Staking has become a popular way for investors to get more out of their crypto assets. The best crypto staking platforms make the process easier in addition to offering attractive rates and security.
Cryptocurrency investors usually make money through capital gains, and that can take time. If you have some idle crypto in your wallet, staking it can generate additional passive income.
How does crypto staking work?
In proof-of-stake blockchains (such as Solana and Cardano), those involved in validating transactions are required to deposit collateral with the networks. The more funds a validator commits, the more transactions they can check and be rewarded for. Investors can delegate their cryptocurrencies to a validator in exchange for a share of the rewards.
What’s a crypto staking platform?
There are thousands or even millions of blockchain validators out there. It can be difficult to get in touch with them directly, though, so you need to go through a staking platform. The platform will take your funds and contribute them to their validator programs, and when the rewards are paid, the platform will collect them and release the payout to you. Many exchanges and brokers double as staking platforms.
What are the best crypto staking platforms?
If you’re looking for a one-stop-shop where you can buy, sell, transfer, and earn interest on your crypto holdings, a crypto exchange or broker with a staking service can be a great choice. Based on reward rates, the variety of cryptocurrencies offered, reputation, and ease of use, some of the best crypto staking platforms are the following:
Kraken promises juicy rewards
Kraken’s crypto staking reward rates can exceed 20 percent, and the platform lets you choose how long you wish to stake your cryptocurrencies, giving you the flexibility to free your assets whenever you want. It supports staking for more than a dozen cryptos, including Bitcoin, Ethereum, Solana, and Cardano.
Staking CRO can be rewarding but the lockup period can be long
Crypto.com’s staking rates can be as high as 14 percent. The platform allows you to stake more than a dozen cryptos, including its own CRO token. If you’re staking CRO, however, you’ll be required to lock it up for six months.
Gemini offers a broad selection of staking opportunities
Gemini’s staking service is offered as a crypto interest account where you can deposit crypto funds to earn interest. Gemini supports dozens of cryptocurrencies and its rates can be as high as 8 percent.
You can start staking with as little as $1 on Coinbase
Coinbase's staking program supports just a handful of cryptocurrencies: Ethereum, Algorand, Cardano, Cosmos, Dai, and Tezos. It gives rewards of up to 5 percent and allows you to start staking with as little as $1 in crypto assets.
Trade stocks and stake crypto at Robinhood rival TradeStation
TradeStation, primarily an online stockbroker, competes with the likes of Robinhood, Webull, and SoFi. TradeStation has continued to expand its service and now it offers staking of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and USDC. It promises rewards of up to 5 percent.