Whether you are a budding crypto investor or a curious investor dabbling with these digital tokens to get good returns on your investment, there is a lot to learn. For the uninitiated, buying low and selling high is the most popular way to make money off of crypto. For many others, crypto mining is the go-to method.
While many “market experts” claim otherwise, cryptocurrency can be an excellent way to create a passive income stream as well. How? Through Crypto Staking.
By locking up your existing crypto holdings to aid running blockchains for certain cryptocurrencies, you can earn rewards with virtually zero effort. In the world of crypto, there is a lot of money to be earned through crypto staking. If you are interested, you must know choosing the right crypto staking platform is critical to success. If you are new to the cryptocurrency world or are still learning about crypto staking, identifying the best crypto staking platforms might be difficult.
To help you pick the perfect fit that delivers you sizeable returns on your investment, this article will give you an overview of the best crypto staking platforms right now. From giving you a quick overview of each platform to why we picked it and its pros and cons, this guide will cover everything you must know.
“Crypto staking” is the process of locking up cryptocurrency in a crypto wallet to support the underlying blockchain network. When a blockchain uses the “Proof-of-Stake” consensus mechanism, crypto staking helps the blockchain operate more efficiently. Users staking their crypto holdings receive rewards from the platform in the form of dividends or interest.
Several types of platforms allow you to stake cryptocurrency. Cryptocurrency exchanges, cold or private wallets, and staking-as-a-service platforms are the most common sources to leverage crypto staking. Among them, cryptocurrency exchanges have established themselves as the best bet for most.
Statista indicates that over $47 billion was invested across the top 5 crypto staking platforms by the end of 2022, suggesting there is much more to come in the next few years. As the crypto winter thaws, it could be the perfect time to avoid missing out on this massive opportunity. To jump on the bandwagon before it soars out of reach, here is a look at the best crypto staking platforms available to you right now.
For crypto enthusiasts, Binance needs no introductions. As the world’s largest crypto exchange, it has also established itself as one of the top crypto staking platforms. The US arm of the world’s largest crypto exchange features “DeFi staking” for over 14 crypto tokens. It offers APRs ranging from 0.2-6%. While it has minimum staking amounts depending on each coin, Binance is the most affordable crypto staking platform due to its low fees of just 0.1%. By paying in the platform’s native coin, Binance Coin (BNB), you can reduce the fee further to 0.075%.
|Well-established platformOffers choice between fixed or flexible lock-in periodsPays out crypto staking rewards dailyOffers up to 6% APR||Offers ETF 2.0 staking but pays out in BETH, not in ETHDoes not accept US DollarsMore crypto tokens for staking are available at the parent exchange which is unavailable in the US.|
For a beginner, Coinbase can be one of the best crypto staking platforms in the market. The user-friendly crypto exchange has a clean and intuitive interface easy for everyone to navigate, from beginners to seasoned crypto investors. To stake crypto, it is very easy to navigate to the “Earn” tab and complete the process. With a minimum staking amount of just $1, it can let you earn up to 10% APY. While the underlying blockchain network may require “cooldown” times before you can trade them, there are no lock-up periods when staking crypto through Coinbase.
|Highly user-friendly platform and staking process Allows staking with as little as $1Offers high-yielding APYs||Extensive Know Your Customer requirements to sign up to the platformLimited selection of crypto coins qualified for staking and rewardsCharges higher fees than other crypto exchanges|
The lesser-known of the three, YieldFlow is not a crypto staking platform to shrug off. Steadily becoming more popular among the best crypto staking platforms, it requires users to provide liquidity to decentralized exchanges, allowing them to benefit from transaction fees. The platform’s native crypto allows diverse staking options.
|Offers diverse earning opportunities like lending and yield farming besides staking.Provides support for several ERC-20 tokens for crypto stakingReduces KYC requirements through smart contracts||Market volatility can negatively impact actual returnsRelatively newer platform in the marketDoes not offer a native mobile app|
Is Crypto Staking a Good Way to Earn Money?
As the Proof-of-Stake validation method becomes increasingly common among emerging blockchain networks and the DeFi space expands, crypto staking will become more popular. Offering better energy efficiency, reduced transaction processing times, and more predictable rewards, emerging blockchain networks still lead to a greater demand for staking and the best crypto staking platforms.
Granted, you need a higher risk tolerance due to market volatility, staking lock-up periods, and major hacking incidents, but the reward may be worth it. Still, understanding the risks involved and making well-informed decisions is critical to being successful with crypto staking.