How to Stake Polkadot (DOT) using your Ledger device?

Setting Up Your Ledger for Polkadot Staking

1. Ensure your Ledger device is updated to the latest firmware version. Visit the Ledger Live application to check for updates and install them if necessary. An outdated device may not support the latest Polkadot app or staking features.

2. Install the Polkadot (DOT) app through Ledger Live. Navigate to the 'Manager' section, connect your device, and search for 'Polkadot.' Click install, and once completed, open the app directly on your Ledger.

3. Use a compatible wallet interface such as the official Polkadot.js Wallet. Access polkadot.js.org/apps in a secure browser session. Avoid phishing sites by double-checking the URL each time.

4. Connect your Ledger to polkadot.js.org by selecting 'Ledger' when choosing an account. The website will prompt you to allow access on your device. Confirm all actions physically on the Ledger screen to prevent unauthorized operations.

Selecting a Validator for DOT Staking

1. After connecting your Ledger, navigate to the 'Staking' tab within the Polkadot.js interface. Select 'Account Actions,' then choose 'Stash Account' to begin the staking process.

2. Choose 'Nominate' to assign your DOT to one or more validators. You can select up to 16 validators. Prioritize those with strong uptime, reasonable commission rates, and no history of slashing incidents.

3. Review each validator’s details directly on-chain. Key metrics include self-stake amount, number of nominators, era points, and whether they are currently active in the validator set.

4. Confirm your nomination selection on the Ledger device. Every transaction must be approved manually on the hardware wallet to ensure security. Do not proceed if the transaction details appear incorrect.

Bonding and Managing Your DOT Stake

1. Before nominating, you must bond your DOT tokens. Enter the amount you wish to stake and designate a stash and controller account. These can be the same account for simplicity.

2. Set a reward destination. Choose between receiving rewards to the stash account, a different address, or reinvesting them automatically to compound returns over time.

3. Confirm the bonding transaction on your Ledger. This action locks your DOT for a minimum period, and unbonding takes 28 days. Treat this commitment seriously, as funds are illiquid during that window.

4. Monitor your stake status through the Polkadot.js dashboard. Check nomination status, validator performance, and pending rewards regularly to ensure everything functions as expected.

Claiming Rewards and Adjusting Nominations

1. Rewards accumulate per era, which lasts approximately 6 hours. You must manually claim them through the 'Payout Stakers' function unless you’ve enabled auto-compounding.

2. Initiate a payout by selecting recent eras in which your nominated validators produced blocks. Each payout requires a transaction fee and Ledger confirmation.

3. Re-nominate periodically based on validator performance. If a validator goes offline frequently or changes commission terms unfavorably, switch to stronger candidates.

4. To stop staking, initiate an unbonding request. This starts the 28-day countdown after which funds become transferable again. Only one unbonding batch is allowed at a time.

Frequently Asked Questions

Q: Can I use multiple Ledger devices for different DOT accounts?Yes, each Ledger can store separate DOT accounts using different seed phrases. You can manage multiple staking positions independently by switching devices or accounts in Polkadot.js.

Q: What happens if my chosen validator gets slashed?If a validator acts maliciously or fails to maintain uptime, part of their staked DOT—including portions from nominators—is slashed. Your stake decreases proportionally, so validator reliability is critical.

Q: Is there a minimum amount of DOT required to stake?There is no fixed minimum set by the protocol, but network conditions and the bonding process may require a small amount of DOT to cover transaction fees. A few DOT are typically sufficient to start.

Q: Why does the Polkadot.js app show my Ledger as 'Not Connected' even when plugged in?Ensure the Polkadot app is open on the Ledger device itself, not just the device being powered on. Also, verify that browser permissions allow USB access and that you're using Chromium-based browsers like Chrome or Brave.