Non-custodial staking means you stake from a wallet where you hold the private keys: you delegate directly to validators on-chain, the coins never leave your control, and everything is publicly verifiable. Custodial staking means a company (an exchange or a custodial wallet) holds your coins and stakes them for you, which is simpler but requires trusting that company. Non-custodial is best if you value control and transparency; custodial is best if you want the simplest possible experience.
Virtex Wallet offers both modes, so you can choose. This guide helps you decide. For the general concept of custody, see custodial vs non-custodial wallets.
Side-by-side comparison
| Non-custodial staking | Custodial staking | |
|---|---|---|
| Who holds the keys | You | The provider |
| Where the stake lives | On-chain, under your address | Provider's pooled accounts |
| Can you verify it? | Yes, on a public block explorer | Through the provider's dashboard |
| Choose your own validator | Yes | Usually no, the provider chooses |
| Setup effort | You sign transactions and pay network fees | A few taps; provider handles the rest |
| Recovery if you lose access | Only via your seed phrase | Account recovery with the provider |
| Main risk | Losing or leaking your seed phrase | Provider failure, freezes or mismanagement |
| Rewards | Network rate minus validator commission | Network rate minus provider's fee |
How non-custodial staking works
- You hold your coins in a wallet secured by your seed phrase.
- You pick a validator and sign a staking transaction.
- The stake is recorded on the blockchain, tied to your address.
- Rewards are paid by the protocol to your stake.
- Only you can unstake and withdraw.
Why people choose it:
- Truly decentralized. No middleman between you and the network.
- Fully transparent. Look up your address on Solscan, Etherscan, Tronscan or BscScan and see exactly what's staked and what you've earned.
- No counterparty risk. If a company goes under, your stake is unaffected because no company was holding it.
- You choose validators, which also helps keep networks decentralized.
The trade-off: you're responsible for your seed phrase. Lose it with no backup and nobody can help. Leak it and someone can take everything. Read what is a seed phrase before you start.
How custodial staking works
- You deposit coins with the provider.
- The provider pools deposits and stakes them with validators it chooses.
- It credits rewards to your account balance, minus its fee.
- When you unstake, it returns coins to your balance after the network's waiting period.
Why people choose it:
- Simplicity. No validator research, no gas management.
- Account recovery. Forgot your password? The provider can help you regain access.
- Lower minimums in some cases, because deposits are pooled.
The trade-off: you're trusting the provider's security, honesty and solvency.
Which should you choose?
Choose non-custodial staking if:
- You want full control and transparency
- You're comfortable backing up a seed phrase securely
- You want to choose your own validators
- You're staking amounts you'd be very unhappy to lose to a third-party failure
Choose custodial staking if:
- You're new to crypto and want the simplest start
- You'd rather have account recovery than manage a seed phrase
- You're staking smaller amounts while you learn
Many people do both: a smaller balance in custodial mode while learning, and long-term holdings staked non-custodially.
Staking in Virtex Wallet: both modes
Virtex Wallet supports staking on Solana, Ethereum, Tron, BNB Chain and other EVM proof-of-stake networks in both modes:
- Non-custodial mode: on-chain delegation from your own keys. Your stake is verifiable on public explorers and Virtex never has access to your funds.
- Custodial mode: Virtex runs pooled staking for you and credits rewards to your account. (Custodial mode isn't available in the EEA, the UK or the USA.)
Step-by-step guides: stake SOL · stake ETH · stake TRX · stake BNB
Common questions
Is non-custodial staking safer? It removes the risk of a provider failing or freezing withdrawals, and everything is verifiable on-chain. It adds the responsibility of keeping your seed phrase safe. For many users who back up properly, it's the safer long-term option.
Do custodial and non-custodial staking pay the same rewards? Both are based on the same network rate. The difference is who takes a cut: the validator's commission in non-custodial staking, or the provider's fee in custodial staking.
Can I switch from custodial to non-custodial staking? Yes. Unstake in custodial mode, wait for the unbonding period, move the coins to your non-custodial wallet and stake from there.
Is exchange staking the same as custodial staking? Yes. When an exchange stakes your coins, it's custodial: the exchange holds the keys.
Choose the staking mode that fits you: download Virtex Wallet on Google Play. Want to know the risks of each? Read is crypto staking safe? This article is general information, not financial advice.