Staking SOL on Solana: A Guide

Staking on Solana is a process where you lock up your SOL tokens to support the network’s operations and, in return, earn rewards. While Helius is now the number one validator in Solana, it’s still challenging to stake SOL regularly. To know more about how to stake on Helius, see this blog.

Challenges in Staking SOL in India

Despite the detailed staking instructions, acquiring Solana in a wallet remains a hurdle in India. Here are some methods I follow:

Using CoinDCX

CoinDCX is a centralized exchange (CEX) that allows you to buy and sell Solana. Here’s how you can use it:

  1. Setup CoinDCX Wallet: Register and complete KYC verification using your PAN number.
  2. Add INR to Wallet: Transfer money to your CoinDCX wallet using INR.
  3. Purchase Crypto: Use the INR in your CoinDCX wallet to buy Solana.
  4. Sell and Convert: You can only buy and sell Solana on CoinDCX. It doesn’t support staking or transferring crypto out of CoinDCX. Convert your crypto back to INR to transfer to your bank account or buy other cryptocurrencies.

CoinDCX also offers an earn feature with a yield of around 5% for Solana. More details are available here.

Disadvantage: You can’t utilize the Sol you purchased beyond buying/selling. This method is mainly for investment purposes. An IMPS transfer to a designated account is necessary for buying crypto.

Using Coinbase Wallet

Coinbase Wallet is another option for purchasing and managing crypto, including Solana. Here’s how to set it up:

  1. Setup Coinbase Wallet: Complete KYC, submit tax returns, and set up the wallet.
  2. Purchase Crypto: Use UPI to buy Solana. This process is lengthy and requires a one-time setup.
  3. Transfer to Backpack Wallet: After purchasing Solana, transfer it to your Backpack wallet.
  4. Stake on Helius: Follow the Helius blog instructions to stake your Sol into Helius.

I use this method to explore staking. Ideally, I wish for a SIP feature to automate the purchase and staking of Sol to my desired validator. After staking, I transfer all Sol back to my Coinbase wallet, cash out, and sell the crypto, transferring the money to my bank account.

Coinbase also supports purchasing crypto via third-party aggregators like Onramp and Banxa. Here’s a detailed process for using Onramp:

  1. Setup Onramp: Sign up via email, enter PAN, complete Aadhar Verification, and submit a photo for KYC.
  2. Transfer Using UPI: Use PhonePe to transfer funds to their UPI, then submit the UTR after payment.
  3. Complete Purchase: After completing these steps, you will see your crypto in the Coinbase wallet.

Disadvantage: The KYC setup is cumbersome, requiring salary slips and tax returns. Onramper, however, simplifies the process but still it requires email signup, PAN entry, Aadhar Verification, and a photo submission. Using PhonePe for UPI transfer and submitting UTR completes the transaction.However, if it times out, you will need to wait and/or reach out to Onramper to look into the issue

Conclusion

Both CoinDCX and Coinbase Wallet offer viable options for buying and managing Solana in India. While CoinDCX is simpler for investment, Coinbase Wallet, despite its lengthy setup, provides more flexibility for staking and advanced crypto management. For a streamlined staking process, I hope we can setup SIP to stake on Helius but that seems like a wishful thinking.

For more details on staking, refer to the Helius blog.