Fixed deposits have been one of the most popular tools in the financial world. You make a deposit and earn interest after holding it for a certain period. Similarly, in the world of decentralized finance (cryptocurrencies), there is a term called Staking that rewards investor for validating transactions. Here are some of the Best Crypto Staking Platforms:
|Name||Staking Fees||Minimum Staking||Staking Period||Rewards|
|Kraken||No fee, Admin fee for ETH||0.00000001 BTC||No minimum period.||Bitcoin is 0.25% per annum|
|Binance||No fee||Different||10,30,60,90 days||Up to 40%|
|Coinbase||On Reward||Different||40 days initial||Up to 5%|
|Gemini||Max 2.68%||No minimum||No||Up to 8%|
|Vauld||No fee||No minimum||One month||Different|
What is crypto Staking?
Crypto Staking puts your cryptocurrency on the lock to earn interest or rewards. You can stake only a certain number of cryptocurrencies. Only those cryptocurrencies can be staked, supporting the proof of stake algorithm. Proof of stake is a consensus mechanism through which cryptocurrency transactions are verified.
Benefits of Crypto Staking
- Crypto Staking is energy efficient and economically viable.
- Rewards and Interest
- Relatively easier than opening a bank account.
Risks of Crypto Staking
- Volatility: Cryptocurrencies are very much volatile. It is very much possible that your cryptocurrencies devaluate while you put it on Staking, though there is a greater possibility for a price increase.
- Lock-in: During the period of Staking, you cannot use your cryptocurrency balance.
However, these risks are far lesser than the benefits of cryptocurrencies.
Tax Implications of Crypto Staking
Cryptocurrency gains are taxed on either a Capital Gains basis (US, UK) or an Income Tax basis (Singapore). Countries that do not have any law are yet to formulate any tax liability (India imposed a 30% tax on all crypto gains). Most jurisdictions consider Staking as some form of value appreciation for tax purposes.
We have used very simple to understand parameters to evaluate the best coin for Staking and Staking platforms:
- Staking fees are the fees to be paid for using the Staking feature on platforms.
- Minimum Staking is the required amount of cryptocurrencies for Staking.
- Staking period: The available periods for Staking cryptocurrencies.
- Rewards: The interest or rewards you gain after the Staking period is over.
- Mobile Application: Availability of Mobile Application.
1st Best Crypto Staking Platforms: Kraken
Kraken is one of the most popular cryptocurrency platforms. The website shows a three-way step of earning rewards from cryptocurrencies. First, you need to acquire assets for Staking (cryptocurrencies). Second, you need to select the asset to stake. The third and last step is to unstake to earn rewards.
Read our Kraken review to know more.
- Staking Fees: Currently, Kraken has no fees for Staking or unStaking. However, for Ethereum Blockchain, it has an administrative fee.
- Minimum Staking: There are no minimum limits for on-chain Staking, and for off-chain Staking, the limit is 0.00000001 BTC.
- Staking period: There is no minimum time for On-Chain Staking. Off-Chain rewards are generally paid off every Tuesday and Friday. Kraken offers only Bitcoin for Off-Chain Staking.
- Rewards: Off-Chain Staking reward in Kraken for Bitcoin is 0.25% per annum.
- Mobile Application: Staking or UnStaking is not available on the Kraken Pro App.
Also read, Binance vs Kraken 2021 | Which Crypto Exchange you should Choose?
2nd Best Crypto Staking Platforms: Binance
Staking on Binance is a popular feature of the Binance Cryptocurrency Platform. It has been one of the most popular platforms for Staking Crypto and currently supports 82 coins/tokens such as PORTO (FC PORTO TOKEN), COTI, BNB (BINANCE), ZIL, SOL, etc. This is the highest number of cryptocurrencies Staking offered by the platforms in our list.
Read our Binance review to know more.
- Staking Fees: The Staking fees are zero since you can add them to your Binance Portfolio.
- Minimum Staking: The minimum Staking is different for each coin and can be seen here.
- Staking period: Binance lets you choose the Staking period for each coin. Generally, the time is 10, 30, 60, and 90 days, depending on the coin.
- Rewards: The rewards are up to 40% per annum(PORTO). This is the highest annual percentage yield (APY) for Crypto on our list.
- Mobile Application: Staking feature is available on the mobile application for both Android and iOS.
Also read, Staking at Binance: Is it safe to Stake on Binance?
3rd Best Crypto Staking Platforms: Coinbase
Coinbase currently offers to stake in cryptocurrencies such as Algorand, Cosmos, Ethereum, Dai, Tether, Tezos, etc.
Read our Coinbase review to know more.
- Staking Fees: Coinbase collects Staking fees on the reward. This fee is, however, not disclosed upfront. This was not expected from a well-known cryptocurrency company that operates its ecosystem.
- Minimum Staking: There is no minimum Staking for the Ethereum blockchain. However, for other blockchains:
- 0.01 Algo for Algorand
- 0.0001 Atom for Cosmos
- 0.0001 XTZ for Tezos
- Staking period: The initial holding period is around 40 days, and after that, rewards are paid every 1,3 and 7 days.
- Rewards: Rewards payout rate is daily for Ethereum and Algorand. For Cosmos andTezos, the payout period is seven days and three days, respectively. The annual yield rates are:
- Cosmos – 5%
- Algorand – 4%
- Ethereum – 4.5%
- Tether – 0.15%
- Dai – 2.00%
- Tezos – 4.63%
- Mobile Application: Coinbase supports Staking on both Android and iOS apps.
Also read, Coinbase Staking – Earn staking rewards on your Crypto
4th Best Crypto Staking Platforms: Gemini
Staking is one of the core features of the Gemini Platform. The feature is called Gemini Earn. The Staking page also has a calculator which shows you the potential earnings for the coin/token. The platform supports Staking in 43 coins/tokens such as Ether, Dogecoin, Terra, Tezos, Litecoin, etc.
Read our Gemini review to know more.
- Staking Fees: The fees vary from coin to coin, and the maximum fee is 2.68% for Tezos. The entire fee chart can be accessed from here.
- Minimum Staking: There is no minimum limit for Staking.
- Staking period: There is no fixed Staking period. However, you can withdraw your funds instantly with a maximum unStaking period of 5 business days.
- Rewards: Gemini offers up to 8% per annum “interest” for crypto Staking. The use of simple language like “interest” offers a trustable term for new users because of people’s acquaintance with the term.
- Mobile Application: Staking is available on the mobile application for both Android and iOS.
Also read, Gemini vs Coinbase | The Best USA Crypto Exchange?
5th Best Crypto Staking Platforms: Vauld
Vauld is a crypto earn platform that also offers staking. They are called Fixed Deposits in Vauld. The rewards are interesting to sound familiar to people new to cryptocurrencies. The platform offers to stake in 30 coins/tokens such as Ripple, Bitcoin, Ether, Tether, etc.
- Also, read our Vauld review to know more.
- Staking Fees: Vauld charges no fees for Staking.
- Minimum Staking: The appears to be no limit on the minimum Staking amount.
- Staking period: You can withdraw your coins/tokens anytime you want. However, the initial Staking period is one month. After that, if you do not withdraw, the principal and interest will go to the next month as principal.
- Rewards: The rewards are different for each coin/token. You can access it by clicking here. Rewards are called interest in Vauld. The payout frequency is weekly and is compounded weekly.
- Mobile Application: Vauld Fixed Deposit is available on both Android and iOS.
Cryptocurrency staking has been immensely popular in the world of decentralized finance. Its popularity is due to its simple nature and high returns. Moreover, the platforms have made it easy to stake, facilitating instant withdrawal. Platforms like Vauld have used the term FIXED DEPOSITS and INTEREST to attract traditional customers of banks. For the best coin for staking, we saw that Solana, Ether, etc., were the best coin for staking based on availability. However, take care of those scammers who promise unnaturally high yield rates.
Which platform should I choose for Bitcoin Staking?
Bitcoin is staked off-chain since it does not have a proof of stake mechanism. However, Vauld has the highest returns on our list for Bitcoin.
How can I calculate my potential earnings for Staking?
You can use the Gemini Calculator to calculate your potential earnings on the Gemini Pro platform.
Which platform should I use if I am new to Staking?
All the platforms are easy to use in our list. However, we believe Kraken and Binance have the easiest method of Staking.
What are on-chain and off-chain Staking?
When coins are staked on-chain, it means you are not required to transfer your coins. However, you need to transfer your coins to the Staking platform’s account for off-chain Staking.
Which is better, Staking or Mining?
It depends on your hardware. If you have the hardware suitable for profitable mining, you should go for mining or else, and Staking is much more accessible and more profitable.