The Three Main Ways to Stake Solana
If you hold SOL and want to earn staking rewards, you have three broad approaches available: native staking through a self-custody wallet, liquid staking via a DeFi protocol, or staking through a centralized exchange. Each has distinct trade-offs in terms of control, flexibility, risk, and potential return. This comparison will help you understand which approach fits your goals.
At a Glance: Comparison Table
| Feature | Native Staking | Liquid Staking | Exchange Staking |
|---|---|---|---|
| Self-custody | ✅ Yes | ✅ Yes | ❌ No |
| Funds accessible during stake | ❌ No (cooldown) | ✅ Yes (via token) | Varies |
| DeFi composability | ❌ No | ✅ Yes | ❌ No |
| Smart contract risk | Low | Moderate | N/A (counterparty risk) |
| Complexity | Low | Moderate | Very Low |
| Validator choice | ✅ Full control | Managed by protocol | ❌ No control |
| Auto-compounding | ✅ Yes (per epoch) | ✅ Yes (in token value) | Varies by platform |
Native Staking: Maximum Control, Minimum Complexity
Native staking means delegating your SOL directly from a self-custody wallet (like Phantom or Solflare) to a validator of your choice. Your SOL never leaves your wallet — it's locked in a stake account that only you control.
Best for:
- Long-term holders ("HODLers") who don't need immediate liquidity
- Users who want to contribute to network decentralization by choosing smaller validators
- Those prioritizing security and simplicity over flexibility
Main drawback:
Your SOL is subject to an unstaking cooldown (typically a few days until the epoch ends) and cannot be used in DeFi while staked.
Liquid Staking: Flexibility With Added Complexity
Liquid staking protocols like Marinade Finance (mSOL) and Jito (JitoSOL) accept your SOL and give you back a "liquid" token representing your staked position. This token increases in value relative to SOL over time as rewards accumulate.
Best for:
- DeFi users who want to use staked SOL as collateral or in liquidity pools
- Those who want staking rewards without a cooldown period (you can sell the liquid token anytime)
- More advanced users comfortable with smart contract risk
Main drawback:
Your SOL is held in a smart contract, which introduces protocol risk. If a contract is exploited, funds could be at risk. Always research the protocol's audit history.
Exchange Staking: Easiest Entry, Least Control
Many centralized exchanges (CEXs) offer staking products where you deposit SOL and earn a quoted interest rate. The exchange handles everything on the backend.
Best for:
- Complete beginners who find wallet management intimidating
- Users who already keep funds on an exchange for trading
Main drawbacks:
- Not your keys, not your crypto: You are trusting the exchange with custody of your SOL. Exchange failures (like FTX in 2022) can result in loss of funds.
- You have no say in which validators support the network.
- Rates may be lower than native staking APY.
Which Should You Choose?
There is no universally "best" option — the right choice depends on your priorities:
- Security first + long-term hold: Choose native staking
- Want to use SOL in DeFi while earning rewards: Choose liquid staking
- Just getting started and want the simplest option: Exchange staking is acceptable short-term, but consider moving to self-custody as you learn more
Many experienced SOL holders split their holdings across methods — keeping a core position in native staking while using liquid staking tokens for DeFi experimentation.