Stepping into the crypto space is not limited to buying, selling, or trading digital assets. There are several other concepts one needs to be familiar with, such as crypto staking.
The crypto space offers a lot of opportunities for people to benefit from blockchain technologies, even though the profits are never guaranteed and are accompanied by risks. However, knowing as much as you can about different opportunities can increase your chances of success.
In this article, we will take a look at the major details encompassing staking and also learn about some of the top crypto staking platforms.
If you are looking to leverage trade Bitcoin up to 100x, sign-up on Bybit today. You can also use this link to claim a bonus on your first deposit.
Claim up to $4450 in Bonus
What is Crypto Staking?
Learning about different blockchain technologies, such as staking, is crucial for anyone looking to purchase or trade digital assets.
To put it plainly, staking refers to lending your crypto assets in a collective pool or wallet and earning rewards in return.
This is a system that is used to confirm the proof-of-stake (PoS) blockchain transactions. People who own crypto can deposit their coins for a certain amount of time and earn interest. This system helps the network in reaching consensus while also rewarding the users who participate in it.
It is also important to note that staking only comes with digital assets that are built on PoS blockchains.
Which Cryptocurrencies Support Staking?
There are only a few digital currencies that support staking, some of which are mentioned below.
- Cosmos
- Ethereum 2.0
- Polkadot
- Solana
- Tezos
What are Different Types of Staking Platforms?
Staking may not be supported by all types of crypto assets but there are a few ways to get started with it. Here are different ways you can get started with staking.
- DeFi
- Exchanges
- Staking pools or wallets
- Staking-as-a-service platforms
What are Some of the Top Crypto Staking Exchanges?
Before you buy, sell, trade, or even hodle crypto, you need to be aware of your options so you can opt for the best exchange. The same practice applies to crypto staking.
Here is a list of some of the top and trusted crypto staking platforms as well as details of the staking services they offer.
Binance
Binance is the world’s largest and one of the best exchanges. It not only has an impressively high trading volume but also has a remarkable collection of 100+ staking coins.
The Binance exchange does not charge any staking fee and supports two types of staking that are:
The terms do give a hint of what each type of staking refers to. Locked staking is for a fixed period and generally holds the funds for 30 days, even though a few coins are allowed the period of 10 or 15 days.
Flexible staking, on the other hand, allows more freedom to the investors, however, the staking rewards are reduced.
Bitstamp
Bitstamp is among the top crypto exchanges listed according to market capitalization. It is one of the best crypto staking platforms that pay staking rewards to the users from time to time if they hold crypto for a specific amount of time.
Read the Bitstamp review for more details about it.
At the moment, the exchange allows staking of:
- Algorand (ALGO) – automatically staked 24 hours after ALGO is deposited in the account. The annualized percentage yield (APY) depends on the staked amount and is up to 5%. There is no lock-up with staking ALGO and investors can opt out whenever they want.
- Ethereum (ETH) – depends more on the completion of the ETH 2.0 upgrade as all ETH need to be converted to ETH 2.0 first. After the conversion to ETH 2.0, all Ethereum is staked automatically and investors can earn up to 4.44% on an annual basis.
For Algorand, the rewards are distributed quarterly and are sourced from the Algorand Community Governance Program. Whereas, for Ethereum, the rewards are distributed monthly.
Coinbase
Coinbase is one of the largest US-based crypto exchanges and has quite a reputation on a global scale. This exchange offers staking services but has its own pros and cons.
The plus point of using Coinbase for staking crypto is that it presents a somewhat easier staking solution as compared to its competitors but charges a very high fee. The staking fee does not vary based on different coins but users have to pay 25% of their staking rewards. The details of the fee are also mentioned in Coinbase’s user agreement.
Read the Coinbase review for more details about it.
People who opt to stake crypto on Coinbase can either purchase staking-supported digital assets from the platform or transfer them from an external crypto wallet to the account.
Another advantage of using Coinbase for staking is that there is no staking limit for the users.
Kraken
Kraken is quite a prominent name in the U.S. crypto community as it is one of the oldest exchanges and is also one of the most trusted crypto staking platforms.
The Kraken exchange enables the users to stake 12 digital currencies with unstaking support for a majority of digital coins. Unstaking refers to the process to withdraw the staked amount or take it out to trade.
There is no bonding period and Kraken users can instantly get the staking rewards. Depending on the digital asset, the exchange gives out the staking rewards either once a week or more. Users who opt for the Kraken exchange can also stake their rewards to expand their profits or earnings.
KuCoin
KuCoin is a user-friendly platform for people who are looking to start with crypto staking. This exchange generally offers soft-staking without any hard locking period. However, to earn greater rewards, the users can also subscribe to the fixed-length staking programs offered by the exchange.
Read the KuCoin review for more details about it.
The soft-staking programs offered by KuCoin also come with a redemption period. This period is the duration in which users halt staking and get access to the rewards or staked funds.
The redemption period is as long as 28 days or it can be up to a week or less.
Kasta
Another unique and suitable option to stake crypto is by using the Kasta App. This is an advanced application that enables users to send and receive digital assets instantly and conveniently.
The Kasta App has been designed to make crypto hodling and transferring easy and hassle-free for everyone, especially people who have little or no experience in the field. Sending and receiving crypto is free, instant, safe and can be done regardless of where you are in the world.
The users of Kasta can also opt for the currency they want to receive their payments in, thanks to its Easy Swap Engine feature. The Kasta ecosystem also supports KASTA token (native token), which is anticipated to boost the growth of the application on a global scale.
The application also supports staking, especially staking Kasta tokens. This is a great way to generate passive income while also supporting the blockchain network.
Final Takeaways!
Apart from knowing about the best crypto staking platforms, you must also understand the ins and outs of how staking works. The information mentioned above is crucial for all crypto enthusiasts to know so they can have a good experience of staking crypto, with minimum inconveniences.
Sign up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies! Don’t forget to claim your 50% bonus by using the promo code “bitcoinsensus50” with our link.
Claim up to $7000 in Bonus
