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How to Stake Polkadot on Kraken? Is it worth Staking DOT on Kraken?

Updated: Sep 21, 2021


Is it worth to Stake Polkadot on Kraken?

Hello, friends! This is James Agenda here.


Today I'm writing about my experience and results Staking DOT on Kraken, one of my favorite 5 places to Stake Polkadot.


If you don't use Kraken, start by reading the topics:


If you already know Kraken, you may skip to one of these:


Let's begin.



Is it worthing Staking Polkadot on Kraken?

How to open an account on Kraken


It's very easy to open an account on Kraken.


You just need to inform some personal details, and you will then be able to create an account.


After, you may verify your account by informing more details.


This will upgrade your deposit/withdraw limits.



Buying or Transfering DOT to Kraken


You may buy DOT tokens directly on the exchange.


If you already have DOT in another place, you may generate an address on Kraken to receive DOT.


To generate an address, go to Funding:


Funding Stake Polkadot on Kraken


If you choose to send DOT to Kraken, remember to send at least 1 DOT because of the existential deposit.


Also, try to avoid sending batch transactions.


But:

  • If you want to transfer less than 1 DOT;

or

  • If you are not sure about batch transactions / existential deposit;


Then I recommend taking the following actions:


  • Transfer KSM instead.

  • After you receive KSM, you can change KSM for DOT on the exchange.



Growth Stake Polkadot on Kraken

How to Stake Polkadot on Kraken


It's very simple to Stake Polkadot on Kraken.


1) First, you need to have DOT on your balance account.


2) Then, in the top menu, click on EARN:

Earn Stake Polkadot on Kraken


3) On Polkadot's line, click on the Stake button:


Stake Button Stake Polkadot on Kraken


4) Choose the amount of DOT you want to Stake and click on Continue:


Ammount Stake Polkadot on Kraken


And it's done!


You just need to wait some minutes to seed the Staking Balance.


And you will receive an email confirming the Staking.


To unstake, you just need to repeat the process, but clicking on the unstake button instead:


Unstake Button Stake Polkadot on Kraken

Very easy, don't you think?


Indeed, Kraken is the easiest place to Stake Polkadot that I experienced in the past months.



My Results of Staking Polkadot on Kraken


Besides custody, I evaluated Kraken on the following criteria:

  • Staking Rewards

  • Liquidity

  • Usability

  • Security

Stake Polkadot Kraken Results

🤑 Stake Rewards


Kraken promises 12% APY on Staking Rewards, both for Polkadot and Kusama.


Kraken APY% Stake Polkadot

Kraken indeed delivered me what it promised.


The Staking Rewards payout occurred twice per week.


I can always check the rewards on the Transactions list (below the Staking Assets List):


Kraken Rewards Payout Stake Polkadot

I indeed got an average of 12% APY Staking Polkadot on Kraken.


However, I must say that I got better Staking Rewards on other platforms.



⏳ Liquidity


Kraken has the best liquidity on Staking DOT.


It's just perfect:

  • You may stake or unstake your DOT anytime;

  • You only need to follow a few steps to unstake Polkadot on Kraken;

  • and, in minutes, you can sell or transfer your DOT tokens.


This is Kraken's huge advantage!

Especially when compared to Staking directly in the blockchain (Staking on-chain).


When Staking Polkadot on-chain, it takes 28 days to unstake your DOT tokens.



💻 Usability


This is also a great advantage of Staking Polkadot on Kraken.


It's very easy to use Kraken to Stake your DOT.


It takes only a few steps to stake and unstake.


The layout is clean, and you don't need to choose good validators by yourself.


Also, there is no minimum amount required to Stake Polkadot on Kraken.

On the other hand, when Staking Polkadot on-chain, you will need at least 40 DOT to receive Staking Rewards.



🛡️ Security


When Staking Polkadot on Kraken, you don't have Custody of your assets.


You need to trust the exchange with your DOT tokens.


Not Your Keys, Not Your Coins.

This is a disadvantage on security when compared with wallets that let you Stake on-chain (like Ledger Live and Polkadot.js).


If you don't take this risk into account, then Staking with Kraken is indeed safe.


Kraken is one of the oldest and most secure crypto exchanges.


The exchange has robust security and suitable 2FA methods.


(I contact them about enabling Trezor as 2FA (as Binance already does). They informed me that they are working on it.)


Also, when you Stake DOT on Kraken, you don't need to worry about choosing good validators to avoid getting slashed.


Kraken does all the work for you!



Conclusion: Does it worth to Stake Polkadot on Kraken?


Well, the first thing I need to say is:


When compared with other Staking Plataforms, Kraken pays fewer Staking Rewards.

That's been said, Staking Rewards isn't the only thing that counts.


I indeed do use Kraken on 2 of my 3 Staking Strategies.

I especially recommend Kraken for beginners since it's way easier than any other Staking Platform.


I also recommend it for cases when you need liquidity!


For example:


Right now, I'm waiting for the First Parachain on Polkadot.


I want to have some transferable DOT tokens to support ACALA via crowdloan.


If I stake all my DOT on-chain, I need to wait 28 days to access them.


But when Staking on Kraken, I may unstake anytime.


So, I don't need to worry about stoping receiving rewards while I am waiting for the first Parachain Auction.



I will update this post if anything changes on Kraken.


Consider subscribing to keep yourself informed.


Cheers!

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