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Crypto staking platforms have become more and more popular in recent years, with the total value of staked crypto assets rising around 1,100% from 2020 to 2023.
This article will list the best crypto staking platforms in 2024 as well as how to use them. Let’s get started!
Table of Contents
What is crypto staking?
Crypto staking simply refers to holding crypto assets over time in order to receive rewards. However, while the concept is similar, there are many different types of staking.
For example, Ethereum users can stake ETH in order to validate transactions on the Ethereum network. This allows the network to continue operating while incentivizing users in the process.
Another example of crypto staking is in providing liquidity for decentralized exchanges like Uniswap. In this example, a user might stake ETH and USDT to help ensure that there is enough liquidity for traders to use when exchanging currencies.
Centralized exchanges like Kraken and Coinbase also act as crypto staking platforms, allowing users to stake crypto as part of a loyalty rewards program.
Crypto users are often given the choice of flexible staking, where they can withdraw their funds at any time, or bonded staking, which requires them to stake funds for a fixed amount of time before they can withdraw.
Staking can offer higher rewards than traditional financial services such as savings accounts or bonds. Staking is also considered higher risk than these services due to the volatility of the assets typically being staked and the reliance on centralized crypto exchanges or decentralized platforms, both of which can be vulnerable to threat actors.
Top 10 crypto staking platforms in 2024
Cryptocurrency staking platforms come in many shapes and sizes. Here are our top picks for the best platforms to stake crypto in 2024.
Kraken
Kraken is a crypto exchange based in the U.S. that offers flexible and bonded staking options with yields of up to 26% in some cases. Users can stake Cardano, Ethereum, Polkadot, and 17 other crypto assets on Kraken. Often praised for being one of the more user-friendly options available for staking, Kraken is one of the most popular crypto staking sites in the world as of 2024.
Coinbase
Coinbase offers APYs (annual percentage yields) of 2% to 9.27% at the time of writing, much higher than the interest rates typically offered by banks or mainstream financial institutions. Coinbase is a popular choice in the crypto industry due to its regulatory compliance and longevity as a crypto exchange. The exchange takes a high commission on staking rewards compared to other crypto staking platforms.
Binance
Binance is the world’s largest crypto exchange by trading volume. It’s a controversial exchange which has been restricted or banned in many jurisdictions due to clashes with regulators and an ongoing money laundering lawsuit courtesy of the U.S. SEC, and users would do well to factor in lack of regulatory compliance when considering Binance as a staking platform. Having said that, Binance offers competitive APYs of up to 10.5% and is often cited as one of the best platforms for staking crypto in the world.
KuCoin
KuCoin is a crypto exchange headquartered in Seychelles that offers staking for around 50 cryptocurrencies with potential rewards of up to 25% in some cases. KuCoin is a popular crypto exchange for staking due to its high APY and wide selection of assets. It’s worth noting that the exchange has suffered security breaches in the past.
Nexo
Nexo is a crypto staking platform that allows users to borrow, lend, and spend crypto as well as earn rewards of up to 16%.
Nexo is currently unavailable in the United States and the United Kingdom, and the fee structure can be complex and difficult to understand for the uninitiated. However, it remains a popular app for staking crypto in over 200 jurisdictions thanks to its regulatory compliance and wide range of financial services.
Where is best to stake crypto?
Nobody can tell you what the one best place to stake crypto in 2024 is. Your decision depends on a number of factors, like exactly what you’re looking for in terms of rewards, your risk appetite, the assets you want to stake, and the legal jurisdiction where you reside.
The best thing to do is to look into each of the major staking platforms until you find one that’s right for you! That’s if you find one that’s right for you, of course.
One point that should be made very clear is that staking is not without risk, and we’ll explore that risk in more detail in the next section.
What are the risks of staking crypto?
The main risk of staking crypto is, arguably, the volatility of crypto assets. When staking assets like ETH or ADA, you’re typically hoping to make a profit from the rewards, and while some users do indeed achieve this, others fall afoul of crypto market crashes and end up losing money rather than earning it.
This is especially true for bonded staking, where users lock assets away for a fixed amount of time.
Of course, even staking stablecoins, crypto assets designed to remain stable in value, is risky. First of all, stablecoins can and do fluctuate in value and even collapse entirely, although such events are quite rare. The TerraUSD stablecoin depegged and lost around 99% of its value in 2022, resulting in around $40 billion worth of investor assets lost from the ecosystem.
Staking also requires that users put their trust in the staking platform they’re using.
Decentralized projects are vulnerable to smart contract exploits or perhaps being more centralized than advertised, whereas centralized projects are famously vulnerable to hacking and theft.
Risks are, of course, present in traditional finance, and this section is not intended to put you off the idea of staking entirely but simply to be responsible and informed when entering the cryptocurrency markets.
FAQ
What is the best place to stake crypto?
The best place to stake crypto depends on your preferred assets, APYs, and risk appetite, as well as the legal jurisdiction where you live.
What are the safest crypto staking platform?
Crypto safety is a complex issue, and the prevailing sentiment has gotten it wrong multiple times in recent years, such as with the FTX exchange, which was widely trusted even in mainstream finance. People seeking to invest in or use crypto products would do well to thoroughly research the safety of a crypto platform themselves before using it, paying attention to regulatory compliance as well as the reputation and track record of the project and its staff.
What are the best cryptos to for staking?
ETH is a popular choice for staking, as are stablecoins like USDT and USDC. Stablecoins are often considered lower risk due to being less likely to fluctuate in value. Of course, lower risk coins often pay out lower APYs, with high APYs being reserved for high-risk assets.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
This article first appeared at crypto.news
