If you are looking for top-notch crypto staking platforms to grow your wealth, consider platforms like eToro and Coinbase.
The world of cryptocurrency offers a multitude of ways to invest and potentially grow your wealth. But what if you could earn rewards for holding onto your existing crypto assets? Enter crypto staking, a process that allows you to earn passive income by locking up crypto holdings for a specific period. Staking rewards can be substantial, offering a compelling way to boost returns without the need for active trading.
With a growing number of crypto exchanges and platforms offering staking services, choosing the right one can be a daunting task. This guide explores some of the best crypto staking platforms to help you make an informed decision and start earning rewards on crypto holdings today.
Quick Look: The Best Platforms to Stake Crypto
- Best for Staking ADA and TRX: eToro
- Best for Everyone: Coinbase
- Best for Staking Ethereum: Gemini
- Best for Good Returns: Uphold
- Best for Variety: KuCoin
5 Best Crypto Staking Platforms
Here is Benzinga’s list of the best crypto-staking platforms.
1. Best for Staking ADA and TRX: eToro
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
When it comes to choosing the best crypto staking platforms, eToro is at the top. As a renowned multi-asset investment platform, eToro has extended its services to include staking for Cardano (ADA) and Tron (TRX), two prominent cryptocurrencies. The platform's support for staking allows users to contribute to the operation of blockchain networks while earning rewards in the form of additional cryptocurrency.
Users could potentially earn rewards ranging from 75% to 90% of the monthly staking yield, depending on their account tier and the crypto they are staking. The estimated annual percentage rate (APR) for Ethereum staking on the platform falls in the range of 5% to 6.25%, providing a reference point for potential earnings.
eToro requires users to stake a minimum of 1 ETH to participate in the staking process. This minimum ensures that users have a meaningful stake in the network and can actively contribute to the staking ecosystem.
Pros
- eToro's staking program allows users to earn rewards by holding certain cryptocurrencies, such as Cardano (ADA) and Tron (TRX), in their eToro accounts. This provides a way for investors to generate passive income from their crypto holdings.
- eToro handles the technical aspects of staking, including executing the staking process and distributing the rewards to users. This makes the staking process more straightforward and hassle-free for investors.
- eToro currently supports staking for Cardano (ADA) and Tron (TRX), providing exposure to these cryptocurrencies and their staking rewards.
Cons
- The lack of clarity on staking annual percentage yield (APY) for Cardano and Tron makes it difficult for investors to assess the potential returns.
- eToro requires a minimum of 1 ETH to be staked on the platform, which may be a barrier for some investors with smaller crypto holdings.
- eToro retains a portion of the staking rewards to cover operational, technical and legal expenses, which reduces the overall returns for investors.
- eToro currently only supports staking for Cardano and Tron, limiting the diversification options for investors interested in staking other cryptocurrencies.
- As a centralized platform, eToro holds staked cryptocurrencies, which introduce counterparty risks and potential custody-related issues.
2. Best for Everyone: Coinbase
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Coinbase, a prominent cryptocurrency exchange and one of the best crypto stacking platforms, extends its services to offer users a passive income avenue through cryptocurrency staking. Staking involves holding cryptocurrencies in a digital wallet to support blockchain network operations with users receiving rewards in the form of additional cryptocurrency.
Coinbase supports staking for several cryptocurrencies, including Ethereum (ETH), Tezos (XTZ), Cosmos (ATOM), Solana (SOL), Cardano (ADA), Polkadot (DOT) and MATIC (MATIC). The estimated reward rates for staking these assets vary, with Ethereum offering around 4-6%, Tezos around 4-6%, Cosmos around 10-15%, Solana around 6-8%, Cardano around 4-6%, Polkadot around 12-15% and MATIC around 5-7%.
The account minimum for staking on Coinbase differs depending on the asset. For instance, there is no minimum balance required for staking Ethereum, Polkadot or MATIC. However, for Tezos, the minimum balance is 0.0001 XTZ; for Cosmos, it's 0.0001 ATOM; for Solana, it's $1 worth of SOL; and for Cardano, it's $1 worth of ADA.
Coinbase streamlines the staking process for users, handling technical aspects like execution, security and reward distribution. However, convenience comes with a tradeoff, as Coinbase retains a portion of the staking rewards to cover operational, technical and legal expenses.
Pros
- Staking on Coinbase allows users to earn rewards by holding certain cryptocurrencies, providing a passive income stream.
- Coinbase handles the technical aspects of staking, making the process user-friendly and accessible.
- Coinbase supports staking for a variety of cryptocurrencies, offering users a range of options to earn rewards.
- Coinbase ensures the safety of staked assets, with no reported losses for customers staking with the platform.
Cons
- Unstaking on Coinbase can take time, with balances being unavailable for selling or sending until the process is complete.
- Some protocols impose penalties for rule violations, potentially affecting stakers' rewards.
- Staking rewards are not guaranteed, and network conditions can impact payouts, with downtime potentially resulting in lost rewards.
3. Best for Staking Ethereum: Gemini
Gemini facilitates passive income generation through staking, wherein users hold cryptocurrencies in their digital wallets to support blockchain operations and, in turn, receive additional crypto rewards. Gemini supports staking for two prominent cryptocurrencies: Ethereum (ETH) and Cardano (ADA). Users engaging in Ethereum staking may expect an estimated reward rate of approximately 7%, while Cardano staking offers a rate of around 5%.
The platform's staking process is user-friendly, with Gemini handling technical aspects such as executing staking procedures, securing cryptocurrencies and distributing rewards to users. Gemini's reputation for robust security measures, including two-factor authentication and offline storage for the majority of customer crypto assets, adds an extra layer of trust for stakers.
Despite the user-friendly interface and security measures, Gemini's fee structure may deter some users, as fees range from 0.5% to 1.49% for trades made outside its advanced trading platform. Additionally, the platform's staking offering is limited to Ethereum and Cardano, potentially restricting users seeking to stake other cryptocurrencies.
Pros
- Gemini's Earn program offers unique staking opportunities for users to earn interest on their cryptocurrency holdings.
- The platform provides competitive interest rates for different cryptocurrencies, such as Gemini Dollar (GUSD) at 8.05%, Bitcoin (BTC) at 6.00%, Ethereum (ETH) at 4.51%, Litecoin (LTC) at 3.51%, and Bitcoin Cash (BCH) at 3.51%.
- The staking program offers eligible asset earnings between 3 and 4%, providing a beneficial avenue for users to earn interest on cryptocurrency.
- Gemini's user-friendly interface makes it easy for novice and experienced traders to navigate the platform.
Cons
- Gemini charges a 15% fee for the staking services provided through its platform.
- Gemini offers a limited number of token options, which is fewer than other exchanges like Coinbase, which offers over 124 cryptocurrencies.
- Gemini does not offer phone support or live chat support, which can be a limitation for users who need immediate support.
- Gemini has faced security concerns, including persistent security holds and unexplained account closures, which can affect customer satisfaction and trust levels.
- While Gemini offers unique features, it may not meet the needs of more advanced traders seeking a comprehensive mobile trading experience, and its fee structure can be less attractive for specific trades compared to other exchanges like Coinbase.
4. Best for Good Returns: Uphold
Terms Apply. Cryptoassets are highly volatile. Your capital is at risk.
Uphold, recognized for its versatility in the cryptocurrency sector, extends an opportunity for users to garner passive income through staking. Uphold offers U.S. users the chance to stake eligible cryptocurrencies such as Ethereum, Tezos (XTZ) and Solana (SOL) on its platform, boasting APYs that can climb up to 25%.
The platform's staking portfolio is diverse, offering 15+ cryptocurrencies, providing users with many options beyond the conventional offerings. This extensive selection empowers users to explore various staking opportunities, tailoring their investment strategies to align with their preferences and risk appetite.
Uphold offers competitive APRs, offering users the potential to earn up to 7% on Ethereum holdings. While the specific APR for each supported cryptocurrency may vary, Uphold ensures that users have the opportunity to earn passive income commensurate with the staking rewards provided by the platform.
Uphold's intuitive interface and accessibility simplify the staking process, enabling users to commence their staking journey with ease. Users can initiate staking with as little as $10, leveraging bank ACH transfers or debit/credit cards, thus democratizing staking and making it accessible to a broad spectrum of investors.
Pros
- Uphold supports staking for a wide range of cryptocurrencies, including Ethereum, Tezos, Solana and over 16 other assets, providing users with a diverse range of staking opportunities.
- The platform offers competitive APYs on staked cryptocurrencies, with some assets earning up to 25% APY.
- Uphold's platform has a clean and simple layout, making it easy for users to navigate and manage their staking activities.
- Uphold provides an autopilot feature for dollar-cost averaging (DCA), allowing users to automate cryptocurrency purchases and potentially benefit from lower entry prices over time.
Cons
- The search results indicate that Uphold's trading fees, particularly for low-volume cryptocurrencies or during periods of high volatility, can be relatively high compared to other exchanges.
- Uphold may lack some of the more advanced trading features and tools that experienced traders might prefer, which could be a drawback for more sophisticated users.
- As a cryptocurrency platform, Uphold may face regulatory risks and potential interference from government agencies, which could impact its operations and user experience.
5. Best for Available Variety: KuCoin
KuCoin boasts an extensive selection of supported cryptocurrencies available for staking, including Ethereum (ETH), Tezos (XTZ), Cosmos (ATOM), Solana (SOL), Cardano (ADA), Polkadot (DOT) and MATIC (MATIC). The estimated staking reward rates for these assets vary, ranging from around 4-6% for Ethereum to 12-15% for Polkadot. This diverse range of supported assets empowers users to diversify their staking portfolios, potentially maximizing their rewards across multiple blockchain networks.
Pros
- KuCoin provides a much broader selection of cryptocurrencies compared to many other exchanges, allowing users to explore and invest in a variety of digital assets.
- Users can earn interest on cryptocurrencies through staking or by loaning crypto, providing additional avenues for passive income generation.
- KuCoin's large customer base adds liquidity to the market, making it easier for users to make trades and join an active community of traders who speak their language.
Cons
- Investing in new or lesser-known coins promoted on KuCoin carries more risk than mainstream cryptocurrencies.
- While KuCoin has security measures in place, users may not have the same level of protection as with traditional banks, necessitating caution when staking or loaning out crypto.
- KuCoin charges fees for certain services, and depositing fiat money can be expensive, especially when using third-party providers. Additionally, the platform's deposit methods may not always be convenient or cost-effective for users.
How to Choose the Best Crypto Staking Platform
When selecting the best crypto staking platform, several key considerations can help you make an informed decision:
- Supported cryptocurrencies: Ensure that the platform supports staking for the specific cryptocurrencies you hold or are interested in. Not all platforms offer staking options for every coin, so verify the availability of your preferred assets.
- Security and reputation: Security is paramount when entrusting crypto assets to a platform. Opt for a well-established platform with a strong security track record and a positive reputation in the crypto community. Look for features like two-factor authentication and secure storage solutions to safeguard your funds.
- Staking rewards and fees: Compare the staking rewards offered by different platforms for your chosen coins. Additionally, consider fees associated with staking, including platform fees or withdrawal charges. Balancing rewards and fees is essential for maximizing your earnings.
- Minimum staking amounts: Some platforms impose minimum staking requirements, so ensure that the platform's minimum staking amount aligns with the amount of crypto you're comfortable locking up. Choose a platform that accommodates your investment size.
- Staking period (lockup period): The duration for which crypto is locked in a staking pool can vary. Platforms offer flexible, fixed or mixed staking options. Evaluate your investment goals and risk tolerance to select a staking period that suits your needs. Flexible staking provides more control but may offer lower rewards, while fixed staking offers higher rewards with a set lockup period.
- User interface and customer support: A user-friendly interface enhances the staking experience by making the process smooth and straightforward. Additionally, consider the quality of customer support provided by the platform. Responsive customer support can address any concerns or issues promptly, ensuring a positive user experience.
Pros and Cons of Crypto Staking
Now that you understand how to choose the best crypto staking platform, let's delve into the advantages and disadvantages of crypto staking:
Pros
- Earn rewards for holding cryptocurrency. This can be a great way to generate additional returns on your investments without actively trading.
- By staking crypto, you contribute to the security and validation of the blockchain network. This can be a way to give back to the crypto ecosystem you believe in.
- Staking is generally considered a more accessible and less risky way to participate in the cryptocurrency market compared to active trading. Some platforms offer staking options with minimal technical knowledge required.
- Staking rewards can be significant, especially for certain cryptocurrencies. This offers the potential for higher returns compared to traditional savings accounts or interest-bearing investment vehicles.
Cons
- The value of staked cryptocurrency can still fluctuate along with the overall market. Even if you earn staking rewards, the price of crypto could decrease, resulting in an overall loss.
- Staking often involves locking up crypto for a predetermined period. This means you cannot access or trade staked assets until the staking period ends. The lack of liquidity can be inconvenient if you need to sell crypto unexpectedly.
- Entrusting crypto to a staking platform introduces an element of risk. Choose a reputable platform with robust security measures to minimize the chance of hacks or loss of funds.
- Not all cryptocurrencies support staking functionality. Make sure the coins you hold are eligible for staking on your chosen platform.
- Staking rewards are generally considered taxable income. Be sure to understand the tax implications of staking in your region before you dive in.
Earn While You HODL: Dive into the Top Crypto Staking Platforms for Passive Income
When selecting a staking platform, consider factors such as the range of supported cryptocurrencies, platform security, staking rewards, associated fees, minimum staking amounts and lockup periods. While staking presents advantages like passive income, network security support and accessibility, there are drawbacks, including market volatility, lockup periods, platform risks, limited staking options, fees and tax implications. Despite these challenges, crypto staking remains an attractive option for investors seeking additional returns on crypto holdings, provided they carefully evaluate platforms, understand the risks and align staking strategies with their investment goals and risk tolerance.
Frequently Asked Questions
What crypto has the highest APY for staking?
Dogeverse stands out as the crypto with the highest APY for staking, offering a minimum staking return of 584%.
Where can U.S. citizens stake crypto?
U.S. citizens can stake crypto on Binance.us.
What is the best place to stake ETH?
The best place to stake Ethereum (ETH) appears to be through decentralized staking pools like Lido and Rocket Pool, rather than centralized exchanges. Uphold is a solid choice for U.S.-based investors seeking to stake ETH.
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About Ishan Jain
Ishan Jain is a technical enthusiast with a knack for financial analytics and trading. Ishan primarily works on AI algorithms, business development, and software engineering for his ventures and side projects, and he produces Web3 content for Benzinga. Ishan has been involved in DeFi in a variety of ways, including heading a project at a crypto asset investment firm along with leading a blockchain security research project.