Saturday, May 18, 2024
Finance

Set Your Stakes High: The Best 5 Platforms For Crypto Staking

Crypto ecosystems are constantly evolving and providing crypto owners with new hopes and incentives to ‘buy the dip’ and HODL if we speak the crypto slang. Prices of crypto assets go up and down spectacularly, making some investors extremely rich and others regretting their bets, but the next month the situation may reverse completely. So, the decision to give crypto a try is basically a good one, since investing and building some passive income always starts with making the first cautious step (just remember to be really cautious and never invest what you cannot afford to lose).

So what are we trying to tell you here? We try to say that there are more ways to earn money with crypto than mining or trading actively, and the recent development – staking – is cited as the next really big thing in the crypto trading world. Probably you’ve heard about it already if you are reading this article and want to know more about crypto staking platforms. That’s we’ll try to zoom into some new developments and trends that stir the market while pointing you to services where you can stake crypto safely and with real profit.

So what’s staking in terms of its working principle?

We’ll try to make it as brief and simple as possible. Some blockchains use the proof-of-work model as their foundation, and some use proof-of-stake. Bitcoin is the most famous proof-of-work coin (and the iconic crypto as such), with Ethereum sitting next to it. Yet now Ethereum runs in two modes, proof-of-work, and proof-of-stake. Some newer coins – and their underlying blockchains – were built on the premise of proof-of-stake right from the start. 

In the proof-of-work model, coins are created and operations are validated through mining – solving mathematical puzzles. In proof-of-stake mode, transactions are confirmed by coins locked up in the system by users. This locking up is staking. More coins are staked – the faster the operations, the more stable the ecosystem, and the higher the price, if we put it like this. 

Proof-of-work consumes significant resources, electricity in particular, which is not great from many viewpoints, from financial to environmental. Proof-of-stake does not take up a lot of resources, it requires users just to buy coins and lock them up in the system for some time – for an additional reward. So, maintaining the ecosystem of the coin you own can also bring you additional income in form of an annual return. That’s the biggest reason making people flock to the staking opportunity, and that’s why we encourage you to try it, too.

Trendy stuff: what coins to stake now?

Well, by definition, you can only stake coins that run on the proof-of-stake blockchain. So, no, you cannot stake Bitcoin as is like you do with other coins. But you can stake Ethereum and coins related to it, as well as many newer altcoins that were designed on the proof-of-stake foundation.

The biggest trend and anticipation of the current time is the expected merge of Ethereum when its proof-of-stake and proof-of-work chains will merge into the single proof-of-stake chain. Yes, now everyone is talking about this merge, so we feel obliged to remind you of it to you – and in a good context. If today’s yields per annum for Ethereum staking are around 4-5%, then after the merge they are predicted to hike to 7% or even 12% per year. Well, it does not mean that you have to pour all you have into staking it, just keep this info in your focus for some time, at least. 

How are yields calculated? Well, for famous and established coins they are lower because many people are willing to stake them. There is no need to incentivize people to join in. For newcomers on the market that have not proved their usefulness yet, staking rates are higher in order to attract stakers and make the ecosystem function smoothly. 

For example, Solana as a popular token brings around 6% of yield, while Polygon MATIC can bring up to 19%. 

How to choose the best staking coins? Look for the projects that aim to bridge gaps between blockchains and help link them into a coherent financial system. It’s called interoperability and it allows blockchains ‘talk’ to each other. This is the hottest trend in the crypto trading world and DeFi ecosystem now, and coins issued by such projects are most wanted. 

So along with Ethereum, look to Solana (already mentioned here), Cardano, Polkadot, Metahash, Tezos, Algorand, and stablecoins. These are pegged to real currencies and are not as volatile as pure crypto coins.

Where to stake coins and how to pick the platform?

Now that you know what to stake right now (or how to pick coins), it’s time to look at the best platforms for staking. 

Every similar site may say that they are the best staking platform, but there are several criteria that can help evaluate the reliability of the platform more or less objectively. They are the security of your data and funds, offered yields, terms of locking up (minimum amounts, time), and a variety of tokens you can stake. When you look at the balance of all factors mentioned, you can pick the platform that meets your particular needs. And every investor has their own investment goals, which can differ radically from person to person.

aStake

We start with this one because it is very easy to navigate, is excellent for beginners, and offers an impressive annual percentage yield (APY). aStake currently supports one type of coin – MetaHash – that operates on the blockchain that focuses on interoperability and DeFi. Yes, it is this hot DeFi trend and the coin is still available for purchase at a low price, that’s why we point you towards it. The platform has a very simple interface and runs strict security protocols. Its narrow specialization and inbuilt layers of security make it an unlikely target of hacking, so that’s a serious claim of protection. 

Since the platform supports one type of coin and is dedicated specifically to staking, you don’t have to find your way around or pick among a huge variety of penny coins. Just purchase the MetaHash amount, pick the staking mode (for a longer or shorter time), and that’s it. The biggest incentive to use it is the size of APY – the impressive 17%. So in addition to the growth of the coins price, you get a reward of additional tokens, you don’t have to mine or make risky trading. You just sit back and watch your money grow. 

If you look for downsides, we can say that a relative minus of the service is the absence of other coins to stake. Yet platforms are different in their purpose, and this one is a mono-coin platform that has plenty of advantages of its own. aStake plans to add more coins in the future and is probably the best crypto staking place for beginners. 

Customers are generally happy with the staking service, it works stably, without glitches that may raise concerns. They don’t have a dedicated app yet, but it’s only a matter of time to develop one.

Crypto.com

Since its very launch in 2016, Crypto.com was a successful crypto exchange with hundreds of coins to buy and sell. It earned the reputation of a low-fee and user-friendly platform and so became popular even before launching its staking program. However, the key idea behind staking with Crypro.com is that you basically put your crypto up for lending to those in need of capital. When returning the loan, they will repay the interest as well. This process runs under the tag Crypto Earn on the service website.

The protection is guaranteed by the NIST Cybersecurity assessment of tier 4 (which is quite high). 

The APY depends on several factors. They are the kind of coins you stake, the time of staking, and access to the own Crypto coin – CRO. Iconic coins like Bitcoin and Ethereum will yield varied results of 6.5%, 8%, or up to 14%. Stablecoins will bring around 14% for staking, and other altcoins will have different levels of profitability below the threshold we just mentioned. CRO staking will bring an even higher yield, but it depends on the number of coins you stake (the more the higher APY).

You can choose different time frames for staking from one to three months to flexible schemes. Payment of yield is made weekly. 

On the downside, Crypto.com offers a very particular kind of staking, if we call it that, so decide if you want to loan your coins to anyone.

Reviews by users are mainly positive; there are some reports on technical glitches but they are relatively few compared to the scales of operations run on the platform daily. In particular, customers comment that the platform regularly pays out the yield and protects coins locked up for staking.

Binance

Binance is another famous crypto exchange that offers staking services. It has a very sophisticated interface with plenty of options, but it may be a bit confusing for a newcomer. So take your time to learn what is what before you start your activity. The platform is known for the highest APYs in the field because it allows the staking of more than 100 coins, some of the new and risky. 

Logically, the riskier the asset, the higher the APY. Remember it. It explains the whopping 238% APY for Moonbeam (GLMR), so research the coins that offer such high yields first. It will help you decide whether you want to stake them at all. Besides, the most lucrative offers are usually promotional ones and do not last long, so you’ll have to act fast to get this best staking crypto deal. 

More traditional assets like established altcoins or stablecoins will bring the standard yield to around 8% or 10%. That’s the safest option so far, but the decision is yours to make.

Binance is acknowledged as a money transmitter (payment system) in some US states, so this fact attests to the security of the platform.

The time and conditions of staking also depend on the assets you choose, so for every coin, you’ll need to read the fine print first. Staking may be obligatory for 90, 30, or 10 days, and APY will be affected by the chosen staking time.

On the downside, many users complain about the app that is not working properly after the recent update. There are many complaints, so you’d better use the desktop version until the app is fixed. Since the platform holds a license of a money transmitter, it sometimes overdoes with security and checkups, so don’t be afraid if some transaction is postponed until its details are clarified. This delay is usually resolved quickly. These are the points that recur in the users’ reviews, so decide if the platform has more pros or cons for you.

Kraken

Kraken is a real beast in the field of crypto exchange due to its sophistication and wide selection of coins to trade. The platform has added staking to the list of options, but with limitations. With Kraken, you can stake only 8 kinds of coins (Polkadot, Kusama, Kava, Ethereum, Cosmos, Flow, Tezos, and Bitcoin (off-chain). Yes, Kraken is the place where to stake bitcoin, one of the few. Besides, you can stake some fiat currency directly, and it will be more profitable than keeping it as a deposit in the bank. 

If this limited choice suits you, welcome to this powerful service, maybe even the best place to stake crypto. Its reputation is solidified by a serious approach to security and to its financial capacities. Kraken offers several methods of payment for buying coins (depending on the currency you use). Debit card payments are allowed for CAD only, while other currencies can be debited by bank transfer, SWIFT, or wire transfer. 

TheAPY distribution is uneven across coins and depends on their popularity and riskiness. For example, Bitcoin can be staked for 0.25% (yes, a quarter of one percent), Ethereum can be staked for rewards from 5% to 17% depending on the time of staking, and other altcoins can bring you from 12% (Polkadot and Kusama) to 4%, 5%, or 7%. The highest APY is 20% for staking FLOW. 

The time of staking depends on the coin, so read all the terms and conditions before staking it. 

The only downsides we can name are the limited number of coins and maybe not the most convenient payment methods. However, they are balanced by the high security and reliability of the platform.

Users leave mostly satisfied reviews, the platform protects the staked coins from theft and pays out the yields regularly according to the conditions of the particular contract (by which we mean your staking action).

Coinbase

We list Coinbase here because of its flawless reputation and protection of assets of people who use its services. As such, Coinbase is a big crypto exchange (many platforms began like that and later added staking to the menu). It offers a wide variety of coins to trade, but only 6 types of coins are available for staking. Now, this list includes Ethereum, Tezos, Dai, Algorand, Cosmos, and USDC, maybe later more coins will be added. However, as you can see by the type of coins (proof-of-stake blockchains) it is actually staking, not loaning or any other kind of activity involving coins. So that’s a very big plus of the service. 

In other respect, its interface is simple and its use is easy. The service is listed on NASDAQ, which speaks a lot about the level of security maintained. 

On this platform, APY, time of locking, and payout regularity all depend on the type of asset you plan to stake. USDC (stablecoin) will bring you only up to 2% of APY, while altcoins will get you up to 5% of APY. The same applies to the time of lock-up and payout – different coins offer different conditions.

So all in all, Coinbase offers a minimalist approach and flexibility. On the downside, APY is low compared to other platforms. On the upside, the security level is excellent and support is helpful.

People are mostly happy with the staking service of Coinbase, the repeated question being when more coins will be added to the staking list of this yet another best crypto staking platform.

Summary

All in all, if you ponder over the question of where to stake crypto, you will find plenty of answers. Some staking platforms are newer, and some are more established and offer a whole array of other services. We list only the most popular ones, although there are more services out there on the web. Whether you pick the platform we describe or choose something totally different, it is your right and as an investor, you should make your own informed decisions. 

The key here is the word ‘informed’. So before you hit the Stake button, read carefully what is said in big letters and in fine print, decide on the level of risk, and only then invest your money.

We tried to recommend you the safest platforms that can meet the needs of new investors and weathered crypto wolves. So read, evaluate, explore the service that interests you in detail, and start building your financial security right now!

Editorial Team

iDeal BlogHub's Editorial Team delivers high-quality, informative content across multiple niches. Led by an experienced editor-in-chief, their expertise spans industries to provide unique perspectives.