Staking is one of the most exciting parts about investing in crypto. It allows you to earn rewards on cryptocurrencies you own, so it's a great way to grow your investment. If you want to stake crypto, the fastest way to start is with a staking platform. The best crypto staking platforms make it an easy process and offer high rates, with some offering 20% or more per year.
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The Ascent's best crypto staking platforms
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- Security and beginner friendliness:Gemini Exchange
- Large number of staking options:Crypto.com
- High rewards rates:Kraken
- Best for international traders:KuCoin
- Decentralized exchange with big rewards:SushiSwap
Ratings Methodology
Our Rating:
Rating image, 4.50 out of 5 stars.
4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Gemini technically offers a crypto lending program, but its excellent user interface and top notch security make it well worth consideration for earning rewards.
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Fees:
$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)
Account Minimum:
$0
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Our Rating:
Rating image, 4.00 out of 5 stars.
4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Supports staking on a large variety of cryptocurrencies with competitive rewards, although it does require staking its CRO tokens to unlock the highest rates.
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Fees:
Variable spread
Account Minimum:
Varies based on cryptocurrency
Open Account for Crypto.com
Our Rating:
Rating image, 3.50 out of 5 stars.
3.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
An ideal place for those who want to maximize their returns on a safe platform with high rewards rates on a dozen cryptocurrencies
Fees:
0.0% - 0.26% maker-taker fees (Kraken Pro)
Account Minimum:
Varies by cryptocurrency
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Our Rating:
Rating image, 3.50 out of 5 stars.
3.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
This staking platform offers several great earning programs and extremely high rewards rates. However, U.S. residents are prohibited from using it.
Fees:
Fees vary
Account Minimum:
$0
Read Review
Our Rating:
Rating image, 4.00 out of 5 stars.
4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
SushiSwap offers a massive list of liquidity pools where users can deposit crypto and earn big rewards. It's riskier and not as straightforward as other staking platforms. It's mainly for experienced traders who want the highest rewards rates.
Fees:
0.30%
Account Minimum:
No trade minimum
The right crypto investing mindset
Investing in crypto can be extremely risky. We think investors should approach these assets like any other technological investment — with a long-term mindset and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend select cryptocurrencies to our community. But we encourage everyone to be well versed prior to investing to understand the potential risks and rewards.
What is a crypto staking platform?
A crypto staking platform is a crypto exchange, broker, or app that lets you earn rewards on cryptocurrencies. To earn rewards, you commit your cryptocurrency to the platform, which is known as staking. That platform then pays you a rewards rate on your deposit. If you want to stop, you can unstake your deposit.
There's almost always a variable rewards rate for staking crypto, meaning the rewards rate can change with market conditions.
The types of cryptocurrency you can stake depend on the platform. Some platforms support staking with a handful of cryptocurrencies, while others give you dozens of different staking options.
How does crypto staking work?
Staking is when you commit your crypto assets to a blockchain to support the network and validate transactions. In return, you receive crypto rewards.
This is only an option with cryptocurrencies that confirm transactions using a model called proof of stake. To process transactions, these cryptocurrencies choose validators who have staked their own crypto. The validator checks a block of transactions, adds it to the blockchain, and receives a staking reward for their contribution. Examples of cryptocurrencies that use proof of stake include:
- Ethereum (ETH)
- Cardano (ADA)
- Polkadot (DOT)
You can stake crypto on your own without a staking service, but it's not quite as easy. You'll need to store your crypto in a blockchain wallet, and you'll also likely need to join a staking pool with other crypto investors. Staking platforms, on the other hand, allow you to stake your crypto in a few clicks. This is also a big advantage if you're not comfortable storing your cryptocurrency.
It's worth mentioning that "staking" is often used as a catch-all to cover any way you earn rewards on your crypto. For example, some people refer to crypto lending programs as staking. They're not, but crypto lending can also be an effective way to earn crypto rewards, so we've included lending programs on our list of staking platforms.
READ MORE: What Is Staking in Crypto?
Are there fees for crypto staking?
Cryptocurrency staking fees depend on the staking method and cryptocurrency you choose. Many platforms don't charge any staking fees, but there are some that do. You can find this information on the platform's fees page.
If you decide to stake crypto without using a platform, you will most likely need to join a staking pool. These pools are made up of groups of investors who pool their crypto for a better chance of earning rewards. Most staking pools charge a pool fee. This amount can vary, but anywhere from 2% to 5% is common.
How to choose the best platform for crypto staking
There are quite a few staking platforms available, and they all have their own advantages and disadvantages. If you're looking for the best crypto staking platform, here are a few questions to ask about each one.
Which cryptocurrencies does it let you stake?
Each staking platform has a list of cryptocurrencies you can stake. This could be anywhere from a few cryptocurrencies to more than 40.
If you already know which cryptocurrencies you want to stake, look for a platform that has them available and will let you stake them. If not, check out the supported cryptocurrencies on some of the best staking platforms. Research any that are of interest, and compare each platform's staking lineup to help decide on one of them.
What are the staking rewards rates?
A staking rewards rate is the amount a platform will pay for staking a cryptocurrency. Rates depend on the cryptocurrency and the platform.
Platforms usually offer many of the same cryptocurrencies for staking, so it's worth comparing rates to see which is offering the most. You may find one platform is paying more than another on the cryptocurrency you plan to stake. Even if you don't know what you'll stake yet, you can compare rewards rates to get an idea of which platforms offer the best returns.
Is it user friendly?
Some crypto staking platforms are easy to understand, while others are skewed toward more experienced users. Ultimately, it's important to find a staking platform you're comfortable with.
You can often figure this out by poking around the platform's website or reading reviews. Another option is to sign up for accounts at platforms you like and take them for test runs. This can be a good way to find the best crypto staking platform for you.
Pros and cons of crypto staking
There are a few great reasons to stake crypto. Here are the pros of crypto staking:
- You earn rewards on the cryptocurrency you stake. Through staking, you can create passive income and build your investment.
- It's easy to do. There's no special equipment or technical expertise required to stake crypto.
- It's beneficial for the blockchain. Proof-of-stake cryptocurrencies need people to stake so they can verify transactions.
Before you stake crypto, it's important to be aware of the cons:
- The crypto market is volatile, and you could end up losing money if the price of your staked crypto drops. You can minimize this risk by staking stablecoins, which are designed to follow the value of another asset, such as the U.S. dollar.
- Scams are common. Look out for smaller cryptocurrencies that offer extremely high rewards rates (100% per year or more), as these are often designed as a cryptocurrency pump and dump.
- You won't be able to use your crypto while it's staked. If you want to unstake your crypto, it might not be instant, because there could be an unstaking period first.
Is staking crypto worth it?
Staking crypto is worth it for some crypto investors. It's an easy way to earn rewards and grow your holdings. If you have any cryptocurrencies you can stake, it makes sense to consider doing so, especially since it's becoming a common feature on the best crypto apps.
There is one thing to watch out for with staking. Just because you can stake a cryptocurrency doesn't mean that cryptocurrency is a good investment. If the value plummets, those staking rewards won't help much. You should evaluate each cryptocurrency as an investment first before buying it.
If you want to stake crypto with minimal risk, buy and stake stablecoins. They're designed to maintain a stable price, such as $1. Several crypto staking platforms offer rewards rates of 5% or more on stablecoins.
| Offer | Best For | Commissions | Next Steps | |
|---|---|---|---|---|
Gemini Exchange | Security and beginner friendliness | $0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader) | Open Account for Gemini Exchange | |
Crypto.com | Large number of staking options | Variable spread | Open Account for Crypto.com | |
Kraken | High rewards rates | 0.0% - 0.26% maker-taker fees (Kraken Pro) | Read Review | |
KuCoin | Best for international traders | Fees vary | Read Review | |
SushiSwap | Decentralized exchange with big rewards | 0.30% |
FAQs
Crypto staking is the act of committing your crypto to a blockchain to help with validating transactions. The blockchain pays crypto rewards to its validators, so by staking cryptocurrency, you can earn rewards on it.
Major crypto staking platforms have high security standards and are generally extremely safe. However, not all staking platforms offer the same level of security. Review the security practices and track record of a crypto staking platform before you use it to verify it's trustworthy. A few reputable platforms that offer crypto rewards are Kraken, Crypto.com, and Gemini.
Staking crypto is profitable if the value of the cryptocurrency remains the same or increases. The biggest risk with staking is that the cryptocurrency decreases in value. In that case, staking likely wouldn't be profitable.
If you want to maximize your odds of making a profit, stake stablecoins. Stablecoins are cryptocurrencies that are pegged to another asset, such as the U.S. dollar. Since they're designed to maintain that value, they allow you to make a profit staking crypto with minimal risk.
