Wealthsimple Crypto Staking: Pros, Cons, and Fees (2024)

If you want to learn about the Wealthsimple Crypto Staking service, you have come to the right place.

Wealthsimple Crypto is one of the best crypto brokerages in Canada that offers a wide selection of 50+ cryptocurrencies. Recently, the platform added the Wealthsimple Staking feature that allows token holders to earn passive income to the tune of 4.5% APY on their idle crypto assets.

Read below to learn more about Wealthsimple staking fees, supported assets, staking rewards & risks, pros & cons of Wealthsimple Eth staking, and more.

Wealthsimple Staking Assets

So far, the Wealthsimple Crypto staking service supports two digital assets, namely:

• Solana (SOL)
• Ethereum (ETH)

Wealthsimple Solana Staking

You can stake your Solana coins on Wealthsimple and earn staking rewards at an APY rate of about 4.5% (after fees), paid out in SOL. You only need a minimum of 0.02 SOL to start staking, and you can unstake anytime.

There’s a warm-up period of 4-8 days before you receive your first staking rewards, after which future rewards are distributed within 2-3 days.

And the good part is that Wealthsimple automatically restakes your rewards so that you continue earning compounded yields on previously earned tokens.

Your staked SOL is also protected from slashing risks. That means you won’t lose your coins or any earned rewards due to any loss of assets arising from validators’ dishonest behaviour.

Wealthsimple ETH Staking

Wealthsimple supports Ethereum staking. You can expect to earn staking rewards at an APY rate of about 4.15% (after fees), paid out in ETH.

The minimum staking amount is 0.01 ETH, and there’s a warm-up period of 14 days before you receive your first reward, after which future rewards are distributed after 7 days.

But before you dive, it’s important to note that you won’t be able to unstake, trade, transfer, or access your Ethereum coins or any earned rewards for an unspecified period until the Shanghai Upgrade happens.

Since your rewards are locked, they also cannot be automatically restaked. This is an issue affecting all ETH staking platforms, not just Wealthsimple.

The Shanghai Upgrade is supposed to give Ethereum users access to their staked ETH and is scheduled for April 2023, but this date may change often. So ensure you only stake Ethereum coins you don’t plan to move soon.

Again, your staked ETH on Wealthsimple is not protected from slashing risks. You could lose your coins if a Wealthsimple Ethereum validator is cut due to dishonest behaviour that may result in the loss of assets.

To avert such risks, Wealthsimple vets its partner validators to ensure they have the staking sophistication required to minimize risk and guarantee uptime.

Is there Wealthsimple Cardano Staking?

As of this writing, Wealthsimple offers staking only with Ethereum and Solana and doesn’t support Cardano staking. However, they promise more coins will be added soon, so watch for updates on their staking products.

In the meantime, you can stake Cardano on NDAX, a Wealthsimple competitor dangling ADA staking at 3.5% APY.

Wealthsimple Staking Fees

Wealthsimple staking fees stand at 30% for both Ethereum and Solana, which is deducted from your earned rewards at distribution. Some Wealthsimple third-party validators may also assess a validator commission fee, which is separate from the Wealthsimple 30% rate.

But Wealthsimple keeps it simple for you. They say the 4.5% APY for Solana and 4.15% APY for Ethereum is after fees, so unless rates change, what you see is what you get.

How Wealthsimple Staking Works

Wealthsimple staking works through partnerships with vetted third-party validators. When you click to stake your crypto, Wealthsimple delegates your coins from the platform’s custodial wallet to their partners.

Your coins are then used to validate transactions, and you get paid part of the transaction fees and newly minted coins as staking rewards. When you unstake, your crypto is sent back to your wallet.

Wealthsimple Crypto Fees

To get started with Wealthsimple staking, you should have ETH or SOL in your Wealthsimple wallet, which you can buy from the Wealthsimple Crypto app. However, Wealtshimple Crypto fees of up to 2% can be expensive.

A better option would be to buy ETH or SOL from a cheaper exchange, like CoinSmart, and then transfer them to your Wealthsiple wallet.

How to Stake Ethereum and Solana on Wealthsimple

Staking crypto on Wealthsimple is straightforward. Follow these steps:

1. Log in to your Wealthsimple Crypto account ($25 bonus if opening a new account)
2. Buy ETH or SOL from the Wealthsimple Crypto app, or transfer from an external wallet
3. Choose the eligible coin you wish to stake from your Portfolio
4. Scroll down to Staking rewards, and tap Get started
5. Read the terms and tap I understand
6. Tap Confirm to turn on the staking feature. The entire amount of the selected coin will be staked
7. To unstake, simply tap to “flip the staking toggle back off”

Pros & Cons of Wealthsimple Staking

Pros

• A simple way to stake ETH and SOL with a few taps
• Staking rewards up to 4.5% APY after fees
• No lock-up period for SOL, unstake anytime

Cons

• Limited staking assets
• Unspecified lock-up period and slashing risks for ETH
• Locked assets and rewards could decrease in value if prices fluctuate significantly.

Wealthsimple Staking Summary

	Ethereum	Solana
Minimum amount	0.01 ETH	0.02 SOL
Yields ( after fees)	4.15% APY	4.5% APY
Warm-up period for the first reward	14 days	4-8 days
Future payout frequency	7 days	2-3 days
Slashing risk protection	No	Yes
Lock-up period	Till Shanghai Upgrade	Unstake anytime
Staking fees	30%	30%

Alternatives for Staking in Canada

You can also stake multiple coins on Bitbuy, Canada’s top crypto brokerage platform.

Bitbuy Crypto Exchange

Get a $50 bonus if your initial deposit exceeds $250

Trade approx. 40 coins

Great for new & advanced traders

0% to 2% trading fee

Rating

visit bitbuy Read review

FAQs

Related: Netcoins vs. Wealthsimple Crypto