The 5 Best Platforms to Stake Your Cryptocurrency
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Crypto staking offers the prospect of earning passive income on idle crypto assets. However, selecting the right platform to stake crypto is key to earning substantial rewards and maintaining the safety of your tokens. So what are the best crypto platforms to stake your cryptocurrencies?
Binance enables you to earn rewards from staking over 100 crypto assets, as it is easy to stake on the platform with the assets in your spot wallet. However, you can't withdraw or use your crypto assets during the staking period, as they will be locked on-chain.
Binance thoroughly vets all the projects it supports and confirms that they have liquidity in a bid to secure user funds. The exchange also employs several state-of-the-art security methods to secure you and your assets.
There are several staking opportunities available on Binance.
Binance DeFi Staking
With the DeFi flexible plan, you can unstake your tokens anytime, but with the locked plan, you can only unstake after the plan's duration has expired. After choosing a DeFi staking project, selecting a plan, and determining a duration, you'll see the minimum amount you can stake and the estimated annual percent yield (APY). The interest on your staked assets will be calculated starting at midnight the next day and paid into your spot wallet daily after midnight.
Binance Simple Earn
You can deposit your assets for a locked or flexible term to earn daily rewards. The rewards are deposited into your spot wallet daily between 12am and 8am.
You will acquire new tokens if you stake Binance Coin (BNB), Binance USD (BUSD), and other tokens using the Binance Launchpool. Staking these assets helps to farm new tokens. You can view the available projects and the staking options on the Launchpool page and redeem your staked assets anytime.
Binance ETH 2.0 Staking
With Binance ETH 2.0 staking, Binance stakes your ETH tokens for you, and you pass your validator and staking rights to Binance. With this plan, you can only stake for a locked term. Your rewards start accruing after the subscription date and will be deposited in your spot wallet daily between 12am and 8am.
The reward will be paid in Beacon ETH (BETH), pegged 1:1 to ETH. Note that you may receive staking rewards different from the rates published on the subscription date. It also means that the staking rewards may be less than the on-chain rewards you signed over to Binance.
Kraken offers you the chance to earn up to 21% yearly on on-chain and off-chain staking. You can stake your assets on Kraken or Kraken's internal programs via Kraken. Off-chain staking is only available for countries that Kraken deems to be eligible.
There are over 15 staking projects on Kraken. And you can begin staking with a few clicks to earn rewards. You can also unstake your assets anytime without incurring penalties.
The staked assets must be held in your Kraken spot wallet. Kraken's yearly rewards differ based on the project and are subject to Kraken's terms and conditions. The rewards are largely paid bi-weekly, although the rewards for some projects are distributed weekly.
When you stake your assets via Kraken's on-chain staking service, they will not be available for trading and withdrawals. However, Kraken offers financial stability, full reserves, strong banking partnerships, and strict legal compliance standards.
With Coinbase, you can stake some of the best crypto assets to earn up to 5.75% APY. Each crypto project determines a minimum staking amount and APY, which Coinbase deducts a fee from. Coinbase also receives a commission on staking rewards.
You can unstake your digital assets anytime when you stake on Coinbase. However, a few crypto projects implement waiting periods after you initiate the process. In this case, you must wait until the waiting period is over before you can withdraw or transfer your assets.
Coinbase takes some measures to reduce risks. For example, if you unstake your assets too early or if your assets plunge below the minimum stake amount, maybe due to a bear run, you may not receive staking rewards. However, you will always maintain total ownership of your staked assets.
Alternatively, you can stake off-chain on over 25 networks via Coinbase to earn rewards. This involves delegating your assets, which you custody, or working with Coinbase to create non-custodial, managed, dedicated validators. Coinbase Cloud maintains off-chain staking, providing high-grade security and a proposed 99% uptime guarantee so your staked tokens can keep earning rewards.
KuCoin offers flexible and fixed staking terms for over ten crypto projects. You can redeem your assets anytime if you employ the flexible staking term, but your assets will be redeemed automatically when your fixed staking term matures. Despite its lack of flexibility, the fixed staking term offers higher yields.
With KuCoin, you can trade your staked tokens in KuCoin's liquidity trading market. You may also transfer ownership of your staked crypto assets or redeem them before they mature.
KuCoin uses historical market data to calculate the APR, so it may not reflect your actual profits. Apart from your staking rewards, you'll receive Proof Of Liquidity (POL) credits. These rewards make up your reference annual yield, calculated based on the tokens held in your account.
KuCoin will deduct POL staking fees of 8% from your POL credits. In addition, KuCoin employs 24/7 monitoring and robust encryption algorithms to secure the assets of its users. Also, the platform uses leading industry technologies to ensure platform security.
Bybit Savings, the platform's staking service, offers flexible and fixed staking product terms for over 20 crypto projects.
With the flexible staking term, you will receive daily yields depending on the type and amount of tokens you staked and the current market conditions. Bybit will begin calculating your yield on the day after your subscription date and will begin depositing into your earn account on the second day after your subscription date. You can unstake your assets anytime here; however, you won't receive any yield for the day you unstake.
A unique feature of Bybit Savings is that you can choose an APY booster when opting for a flexible staking term. Once Bybit starts calculating your yields, the additional yields from the APY booster will be included until it expires or you exceed the limit. The APY booster will automatically continue running if you don't exceed the limit and purchase another flexible staking plan.
When you opt-in for a fixed staking term, the APY and staking duration are fixed. You can only unstake once the plan concludes. And you'll receive your crypto assets, along with your yields, after the staking period matures. Like the flexible term, Bybit begins calculating your yields for the fixed term on the day after your subscription date.
Like Binance, Bybit also offers a launchpool. You can earn free tokens when you stake on Bybit Launchpool, and you can unstake your assets anytime. Immediately after you stake, Bybit will begin calculating your daily yield. Your daily yield is determined based on the tokens you provide to each pool and the total number of tokens in the pool provided by all the participants.
3 Key Factors to Consider When Choosing the Best Platform for Crypto Staking
Consider these factors when choosing a platform for crypto staking.
1. Lock-Up Periods
When you stake your tokens, a lock-up period is usually required. However, some platforms enable flexible staking. When selecting a platform, consider if the lock-up periods favor you and if flexible plans are available.
2. Staking Rewards and Fees
While most platforms do not charge staking fees, some do. When selecting a platform to use, subtract any fees from the rewards obtainable to determine your net reward. Then, combine the net rewards of all the platforms available to you to select the most profitable option.
3. Security and Storage
Usually, the wallet you'll use to stake will be custodial, meaning the staking platform will maintain it. If the platform is not secure and hackers attack it, your staked crypto assets will be at risk.
Earn Good Rewards by Staking Your Cryptocurrency
With the right staking platform, you can earn good rewards from staking your crypto assets. Since these assets would otherwise be idle in your wallet, putting them to work for passive income is a great idea.
However, there are risks associated with cryptocurrency staking, including the market's volatile nature, so carrying out research and selecting the best staking platform is essential.