A popular way to earn additional tokens or voting rights on a blockchain project is by locking up or delegating crypto assets. Staking cryptocurrency is similar to mining but is better suited to beginners with minimal expertise required and zero upfront costs. Cryptocurrency trading platforms offer to stake the most popular coins to earn passive rewards. This article will review and compare the best crypto staking platforms based on the number of supported coins, pay-out frequency, staking fees and minimum staking amounts.
In short, staking crypto involves delegating tokens in wallets for a specific period to participate in the governance of the network. Staking is common with Proof-of-Stake (PoS) projects which involves validating transactions on the particular networks protocol, creating a new block and distributing newly minted coins as staking rewards. In return, the participants are given a percentage-based staking reward based on the number of tokens locked in for their contribution. To learn more, read our beginners guide on crypto staking.
Soft-staking is a process that allows individuals to use a crypto exchange to stake assets without having to lock in their funds or run a staking node. Holding funds on an exchange wallet are delegated to a mining pool with other participants to earn a share of the staking rewards. The benefit of soft staking or using 'One-Click exchanges' is the flexibility to redeem staked funds at any time to trade or withdraw.
Binance is a one-stop destination for its users to browse and invest their assets into staking programs to earn rewards. The exchange supports the widest selection of staking assets with 88 PoS tokens available under a fixed, or flexible arrangements. Coins that can be staked on Binance include BNB, LUNA, SHIB, SOL, KSM, ATOM, VET and many others. Binance is one of the few centralized exchanges that allows staking the popular meme coin Shiba Inu.
A popular staking option is Binance Locked-Staking which offers a low entry barrier and high yield. This arrangement is ideal for beginners who can leave their assets in a staking wallet and forget it for a fixed duration such as 15, 30, 60 or 90 days. At the end of the fixed term, the original staked amount can be withdrawn or used for trading purposes.
Coinbase is the world's most popular exchange that offers one-click staking on its platform for its users to earn staking rewards on funds. Coinbase users can earn up to 5.0% APY on popular staking coins like Cardano, Ethereum 2.0 (ETH2), Tezos (XTZ), Cosmos (ATOM) and USD Coin (USDC).
The offering of staking coins on Coinbase is fairly limited compared to Binance, however, the benefit of staking with Coinbase is that investors within the United States are allowed to stake. Supported staking assets do not need to be purchased with Coinbase and can be transferred to the exchange from another wallet.
Other benefits of staking on the biggest crypto exchange include a low barrier for entry and a minimum staking amount of USD 1. Funds within a Coinbase wallet that are delegated for staking will automatically accrue rewards. This is highly suitable for beginners that can't afford to run their staking nodes or are worried about the risks associated with staking.
The downside with Coinbase staking is the fees. The estimated returns depend on each staked token. Coinbase will distribute earned rewards minus a 25% commission for providing the service which is one of the higher fees in the market for staking crypto.
eToro, the world's largest cryptocurrency social trading platform offers staking on its platform to individuals in select countries. The list of supported staking assets is quite limited and includes Cardano (ADA), Tron (TRX) and Ethereum 2.0 (ETH2.0). However, eToro does all the hard work to grow the user's assets over time while the funds are invested on the platform. There are limitations for eligible
Compared to the other platforms in this list, eToro is a beginner-friendly platform and staking crypto is no different. Earning staking rewards is simple, easy and fast. The pay-outs are each month which is not ideal for compounding returns over time when compared to other exchanges which are daily, bi-weekly or weekly.
There are also fees involved which depend on the user's account level. For example, eToro will take 25% of the estimated staking rewards for entry-level Bronze Members. The fee is reduced for the premium accounts, however, for most retail traders a 25% staking fee will apply which is quite high.
While the staking fee is used to cover eToro's operating costs for running a staking pool, there are cheaper alternatives such as Binance and KuCoin to stake without fees. Overall, despite the high fees, limited PoS tokens and region restrictions, eToro is a great place for beginners to stake their crypto and leverage other unique services on the platform such as crypto demo trading and copy-trading.
Crypto.com Earn is a world-class service for investors to earn interest using crypto using the popular mobile application. Traders can earn staking rewards on 28 supported tokens held within the exchange wallet. This means users will need to create an account with Crypto.com Exchange by linking their Crypto.com App. There is the option to stake more than 100,000 CRO tokens to increase the reward pay-outs for other coins.
The benefit of staking crypto with Crypto.com Exchange is the flexibility to transfer funds between the App and Exchange without fees and earn rewards based on the daily balance. There are no lock-up or fixed periods to stake tokens and can be withdrawn or transferred at any time. The staking rewards are calculated and paid out daily. There are minimum amounts for each coin to be aware of to qualify for staking interest.
Another advantage that Crypto.com Exchange offers is the ability to earn staking rewards on pending orders (e.g. limit orders) placed on the trading platform. There is a staking report to view all earned rewards on the exchange which can be exported to CSV for tax obligations.
Kraken has recently introduced support for Proof-of-staking tokens through its soft-staking service to appeal to retail investors that don't want to run a node. The 4th largest crypto exchange in the world supports 12 assets such as ETH2.0, DOT, ADA, SOL, KSM, ATOM, FLOW, KAVA, XTZ and ALGO.
Each coin can be staked without lock-in contracts or waiting periods. Furthermore, Kraken users have the flexibility to instantly un-stake and trade the funds on its world-class altcoin trading platform with competitive fees. The funds must be delegated to the staking wallet to commence the process.
Staking rewards are paid out twice a week every Monday and Thursday at 14:00 UTC. As opposed to other exchanges such as Binance and Crypto.com Exchange which have daily pay-outs, the compounding affect is slightly reduced with Kraken as the estimated rewards are calculated based on daily balances. Furthermore, there is a 15% staking fee applied which can vary depending on the coin and earned rewards.
Overall, Kraken is a solid staking exchange for coins such as Ethereum 2.0, Solana and Cardano. The platform streamlines the staking process with little effort required to earn rewards. The only downsides with Kraken staking are the bi-weekly pay-outs and staking fees.
Pool-X Earn is the soft-staking terminal on KuCoin that is available for users to earn passive rewards by simply holding onto coins on the platform. Aside from Binance and Crypto.com Exchange, KuCoin has a wide selection of PoS tokens that can be delegated to a staking pool or fixed-term arrangement. There are multiple staking coins such as Tezos, Cosmos, Polkadot and high-yield DeFi tokens.
A major benefit of using KuCoin for staking is the wide selection of other financial products such as interest accounts, mining pools and lending services. Funds that are delegated under a flexible term can be un-staked at any time to use for trading or other services. KuCoin regularly features limited-time promotions and offers to stake coins with higher APY's. The offers are the lesser-known tokens that can also be bought and sold on the exchange directly or using the mobile app.
In short, KuCoin is one of the best crypto staking platforms with a wide range of supported PoS tokens. However, in our opinion, the user interface is a little complicated with many options to choose from which involve more than 1-click to stake a particular coin.
This comparison guide provides an overview of the best one-click exchanges to stake cryptocurrency. For further information on each exchange, read our full reviews or visit the website.
While the entire crypto industry is largely unregulated, there are several risks when staking crypto. Platforms, exchanges and third-party wallets act as the 'middle-man' or bank to provide mining pools for individuals to join. These centralized providers are heavily scrutinized and implement industry-leading security measures to ensure funds are 100% kept safe while staked.
It is also important to note that staking rewards are subject to change and staked assets are generally not covered by any insurance or Federal protection in most countries. However, there have not been any reported instances of hacked exchanges that resulted in a loss of staking assets.
Binance is the world's most popular trading platform that offers 88 Proof-of-Stake (PoS) coins that can be staked in fixed or flexible terms. This represents the largest selection of coins for staking and is one of the best staking platforms.
Binance, Crypto.com Exchange and KuCoin offer staking of cryptocurrencies on its platforms without any additional fees. In comparison, platforms such as Coinbase, Kraken and eToro charge up to 25% of the staking reward to cover operating costs and expenses.
Staking can be profitable on the basis the underlining token does not depreciate in value that is greater than the estimated APY. A token with an estimated return of 1% APY is still a profitable investment that will generate staking yield each year. The staking rewards are calculated on a periodic basis which also offers compounding asset growth.
Staking crypto is a worthwhile activity to earn asset rewards that can be delegated back to a staking pool to compound grow a portfolio. The best crypto exchanges in the world have lowered the entry-barrier for staking. Individuals do not need to run their own node and can participate in staking with minimal cost and effort using 1-click exchanges.
The best staking platforms for crypto such as Binance, Coinbase, Crypto.com and KuCoin are continually reducing the knowledge barrier for staking while providing a safe staking wallet to earn PoS rewards. These platforms offer a high degree of simplicity, zero costs and low staking amount minimums to get started quickly and easily. For beginners and new investors to staking, using a reputable exchange with staking features is a great way to earn additional income.
Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.