Generating stable gains through passive income is the favorite strategy of many investors. Fiat currencies have offered this incentive to investors in the past, however since global interest rates have been extremely low for quite some time now, the diminishing rate of return has encouraged other forms of passive income acquisition.
Staking cryptocurrency can generate substantial income by locking your crypto assets in a rewards program. Choosing the right crypto exchange where you get access to the right resources and the highest yields is the essential component. To help you choose the right crypto exchange for staking coins and rewards, Accointing.com has created this overview for the best crypto staking platforms.
There are over 16 coins available for staking on Kraken with yields ranging from 4% to 23%. Coins like Cardano (ADA), Solana (SOL) and Ethereum 2.0 (ETH2) range between 4% and 6%, with lesser-known coins offering higher yields. Kraken doesn’t require a minimum lock time for your crypto to earn rewards. A downside is that the staked assets are not covered by insurance. Kraken has a 1,5% flat trading fee policy and 0,9% fee for stablecoins.
The Gemini cryptocurrency exchange offers 46 coins for earning rewards via the Gemini Earn program. This program allows users to lend out their cryptocurrencies in exchange for interest payments. The platform is very user-friendly and offers the ability for stablecoins like USDC and Pax Gold (PAXG) to be staked. A downside is that ETH and ADA are not available for staking. The trading fee varies: 0.2% for maker and 0.4% for taker.
KuCoin is an exchange which supports over 50+ coins for staking and there is a wide variety of types of interest-bearing rewards that are part of the KuCoin Earn ecosystem. The platform offers interest by staking stablecoins such as Tether (USDT) and USD Coin (USDC) as well as a fixed interest on Ethereum 2.0 of nearly 4.7%. Its trading fees stand at 0,1%
Coinbase is one of the most popular crypto exchanges with 1% flat trading fee and offers only a limited number of coins for staking and rewards such as Algorand (ALGO), Cosmos (ATOM), Ethereum, Tezos (XTM), Cardano and Solana. Coinbase has a strong community, user reviews and security features.
Binance is the biggest crypto exchange by far and its native coin Binance Coin (BNB) is among the strongest digital assets out there. Most cryptocurrencies are available for staking on Binance, including Audius (AUDIO), Avalanche (AVAX), Binance Coin (BNB), Cosmos, Livepeer (LPT), Bitcoin, Solana, and The Graph (GRT), among many others. The platform’s crypto trading fees have a fixed rate of 0,1%.
Ok, but what is staking?
Staking allows users to lock up their cryptocurrencies for a certain period of time to help maintain operations on a particular proof-of-stake (PoS) blockchain system. The PoS mechanism is a method to verify transactions on the blockchain network. Users stake their coins to help the blockchain network verify faster transactions and in return they receive reward incentives.
Which cryptocurrencies can I stake?
According to StakingRewards.com, more than $132 billion is locked up in supporting proof of stake blockchains. Some of the highest staking crypto market caps include ETH, BTC, SOL and ADA, ranging at a typical annual yield of around 4% to 5%. Other popular digital currencies that traders like to earn passive income from are:
- Ethereum 2.0
- Chainlink (LINK)
- Polkadot (DOT)
- Dai (DAI)
Is staking risky?
Cryptocurrency exchanges typically require a minimum lock-up period, so in a volatile environment when the market is crashing, users who would like to sell would be unable to. It is always very important to read and understand the staking process, staking options, percentage yield, staking fees and staking services before putting your money in any cryptocurrency staking reward program. The interest rates between cryptocurrency exchanges differ significantly. Some offer high yield for coins which on other exchanges are not worth it. Choosing the right staking pool for your needs according to your security level will also have an effect at the the payout phase.
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