategy before you buy LUNA—or any other cryptocurrency for that matter—so that you don’t make impulsive decisions that could hurt your portfolio.

How much can I earn staking LUNA?

How much LUNA rewards you earn while staking will depend on the staking platform’s interest rate and how much LUNA you decide to stake. Look out for generous interest rates and then stake a suitable amount of LUNA to earn greater rewards. If you time the markets well and buy dips, you increase your chances of making greater returns. Doing things this way is tricky, though, which is why many less experienced investors do what is known as dollar cost averaging (DCA). Simply put, this means regularly buying LUNA over a long period, regardless of price.

Will LUNA’s price go up?

LUNA's price will go up if the market conditions are right and the Terra blockchain is doing well. Nobody can be certain of the price action of volatile assets in the future. The best way to know what is going on with a particular digital asset is to follow them on Twitter where they will make regular announcements that keep you in the loop.

Why is it good to stake LUNA?

By staking, you are delegating your funds to a staking pool that will earn interest on your deposited amount. Staking LUNA is good for the Terra network as it helps maintain the consensus mechanism. It’s also good for delegators and validators who, as stakeholders, can cast votes in the blockchain’s governance system and be a driving force for the project.

How do I stake using Terra Station?

If you’d like to stake using Terra Station, visit the Terra website and download the application. After installing and setting up a Terra wallet, send your LUNA from your chosen trading platform to your non-custodial Terra wallet. When your LUNA arrives, head over to Terra Station’s staking page and search for a validator with which to delegate your tokens. Be sure to research the options thoroughly and look out for uptimes and commission rates. If you choose a bad validator, you could lose your funds. Once you’ve decided on a validator to stake with, delegate your coins using the Terra Station’s interface.