Staking, explained for Australians
Staking is the closest thing crypto has to a savings account — but with very different risk. By locking up coins to help secure a proof-of-stake blockchain, you earn newly issued coins as a reward. Yields vary by network and by how much of the total supply is staked, but most major chains pay between 3% and 8% per year on the coin you staked. That headline number is the easy part. The harder question is what those rewards are worth in AUD over time.
Why this calculator uses a price multiplier
Earning 5% more SOL is wonderful when Solana is rising. It's much less impressive when the SOL price halves and your rewards lose more value than they earned. Use the "future price" multiplier to stress-test your scenario — try 0.5× (price halves), 1× (unchanged) and 2× (doubles) to see how price risk dwarfs APY over a multi-year horizon. The honest takeaway: staking yield is a small bonus on top of a directional bet, not a replacement for one.
Native staking vs exchange staking
Most Australian exchanges offer one-click staking on Ethereum, Solana and Cardano. It's convenient but they typically take 10–30% of the rewards as a fee and you give up custody of your coins. Native staking via a hardware wallet keeps the full yield and the keys in your hands, but it requires more setup and you need to understand unbonding periods (how long it takes to un-stake — often 7–28 days). Neither is "better"; they suit different priorities.
Don't forget the tax angle
The ATO treats staking rewards as ordinary income at the AUD market value on the day you receive them, not the day you sell. That means you can owe tax on rewards even if you never converted them to AUD. Keep daily records, and when you eventually sell, a second CGT event applies on any price change since receipt. Use the AU crypto tax estimator to ballpark the impact.
For a passive long-term strategy that pairs well with staking on the same coins, see the DCA calculator.