The concept of staking is becoming more and more familiar by the day, with the growing number of crypto exchanges more investors and traders are opting for crypto staking. Many of the top crypto assets and coins are now available for staking which means users hold their financial assets to earn interest on them. The change in the value of these interests may vary from 10 to more than 100% annually. Crypto staking is one of the best strategies to earn passive profits from user crypto holdings.
What is Staking?
Crypto staking is somewhat participation of validating transactions on a certain blockchain. Yet rather than through mining the coin like with Bitcoin, you stake your current ownings of that coin. In return for staking and locking away your coins like this, you get rewards.
On blockchains that utilize this option, known as “Proof-of-Stake” (PoS). There is a certain limit of stake required to generate rewards. One of the biggest crypto assets by market cap. Ethereum is presently changing from PoW to PoS, and holders of ETH will actually want to stake it later on.
Best Crypto Exchanges for Staking (ETH, ADA, DOT, ZIL)
Here listed are the biggest crypto exchanges that you can stake your coins on. In addition to these crypto exchanges, you can also stake your crypto assets on blockchain staking pools and staking-as-a-service platforms.
Binance is one of the market’s largest crypto exchanges that provide an option known as Locked Staking. When a user opts for locked staking, it means that users can hold their crypto assets for a selected time period to support the selected blockchain. Once the determined time span is complete users get to avail rewards. In return for your staking, you receive a certain APY% amount, varying from 3% to a maximum of 35%. However, if you determine to think of withdrawing the deposited crypto assets before the agreed time period then you will not get any interest.
Binance is one of the safest crypto exchanges that also provides the option of “DeFi Staking”. This is another unique array of staking options. Although, DeFi is more focused around decentralized finance products. Moreover, according to the feed featured on Binance website. They are not in charge of their DeFi services, thus in case of technical discrepancies they can’t be held responsible. The interest rates range from 7 % up to 12.49% on some of these DeFi protocols. Binance is the best crypto exchange that provides support to more than 30 various crypto assets when using Locked Staking, along with 5 different DeFi staking options are featured.
Presently, staking at Cex.io permits users to stake Cosmos (ATOM), NEO (GAS), Tezos (XTZ), Ontology (ONG), MetaHash (MHC), Tron (TRX), Cardano (ADA), and MATIC and earn rewards. These interests can calculate every hour and send to the user’s account at the end of every month. The entire service of staking at this crypto coin exchange is streamlined and optimized technically and by incorporating new crypto assets for the user to stake. Cex.io is also doing its best in imitating Binance because now they are also providing leverage and margin trading as new features to their platform.
Bitfinex is one of the top crypto exchanges that allows its users to stake 8 different crypto assets. With a capped intrest rate of approx 10% APY, with 2 other cryptocurrencies offering over 5%. This trading platform releases staking returns on a weekly basis. The platform aslo comprises of a calculator to give a proper estimate of the amount of awards and returns you can get via their system. Moreover, the platform has also a easyh to use UI that benifits new and advanced traders alike.
Coinbase is one of the earliest and biggest crypto exchanges available in the market. If users need to stake on Coinbase, then they simply must move the funds as per their likings into their “vault option”. Choose a crypto asset that is stake able, and then the interest will start coming in. Although the protocol of some crypto assets will need users to have their assets locked up for a period. Most coins stackable on the trading platform let users withdraw as if they were just regular coins stored on their Coinbase wallet. Coinbase stands out from its competitors as its staking service pledged to compensate for user’s balances lost by any slashing events. The variety of cryptocurrencies available to stake on Coinbase is quite low, such as Cosmos, Tezos, and Algorand.
The protocol of staking on crypto exchanges is becoming quite popular. The reason behind this popularity is the safe interest and commissions. With staking users can earn on their crypto holdings. There are many crypto exchanges available in the market with staking options however. If you are new to staking then it is quite important to do your research before making a move or staking your crypto assets.