How to Stake Cosmos: Cosmos Staking Guide 2025

Cosmos (ATOM) is a top 100 cryptocurrency with a market cap of over $2 billion that can be staked for passive income. Cosmos staking allows ATOM holders to earn rewards of up to 18% APY while contributing to the security of the network.

This guide will break down everything you need to know when staking Cosmos ATOM, including step-by-step instructions on how to stake ATOM, estimated APYs, and wallet recommendations.

What is Cosmos (ATOM)?

Cosmos is a decentralized network created to tackle one of crypto’s “hardest problems” by enabling straightforward interoperability between blockchains. Founded by Jae Kwon and Ethan Buchman in 2014, the Cosmos blockchain uses the Inter-Blockchain Communication (IBC) protocol to bridge the gap between isolated chains, allowing independent networks to exchange assets securely.

This interoperability is powered by the Cosmos SDK (software development kit), which is a framework that enables the creation of custom blockchains. The SDK works by providing developers with pre-built toolkits that remove the need to build base-level blockchain solutions.

Some modules provided by the SDK include the most common aspects of blockchains, like staking and governance. Binance Smart Chain (BSC) and Terra are some of the blockchains that have integrated Cosmos technology to enhance connectivity within their ecosystems.

Powering the Cosmos network is its native token, ATOM, which has multiple functions. ATOM is used to pay for transaction fees on the network of around $0.01, participate in governance, and, most importantly, secure the network through staking. This is done by 180 validators that authorize transactions and propose new blocks.

Cosmos uses the Proof-of-Stake (PoS) consensus mechanism through the delegated-proof-of-stake (DPoS) concept. It does this via Tendermint Core, a key element within the Cosmos Hub that enables the processing of over 10,000 transactions per second (TPS), making it one of the most efficient networks in the industry.

Additionally, Cosmos continues to expand its partnerships, including a recent collaboration with Kava. Kava is a DeFi platform leveraging the Cosmos SDK to provide secure lending and borrowing solutions. Tether (USDT) recently opted to use Kava as its gateway into the Cosmos ecosystem to bring stability to USDT users on the Cosmos Hub.

Such partnerships highlight Cosmos’ role in blockchain interoperability, solidifying its status as the “Internet of Blockchains”. This has resulted in ATOM cementing its position as a top 100 crypto, trading at $5.10, with a $1.99B market cap. This comes despite the token being down by over 80% from its peak of $44.47.

How Does Cosmos Staking Work?

ATOM staking is centered around validators that process transactions and maintain network security, meaning the first step is picking the right one. There are roughly 180 validators on Cosmos involved in block production, and their reputation depends on uptime, performance, and governance participation.

When picking a validator, start by considering its voting power. High voting power means the community trusts this validator; however, if all delegators use the largest validators, the network becomes more centralized. Diversifying validator use can therefore aid the network. Cosmostation, for example, has a voting power of 4.73%, while Figment is at 3.11% on the network.

The next factor is the fees. Each validator sets a commission rate that determines the percentage of staking rewards they take before distributing earnings to stakers. For instance, Cosmostation offers an 17.76% APY with a low commission fee of 5%, while Figment’s fee is slightly higher, 9%, with reward rates of 17.01%.

It is also important to look at the number of ATOM tokens this validator has self-bonded. The more tokens staked by the validator suggest that they are willing to take on greater risk and not only rely on delegators. Cosmostation currently has the most staked at 12.51 million, 33,140 of which is self-bonded.

After buying ATOM and choosing a validator to delegate your tokens to, validators will give delegators (stakers) a portion of the ATOM rewards generated from fees and network inflation. The staking rewards vary depending on network activity and the platform provider, but in the right circumstances, they can result in up to a 21% annual percentage yield (APY).

The Cosmos network uses a slashing mechanism to penalize validators who act maliciously or fail to uphold network standards. Slashing can occur due to downtime (if a validator fails to sign blocks) or double signing (if a validator attempts to validate conflicting transactions). When slashing happens, both the validator and its delegators lose a portion of their staked ATOM.

Wallets like Crypto.com will select the validator with the best rate and track record, meaning that you don’t have to worry about these details. All you need to do is enter the amount you want to stake above the minimum of 0.000001. You will then be shown the unbonding or lock-up period, and if you’re happy with what you see, you can simply confirm your stake.

Should you choose to delegate tokens yourself, Keplr is the default wallet used by Cosmos to stake ATOM. Start by adding it as a Chrome extension if on a desktop device; alternatively, you can access it on iOS or Android.

After installing the extension, create a new wallet or connect to an existing one. As a self-custody wallet, you are in charge of your private keys, so you must have these at hand if connecting to an old account. If not, ensure you note down the recovery phrase given to you when signing up for the first time. Should you lose this, you will not be able to access the platform or your assets.

After saving, create a password for your wallet and choose the chain you want to connect to. Keplr has over 250 chains; pick Cosmos Hub to stake ATOM tokens.

Once done, your account will be created. If you have not bought ATOM, you can do so from an exchange or connect your wallet to Keplr and send your ATOM to this platform. You can use wallets like Ledger to facilitate this transaction.

After ensuring you’ve sent your ATOM to your new Keplr wallet, you can go through the list of validators, pick the one you want to delegate tokens to, and begin the staking process.

Cosmos requires an unbonding period of 21 days minimum (platform dependent) for users who decide to unstake their ATOM. During this period, staked tokens are inaccessible, meaning they cannot be sold, transferred, or redelegated. This mechanism works to enhance security by discouraging sudden mass withdrawals that could destabilize the network.

Cosmos Staking Rates

Here is an overview of the Cosmos staking APY and lockup periods across popular exchanges and wallets. Kraken is an example of a wallet that has removed the unbonding period via its flexible staking option. They do this by keeping a portion of ATOM unstaked to provide liquidity for withdrawals.

All rates are variable and depend on market conditions, validator performance, and staking demand. Generally, these wallets pre-select validators for the staker, meaning that you will not have to self-delegate your ATOM.

For those staking via Keplr and or choosing which validator to delegate tokens to, here is a table of fees and ATOM staking rewards from top providers.

Best Crypto Staking Platform for 2025

To stake Cosmos, you first need to find a wallet that offers the best security when buying, staking, and storing ATOM. Look for wallets with multiple layers of safeguards, offline storage, and access to other blockchains should you want to diversify into other cryptos.

Best Wallet is a well-rounded choice for investors looking to buy ATOM and stake cryptos from over 60 blockchains. The platform has a built-in decentralized exchange (DEX) that provides direct access to cryptos from all major networks, including Cosmos, Ethereum, Polygon, and more.

In addition to its wide range of available tokens, the platform is one of the safest options for ATOM stakers. As a self-custodian wallet, Best Wallet cannot access your private keys and allows users to safely store them offline. All transactions are done anonymously, and you are never asked to share your personal information at any stage.

Additionally, the platform has various security guards in place, including two-factor authentication (2FA), PIN protection, and biometric access. This means you can securely store the rewards generated from staking Cosmos.

Investors looking to stake cryptos other than ATOM can also do so on Best Wallet by using its launchpad. This feature lists the best emerging tokens on the market, most of which offer even higher APYs than Cosmos. Solaxy (SOLX), the layer-2 chain looking to unlock Solana’s full potential, currently offers a 139% APY.

To find out more about Best Wallet and other cryptos you can stake, download the app on iOS or Android.

Where to Stake Cosmos (ATOM)

As one of the top 50 cryptocurrencies in the world, there is no shortage of places to stake ATOM. From crypto wallets to centralized exchanges and DEX platforms, let’s explore the best places to stake COSMOS.

Crypto Wallets

There are a host of different types of crypto wallets to choose from. Be it self-custody, hardware, or custodian, these wallets offer an easy way to buy and stake ATOM. Self-custody wallets are often preferable to more centralized options, as investors are personally in control of their private keys.

This means that even if hackers breach the platform’s database, they will not be able to steal keys. Centralized wallets, on the other hand, face this threat, ByBit being a recent example of this. The exchange was looted for $1.5 billion, which is the largest crypto hack in history.

Keplr – Self-Custody Cross-Chain Wallet

Keplr is a self-custody wallet that has over a million transacting users on its platform. The wallet is connected to 297 chains and is recommended by the Cosmos Hub. Users can use Keplr on both desktop and mobile devices, making it perfect for stakers on the go.

For self-delegators, Keplr has a validator dashboard that details each provider, their voting power, fees, and APY. This is great for those who want to research and compare options before beginning the staking process. You can access validators like Cosmostation on Keplr, which offers an 17.76% APY, higher than the ATOM staking rewards offered by most exchanges.

Ledger – Top-Tier Hardware Wallet Provider

Ledger is a hardware wallet that supports ATOM staking on its portable devices. Hardware wallets offer cold storage, where crypto tokens are held offline for greater levels of security than a standard mobile wallet.

Ledger products also feature a secure element (SE), a tamper-resistant chip that is built into each device. This is used to securely store crypto and process private keys, making Ledger one of the safest and best places to stake Cosmos.

Investors can stake the cryptocurrency on models like the Stax or Flex with rewards of 17.58% APY; however, these cost between $250–$380, which may be too costly for newcomers, as the cost of owning this device could be more than the ATOM rewards earned from staking. Although platforms like Coinbase Wallet offer lower rewards (14.65%), they may be more popular as there is no upfront cost.

Centralized Exchanges

Centralized exchanges (CEX) are most commonly used to stake ATOM. These platforms offer investors easy access to staking cryptos, with customer support available for less experienced users. Additionally, they also offer the most liquidity, with 90% of ATOM’s daily trading volume ($260 million) coming from centralized exchanges.

However, staking on CEX platforms means that they will be in control of securing your crypto, as they hold private keys. This means that there are greater risks of third-party hacks and fraud when using these platforms.

Crypto.com – Popular Beginner-Friendly CEX

Crypto.com allows investors to buy and stake over 200 cryptocurrencies, including ATOM. Over $360,000 of ATOM’s daily trading volume goes through this platform, with a liquidity score of 446/1000. This is more than Osmosis, which is the most liquid decentralized finance (DeFi) platform for ATOM trading, at 435/1000.

The platform has over 100 million users and currently offers a reward of 17.74% APY for ATOM staking. The fee for withdrawing ATOM is 0.022 ATOM, which is lower than Kraken, as we will detail below.

Kraken – Stake ATOM Without Lock-Up

Kraken is a well-known global brand and has over 13 million clients from 190 countries. It has a reward range from 16% to 21%, making it potentially one of the highest APYs on offer. Rates will vary and are dependent on market conditions and staking demand.

Despite having fewer users than Crypto.com, Kraken has nearly doubled the ATOM trading volume at $655,000 and also has a higher liquidity score for ATOM, at 580. This is likely due to its flexible staking, which has removed the unbonding period, providing delegators more liquidity for withdrawals.

This does come at a price, with a minimum withdrawal fee of 0.1 ATOM and transaction fees close to 0.40 ATOM, which is $1.63 at the current price of $4.07.

DEX Platforms

For those looking for the benefits of an exchange without the custodianship, decentralized exchange (DEX) platforms are the best option.

StaFi provides DeFi staking via the Keplr wallet. After creating a Keplr account, you can connect this to StaFi to access liquid staking using its “rTokens”. Depending on the amount of ATOM you stake, you will receive “rATOM”, which represents the staking amount plus accumulated rewards.

By receiving rATOM, stakers have immediate access to liquidity, as their tokens are not locked. As such, they can use tokens in DeFi protocols, such as lending and borrowing, while still earning staking rewards. There is a 5% fee for staking ATOM tokens on StaFi and the APY amounts to 16.85%.

Is Cosmos Staking Safe?

There will always be risks associated with staking ATOM or any major cryptocurrency; the challenge is to limit potential threats and safeguard your assets. Start by thoroughly researching all staking methods and validators before choosing which one to use.

For staking methods, decide if a CEX or crypto wallet gives you the best security. Self-custody wallets may provide you with control of your staked assets; however, some newcomers may prefer the support CEX platforms offer.

Research the market to see if the ATOM staking method you’ve chosen requires a lot of assistance or if the information available online is sufficient. If the latter, you may be better suited to using a self-custody platform and keeping your private keys offline.

Ensure you do your due diligence on the main validators for the Cosmos network to see their performance history and reputation. Failing to do this could result in you using a validator that has acted maliciously and is at risk of slashing. This could lead to you losing a portion of your staked ATOM.

Conclusion

Learning how to stake Cosmos can be difficult but rewarding, with some APYs up to 21%. As one of the biggest cryptocurrencies in the market, there are numerous methods to use when staking ATOM. Ensure you pick a platform that provides extensive security features, low transaction fees, and gives you access to stake other crypto tokens with higher rewards to diversify your portfolio.

Although at the moment, you can only buy ATOM on Best Wallet, you can stake other cryptos with rewards that far exceed what is being offered for Cosmos. For example, SOLX has an APY of 139%, with 8.3 billion tokens already staked. To find out what other tokens can be staked on Best Wallet, download the app and view the best upcoming cryptos in the market.

Visit Best Wallet

References

1. Tether uses Kava to connect to Cosmos (Tether)
2. Hackers steal $1.5 billion from crypto exchange (The Guardian)
3. Cryptocom surpasses 100 million users (Crypto.com)

FAQs

How long does it take to unstake Cosmos (ATOM)?

It takes a minimum of 21 days to unstake or unbond ATOM. During this period, your tokens are locked and do not earn rewards. This duration is designed to maintain network security and prevent malicious activity. After the 21 days, your ATOM will be fully available for withdrawal or transfer.

What are the risks of staking Cosmos?

The most significant risk of staking Cosmos is validator slashing. This is where poor-performing validators are penalized, causing a loss of staked ATOM. There can also be platform-specific risks, such as exchange hacks. You should consider this when choosing where to stake.

What are the best Cosmos validators?

Out of the 180 available, there are many validators on Cosmos with strong performance records. Figment, Everstake, 01node, and Cosmostation are among the most trusted. However, research these independently before deciding which to use.

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