What Is Crypto Staking?
Crypto staking refers to a process of validate transactions on blockchain networks by using a crypto wallet. When stakers hold their cryptocurrency assets in a staking wallet and participate in network validation, they earn Bitcoin and Ethereum staking rewards. The amount of staking rewards depends on the number of staked assets or coins and the staking duration. Staking cryptocurrency provides a steady source of passive income as long as the underlying blockchain network remains active. The crypto staking process is simple, involving only a few clicks to deposit crypto assets into a digital wallet and select the amount of staking assets. Once the staking process is complete, the crypto staking platforms automatically deposit staking rewards into the users’ wallets. Overall, crypto staking on the best staking crypto platforms is an excellent way of earning passive income with minimum effort.
In this guide to the Best Crypto Staking Platforms of 2023, we will explore some of the top crypto staking platforms in the industry, delve into how crypto staking works, discuss a few factors to choose the best crypto staking platforms and discuss the risks involved in Bitcoin and Ethereum staking.
Best Crypto Staking Platforms to Stake Top Cryptocurrencies
1. Bitcoin Minetrix: Automated Crypto Staking Solutions
Bitcoin Minetrix combines cloud mining with crypto token staking. The main objective of the platform is quite simple – tokenization of cloud mining services by providing credits to stakeholders staking in the BTCMTX token. Users on Bitcoin Minetrix can earn passive income by staking BTCMTX on the Ethereum-powered staking platform. Additionally, what makes Bitcoin Minetrix one of the best crypto staking platforms is the ability of the users to generate massive APY staking their crypto tokens. The Stake-to-Mine network on Bitcoin Minetrix comes with cost efficiency, convenience space, and noise, ease of entry, and no resale worries.
At the time of writing, the platform offers 190% APY, which may be reduced as more coins are staked on the platform. BTCMTX comes with a total supply of 4 billion tokens and focuses on undergoing a successful presale, reaching a hard target of $33 million.
Cryptocurrencies Available- Ethereum, USD Tether, Binance Coin
Customer Support- Although Bitcoin Minetrix has no customer support page, users can check out the extensive FAQ section or visit the official Twitter, Telegram, and Discord accounts for assistance. Alternatively, users can also connect with Bitcoin Minetrix by sending an email to [email protected].
Fees- Minimum invest of 10 USD is required
- Stake crypto is available immediately after the pre-sale ends
- Easy to access and use staked funds
- Does not require technical knowledge
- Stake-to-Mine mechanism offers attractive staking rewards
- Minimum investment requirement of $10
- Staking program is still at the infancy stage
- Mining difficulty may increase after Bitcoin halving
- Limited crypto supported
2. Gemini: Secure & Regulated Staking Platform
Gemini, launched in 2014 by the Winklevoss twins, makes an excellent crypto exchange that allows users to store and trade over 80 coins. However, the tokens available for staking are restricted to Solana, Polygon, and Ethereum. Gemini’s own currency, Gemini dollar (GUSD), is a stablecoin backed by the US dollar. Like World’s largest crypto exchange, Gemini review suggests it also uses an efficient staking mechanism and features additional functions such as a digital wallet, a crypto trading platform, etc.
Gemini simplifies the staking process and makes it accessible to earn rewards through staking pools. Overall, this user friendly platform combines the advantages of the blockchain network and decentralization with the security and reliability of Gemini, thereby offering seamless staking solutions.
Cryptocurrencies Available- Solana, Ethereum, and Polygon
Customer Support- This popular crypto exchange offers efficient customer support via live chat facility available 24×7. Users can also submit a support request through the official Support page or visit the regulator at New York State Department of Financial Services, One State Street, New York 10004-1511. Customers can also dial 1-800-342-3736 to share their queries with the support team. Additionally, Gemini has a Help Centre page answering all the frequently asked questions from trading, staking, funding, withdrawing, security, signing income, account management, Gemini Earn, Gemini Staking, and many more.
Fees- 0.10% maker fee and 0.30% taker fees for trades up to $10,000 in 30 days.
- Easy-to-use, beginner-friendly interface and mobile application
- Available in various countries, including the United States
- Earn interest on stablecoins such as Pax Gold and USDC
- Industry-leading security using two-factor authentication and offline air-capped Cold Storage system
- Award-winning crypto exchange, a crypto app for beginners, and to earn interest
- Only three tokens can be staked
- High fees for low-volume stakers
3. Aave: DeFi Lending & Crypto Staking Integration
Aave is one of the best platforms that offers liquidity and staking options. It lets users benefit from participating in decentralized finance by depositing crypto into the Aave Liquidity Protocol. The staking process requires users to stick AAVE tokens to help secure the platform’s liquid staking protocol. Every platform is fully decentralized, governed by a community of 162,309 token holders. The Aave Treasury earns fees through reserve factor, instant liquidity fees, liquidation fees, and portal fees. The platform differs from other on-chain staking platforms that do not support liquidity pools and offer only single-asset lending.
There is also a feature of collateralization lending where to borrow, Aave users need to supply their digital assets as collateral. All in all, the staking process on Aave is secured by smart contracts to ensure the security of its users and can be staked across multiple supported crypto exchanges.
Cryptocurrencies Available- Ethereum, Avalanche, Optimism, Aave Arc, Polygon, Arbitrum, Metis, AMM
Customer Support- Customers can reach the Aave support team by navigating to the live chat option available at the bottom of the official website. Alternatively, they can email their queries to [email protected]. The platform also features an extensive FAQ section answering the most common questions. The agents are also available across social media platforms, including Twitter, Github, Discord, and HeyXYZ.
Fees- There is a cost of interacting within the Aave protocol that requires transactions. Hence, the transaction fees for Ethereum usage may be charged depending on the transaction complexity and network status.
- Earn rewards of more than 12% per annum
- Fully decentralized staking options
- Features collateralized lending without any fixed-length loans
- Insured by the Nexus Mutual and secured by smart contracts
- Requires a cool-down period while unstaking
- Staking is available only for AAVE tokens
- APY reduces as rate of utilization increases
4. Yieldflow.com: High-Yield Crypto Staking Services
Yieldflow.com is among the best cryptocurrency staking platforms that offers huge staking yields through lending, a staking pool, and a liquidity mining pool. There is a wide variety of valuable crypto assets that allow users to earn yields via smart contracts. Users can maximize their cryptocurrency holdings with a 15% APY on average. The platform removes technical complexities from crypto staking and investment opportunities, making the overall process frictionless and simple. All users need to do to get started is to connect their digital wallets and choose a preferred product, from staking, liquidity pool, and lending.
Moreover, the team at YieldFlow constantly adjusts its yields and products based on the current market conditions. At the time of writing, YieldFlow.com has over 20 assets and more than 10,000 active users who can participate in crypto staking to earn rewards.
Cryptocurrencies Available- Chainlink, Amatic, USD Tether, Decentraland, The Sandbox, Basic Attention Token, HEX, Shiba Inu, Pepe
Customer Support- Although YieldFlow is a community-governed crypto staking platform, it offers customer support via Twitter, Discord, and Telegram servers. There is also an extensive Help Centre available on the official website that covers important topics, including network security, products, governance, and support.
Fees- YieldFlow does not charge any deposit or withdrawal fees. However, users may have to cover gas fees while transacting. For instance, to deposit funds into the ETH/USDT liquidity pool, a certain gas fee must be paid in Ethereum. This covers smart contract costs and hence, YieldFlow does not get the fees themselves. In addition to this, the platform may charge fees built into APYs but there is no fixed fee structure. On average, YieldFlow requires a 15% average APY.
- Earn passive income on idle tokens
- User-friendly dashboard, appealing to beginners
- No commissions or fees on the APY
- Access staking platform anonymously using a crypto wallet
- Most products offer instant and flexible withdrawals
- Fewer crypto compared to rivals
- Many core features are still under development.
5. Yield App: Simplified Crypto Yield Maximization
Yield App is one of the best crypto earning platforms where users can stake tokens to unlock rewards. The reward rates can go as high as 12% APY for specific digital assets. Many popular cryptos are available for staking on Yield App. including Bitcoin, Ethereum, USD Coin, USD Tether, DAI, Binance Coin, and Avalanche. The platform is beginner-friendly, offering a seamless fiat-crypto swapping.
Users at Yield App also have full freedom to withdraw their assets anytime they want or keep them locked for a specific period to earn higher yields. Several exciting benefits are activated with YLD staking. Users participating in crypto staking worth 1000 YLD tokens can earn staking returns in YLD and lock up their assets for 12 months to earn reward upto 12% APY.
Cryptocurrencies Available- Bitcoin, Ethereum, USD Coin, USD Tether, DAI, Binance Coin, and Avalanche
Customer Support- The easiest method to get customer support from Yield App is via the 24×7 live chat widget on the official website. Customers can also reach the support team via email at [email protected]. The platform also has a dedicated Help Centre where users can find FAQs on deposit and withdrawal methods, Yield Earn, Yield Pro, and many more.
Fees- When it comes to fee structure, Yield App is quite straightforward. The platform only charges two separate fees for withdrawals and refunds. Unlike many other crypto exchange sites that are available for staking, Yield App does not have any swap fees or transfer fees for fiat currencies. The withdrawal fee is 0.1% on a minimum withdrawal of 15 EUR.
- High rates of APY of up to 11%
- Free swapping of fiat and crypto
- Team of experienced developers with collective knowledge in DeFi and traditional finance
- Low deposit requirement of €1
- Multi-tiered loyalty structure gives $25 in BTC for every referral
- Limited number of supported stablecoins and digital currencies
- High YLD token requirement for staking
6. OKX: Diverse Staking Asset Selection
OKX is a popular Seychelles-based crypto exchange that offers smart staking for crypto holders. The exchange is a reputable and reliable platform, where users stake eligible cryptos using an easy-to-use and straightforward process. They can earn estimated returns from crypto staking on OKX that may range between 3% to 72% APY which is one of the highest rates in industry.
Additionally, users get to employ powerful APIs and enjoy fastest transactions at lowest fees, as they stake hundreds of trading pairs. They can also discover popular decentralized applications, connect to DeFi using Web3 wallets and more. As per OKX’s review by experts, it has a beginner-friendly interface with a dedicated mobile app.
Furthermore, there is also the possibility of owning crypto in OKX mining pools, taking out crypto collateralized loans, and discovering various other ways of growing as many cryptos as users want with OKX Earn.
Cryptocurrencies Available- 93 cryptocurrencies, including Solana, Bitcoin, Ethereum, Litecoin, USD Tether, Classic Ripple, Chainlink, Cardano, Tron, USD Coin, Bitcoin Cash, Atom, Dogecoin, Avalanche, The Sandbox, Shiba Inu, and many more
Customer Support- Although most OKX accounts require self-service, if any user requires additional help, OKX has a 24×7 easy-to-use live chat facility that can be accessed from the bubble icon on the bottom of the page. Users can also find more information in the robust Support Centre that is filled with relevant questions or topics across deposits, withdrawals, account registration, trading, web3, wallet, rewards, and referrals, and many more.
Fees- The market taker fee charged by OKX is 0.15% for traders having less than 500 OKB tokens. Taker and maker fees however, can be decreased to 0.09% and 0.06% respectively with crypto holdings of more than 2000 OKB tokens. Although OKX does not charge any deposit fees, there may be a small withdrawal fee depending on the crypto chosen by the users.
- Low trading fees starting at 0.10% or less.
- High interest- crypto staking opportunity with over 100% annual interest rate
- Huge selection of crypto staking coins
- Unavailable for stakers in Canada and the US
- Does not accept Fiat currencies
- False trading volume report
How Does Crypto Staking Work?
Put in simple language, staking crypto involves a proof-of-stake (PoS) mechanism of a particular blockchain network. It involves staking crypto assets in order to validate transactions and maintain the security level of the network. Anyone helping out in this process gets to earn staking rewards in the form of additional cryptocurrency tokens. To understand how crypto staking works, we have provided a brief overview of the staking process –
- Decide on the crypto assets to stake
- Buy some tokens/coins
- Choose a suitable crypto staking method
- Select a user-friendly staking platform
- Initiate the crypto staking process
- Unstake the crypto assets
Note that although the best crypto staking sites follow this typical structure, some of the steps may vary, depending on the blockchain chosen, among other factors. Staked coins or tokens have their own yields attached and hence, it is important for users to shop around and select cryptocurrency tokens that offer the best crypto staking rewards. Additionally, it is also important to understand the security risks associated with staking cryptocurrency tokens as they all get locked up.
Another way to stake crypto is through crypto staking pools. Participants pool resources, consolidating staking power to enhance chances of validating transactions and earning rewards. Delegating stake to the pool’s validator, users gain a share of rewards. Automated, transparent distribution ensures fairness. Continuous staking ensures ongoing participation, offering flexibility and liquidity.
Factors to Choose the Best Platform For Crypto Staking
Range of Crypto
When it comes to crypto staking services, quality is what matters more than quantity. Having more number of digital tokens may not necessarily be better. There are many obscure cryptocurrency tokens that are extremely volatile, eliminating any profits received from staking crypto. Additionally, tokens with high APY (annual percentage yield) may also be a red flag for yield farming.
As such there are many staking platforms that offer a small variety of cryptocurrency tokens with relatively modest yields. Essentially, this is more suitable for crypto staking since users opt for quality over quantity and the chosen crypto holdings may offer more sustainable staking rewards with lesser volatility. Choose the best crypto trading platforms that support the digital assets that users already own and helps earning passive income in the way they think is sustainable as well as within their risk tolerance.
Lock up period refers to the duration in which stakers can keep the possessions of their digital assets without any access to them. Lock-up periods may vary anywhere between a month to six months to even a year. While some crypto platforms offer flexible staking periods and withdrawal options, others may require users to commit to a particular duration of lock-up and even losses of accrued yields for early withdrawals or risk penalties. Essentially, a longer lock-up period equates to a higher rate of projected yield in compare to minimum lock up period.
Frequency of payouts
The best staking platforms provide users with a wide range of payment methods. While some may have a fixed lock-up duration, others may pay daily, weekly, or monthly yields with an option to reinvest. Many other crypto staking platforms may also compound the returns by default till the lock-up duration ends.
Ease of use
Yield earning from staking cryptos can be a complicated topic for beginners, especially when they deal with DeFi staking platforms. The top cryptocurrency platforms have made several attempts to simplify the overall crypto staking process and provide users with the best beginner-friendly experience. If users are uncertain about the use of the best crypto staking platform, they can get their heads around it first by going through video tutorials and FAQ pages.
With an increasing number of scams, hacks, and asset losses being a common scenario in the crypto landscape, the security of staked crypto should be closely considered before lending or staking digital assets. Look for the registrations and licenses relevant to the crypto staking platform along with the process required to stake and store crypto assets. Off-chain staking is preferable since it is less risky or vulnerable to hacks. While interacting with DeFi staking and on-chain staking, it is important to ensure that the account is properly secure using private keys and that all Web3 transactions are doubly checked.
There are many lending crypto platforms that operate with different models having variable risk tolerances. There is under-collateralized lending that uses a high-risk model counting on the crypto staking platform, generating profits on digital assets. Without this, the company may tend to potential losses and liquidation of investor funds. With over-collateralization lending, lenders may face lower risk. Borrowers require depositing collateral larger than the loan size to protect lenders from defaulting borrowers. For instance, a borrower may have to deposit assets worth $1000 as collateral to borrow $500. However, note that collateralization lending is applicable to lending and not to liquidity or staking.
There are many centralized crypto exchanges but with different policies. Most centralized crypto exchanges do not cover earning protocols. Regulation and insurance are typically uncommon in the DeFi space and hence, stakers must read the terms and conditions thoroughly. When it comes to insurance, it is difficult for users to determine the safest centralized staking platform. Loosely speaking, choosing established centralized exchanges that offer some kind of insurance or have transparent reserve proof are usually safer options for custodial crypto staking. In addition to this, there are many non-custodial crypto staking platforms to ensure that the only individual that users need to trust with their cryptocurrencies is themselves.
Staking exchanges and platforms essentially charge a fee for using their products and services although the rates are almost never disclosed. Many stakers claim to charge zero fees for crypto staking but are certainly taking a cut of the revenue before distributing the remaining to the stakeholders. Hence, while crypto staking through a third-party centralized exchange or staking platform can be a beginner-friendly method, it is worth mentioning that users can potentially reduce paying fees by choosing to use a direct source and lend or stake on-chain if they are willing to take on additional risk.
Risks of Crypto Staking
There are many risks that stakers may face while staking in cryptocurrencies –
- Engaging in crypto staking requires the active participation of the users in the consensus protocol of the chosen blockchain network. This renders all staked tokens susceptible to attacks. This is one of the biggest challenges of crypto staking but it can be mitigated by choosing a well-established blockchain network.
- Another major risk is the consensus failure that may occur if a considerable number of stakers perform maliciously or if the staking network faces a software bug. This kind of failure results in temporary halting of the network operations. To mitigate this risk of consensus failure, it is important for users to diversify their staking across different reputable networks.
- Slashing can also be a big risk for crypto stakers as it involves penalties imposed on them for acting maliciously, such as manipulation of the network or execution of double spending of staked tokens.
- Volatility risk can be a major threat to crypto stakers. Cryptocurrencies are extremely volatile and it is highly likely that staked crypto value may devalue leading to major losses.
Although crypto staking has a greater possibility for price increases, with all these risks involved in crypto staking, it is important for users to use strategies for risk minimization. However, these risks cannot be entirely eliminated. Before engaging in crypto staking, it is important to stay well-informed, carefully assess every risk involved, and conduct a comprehensive analysis of tokens and platforms.
To summarize, the best platform to stake your crypto decides how simple and lucrative staking opportunities will be to grow asset bases. We have evaluated both on-chain and off-chain staking platforms across a wide range of supported coins and yields. Investors can choose the best option depending on their requirements. One particular platform that gets all the limelight in the crowd when it comes to cryptocurrency staking is Bitcoin Minetrix that offers massive yields of more than 190% APY. Irrespective of the chosen platform to stake cryptocurrency, it is important to carry out research and consider various factors such as lock-up periods, minimum staking amount, withdrawal restrictions, locked staking, and staking rewards. It is also imperative to understand the potential risks involved with crypto staking.