How To Stake BNB On Trust Wallet

DCV - November 8, 2021


This post will show how I staked my BNB tokens on Trust Wallet to get a 23% annual percentage rate return passively. Trust Wallet is a decentralized cryptocurrency wallet that the user has full control over similar to Metamask. I can send, receive, and buy crypto with Trust Wallet. Keep in mind, I'm not a financial advisor nor is this financial advice. Let's get started.

In addition to transferring and buying crypto, Trust Wallet has the ability to stake tokens. Staking is the act of depositing my crypto into a digital "vault" in order to help validate transactions on the blockchain. Staking is only available to blockchains that run on the Proof-Of-Stake (POS) consensus mechanism.

In return for staking my tokens, I receive some crypto back as a payment for helping secure and validate the transactions on the blockchain.

Buying BNB On Binance

First, I'm buying some BNB token on the Binance.us app using US dollars. I believe on Binance.com you can stake BNB directly but US citizens are restricted from Binance.com.

Here, I am purchasing at least 1 BNB since Trust Wallet requires a minimum of 1 BNB to stake. I tap the purchase button and that's it.

Transferring BNB To Trust Wallet

Next, after installing the Trust Wallet mobile app, I tap on BNB and then I tap on "Receive". This brings up the QR code and the wallet address to receive the tokens. I go ahead and copy the address with the "Copy" button at the bottom.

Then, I go back to the Binance app, tap on my BNB balance, and tap "Withdraw". I input the amount I want to withdraw and then tap "Preview Withdrawal".

Then, Binance brings me to this view where it asks me to select between BEP2, BSC or ERC20. These 3 options are token standards. BEP2 is the standard for the regular Binance blockchain, BSC (or BEP20), is the token standard for the Binance Smart Chain that extends functionality to smart contracts. ERC20 is the token standard for Ethereum-based tokens. BNB is not an Ethereum-based token so I'm not choosing that one.

If I select BSC and paste in my Trust Wallet BNB address, and then tap "Preview Withdrawal", Binance gives me an error message saying it's not a valid address. This is because the BNB tokens in Trust Wallet are BEP2 tokens.

Instead, I select the BEP2 tab and paste in my Trust Wallet address. In this case, there is no memo needed so I leave that blank. Then, I tap "Preview Withdrawal", make sure everything looks correct, and then tap "Withdraw BNB".

Staking BNB on Trust Wallet

After a few minutes, I can see the BNB balance update on my Trust Wallet app. Next, I tap on my balance, tap "Stake", and tap "Stake" again. This brings me to input how much BNB I want to stake. I just select the max.

Then, there's this "Validator" option. In this case, I'm joining a staking pool that is run by a validator. If you're familiar with Bitcoin, a validator on a proof-of-stake blockchain is comparable to a miner on the Bitcoin network. They just make sure the transactions are correct.

On BSCScan, you can take a look at the top validators that run nodes to secure the blockchain. Typically, validators that have a long track record and a decent amount of voting power are good ones to go with. So, I'm picking Coinlix because their first validated block was the 8th one, they're in the top 3 in voting power, and their interest rate payout is decent.

Here are the list of avaiable validators. "TW Staking" is Trust Wallets validtor node. I find "Coinlix" and select that. Right now, Coinlix is paying out an annual percentage rate of 23%.

After I select the validator, I tap "Next" and review the information. There is a very small network fee used to validate the staking that is charged. Nothing is paid to Trust Wallet though.

Finally, I tap "Confirm" to finalize the staking.

And that's it. Now, my BNB is earning passive income for me while securing the proof-of-stake network. Keep in mind this is earning at an APR so the rewards are not compounding. However, I can reinvest or re-stake my rewards to get the compounding effects. I can also re-delegate my funds to a different validator if I think Coinlix is not good anymore.

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