How to Stake Hedera: HBAR Staking Guide 2025

Crypto prices dropped at the start of the year, prompting investors to look for alternative ways of earning passive income. Staking is one such option, with cryptos like Hedera (HBAR) offering attractive returns. HBAR staking initially stood out with rewards of up to 6.5% APY, making it a popular choice – but does that figure still hold in 2025? Let’s take a closer look.

In this guide, we will cover everything you need to know about staking HBAR and the steps needed to get started. Our focus will be on how to stake HBAR, the best wallet to use for staking, and the main safety concerns.

What is HBAR?

HBAR is the native token of the Hedera blockchain, used to power the ecosystem. The network is a decentralized public ledger that uses a consensus algorithm called Hashgraph to enable the creation of decentralized applications (dApps).

Unlike traditional blockchains, Hedera Hashgraph utilizes a directed acyclic graph (DAG) structure to achieve fast, fair, and secure transactions. This technology allows for high throughput and low fees, making it an attractive option for crypto developers.

The HBAR token is used to process transactions, execute smart contracts, and secure the network through staking. As a proof-of-stake (PoS) crypto, users can delegate their tokens to trusted validators who issue staking rewards depending on the amount of HBAR staked. When announcing its staking rewards program launch, Hedera promised you could earn rewards of up to 6.5%, but as we’ll see later, this number has since been adjusted.

Aside from DeFi-related use cases, HBAR also provides enterprise utility, including identity verification, data integrity, and micropayments. The Hedera Governing Council oversees the network’s development and ensures decentralized governance, with companies like Dell, LG, and Google participating in the protocol and node operation.

At its peak in September 2021, one HBAR token was worth $0.5701; however, it is now trading at $0.19. Despite the decline, HBAR is still up more than 1,800% from its lowest point of $0.01001, recorded in March 2020. It is now one of the top 20 largest cryptocurrencies in the world, with a $8.15 billion market cap.

How Does HBAR Staking Work?

To stake HBAR or any cryptocurrency, you must go through several steps. Start by picking a wallet and then delegating your tokens. Once this is done, you can begin generating your returns. Let’s explore this in more detail below.

Picking a Wallet

To start staking HBAR, choose a wallet that supports Hedera’s staking features. One option is HashPack, which is a user-friendly mobile app with a desktop browser extension designed specifically for the Hedera ecosystem.

Alternatively, hardware wallets like Ledger provide the highest level of security by keeping your private keys offline. After a recent 40% price hike, some Ledger models cost up to $350, which may be too expensive for beginners.

Some centralized exchanges (CEX) also support Hedera staking. However, staking through an exchange means you won’t have full control over your tokens, as these platforms typically act as custodians. Choosing the right wallet depends on your priorities, be it security, accessibility, or low fees.

Once you’ve chosen a Hedera wallet, buy some HBAR or transfer your existing tokens into it. Most wallets provide a basic interface to help you navigate the staking process, and we’ll walk you through it here.

Delegating Tokens

The network relies on nodes operated by Hedera Governing Council members to validate transactions. Once you’ve chosen a node, delegate tokens to this validator, and the staking period begins immediately. Your staked tokens will then contribute to the network’s overall security maintenance.

Native staking on Hedera does not require a minimum staking period, meaning that you can unstake or redelegate them at any time without penalties. This means you retain full control of your tokens while still earning staking rewards.

Earning Rewards

Once your tokens are delegated, you can start filling up your staking rewards account. The amount of rewards depends on the performance of the node you’ve chosen during the staking period and the total amount of HBAR staked across the network’s staking pool.

The minimum node stake threshold is 250 million HBAR if you want your stake to generate rewards and not just participate in the Hedera Governing Council. Conversely, the maximum stake threshold for each node is the total number of HBAR divided by the total number of nodes in the network. Staking more than the maximum stake will no longer affect the share of rewards you receive.

Unlike some staking models that offer fixed interest rates, Hedera’s reward system is tied to the activity and efficiency of individual nodes. This means that the more transactions a node processes, the greater the share of staking rewards it generates. Rewards are distributed into the staking pool and shared based on the amount of HBAR each participant has staked.

The network distributes rewards periodically, meaning you can track your earnings directly through your wallet. This passive income is paid to your staking rewards account in the form of additional HBAR tokens.

HBAR Staking Rates

The staking rewards for HBAR vary depending on the platform you use. Here is a breakdown of some different providers.

These HBAR staking APYs are subject to change and vary depending on network conditions on each platform. For instance, even though Ledger claims to offer an annual yield of up to 6.5%, its services for HBAR are based on HashPack, which caps the rewards at 2.5%. This is in line with Hedera Governing Council’s 2023 rebalancing of staking rewards from 6.5% to 2.5%.

At the time of writing, the most competitive HBAR staking option in terms of APY appears to be the liquid staking service offered by Stader Labs. With rewards of up to 5.61%, it has the potential to deliver solid annual returns. That said, this is their estimation – actual yields may be considerably lower, especially when compared to broader trends across the Hedera staking market.

Although potentially competitive, current HBAR staking rates are substantially lower than the APYs you can earn from the best ICOs in the market.

Best Crypto Staking Platform for 2025

In this day and age, a great platform for staking crypto shouldn’t just offer good returns. The key ingredients are a wide range of staking options, ease of use and accessibility, and a strong focus on security. If you’re looking for the best platform, you should consider using:

• Crypto exchanges: The upside is that many exchanges offer a large selection of tokens for staking. The downside? The returns are often relatively low, especially once platform fees are taken into account.
• Crypto wallets: Wallets are typically easy to use and give you more control over your assets, but not all of them support a wide variety of staking tokens, and some may lack robust security features.
• Cold storage devices: These are great for keeping your crypto offline and physically disconnected from the internet. They offer the best security but are not convenient for regular use or quick access.

We’ll give you some great picks for each of these options below, but if you’re looking for a solution that combines the variety of exchanges, the user-friendliness of hot wallets, and the security of cold wallets, Best Wallet is the answer.

It’s a self-custody wallet designed for both convenience and safety while supporting a wide range of staking options. For example, Solana layer-2 chain Solaxy (SOLX) is available to stake on Best Wallet and offers staking rewards of 149% APY. This project has raised over $27 million in presale as it looks to unlock the full potential of the Solana network.

Apart from staking, the platform also has a built-in DEX, which means you can buy, sell, and swap crypto tokens from all major networks. All transactions on Best Wallet are fully anonymous as the platform is a no-KYC exchange. To get started, simply download the Best Wallet app on iOS or Android and start staking.

Where to Stake HBAR

That said, where is the best place to stake your HBAR? There are many options to choose from when engaging in Hedera staking. From crypto wallets to DeFi platforms and centralized exchanges, each has its pros and cons – we’ll look at a couple of options to make your choice easier.

Self-Custody Crypto Wallets

Staking HBAR through a self-custodial wallet is the best option for investors looking to retain full control over their crypto. These wallets provide secure storage and allow you to delegate your tokens without relying on a third-party exchange.

Crypto wallets can be hot wallets, which are typically mobile or desktop apps connected to the internet, or hardware wallets, which require a physical device.

HashPack Wallet

HashPack is one of the most popular wallets for the Hedera ecosystem, it offers users a simple way to stake your HBAR with rewards of up to 2.5% APY. As a non-custodial wallet, HashPack ensures that investors have full control of the private keys and HBAR tokens while delegating them to eligible staked account validators.

Staking on HashPack is straightforward. Simply select a node from the staking menu, delegate your tokens, and enable staking rewards to start earning passive income.

Ledger Wallet

Ledger is a popular hardware wallet that offers one of the most secure ways to stake your HBAR. As a cold wallet, Ledger ensures that your private keys remain offline, protecting your assets from hacks and phishing attacks. Staking on Ledger is powered by HashPack, with the APY capped at 2.5%.

DeFi Platforms

Decentralized finance (DeFi) platforms provide alternative staking solutions for HBAR holders, often allowing more flexibility than traditional staking. These platforms typically support liquid staking, which means users receive a tokenized version of their staked HBAR that can be used in other DeFi applications.

Stader Labs

Stader Labs is one of the top DeFi platforms offering Hedera staking with a liquid staking option. When users stake their HBAR in Stader, they receive a liquid representative token (HBARX) that can be used for additional yield-generating opportunities in DeFi applications. Staber offers the highest APY for HBAR staking at 5.61%.

Centralized Exchanges

For users looking for a more straightforward approach, centralized exchanges provide an easy staking solution. These platforms handle all the technical aspects, making them ideal for beginners. However, staking on centralized exchanges means entrusting your tokens to a third party, which introduces potential risks, such as withdrawal restrictions or changes in staking terms.

Coinbase Staking

Coinbase also has an option for staking of HBAR, though its estimated annual yield of 0.06% is much lower than other platforms. Like any major CEX, Coinbase takes care of all staking operations, making it a good choice for those new to staking.

However, using a centralized exchange comes with risks, including potential third-party attacks, since all its users’ funds are held in one place. An example of this came recently when the ByBit exchange suffered a $1.5 billion hack, which is the largest loss of funds in crypto history.

Is HBAR Staking Safe?

No form of crypto staking is 100% risk-free, and HBAR is no exception. However, there are smart precautions you can take to dramatically reduce those risks, regardless of the platform you choose. Doing your own research (DYOR) is key: understanding the strengths and weaknesses of each staking option will help you make an informed, safe decision.

The good news is that staking is a well-established and mature mechanism. HBAR itself has a strong foundation and long-term support from the Hedera community. The network is known for its transparency and has committed to regular security audits, adding an extra layer of trust for anyone looking to get involved.

To stake HBAR safely, choose a platform that balances convenience with control. Centralized exchanges are user-friendly but come with the risk of losing access during downtime or security incidents. Cold wallets offer the best security, but can be slow and less practical. Non-custodial wallets like Best Wallet give you great accessibility while retaining top-notch security.

Whatever platform or storage method you choose, always enable the protections available to you. Use biometrics, two-factor authentication, strong passwords, and any additional security features your wallet or platform offers. These basic steps for safe staking will go a long way in keeping your staked account balance safe from unauthorized access, whether staked or not.

Conclusion

Staking HBAR is a great way to earn rewards across various wallets and platforms while also supporting the Hedera network. Depending on where you stake, you could earn up to 5.6% APY.

Despite these relatively attractive gains, staking tokens other than HBAR on platforms like Best Wallet could offer even more impressive staking rewards. The self-custody wallet gives you a secure way to stake some of the most promising emerging cryptos, such as SOLX, which offers an APY of 149%. To see what other crypto tokens can be staked on Best Wallet, simply follow the link below.

Frequently Asked Questions

References

1. Google joins Hedera governing council (Yahoo Finance)
2. Ledger hikes device prices by up to 40% (CNBC)
3. Hedera Governing Council Votes to Approve Changes to Staking Algorithm (Hedera)
4. Crypto exchange suffers $1.5 billion hack, biggest in history (Reuters)

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