Crypto staking is a new way of earning rewards from your cryptocurrency holdings. It works a little bit like traditional stock trading, but with the added bonus of earning rewards for holding your coins.
What could be better than making a passive income with very little effort? One of the best ways to increase your investment in crypto is with crypto staking. Not only will you earn rewards by investing, but help to stabilize and increase the value of blockchain networks, which in turn boosts your projected returns. The best crypto staking platforms offer high returns of above 20% per annum. There are very few centralized investments that can offer investors those kinds of returns which is what makes crypto staking so attractive to investors.
You can make use of a staking platform to streamline and automate the process of staking crypto. With so many crypto staking platforms to choose from, we will go over our top 12 of the best crypto staking platforms for both old and new stakers alike.
Table of contents
- What is Crypto Staking?
- How to stake cryptocurrencies
- How to choose the best platform for crypto staking
- Best crypto staking platforms to earn passive income
- 1. Coinbase
- 2. Binance
- 3. KuCoin
- 4. Gemini
- 5. UpHold
- 6. CakeDefi
- 7. Kraken
- 8. BitStamp
- 9. MyCointainer
- 10. Stake.Fish
- 11. Crypto.com
- 12. eToro
- Conclusion
What is Crypto Staking?
Crypto staking is the process of holding onto your cryptocurrency in order to support the blockchain network and earn rewards. When you stake your coins, you are essentially locking them up so that they can’t be used for transactions. In return for supporting the network, you earn interest on your stake.
Staking is a great way to earn rewards on your investment without having to do any extra work. If you are interested in earning rewards from your crypto holdings, then staking is a good option for you. There are many different platforms that offer staking services, so be sure to do your research before choosing one.
In order to start staking crypto, you must choose a crypto asset held on a blockchain that supports proof of stake. A proof-of-stake blockchain is a type of blockchain that uses a different method of security than the majority of blockchains. With a proof of stake blockchain, participants holding crypto tokens deposit these tokens into the node they are voting for. This constitutes a "stake" in the network, and as such, these nodes can earn rewards for verifying transactions and maintaining the network.
Whereas with Bitcoin and other Proof-of-Work blockchain models, users who hold a large number of coins are more likely to be chosen to verify and append new blocks to the blockchain, with Proof-of-Stake this is not always the case.
Proof-of-stake blockchains use a different algorithm than proof of work blockchains. The most common algorithm used in proof of stake blockchains is called Delegated Proof of Stake. This algorithm requires users to be chosen as validators on the blockchain. This means that users who are chosen as validators are most likely to be chosen because they have earned the trust of the community. Proof of stake algorithms are popular because they are energy efficient and require less CPU power than proof of work algorithms.
To add new transactions to a ‘proof-of-stake’ blockchain, participants must first make a pledge to the protocol. From among these participants, the protocol then selects validators that will confirm blocks of transactions. The more crypto staking coins participants pledge (aka staking crypto), the higher chance they have of being selected as a validator and receiving a reward for successfully adding blocks onto the blockchain.
This acts as a security blanket to make sure that stakers are getting rewarded for picking out trustworthy validators, and losing out when backing bad ones. There are a number of different ways to take part in the staking process without needing too much technical know-how.
How to stake cryptocurrencies
Cryptocurrency staking is a process by which users can earn rewards for holding onto their digital assets. By “staking” or holding cryptocurrencies in a wallet, users can help validate transactions on certain Proof-of-Stake (PoS) blockchains and earn rewards for doing so.
In order to stake cryptocurrencies, users need to have a digital wallet that supports the cryptocurrency they wish to stake. Some popular cryptocurrency wallets that support staking include Trust Wallet, Atomic Wallet, and Coinbase Wallet.
Once you have a supported wallet, you will need to deposit your chosen cryptocurrency into the wallet. Once the deposit is confirmed, you will be able to start staking crypto assets and earning staking rewards!
There are a few different ways to stake crypto which we'll touch on below.
First up, To stake your cryptocurrency, you can choose an exchange to handle the details for you. The exchange will find a node for you to stake your cryptocurrency and take a commission from your investment.
Next, you could opt to join a staking pool. A staking pool is a collection of many crypto investors. These investors collectively invest their coins and share the profits of staking rewards, but need to be coordinated to avoid creating problems. Most pools are privately organized with high entry barriers because of the complexity involved.
Another option is staking through DeFi. DeFi is the opposite of the traditional financial system. It allows you to stake crypto using a smart contract. DeFi relies on a specific blockchain network to facilitate trade and provides income for investors without trying to convince them to invest in an organization's token. Without any middleman, DeFi staking is often much cheaper.
The final route is making use of a staking platform. One way to avoid pitfalls is to try staking services with the goal of uncovering sensible investments by entrusting them to the provider. They are useful because they offer a way to bypass some of the complexities while still being decentralized, which is one of the philosophical advantages of crypto investments.
We will cover some tips for choosing the best staking platform below because choosing the right one can be really tough.
How to choose the best platform for crypto staking
When it comes to choosing the best platform for crypto staking, there are a few things you need to take into account. First and foremost, you need to make sure that the platform is reliable and secure. There are a lot of platforms out there that are simply not worth your time or money. Second, you need to make sure that the platform has a good reputation. There are a lot of platforms out there that claim to be the best but don't live up to their hype. Finally, you need to make sure that the platform suits your needs. Different platforms offer different features and benefits, so it's important to find one that fits your particular needs. There are also a couple of other key factors to consider when choosing the best crypto staking platform.
User-friendliness
In order for a crypto staking platform to be successful, it must be user-friendly. If users are not able to easily navigate the platform and find the information they need, they will likely move on to another platform. A user-friendly crypto staking platform will have an intuitive design that is easy to use. It should also provide all of the information that users need in order to make informed decisions about their investments.
Competitive fees
When it comes to staking your cryptocurrency, you want to choose a platform with low fees so you can maximize your earnings. With a platform that charges high fees, you will end up losing a significant portion of your earnings to those fees. When choosing a crypto staking platform, be sure to compare the fees charged by each one so you can choose the one that will give you the most bang for your buck.
Network compatibility
Not all staking platforms support every single cryptocurrency and blockchain network. The majority support the big players like Ether, Bitcoin and Solana, but if you want to stake lesser-known alt coins, you should check that your staking platform is compatible with the network.
Client support
When you are choosing a crypto staking platform, it is important to consider the customer support that is available. A good customer support team can help you with any questions or problems that you may have, and they can also help to resolve any issues that may arise. Having a good customer support team available can make a big difference in your overall experience with the platform, so it is definitely something to keep in mind. Read a couple reviews of your shortlisted platforms to get a better sense of the type of support they offer.
Best crypto staking platforms to earn passive income
It's no secret that crypto staking has become one of the most popular ways to earn passive income from digital assets. But with so many different staking platforms to choose from, it can be difficult to decide which one is right for you.
To help you make an informed decision, we've put together a list of the best crypto staking platforms available today. We've also included a brief overview of each platform so you can easily compare and contrast the different features on offer.
So, without further ado, here are the best crypto staking platforms to earn passive income:
1. Coinbase
Coinbase Earn is one of the most popular crypto staking platforms and it's not hard to see why. With Coinbase Earn, you can easily earn rewards for participating in educational tasks and quizzes about various digital assets.
What's more, Coinbase Earn is one of the few staking platforms that allows you to earn rewards in multiple digital assets, including Ethereum (ETH), Stellar (XLM), Basic Attention Token (BAT), and 0x (ZRX).
The major drawback of the Coinbase platform is a hefty 25% fee on all staking rewards...this is the cost of a convenient and simple staking platform.
2. Binance
Binance is one of the world's leading cryptocurrency exchanges and it recently launched its own staking platform called Binance Earn. Binance Earn is a cryptocurrency staking platform that allows users to earn rewards for participating in the platform’s ecosystem. With Binance Earn, you can stake popular digital assets, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Binance Coin (BNB).
The platform offers a variety of staking options, including proof-of-stake (PoS) and delegated proof-of-stake (DPoS), and provides users with real-time reporting and an easy-to-use interface. Binance Staking also offers a mobile app, which allows users to stake their cryptocurrencies on the go.
The two cons of the Binance platform are that the platform requires you to hold a minimum amount of the digital asset in order to qualify for staking rewards. It is also only available to residents of selected countries.
3. KuCoin
KuCoin is one of the best crypto staking platforms available today because it offers some of the highest returns on investment for staking. KuCoin is very user-friendly and has a great user interface, making it a great platform for beginners.
They offer soft-staking whereby you don't have to go through a predetermined hard locking period. You also have the option of signing up for their fixed-length staking programs to up your odds of higher returns.
KuCoin has a very strong and active online community, which is always helpful in getting started with staking, especially if you've got questions or run into a problem. KuCoin also has a great mobile app, making it easy to keep track of your investments on the go. Overall, KuCoin is a great option for anyone looking to get into crypto staking.
Their high returns and user-friendly platform make them a great choice for both beginners and experienced investors alike.
4. Gemini
Gemini is a cryptocurrency exchange and custodian that allows customers to buy, sell, and store digital assets such as Bitcoin, Ether and Zcash. Gemini is one of the few licensed exchanges in the U.S.A. and it is also one of the first exchanges to offer staking for select digital assets. Staking on Gemini is currently available for Tezos (XTZ) holders.
When you stake your XTZ on Gemini, you earn rewards in proportion to the amount of XTZ you’ve staked and the length of time you’ve staked it for. The minimum amount of XTZ required to start earning rewards is 10,000 XTZ (approximately $2,500 USD).
Digital assets held in customer accounts are safeguarded by industry-leading security practices including multi-factor authentication and offline storage in air-gapped cold storage wallets.
Gemini's fees are fair at a small 1.49% commission on rewards over $200.
5. Uphold
Uphold is a crypto staking platform that allows users to earn interest on their cryptocurrency holdings. Users can choose to receive interest payments in either fiat currency or cryptocurrency. Uphold also offers a mobile app, which allows users to track their account balances and transactions anywhere, anytime.
Uphold offers a wide range of features, including:
● A wide range of cryptocurrencies supported including ETH, ADA, SOL, XTZ, ADA ● A user-friendly interface ● Continuous growth in their rewards program ● High returns of up to 19.5% per year ● Weekly staking rewards ● Free to unstake at any time, asset-dependent
Fees are a 15% commission on staking rewards.
6. CakeDefi
Cake Defi makes it easy for you to earn high interest. It is the only cryptocurrency platform offering transparent financial reporting, quarterly reports about its growth, roadmap, and reward distributions for easy comprehension. Transactions are automated and transactions made with Cake Defi yield a return of up to 15.5%.
Some of Cake Defi's other notable features include:
● Transparent fees and projected final amount upfront ● One-click unstaking ● Auto Compounding for the highest possible returns ● Checking node addresses ● No minimum coin amount limits
7. Kraken
Kraken is one of the most popular crypto staking platforms, and for good reason. It offers a wide range of features that make it an ideal platform for both new and experienced investors.
First of all, Kraken has an excellent user interface. This makes it easy to find information about your accounts and portfolios, and to make changes to your settings.
Second, Kraken is one of the most stable crypto staking platforms out there. This means that your coins will be safe even in times of volatility, and you won’t have to worry about losing any money if the market goes down.
Third, Kraken offers a wide range of features for earning passive income. You can earn interest on your deposited funds, or you can use Kraken’s arbitrage tools to earn money on the difference in prices between different cryptocurrencies.
Kraken estimates serious stakers can earn yields of up to 23% per year which is a huge profit compared to the traditional fiat savings/investment model.
In terms of fees, Kraken charges absolutely zero fees for both staking and unstaking, a big bonus for this staking platform.
8. BitStamp
BitStamp is the 11th largest crypto exchange out of over 300 listed on CoinMarketCap. If you hold a specific cryptocurrency for a set amount of time, BitStamp periodically pays you staking rewards.
BitStamp is one of the oldest and most well-known crypto staking platforms. It offers a wide range of features, including low withdrawal fees, user-friendly interface, and easy deposit and withdrawal processes.
BitStamp offers Algorand (ALGO) and Ethereum staking. Once you deposit your ALGO tokens, they are automatically staked 24 hours later with a 5% APR of the dividends. Dividends are sourced from the Algorand Community Governance Program and distributed quarterly. You can also choose to opt-out at any time, with no lock-up period for withdrawals.
In order to stake Ethereum, you need to migrate your ETH tokens and turn them into ETH2. This means moving them all to the beacon chain, only one of which will be left when Ethereum switches to using Proof-of-Stake protocol (TBA). Once migrated, all ETH is staked automatically, receiving up to 4.44% annually depending on the size of your stake. Rewards are distributed monthly but you can't use the funds until the staking period is complete, which will be when the Ethereum 2.0 upgrade is complete.
BitStamp offers a helpful FAQ section to understand ETH staking, before you proceed. There are no direct fees to any individual customer, instead BitStamp takes a commission of 15% from the rewards collected from the entire staking pool.
9. MyCointainer
First and foremost, MyCointainer offers an easy-to-use platform. You can start staking coins right away without any hassle. Secondly, they offer a variety of staking options. You can choose to stake coins using the automatic staking feature or you can manually stake coins following their step-by-step instructions.
Last but not least, MyContainer offers a high rewards rate for your investment. Every day, you can earn up to 50% staking rewards on your staked coins.
Their fees are ultra low, at only a maximum of 2% while most of the time ending up at under 1%.
10. Stake.Fish
Stake.Fish is an entirely non-custodial staking platform. Instead of reviewing transactions yourself, you can assign your cryptocurrency to a public validator node. For a small fee, the node will check whether transactions are legitimate and then update your own account with the new information. They have guides to show you how to delegate your coins on many different crypto networks.
Stake.Fish also happens to be one of the most popular crypto staking platforms. It allows you to stake your coins in a variety of different ways. You can stake your coins in order to earn rewards from the platform’s pool of tokens or you can use them to purchase tokens from the platform’s exchange.
Stake.Fish also has a wide range of features that make it a good platform for investors. It has an easy-to-use interface and it offers a variety of reward options which includes staking rewards, pay-per-share rewards and commission rewards.
Stake.Fish is one of the most popular platforms for crypto staking. It has an easy-to-use interface and a variety of reward options which makes it a good platform for investors.
They charge a flat fee of 0.1 ETH per validator for crypto staking, which is clearly mentioned on their website.
11. Crypto.Com
Crypto.com is a great crypto staking platform that allows users to earn rewards for holding their coins, up to 14% per annum for stablecoins.
Crypto.com offers a wide range of staking options including daily rewards, weekly rewards and monthly rewards. Users can also choose to stake their coins in a pool or individually.
The platform also has a user-friendly interface that makes it easy to manage your staking rewards. Their mobile app allows you to set your staking period - which can be flexible or long-term - with a couple of taps, allowing you to manage your investments on the go. Plus, Crypto.com offers a wide range of altcoins that you can stake your coins on. This means that there is a suitable staking platform for every type of user whether you're advanced or just starting out.
The way to increase your rewards is to add CRO tokens to the staking pool. As their native token, this is the way they compel users to hold CRO tokens.
Overall, the platform is straightforward, even for newcomers to cryptocurrency staking.
12. eToro Staking
eToro is one of the leading crypto staking platforms offering support to stake in Cardano (ADA) and Tron (TRX) in addition to Ethereum staking available only in selected countries.
It allows users to earn interest on their crypto assets by staking them with the platform. Staking is a process where users lock their assets in a secure wallet and wait for rewards in return.
There are several different types of rewards that eToro offers its users. These rewards can be in the form of tokens, cash back or you can earn staking rewards as a percentage return on invested capital.
eToro also has a very user-friendly platform. This means that even beginners can easily start staking their assets with the platform. Moreover, eToro offers 24/7 support, which makes it easy to get help if you run into any problems. The minimum holding period for ADA is nine days and for TRX, seven days.
Commission rates differ according to membership levels, with the lowest being for Diamond and Platinum+ members - 10% - and up to 25% for Bronze members.
Bottom Line
As a cryptocurrency investor, you're likely always on the lookout for the best possible ways to make money. One way to do that is by staking your crypto assets with a crypto staking platform. There are a number of these platforms available, and each one offers its own unique set of features and benefits. It's important to carefully compare all of them before deciding which is the best crypto staking platform for you, as not all platforms are created equal. Do your research and choose the one that will give you the greatest return on investment. Don't ever forget the golden rule of crypto staking - don't ever stake more than you can afford to lose!
