Safest Way: Cold Wallet Staking

This guide is part of the “Guide to Staking Crypto” series.

Staking rewards are too attractive to ignore right now, you get extra yield simply for putting tokens to work on a proof-of-stake network. But it’s so scary leaving assets on an exchange or in a hot wallet, making it feel like a ticking time bomb. There are legit worries, such as hacks, collapses (like FTX), or even phishing email scams, that can all wipe out years of savings.

This is where we introduce you to staking with a hardware wallet. It takes the income potential of staking and combines it with peace of mind. This “safety” comes from the fact that you are keeping coins in cold storage, offline, away from hackers and counterparty risk. The process, often called cold staking or non-custodial staking, gives you full control over your private keys while still letting you participate in the staking process.

In this guide, we’ll cover the core benefits and how hardware wallet staking actually works, we’ll analyze Ledger and Trezor tech, and go over the most popular coins you can stake.

The core benefits: why stake with a hardware wallet?

Staking with a hardware wallet is about maximum safety, giving you the same rewards as exchange staking while retaining full control of your assets.

Unmatched security and self-custody

The number one reason people choose hardware wallets is this: your private keys never leave the device. Even when you delegate to a validator, your coins stay in your wallet address. The hardware wallet signs the transaction internally, and only the signed version is broadcast to the blockchain.

Compare that with centralized exchange staking, where you hand over full custody. As the old saying goes, not your keys, not your crypto. A hardware wallet flips that back to you, letting you stake without compromise on ownership.

Protection from online threats

When your coins are on an exchange, you’re trusting that company to stay safe and solvent, but if it gets hacked or goes bankrupt, you could lose everything. If you use a regular online (hot) wallet, your funds are only as safe as your computer or phone. It’s one virus or scam away from being emptied.

A hardware wallet, by design, keeps your keys offline, this is why they are referred to as “cold” wallets. That disconnected barrier protects against phishing attacks, clipboard hijacking, and browser exploits. Even if your computer is compromised, the attacker cannot move your funds without physical approval on the device.

Full control over your staking choices

Hardware wallet staking also gives you control over selecting validators. On networks like Cardano staking or Ethereum staking, you can browse validator lists, filter them, and choose based on commission rates, uptime performance, and decentralization. Picking carefully really matters here because a validator’s reliability directly affects your staking rewards.

A surprisingly seamless user experience

Cold staking used to be complicated, often requiring knowing technical commands and how to use scripts. Now it’s simple. With Ledger Live staking or Trezor staking, you can delegate your coins, see your rewards, and even re-stake them in just a few clicks, all while your keys stay safely stored on the device.

How does hardware wallet staking actually work?

To understand how hardware wallet staking works, it helps to look at what’s happening behind the scenes when you delegate your coins.

The magic of delegation

Proof-of-stake networks allow users to participate by delegating tokens to validators. Think of delegation like giving someone your voting rights at a shareholder meeting. They can represent your stake in consensus, but they cannot touch your funds. The tokens never leave your account, they are simply “bonded” to a validator for as long as you stake.

In a way, this system balances security and scalability. Validators handle the heavy lifting of block production, and delegators get a share of the staking rewards.

The transaction signing process

Here’s where hardware wallets prove their worth. When you start staking, whether through Ledger or a Trezor  wallet, the process happens like this:

1. You choose the validator and staking amount in the software interface.
2. The transaction is packaged and sent to your hardware wallet.
3. Once connected, the wallet displays the full details on its tiny secure screen.
4. You physically confirm by pressing buttons on the device.
5. The wallet signs the transaction internally with your private key.
6. The signed transaction goes back to the interface and is broadcast to the blockchain.

At no point do your private keys leave the device. That physical step, pressing the button, is what makes non-custodial staking resilient against remote hacks.

How to stake on popular hardware wallets 

Here’s how staking works on hardware wallets in practice. These steps are easy to follow, but always check the official Ledger or Trezor guides before using real funds because they are always coming out with new updates.

How to stake with a Ledger device (via Ledger Live)

1. Install the coin’s app on your Ledger device (e.g., Ethereum, Cardano, Solana).
2. Open Ledger Live and go to the “Earn” (“Stake”) tab.
3. Select the amount you want to stake and choose a validator from the provided list. (Ledger Live also displays validator fees and commission rates.)
4. Confirm the transaction details on the Ledger’s screen.
5. Physically approve by pressing the confirmation buttons on your device.

Once staked, you can monitor your rewards inside Ledger Live itself. Some coins let you claim or re-stake rewards directly, while others auto-compound. You don’t need to keep your hardware wallet plugged in the whole time.

The wallet only needs to be connected when you set up staking (choose a validator, delegating your coins, or later claiming/re-staking rewards). Once the transaction is signed and sent to the blockchain, the staking happens automatically on the network itself.

How to stake with a Trezor device (via third-party wallets)

Trezor does not have built-in staking like Ledger Live. Instead, it integrates with trusted third-party wallets. Let’s run through what setting up staking on a Trezor looks like:

1. Connect your Trezor to a compatible wallet such as Yoroi (for Cardano staking) or MetaMask (for Ethereum staking).
2. Navigate to the staking (or delegation) tab within that wallet itself.
3. Pick a staking pool or validator.
4. Start the transaction, it will trigger a prompt on your Trezor device.
5. Verify the details on your Trezor’s secure screen and physically confirm.

The same principle applies, the software does the interface work, but the device guards your private keys and only signs once you confirm.

Popular cryptocurrencies for hardware wallet staking

Hardware wallets now support a wide range of proof-of-stake cryptocurrencies. Below is a list of the best ones available.

Staking crypto comparison chart

Coin	Network type	Typical annual yield	Notes
Ethereum (ETH)	Proof-of-stake	3-5%	Requires validator pools, unbonding period applies
Cardano (ADA)	Delegated PoS	3-6%	Rewards auto-compound, no slashing risk
Solana (SOL)	Delegated PoS	6-8%	High throughput, watch validator reliability
Polkadot (DOT)	Nominated PoS	10-14%	Active validator selection required
Tezos (XTZ)	Liquid PoS	4-6%	One of the first to support cold staking
Cosmos (ATOM)	Delegated PoS	8-12%	High variability, unbonding period of 21 days

Fig 1. – Staking cryptocurrency comparison table

Support for staking new coins is growing all the time. Both Ledger and Trezor continue to add integrations as proof-of-stake networks mature and gain adoption. What isn’t available today may become supported in the near future, so check their official websites or software updates regularly to see which coins can now be staked securely with your device.

Potential risks and important considerations

Before you start, it’s important to understand the main risks and limitations that are out there so you know exactly what to expect.

Validator risk (slashing and downtime)

Delegating to a validator is not risk-free. If the validator misbehaves, double-signs any blocks, or suffers from downtime, you could face slashing risk. Slashing is a partial loss of staked tokens as a penalty. This makes validator selection critical. Research uptime, commission rates, and community reputation and feedback before delegating.

Unbonding periods

Most PoS chains impose an unbonding period when you choose to unstake. For example, Cosmos has a 21-day window, while Polkadot has a 28-day window. During this period, funds are locked – you cannot transfer or sell them, even if market conditions change. Always keep spare crypto not staked to cover any expenses or fees.

Reward variability

Staking rewards are not fixed. They depend on validator performance, overall network staking ratio, and inflation parameters. One month might show 6%, another 4%. It’s best to treat staking rewards as fluctuating returns rather than a guaranteed yield.

Smart contract risks (liquid staking)

Some users pair hardware wallets with liquid staking services (e.g., Lido or Rocket Pool). While your private keys remain secure, you are now also relying on the smart contracts of the liquid staking protocol. Bugs, exploits, or governance issues can put your funds at risk even if the hardware wallet does its job.

Device risks

Finally, a practical but overlooked risk is physical device failure, loss, or theft. If your Ledger or Trezor is damaged, your funds are still safe, but only if you have your seed phrase backup stored securely offline. Without that, even the strongest cold wallet cannot save you.

The gold standard for earning crypto safely

Staking with a hardware wallet has become the gold standard for crypto investors who want both yield and peace of mind. It combines the steady flow of staking rewards with the unbeatable security of non-custodial wallets. Your private keys never leave your hands, your validator choices remain under your control, and your exposure to online threats is cut to near zero.

The trade-offs are manageable, you have to choose validators carefully, understanding slashing risk, and be aware of unbonding periods. That’s it. 

The bottom line is you do not have to choose between earning and securing. With tools like Ledger Live and Trezor staking integrations, you can grow your assets while keeping them safe in cold storage.