Staking cryptocurrency is one of the easiest ways to earn passive income, but manually claiming rewards can be tedious. Fortunately, Ledger Live offers ways to automate and optimize your staking returns—keeping your crypto secure while maximizing yield.
In this guide, we’ll cover:
✅ How auto-compounding works in Ledger Live
✅ Which coins support automated rewards (ETH, SOL, ADA, etc.)
✅ How to set up semi-automated staking for coins like DOT & ATOM
✅ Third-party tools for advanced auto-staking strategies
Please download the last update of Ledger Live Application:
1. Ledger Live for Windows 10/11
2. Ledger Live for MAC
3. Ledger Live for Android
How Staking Rewards Work in Ledger Live
Different blockchains handle staking rewards differently:
| Coin | Reward Distribution | Auto-Compounding? |
| Ethereum (ETH) | Auto-deposited | ✅ Yes |
| Solana (SOL) | Auto-deposited | ✅ Yes |
| Cardano (ADA) | Auto-deposited | ✅ Yes |
| Polkadot (DOT) | Manual claim required | ❌ No |
| Cosmos (ATOM) | Manual claim required | ❌ No |
| Tezos (XTZ) | Auto-deposited | ✅ Yes |
1. Fully Automated Rewards (ETH, SOL, ADA, XTZ)
These coins auto-compound—meaning rewards are automatically added to your staked balance without any action needed.
Example:
- Stake 10 SOL → Earn 0.5 SOL/month → New balance = 10.5 SOL (no manual claiming).
2. Semi-Automated Rewards (DOT, ATOM)
These require manual claiming, but you can use third-party tools (like Restake.app for ATOM) to automate the process.
How to Maximize Automation in Ledger Live
Option 1: Use Native Auto-Compounding Coins
- Best for: ETH, SOL, ADA, XTZ
- Steps:
- Stake via Ledger Live (Discover > Earn Rewards).
- Rewards auto-compound with no extra steps.
Option 2: Use Restake.app for ATOM (Advanced)
Since Ledger Live doesn’t auto-claim ATOM rewards, you can connect your Ledger to Restake.app for auto-compounding.
Steps:
- Go to Restake.app.
- Connect your Ledger (via WalletConnect).
- Enable auto-restaking for your validator.
- Approve transactions on your Ledger when prompted.
⚠ Note: This requires occasional manual approvals but automates the claiming process.
Option 3: Delegate to Auto-Compounding Pools (DOT)
Some Polkadot validators offer auto-compounding services (e.g., via Kraken or Fearless Wallet). However, this requires moving funds off Ledger (not recommended for large amounts).
Best Coins for Hands-Off Staking
| Coin | Auto-Compounding? | Best For |
| Ethereum (ETH) | ✅ Yes | Set-and-forget staking |
| Solana (SOL) | ✅ Yes | Instant rewards, no lock-up |
| Cardano (ADA) | ✅ Yes | Low-risk, no unbonding |
| Cosmos (ATOM) | ❌ (But can use Restake.app) | High APY (10-15%) |
| Polkadot (DOT) | ❌ (Manual claiming) | Long-term holders |
Risks of Automated Staking
- Smart contract risk (if using third-party tools like Restake.app).
- Validator slashing (rare, but can affect rewards).
- Tax complexity (auto-compounding may create more taxable events).
Final Verdict: How to Fully Automate Staking
- For true “set-and-forget” staking → Choose ETH, SOL, or ADA.
- For high yields with some automation → Use Restake.app for ATOM.
- For maximum control → Manually claim DOT rewards when optimal.
Pro Tip: Check StakingRewards.com for real-time APY comparisons.
🚀 Want effortless crypto income? Stake with Ledger Live today!