Staking is like a highly risky version of bank accounts. So here's a list of some of the best crypto staking platforms to do it right.
Crypto staking is analogous to fixed-term deposits but with added dangers of stocks. It's a complicated mix that needs thorough understanding before any investment.
And you can't stake just about every cryptocurrency. The ones that support the Proof-of-Staking consensus protocol can only be staked. Others, like Bitcoin, which have Proof-of-Work (aka crypto mining) for transaction validation, don't allow crypto staking.
So I hope you understand this upfront. But go through our crypto staking guide if you're new. This will only take about 5 minutes. I recommend reading before going ahead.
In a nutshell, crypto staking puts your cryptocurrencies in hibernation on an exchange or staking pool to get rewards after the lockup period.
But factor in the swinging prices of crypto coins, and you soon get the full picture.
Your staked crypto can plummet to the ground during the staking contract. Or everything can be super positive, with your coin touching the never imagined peaks, but you can't sell them. Thanks again to your staking terms.
Conclusively, you should not stake more than you can afford to lose.
Best Crypto Staking Platforms
With the formal warning out of the way, I'm going to tell you about some of the best staking platforms along with the reasons to choose them. In the end, you'll be able to select the crypto staking platform of your choice.
Don't wait. Dive in.
As of this writing,
Unstaking means taking out your staked amount to trade or withdraw. So practically, there is no bonding period.
In addition, you instantly earn staking rewards, with Kraken paying you once a week or more, depending upon the coin. And you can further stake your rewards to maximize your earnings.
Kraken calls this traditional way on-chain staking. However, they also feature off-chain staking available in select countries. Finally, Kraken doesn't charge any additional fee for staking or un-staking.
Binance is the greatest crypto exchange in terms of daily exchange volume. It's also one of the best crypto staking platforms supporting over 100 staking coins.
Binance has two types of staking: locked and flexible.
As evident by the name, locked staking is about a set bond period, while flexible gives you freedom at the cost of reduced staking rewards. Notably, locked staking also permits flexible withdrawals, but you'll be losing out on all your rewards.
Binance's locked staking generally holds our funds for a minimum of 30 days, but a few coins do allow a 10 or 15 days staking period. They often command higher annualized percentage yield (APY) and are safer.
Flexible locking periods come with DeFi staking. Here, you invest in 3rd-party DeFi projects which may result in the smart contract getting attacked and your staking amount biting the dust.
But the prime advantage of DeFi staking is that you don't have to maintain an on-chain wallet for every project you stake in. And then there are extremely short bond periods like most have 24h.
However, some may find Binance confusing. In that case, you can use their officially supported Trust Wallet and stake from it.
And like Kraken, Binance also doesn't charge any staking fee.
Simply put, masternodes have a greater stake, do slightly different things, and earn higher rewards than a regular node in a specific blockchain network.
As of this writing, the rewards you get are the collective sums from the regular and masternode staking. But MyContainer's FAQ section promises to display segregation in future updates.
Unlike most crypto platforms, MyContainer is regulated by the regional Financial Intelligence Unit (FIU).
Besides, you can set up a personal wallet and stake it through MyContainer. This means making use of your own private keys, which is arguably safer than regular staking. This is slightly more technical, but MyContainer has detailed guides to take you through.
Adding in the transparency, they clearly state the fee associated with the staking of particular coins. And yes, MyContainer lets you earn compound interest on the rewards to maximize profits.
Stake.Fish is a completely non-custodial staking service. They run public validator nodes on many crypto networks with detailed video guides for delegation.
This is similar to what we have just discussed about MyContainer. You assign your crypto to a public validator node, and they do the work on your behalf for a small fee.
Stake.Fish clearly mentions their service charges, expected rewards, bonding period, and payout intervals against all staking projects.
They might not have a single click staking solution like some in this list; regardless, this is one of the most secure ways of staking from your personal crypto wallet. The only staking method that can outsmart this is running a validator node yourself, requiring substantial investments and technical know-how.
Conclusively, this is one of the best crypto staking platforms if you can think ahead of one-click solutions.
Coinbase presents an effortless staking solution aimed at vanilla crypto users.
For staking at Coinbase, you can buy staking-supported crypto at their exchange or transfer from any external crypto wallet to your Coinbase account. Subsequently, the staking is available at the specific assets page within your portfolio.
This is by far the easiest method of staking, but the most costlier as well. The user agreement shows the commission charged by Coinbase.
They don't charge differently for specific coins like Stake.Fish, but you end up paying 25% of your staking rewards for the added simplicity.
The only advantage other than the simplistic procedure is there is no minimum staking limit, unlike Binance.
You can check out several cryptocurrencies to stake at Crypto.Com, including some stablecoins.
Interestingly, you can bump up your rewards by adding some CRO tokens to the staking pool. This seems a way to incentivize the use of CRO, which is their native token.
Overall, the platform is pretty straightforward, and even the newcomers will find it an excellent crypto staking platform.
eToro supports staking in Cardano (ADA) and Tron (TRX) with support to ETH staking in select countries.
The minimum holding period is nine days for ADA and seven days for TRX.
eToro commissions on the rewards are based on the user's club membership status. For instance, Bronze members pay the highest 25% commission while the Diamond and Platinum+ members take the smallest cut, 10%.
Finally, this crypto staking platform is best for those already associated with eToro to reap maximum benefits.
KuCoin proposes flexible or soft-staking, which comes without any hard locking period. However, you can also subscribe to their fixed-length staking programs to earn higher rewards.
KuCoin's soft staking programs come with a redemption period which is practically the time between you stop staking and regain access to the staked funds or rewards.
For instance, the Polkadot (DOT) has a 28 days redemption period. Fret not. That's one of the biggest redemption periods, with most other values lying around a week or even less.
However low, there are minimum thresholds that you need to hold for staking.
Finally, KuCoin is a reputed exchange worthy enough for people looking for a user-friendly crypto staking platform.
Few Pointers Before You Begin
Please note that the mentioned APY is generally awarded in the same coin. So, be extra careful while staking any specific crypto. Because even a seemingly lucrative return won't mean much if the underlying asset fails.
In addition, choosing a reputed staking platform is a no-brainer, even at the cost of lesser returns as you can also be subjected to slashing, which is a penalty dealt by the network upon the validator nodes for malicious behavior or just being offline. And every event of slashing eats away from your staking rewards.
Finally, don't get fooled by the no-staking fee banners. Instead, compare the APY between different platforms for the subject coin.
Simply put, the best options for savvy users are Stake.Fish and MyContainer. However, non-technical crypto people should try Binance, Kraken, or KuCoin.
But I'll repeat: Don't Invest More Than You Can Afford To Lose.
And I would take the liberty to suggest something out of the box with these fine wine investing platforms.
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