XRP Staking: How to Stake XRP in 2024?
While on-chain XRP staking is technically not possible, there are several ways that investors can earn interest on their staked XRP. Learn more in the article.
Unfortunately, on-chain staking of XRP is not possible, as its parent blockchain, XRP Ledger, does not use the Proof of Stake (PoS) consensus mechanism but instead relies on a unique consensus mechanism called XRP Ledger Consensus Protocol (XRP-LCL), which does not require validators to stake their coins. Instead, validators are selected randomly to participate in the consensus process.
However, that doesn’t mean there are no alternatives available that provide investors with the opportunity to earn interest on XRP without staking tokens directly on the blockchain. In fact, several major crypto exchanges and trading platforms allow investors to earn passive income on their XRP tokens.
In this article, we are going to examine how you can stake XRP in 2024 and provide a step-by-step guide for staking XRP on Binance, the world’s largest crypto trading platform.
Key highlights:
- The XRP Ledger doesn't use a Proof-of-Stake consensus mechanism, so it's not possible to actually stake XRP.
- Still, it is possible to grow your XRP holdings passively, which is the goal of most crypto investors when staking their coins.
- There are many cryptocurrency platforms where you can lend out your XRP coins and earn interest.
What is XRP staking?
XRP staking refers to depositing tokens in exchange for interest. There are several different products that allow investors to earn income on their staked XRP. These products fall into two categories – those that allow investors to withdraw their tokens at any time and those that require investors to lock their tokens for a period of time. Usually, locked products have a higher Annual Percentage Rate (APR), while non-locked products provide investors with a higher degree of flexibility and a lower interest rate.
It is possible that Ripple, the fintech behind the XRP token, might eventually implement staking for XRP. However, there is no timeline for this yet. There are also some projects that are working on ways to enable XRP staking.
Where can I stake my XRP tokens?
You can stake XRP tokens on several different cryptocurrency trading platforms, including Binance and WhiteBIT. Here’s a quick overview of XPR lending products provided by these platforms:
- Binance: Up to 0.80% APR with a flexible duration (meaning you can withdraw your tokens at any time). The minimum deposit limit is 1 XRP (which is about $1.15 at current market rates).
- WhiteBIT: Locked XRP staking plans ranging from 30 to 360 days. APR of up to 1.01% for the 30-day option and 17.39% for the yearly plan. Users can deposit a minimum of 150 XRP and a maximum of 1,150,000 XRP.
- Nexo: It's currently possible to earn an APY of up to 7% on XRP. However, the amount of yield you will be able to earn on Nexo depends on the share of NEXO tokens in your crypto portfolio
- YouHodler: Users with the "Basic" account tier on YouHodler can earn an APY of 7% on their XRP holdings. However, the APY goes up to 12% for users with the highest account level.
How to stake XRP in 2024? (Binance guide)
If you are looking to stake XRP in 2024, then Binance is probably your best option. XRP staking is available as a part of Binance’s Simple Earn platform, which features dozens of cryptocurrencies and countless flexible and fixed staking plans.
You can start earning interest on Binance with as little as 1 XRP. The daily rewards are calculated and paid out daily in your Earn Wallet.
In the following sections, we are going to provide a complete overview of how to stake XRP on Binance. If you want to stake XRP on Binance, you will first have to create an exchange account. You can click on the button below to get started.
Step 1: Navigate to the Simple Earn dashboard
Head to the Binance homepage and select “Simple Earn,” which can be found in the “Finance” drop-down menu.
Step 2: Search for XRP from the list of available interest-bearing products
Use the search window on the Simple Earn landing page to find the XRP subscription plan.
Step 3: Set your staking amount
Enter the amount of XRP you’d like to stake. Keep in mind that you can unstake your XRP at any time. It’s worth noting that XRP rewards are accumulating every minute and can be accessed in your Earn Wallet.
It’s also worth mentioning that you can use the “Auto-Subscribe” option. If turned on, Binance will automatically use XRP in your spot wallet to subscribe to the relevant Simple Earn product. The option allows you to benefit from the effect of compounding interests to increase your APY.
Finally, click on the “Confirm” button to stake your XRP.
Step 4: Start accumulating XRP rewards
Congratulations, you’ve successfully subscribed to the XRP flexible plan on Binance. At the time of this writing, investors can receive up to 1.61% on their deposited XRP. Keep in mind that the rate is subject to change.
To check the status of your XRP subscription, add more tokens, or redeem your rewards, you can head to the Earn Wallet menu, where you can inspect the APR rate, cumulative rewards, tiered APR rewards, and more. If you have multiple Simple Earn plans activated at the same time, you can use the menu on the right side to quickly find the asset you are looking for (in our case, XRP).
If you want to withdraw XRP, scroll to the far right side of the Asset menu, where you will find the “Redeem” button.
Alternative options for earning with your XRP holdings
Besides lending out your XRP on Binance, there's also plenty of other cryptocurrency lending platforms where you can earn interest on your XRP coin holdings. In fact, dedicated crypto lending platforms (as opposed to exchanges such as Binance) can in many cases offer higher APYs on cryptocurrency lending.
Nexo
Nexo is a platform that offers a broad range of services for cryptocurrency investors, but its best known feature by far is its crypto lending product. On Nexo, it's currently possible to earn an APY of up to 7% on XRP. However, the amount of yield you will be able to earn on Nexo depends on the share of NEXO tokens in your crypto portfolio. At the time of writing, Nexo offers 4 loyalty program tiers:
- Base - No NEXO holding requirements
- Silver - Your crypto portfolio must consist of at least 1% NEXO
- Gold - Your crypto portfolio must consist of at least 5% NEXO
- Platinum - Your crypto portfolio must consist of at least 10% NEXO
On Nexo, you can choose either a "flex" lending program for your XRP or a fixed lending program. XRP that you lend out via a flex program will earn lower yield, but you can withdraw it at any time. Meanwhile, fixed lending programs pay lower yields, but you have to commit to lock up your coins for a specified period of time.
Even if you don't wish to hold any NEXO tokens, the Base loyalty program tier still pays a solid yield to XRP holders. At the time of writing this article, Nexo is offering 5% APY for XRP lending, and an additional 4% (for a total of 9%) if you commit to fixed term lending.
YouHodler
YouHodler is a cryptocurrency platform specialized in lending, although it also offers spot and leveraged cryptocurrency trading. Through YouHodler, users can get a loan by using cryptocurrency as collateral or earn yield on their cryptocurrencies by lending them out.
Similarly to what we saw on Nexo, the amount of yield you can earn on YouHodler depends based on your account's tier in the platform's loyalty reward program. However, unlike with NEXO, YouHodler doesn't have its own token.
Your account's loyalty program level will depend on how much trading volume you generate on your YouHodler account. Depending on your needs as a crypto investor, this might be a better deal than having to hold a specific token, which can have a volatile price.
At the time of writing, users with the "Basic" account tier on YouHodler can earn an APY of 7% on their XRP holdings. However, the APY goes up to 12% for users with a higher account level.
Earn Interest on XRP via YouHodler
XRP Staking FAQ
Is XRP staking possible?
On-chain staking, meaning providing XPR for the purposes of Proof-of-Stake (PoS) consensus operations, is not possible. However, investors can stake (or rather deposit) their XRP coins in exchange for interest on various trading platforms.
Can XRP be staked on Binance?
Binance allows users to stake their XRP using the Simple Earn suite of products. While the service doesn’t provide on-chain staking capabilities, it does allow investors to earn interest on their tokens. According to Binance, staked XRP can be loaned to other Binance users via Margin and Crypto Loan products, or used for operational purposes by other business units within Binance. Proceeds from these services are used to pay interest to users staking their XRP on the Simple Earn platform.
Can I stake my XRP on Ledger?
No, you cannot stake XRP on Ledger. If Ripple decides to enable XRP staking in the future, the feature will most likely become available to Ledger users as soon as possible. However, you can still use Ledger to manage your XRP, as it is one of the 5000 coins and tokens that are supported by Ledger.
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