Canadians are increasingly using crypto staking as a means to earn money without doing anything, while also supporting blockchain networks. It allows people to deposit their idle crypto assets onto a blockchain network that utilises Proof-of-Stake (PoS) to verify transactions. Crypto Prices Drop, In exchange, people who stake get incentives, which are usually delivered in the same cryptocurrency they staked.
This method of earning money is particularly enticing in Canada, where interest rates on regular savings accounts remain low. As decentralised finance (DeFi) grows and platforms that are easy to use become more popular, staking has become a smart and easy way for people who don’t want to trade to develop their crypto portfolios.
How Does Crypto Staking Work?
Staking refers to holding a cryptocurrency that operates on a Proof-of-Stake (PoS) or similar consensus system. In Bitcoin’s Proof-of-Work (PoW) system, people mine currencies. In Proof-of-Stake (PoS) networks, individuals “stake” their funds to help verify transactions and maintain network security. Stakers get prizes for taking part.
Here’s a simplified overview of how staking works:
-
You purchase or hold a cryptocurrency that supports staking (e.g., ETH, ADA, SOL).
-
You lock your coins in the network through a validator or a staking platform.
-
The network uses your stake to validate transactions.
-
You earn rewards periodically, based on the amount and duration of your stake.
While technically savvy users may choose to run their validator nodes, most beginners prefer to stake through centralised exchanges or non-custodial wallets that handle the process for them.
Why Are Canadian Investors Turning to Staking?
There are several reasons why crypto staking has become attractive to Canadian investors:
-
Low savings returns: Traditional bank savings accounts often offer minimal interest, making staking a more rewarding alternative.
-
Increased access to crypto platforms: Exchanges like Wealthsimple Crypto, Newton, and Shakepay, along with global platforms like Binance, have made staking easily accessible in Canada.
-
Supportive regulatory dialogue: Although Canadian regulators remain cautious, organizations such as the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) are actively working toward frameworks that support innovation while protecting consumers.
Combined, these factors create a promising environment for Canadians looking to explore staking as a legitimate investment path.
Best Cryptocurrencies for Staking in Canada
While many cryptocurrencies offer staking, not all are suitable for beginners. The following are among the most staked and beginner-friendly coins in Canada:
-
Ethereum (ETH) – With its transition to full Proof-of-Stake, ETH has become one of the most staked assets worldwide.
-
Cardano (ADA) – Known for its academic foundation and decentralised governance, ADA provides regular returns with minimal fees.
-
Solana (SOL) – Offers high transaction speeds and is widely used in DeFi applications.
-
Polkadot (DOT) – Features a unique multichain framework and robust staking incentives.
-
Tezos (XTZ) – One of the earliest PoS coins, with flexible and reliable staking options.
When choosing a coin to stake, consider factors such as:
-
Annual percentage yield (APY)
-
Lock-up duration and withdrawal flexibility
-
Network security and validator reputation
-
Inflation rate of the token
-
Project longevity and ecosystem development
How to Start Staking Crypto in Canada
Starting your staking journey in Canada is easier than you might think. There are two primary options for beginners:
Staking via Centralized Exchanges
You can stake straight from your account on platforms like Kraken, Binance, Coinbase, and Wealthsimple Crypto. They handle the technical details, select validators, and distribute rewards. This is great for novices who want to learn without having to do anything.
Staking via Non-Custodial Wallets
If you prefer more control over your assets, you can stake your coins using wallets such as Trezor, Keplr, or Ledger Live. Although this approach requires a greater understanding of the procedure, it often yields superior results and is more consistent with the decentralized nature of cryptocurrency.
In Canada, both approaches are popular and endorsed by the majority of major platforms. Additionally, many companies offer mobile apps that enable staking on the go.
Tax Implications of Staking in Canada
The Canada Revenue Agency (CRA) treats staking rewards as income. This means:
-
The fair market value of your rewards must be reported as income at the time you receive them.
-
If you later sell those rewards, you may incur a capital gain or loss based on their value at the time of sale.
To stay compliant, it’s recommended to use crypto tax tracking tools like:
-
Koinly
-
CoinTracker
-
CryptoTaxCalculator
Since crypto tax regulations in Canada continue to evolve, consulting a tax advisor familiar with digital assets is a smart move.
Safety Tips for Crypto Staking Beginners
Staking is generally safer than active trading, but it still comes with risks. Here are essential safety practices for Canadian stakers:
-
Use reputable platforms – Select exchanges or wallets with a strong security record and positive user reviews.
-
Enable two-factor authentication (2FA) – Add an extra layer of protection to all your accounts.
-
Secure your private keys – If using non-custodial wallets, store recovery phrases offline and never share them.
-
Research validators – Poorly performing or malicious validators can lead to “slashing”, where part of your stake may be lost.
-
Stay alert for scams – Always double-check URLs and be cautious of phishing emails or fake staking offers.
Following these tips helps reduce risk and makes the staking experience smooth and secure.
Future of Crypto Staking and DeFi in Canada
Staking is becoming increasingly dynamic as the blockchain ecosystem continues to evolve. The way individuals use cryptocurrency is growing due to concepts such as liquid staking, restaking, and DeFi integrations. Platforms such as EigenLayer, Rocket Pool, and Lido offer new opportunities to generate yield while maintaining flexibility.
Additionally, Canada is positioning itself as a centre for blockchain innovation. Biggest Crypto Airdrop, Web3 startups, vibrant crypto networks, and significant events, such as the Blockchain Futurist Conference, can be found in cities like Toronto and Vancouver. The Ethereum Foundation and other prominent organisations have recognised the global initiatives that Canadian developers are contributing to.
Crypto staking in Canada is expected to become even more popular, secure, and lucrative as infrastructure develops and regulations become clearer.
FAQs
Q1. Is staking crypto legal in Canada?
Ans. Yes. Crypto staking is legal in Canada. However, you must comply with CRA tax reporting and use trusted, regulated platforms.
Q2. Do I have to pay tax on staking rewards?
Ans. Yes. Staking rewards are considered taxable income by the CRA. You must declare the value of rewards at the time of receipt.
Q3. Which cryptocurrencies are best for staking?
Ans. Ethereum (ETH), Cardano (ADA), Solana (SOL), Polkadot (DOT), and Tezos (XTZ) are some of the most commonly staked coins in Canada due to their strong networks and reliable rewards.
Q4. Can I stake crypto using a mobile app?
Ans. Yes. Many exchanges and wallets offer mobile apps that support staking, making it easy to stake directly from your phone.
Is staking risky?
Staking is generally safe, but not risk-free. Risks include price volatility, validator errors, slashing, and potential platform failures. Conducting thorough research helps mitigate these risks.
