Cryptocurrency enthusiasts and blockchain developers alike are increasingly drawn to the Cosmos ecosystem for its interoperability, scalability, and decentralized governance. At the heart of this network lies ATOM, the native staking token of the Cosmos Hub—the foundational blockchain in the Cosmos network. This guide walks you through acquiring ATOM and putting it to work through staking, allowing you to earn passive income while actively supporting network security.
Setting Up Your Keplr Wallet
Before you can interact with the Cosmos Hub, you’ll need a secure, non-custodial wallet. Keplr is the most widely used wallet in the Cosmos ecosystem, offering seamless integration with decentralized applications (dApps) and staking platforms.
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To get started:
- Open Google Chrome and visit the Keplr Chrome Web Store page.
- Click “Add to Chrome”, then confirm by selecting “Add extension”.
- Once installed, locate the Keplr icon (puzzle piece) in your browser’s extension toolbar.
Keplr is non-custodial, meaning you are fully responsible for your funds. No recovery options exist if you lose your password or recovery phrase. Always store these securely—offline if possible.
Click the Keplr extension and select “Create a new wallet.” Choose “Create new recovery phrase” and carefully record the 12- or 24-word mnemonic seed. Never share this with anyone—not exchanges, validators, or support teams.
After confirming your seed, set a strong password (used to encrypt the seed on your device) and name your wallet. Then, select the blockchains you want to connect to, including Cosmos Hub.
You’re now ready to receive ATOM. Your wallet address (e.g., cosmos1...) can be copied from the Keplr dashboard. This public address is safe to share—it’s how others send you tokens.
Purchasing and Withdrawing ATOM
To participate in the Cosmos Hub, you’ll need ATOM. Purchase it on a trusted cryptocurrency exchange like OKX, Binance, or Kraken.
While exchanges hold your assets in custodial wallets, true ownership comes only when you control the private keys—achieved by transferring ATOM to your Keplr wallet.
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Follow these steps:
- Copy your Cosmos Hub address from Keplr.
- On your exchange, initiate a withdrawal of ATOM to that address.
- Confirm the address matches exactly—errors can result in permanent loss.
- Note the transaction fee; exchanges often charge higher fees than on-chain costs.
Within minutes, your ATOM should appear in Keplr. The balance will reflect slightly less than the amount sent due to fees.
Now that you own ATOM, you’re no longer relying on a third party. You’re in full control—ready to transact, stake, and earn.
Staking Your ATOM for Passive Income
Holding ATOM is just the beginning. By staking, you contribute to network security and earn yield in the form of block rewards.
Here’s how it works:
- Validators run nodes that process transactions and create blocks.
- Delegators like you assign their ATOM to validators, increasing their voting power.
- Rewards are distributed proportionally, minus validator commission.
Staking does not mean giving up control. Your ATOM remains yours—validators cannot move it. However, staked ATOM is locked and requires a 21-day unbonding period if you decide to withdraw.
Choosing a Validator
In Keplr, click “Stake” and select Cosmos Hub. You’ll see a list of validators. Consider these factors:
- Uptime: High uptime means consistent block production.
- Commission Rate: Lower rates mean more rewards for you.
- Voting Power: Larger validators produce blocks more frequently but offer smaller, regular payouts. Smaller ones offer less frequent but larger rewards—long-term returns are similar.
- Avoid validators with 100% commission—they don’t share rewards with delegators.
For best results, pick a reliable validator with strong performance metrics. You can research validators on Mintscan.
Delegating Your Stake
Select a validator and click “Stake.” Enter an amount—leave at least 0.1–0.2 ATOM un-staked for transaction fees.
For example, stake 0.8 ATOM from your 0.9 balance. Choose a low transaction fee if timing isn’t critical.
After confirming with your password, the delegation is complete. Within minutes, your stake is active.
Earning and Claiming Rewards
Rewards accrue when your validator produces blocks. With a small stake, growth is slow—expect to wait about 10 days before rewards exceed transaction fees.
When ready, return to Keplr, navigate to your staking dashboard, and click “Claim Rewards.” Again, use low fees to preserve profits.
Claimed rewards go directly to your wallet balance. You can spend them or re-stake to compound returns over time.
Frequently Asked Questions
Can I lose money staking ATOM?
Yes, through slashing—a penalty applied if a validator misbehaves (e.g., double-signing blocks). The risk is low with reputable validators, but never stake all your funds with one node.
How often are staking rewards distributed?
Rewards are issued per block (approximately every 6–7 seconds). However, they only become claimable when your validator produces a block—frequency depends on their voting power.
Is there a minimum amount of ATOM needed to stake?
No official minimum exists, but you need enough to cover transaction fees for staking and claiming. Holding at least 0.3–0.5 ATOM ensures usability.
Can I unstake at any time?
Yes, but unstaked ATOM enters a 21-day unbonding period before becoming spendable. Plan accordingly if liquidity is needed.
Do I retain voting rights when staking?
Yes! Delegators can vote on governance proposals using their staked ATOM. Participation strengthens decentralized decision-making in the Cosmos ecosystem.
What happens if I lose my Keplr wallet?
If you’ve saved your recovery phrase, you can restore access on any compatible wallet. Without it, funds are irrecoverable—emphasizing the need for secure backups.
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Final Thoughts
You’ve successfully acquired ATOM, secured it in a non-custodial wallet, and put it to work through staking. This isn’t just about earning passive income—it’s about becoming an active participant in a decentralized, interoperable future.
By delegating to validators, you help secure the Cosmos Hub, promote network resilience, and contribute to the broader interchain vision. Whether you're building dApps or simply growing your portfolio, staking empowers you to do more with your crypto.
As you continue exploring Cosmos and other proof-of-stake blockchains, remember: control, responsibility, and opportunity go hand in hand.
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