There are many ways to earn passive income from cryptocurrency, and the most common way is by buying and holding the coins for long-term gains. However, you can use other alternative methods for earning passive income, like generating interest on your crypto assets through lending them out, trading crypto assets, or staking cryptocurrencies to increase their value over time.
In this article, we’ll examine Staking Platforms, which allow users to generate passive income by holding crypto assets until they achieve maturity. It can then be withdrawn into an external wallet or exchange account (which may incur fees depending on your wallet type).
6 Best Platforms for Crypto Staking
It’s not always easy to figure out which crypto-staking platform is the best. As you might know, over a dozen are on the market today that claim to offer benefits such as high rewards, low fees, and high liquidity, but how do you pick a staking platform that will deliver on these promises?
Here’s our list of the six best platforms for cryptocurrency staking.
- Aqru: Best Platform Outside the US
- Defi Swap: Best platform for high interest
- eToro: Best platform in the US
- Crypto.com: Best platform for flexible withdrawals
- MyContainer: Some of the best rewards on the market
- Monetha: Best platform for shoppers
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Review of the Best Crypto Staking Platforms
Want to learn more about each of these crypto staking platforms and why they are the best?! Then check out our detailed reviews:
1. Aqru: The Best Platform Outside the US
Aqru is a decentralized, transparent, and secure peer-to-peer platform for cryptocurrency staking. It uses the Proof of Authority algorithm, which makes it very eco-friendly since there is no high power consumption.
Aqru has been around since early 2018, providing support in 8 languages, including English, Arabic, Turkish, Portuguese (Brazilian), and French.
The best part about Aqru is that it supports over 100 cryptocurrencies, including the most popular ones like Bitcoin, Ethereum, etc. You can sign up for free on their website linked below:
Aqru offers an affiliate program and multiple ways for investors to earn passive income. They accept BTC, ETH, LTC, and DOGE as collateral currencies and offer up to 8% APR with no minimum investment required.
The great thing about Aqru is that they are extremely transparent with their fees – no hidden charges. You pay one flat fee whether you stake $100 worth of crypto or 10 Million dollars!
Pros
- 100% of your collateral is safe, with no chance of losing it if you choose to withdraw.
- You can get started for free! No minimum investment amount is required.
- 8% annual interest rate
Cons
- Low liquidity
2. Defi Swap: The Best Platform for High Interest
You can think of Defi Swap as one of the best staking platforms, but it’s also a decentralized crypto exchange. That means you can earn rewards from trading and staking cryptocurrency all in one place. It’s like having your cake and eating it too!
As a cryptocurrency trader, Defi Swap is great because it has low fees and provides fast payouts on trades. It also allows users to stake their coins while trading them (and vice versa). This feature is unlike most other crypto exchanges that require users to have separate wallets for each activity.
Pros
- low fees
- fast payouts on trades
- ability to stake coins while they’re being traded.
- No minimum deposit or withdrawal amounts
Cons
- Small user base and limited currencies available for trade
3. eToro: The Best Platform in the US
eToro is one of the top crypto staking platforms that leverages the latest technology in blockchain, artificial intelligence, and machine learning to make it easy for users to trade cryptocurrencies. The platform has been around since 2007 and allows users to take advantage of its staking feature.
Etoro allows for free deposits, meaning no minimum amounts are required before starting to stake. Additionally, they offer annualized interest rates of 8% per year – higher than many traditional financial institutions.
Staking on the eToro platform is easy, even for beginners. The first thing you want to do is open an eToro account. Once this has been done, you can fund your account with any currency that they support, which includes Bitcoin and Ethereum, among others).
You will need to deposit at least $100 per trading pair. eToro offers a wide range of assets to trade, and it also acts as an exchange for cryptocurrency investors.
The eToro platform allows you to stake coins like Ethereum, EOS, NEO, Dash, Cardano, and more. Of course, you can also trade those coins on the platform—but this is a topic for another day.
You can set up one-time contracts for various coins on the eToro platform. The contract specifies how much money you want to invest and how many days you wish to stake.
That means you don’t need to decide what percentage of your investment goes toward staking and what percentage goes toward trading—you can just set it aside for staking!
Pros
- It’s easy to use. You can get started quickly by signing up and connecting your bank account to the site.
- It’s safe and secure.
- You can invest in almost anything you want. With eToro, you can invest in stocks, ETFs, bonds, commodities (like gold), cryptocurrencies (like bitcoin), and more!
Cons
- You have to be very careful when choosing staking projects as some of them might not pay you, and others might return a negative profit.
4. Crypto.com: The Best Platform for Flexible Withdrawals
Crypto.com is a cryptocurrency wallet and exchange platform that allows users to stake their holdings in its native token, MCO. It also offers staking opportunities on several other cryptocurrencies like Ripple (XRP) and Ethereum Classic (ETC).
It was launched in 2016 and has since gained a reputation as one of the premier cryptocurrency wallets and exchanges. The company boasts over $7 billion worth of transaction volume on its platform annually, making it an attractive option for moving large sums quickly and efficiently between fiat currency balances, cryptocurrencies like BTC or ETH, and stablecoins such as USD Tether (USDT).
With Crypto.com, users can stake their crypto and withdraw their profits at any time—and they don’t even have to wait until the end of an investment cycle (i.e., one year or less).
Crypto.com offers staking services via its Crypto Earn facility, providing digital asset loans, crypto credit cards, and debit cards.
For users wishing for a loan, the website will provide funds in the form of digital tokens. The users will then pay back Crypto.com, plus interest, and you will receive a share of these payments.
However, the amount you will be paid by staking your crypto depends on a few factors. For one thing, APY rates differ from token to token; for example, stablecoins like USDC and TrueGBP attract an annual yield of 12%, whereas, in the case of Bitcoin and Ethereum, it’s 6.5%. Additionally, interest rates will vary depending on whether one is willing to lock up their fund for 1 or 3 months; or with no redemption clause.
Pros
- Get a better interest rate than most traditional banks offer.
- No monthly fees or minimum balances to keep.
- Convenient, accessible, and crypto-friendly service that you can use with your smartphone.
Cons
- You can expect a lot of fees when you try to cash out your earnings.
5. MyContainer: Some of the Best Staking Rewards on the Market
MyContainer is an innovative blockchain project looking to redefine traditional storage space management processes from physical homes.
This project aims to develop a platform that will enable investors and traders in the crypto market to generate passive income by staking their assets.
The APY rate they offer varies between 12% (for USDC & TrueGBP) and 6.5% for BTC or ETH; there’s no lock-up period required so you can withdraw your profits anytime.
MyContainer crypto staking is run by the same organization behind MyContainer dApp, which offers low-cost storage for those looking to save their digital assets. The platform aims to be an all-inclusive container store where users can buy and sell goods with no middleman fees; likewise, its crypto-saving feature also provides zero transaction costs.
Pros
- It’s the only marketplace for storage with a focus on privacy, security, and affordability.
Cons
- It has a limited number of products listed on the platform compared to other similar services, and its payment system doesn’t support all cryptos.
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6. Monetha: Best Platform for Shoppers
Monetha was founded in 2017, and has over 450 in-app eShop merchants to reward consumers for their purchases. On the Monetha platform, users can redeem their rewards for crypto, gift cards, and donation.
Recently, Monetha has introduced the MTH token staking.
Users can stake MTH tokens for 90 days for a fixed amount of 30,000 MTH and can get increased rewards in the form of cashback on shopping. The additional boost starts from +15% to current market rates.
Pros
- Gives extra cashback in Monetha app
- No fees apart from gas for transactions.
Cons
- You can only stake MTH and a fixed amount of tokens.
What is Crypto Staking?
Crypto staking allows users to earn passive income by holding their crypto assets. You do this by installing a staking wallet that supports the blockchain you want to stake on and then sending your coins or tokens to that wallet.
The more coins or tokens you stake, the more rewards (or interest) you can earn. In essence, this means that if you have enough money in one place, it could be making money for years without any further action from you other than simply keeping tabs on it and re-staking it when necessary.
How Does It Work?
Crypto staking platforms are designed to be distributed, peer-to-peer networks that allow you to make up to 6% annual returns on the coins you stake with them.
They’re also safer than other investment methods because they don’t require investors to keep their coins online for extended periods.
Types
There are two types of staking: proof-of-stake and masternode staking.
Proof-of-stake hashing requires a computer to calculate math problems and generate new blockchain blocks. Masternodes store all transaction data, protect privacy, and help increase network speed by serving as “notary nodes.”
Masternodes are important because they help to keep the network secure, protect privacy, and increase transaction speed. If a cryptocurrency doesn’t have masternodes, it may not be as useful or stable as other cryptocurrencies.
What is a Platform for Staking Crypto?
A crypto staking platform is a platform that allows you to stake your crypto assets. The tokens earned from staking can be used as collateral to borrow funds or even trade them in for other currencies.
Think of it like a bank, except instead of depositing money, you’re depositing your crypto assets. You’ll earn new coins for holding the coins you’ve deposited, which will pay out more interest over time.
Crypto staking platforms are great for earning passive income because smart contracts and blockchain technology enable them, so there’s no need for human involvement in managing funds or paying out profits. It’s all automated!
What Does Proof-of-Stake Mean?
Proof-of-stake (PoS) is a blockchain transaction validation method. It differs from proof-of-work in that miners are not required to solve computational problems with large amounts of computing power.
Instead, PoS depends on users having “stakes” or holdings in coins within their wallets.”
The key to this protocol’s success is enabling peer review by ensuring that all participants have some financial incentive to keep open track records. Smart contracts also aid in the preservation of transparency.
How Can You Stake Your Coins?
There are several ways you can stake your cryptocurrency. The first and most obvious way is to hold it in a wallet that supports staking, such as the Trust wallet.
Another popular method of earning passive income from PoS coins is dedicated staking pools such as Earnest Staking Pool or HodlBot (both require minimum deposits).
Finally, there’s always just investing directly into the development team behind whichever coin you enjoy using for this purpose; often, these teams have pre-mined vast quantities of their coins, which they sell at discounted prices during ICOs or on exchanges.
If you’re interested in taking your crypto, there are a few things to keep in mind:
- First and foremost, ensure that the wallet where your coins are stored supports staking. The best way to do this is by reading through the website of the particular coin’s development team or community. Most cryptocurrencies have dedicated websites that post updates about new features and developments for their projects.
- For a cryptocurrency wallet to support staking, it needs to be able to connect with other nodes on the network for transactions to be processed correctly. Therefore, if your coins aren’t stored in one of these crypto wallets, they won’t be able to stake until they move into one that can communicate properly with other nodes on its network (more on this later).
Advantages and Risks of Staking Your Digital Assets
Advantages
Several benefits come from staking crypto, including:
Stakeholder Rewards: You can earn passive income by “staking” coins (holding them in your wallet). Usually, this is done by participating in PoS systems, where each coin will give token holders the chance to receive new coins as a reward for staying on good terms with everyone else who owns their currency.
Staking brings other rewards like discounts or freebies that could give out depending on how many stakes someone has earned over time. Finally, staking is earning interest on your crypto holdings, which can help increase the profitability of holding onto coins.
There are a few different types of betting rewards that you can earn:
- Interest Stakes (INT) – This type of reward pays out an additional amount in tokens each day as long as your wallet stays online and connected to the blockchain network.
- Masternode Rewards (MN) – Masternodes require more investment than just running a regular node because they require multiple coins for collateral so that bad actors don’t try to control too many nodes at once or attack them directly from within manipulating software code.
Earn a Passive Income: Staking cryptocurrencies can be a great way to earn passive income. Depending on the particular cryptocurrency and staking system, users may receive rewards for helping secure the blockchain network by mining transaction blocks or validating transactions through POS (Proof of Stake) consensus methodologies such as Exonum’.
Risks
You are investing your crypto assets in a staking platform, and you must decide which forum you want to stake with and transfer your cryptos there. You could lose all of your cryptocurrency holdings if something goes wrong with that platform.
There are many other risks associated with staking platforms, such as:
- Not being able to access your crypto assets at all due to security issues
- Being unable to stake your crypto assets because the staking platform does not support them (this can happen rarely)
- Having a problem with the company running the staking platform itself – for example, if it goes out of business
Do You Pay Fees to Stake Your Digital Currencies?
Yes and no. Some platforms charge fees, while others do not. You should always read the terms of service before using a new staking platform to ensure that there are no hidden costs involved in what might appear to be free services.
That said, there are quite a few fees associated with staking platforms, and these can vary depending on the platform you choose; these include:
- Withdrawal fees are usually charged by all cryptocurrency exchanges, covering everything from processing your order to physically getting the crypto out of their cold storage wallets.
- Transaction fees – some platforms charge transaction fees when you transfer your funds between different accounts within the same network.
These two types of fees will typically not be included in any promotional offers or discounts offered by certain staking platforms, so make sure they have been clarified before signing up for an account.
Do You Pay Taxes on Your Crypto Rewards?
It depends on where you live. In the United States, taxes on cryptocurrency are a grey area; there hasn’t been any official guidance from the IRS on whether they should be treated like other kinds of income (they probably will be eventually).
On the other hand, some countries (like Japan) require crypto investors and holders to report their holdings and pay taxes accordingly; others don’t care if your earnings aren’t being made in fiat currency.
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How to Choose the Best Platform for You
Selecting the best platform for staking depends on several factors, such as the ones listed below:
Cost
Staking your coins is a major factor to consider. Like with crypto mining, some platforms charge fees for their services, and others don’t; however, the latter tend not to be very popular due to security concerns.
Platform reputation
You should always do your research on any platforms you plan on using before storing large amounts of crypto (and no matter what kind). Please find out how long they have been around, who owns them/who runs them etc.
Security
As always, ensuring you have a secure place to store your tokens and coins while they are staking is important. You will want to look for platforms that offer cold storage or multi-sig wallets; this means that even if someone hacks into their systems (which happens often), your funds should still be safe.
Type of wallet/coin supported
Some platforms only support certain kinds of wallets and cash. Others accept nearly everything! It’s always a good idea to double-check that you can use the platform before committing any funds.
Ease of use
This one is pretty self-explanatory; you’re not going to be able to stake your coins if it takes 8 hours to log onto the staking platform itself! So you need an easy web app that keeps everything simple.
Liquidity
This is a big one. The more frequently your coins can be traded, the better – especially if you want to sell them for fiat quickly! On the other hand, if staking platforms don’t have good liquidity and volume, it could mean that selling your cryptocurrencies on them might not work out too well (or may even be impossible).
Reputation of the platform
As mentioned above, just because someone has been around a while doesn’t necessarily mean they’re trustworthy, so always do some digging before trusting anyone with valuable information like private keys, passwords, or anything else related.
Personal preferences
The type of asset you want to stake and the number of coins needed for staking.
Is Staking Worth It?
Whether or not it is worth staking your cryptocurrency depends on several factors, but in general: yes! Staking provides an opportunity for earning free crypto as passive income and can help mitigate the risk of holding crypto assets. There are many platforms available today that offer various types of returns (dividends), so research is recommended before choosing one.
Conclusion
Crypto staking platforms are a great way to earn passive income by holding crypto assets. You can find some of the best alternatives in the market and start earning more rewards by choosing one of these options that we’ve presented.
If you are already involved in crypto, these staking platforms can be a very attractive way to make more money while holding on to your coins. They are a great alternative investment!
If you’re looking for a way to earn more money with your crypto, staking is a great option. The best part is that you can make it without much work!
And, if you haven’t started investing in crypto yet, we recommend you to read this article about how to start investing!
FAQs
Which crypto is best for staking?
The best cryptocurrencies for staking are those with a high coin supply, low inflation levels, and fast block times. The best crypto staking coins are Bitcoin (BTC), Lisk (LSK), Ethereum, Litecoin, and Dogecoin.
Which crypto is staked the most?
The most common and well-known option is Bitcoin. However, there are several other cryptocurrencies that people can stake as well.
Some of the most popular options include Ethereum, Litecoin, and Dogecoin. If you choose to stake one of the most popular currencies, such as Bitcoin or Ethereum, there is a higher chance that someone else will want in on the action. This scenario could lead to competition for block rewards and increased difficulty in earning payout bonuses.
