Crypto staking has become an extremely popular way for cryptocurrency holders to earn passive income on their digital assets. But with so many platforms offering staking services, it can be tricky to identify the best options.
This comprehensive guide will walk you through everything you need to know about crypto staking and recommend the top 13 staking platforms for 2023 based on factors like security, supported coins, fees, returns, and ease of use.
What is Crypto Staking?
Cryptocurrency staking involves locking up holdings of certain "proof of stake" coins to help validate transactions on their networks, in exchange for financial rewards. It serves the same purpose as mining does for "proof of work" cryptocurrencies like Bitcoin.
Staking allows crypto investors to put their holdings to work and earn between ~5-15% annually in interest, simply for holding coins in their wallets. It has emerged as a billion-dollar industry, allowing both institutional and retail holders to maximize returns.
However, unlike parking money in a savings account, staking carries risks related to cryptocurrency volatility and smart contract vulnerabilities. Only stake assets you can afford to lose, and conduct thorough due diligence beforehand.
Key Factors for Choosing a Staking Platform
When selecting a staking service, here are some of the most important aspects to consider:
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Security – Platforms should use cold storage and offer insurance to protect staked assets. Multi-factor authentication is also vital.
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Number of Supported Coins – More is generally better, allowing you diversify across assets.
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Fees – Ranging from 0-25%, lower is preferable to maximize returns.
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Minimum Staking Amounts – Varies across platforms and coins between $1-$10,000+.
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Flexible vs Locked Terms – Flexible is more liquid but offers lower yields. Locked terms between 10-400+ days offer higher yields but less liquidity.
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Returns Offered – Consider current vs historical yields across platforms to project future expected returns.
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Ease of Use – User-friendly platforms facilitate easy staking for crypto beginners.
Now let‘s explore the top crypto staking platforms for 2023 and see how they compare across these metrics.
1. Binance
Binance is the highest volume cryptocurrency exchange and offers extensive staking services built-in across over 100+ supported coins – the most coverage among major platforms.
It offers both flexible and locked staking terms, with higher yields for locking up coins between 30-90 days or longer. Expected APY ranges between 1-50% depending on the asset and lockup period.
Pros:
- Industry leading staking rewards
- Over 100 supported crypto assets
- Simple user interface
- Allows compounding of rewards
Cons:
- Occasional maintenance downtime
- High risk tolerance required
Binance is a top pick for advanced crypto stakers seeking maximum yields across a breadth of both small cap and large cap coins. Sign up for Binance here.
2. Kraken
Kraken is another popular cryptocurrency exchange offering staking services for 12 coins including Ethereum, Polkadot, Cosmos, Kava, and more.
The platform is focused on flexible, liquid staking so holdings can be unstaked and traded anytime. Expected returns range from 4-17% depending on coins staked.
Pros:
- Excellent platform security
- Flexible unstaking
- Competitive rates among top exchanges
- Mature company with extensive track record
Cons:
- Limited coin selection
- 5-15% commission on staking returns
Kraken is a trusted, reputable exchange well-suited for investors prioritizing security and flexibility over maximum yields. Sign up for Kraken here.
3. KuCoin
KuCoin facilitates soft staking that carries no lockup periods, as well as fixed-term staking for higher rewards with various redemption restrictions depending on assets staked.
The platform supports 30+ coins and offers annual yields ranging from 3-15%, lower than Binance but competitive among top exchanges.
Pros:
- Wide variety of staking assets
- Flexible and fixed programs
- Easy to use platform and mobile app
- Has operated since 2017
Cons:
- Less coin coverage vs. Binance
- Lower yields than DeFi platforms
KuCoin strikes a balance between usability, yield, and diversity of assets – making it suitable for intermediate crypto investors. Sign up for KuCoin here.
4. Coinbase
Coinbase is the largest US-based cryptocurrency exchange, offering staking services for 10+ assets including Ethereum, Cosmos, Algorand, and Tezos.
While convenience is a major draw, Coinbase‘s 25% commission on staking returns is by far the steepest on this list. Expected APY after fees ranges from ~3-5% depending on the coin.
Pros:
- Beginner friendly interface
- Instant access to staking rewards
- Strong security infrastructure
- Publicly traded firm subject to regulation
Cons:
- Very limited coin selection
- 25% commission is exceptionally high
- Lower yields than most platforms
Coinbase is tailor-made for novice U.S. crypto investors who value usability and compliance over yield maximization. The high fees are a tradeoff for an easy onboarding experience. Sign up for Coinbase here.
5. Crypto.com
Crypto.com supports staking of 30+ coins including stablecoins with flexible terms and no fees. Users can further boost rewards using its CRO token – incentivizing engagement across Crypto.com‘s product ecosystem.
Expected returns vary between 2-20% depending on lockup term and use of the CRO token. The mobile-first platform also offers an easy staking experience.
Pros:
- No platform fees
- Generous promotions and rewards
- Simple mobile interface
- Support for stablecoin staking
Cons:
- Lower yields than Binance overall
- Lacks web interface
Crypto.com is a great option for investors wanting to stake top coins from their mobile device while saving on fees. Sign up for Crypto.com here.
6. Bitstamp
Venerable European exchange Bitstamp supports staking of Algorand and Ethereum, catering more towards institutional investors in select jurisdictions.
Algorand staking carries no lockup and offers up to ~5% APY on holdings over 25 ALGO. Ethereum staking involves converting to ETH2 and locking up coins until the Eth2 upgrade finalizes, for expected returns around 5%.
Pros:
- One of longest running exchanges (est. 2011)
- Regulation across major jurisdictions
- Supports IRA crypto investing
Cons:
- Very limited coin selection
- Geared heavily toward institutional investors
Bitstamp is tailored chiefly for institutional crypto investors needing a reputable, compliant staking option despite minimal coin support. Sign up for Bitstamp here.
7. ByBit
This crypto exchange platform focuses entirely around derivatives trading but also offers flexible savings products with interest generated daily and added to balances.
Supported assets include BTC, ETH, stablecoins, altcoins, and DeFi tokens like AAVE and UNI – with APYs that are very competitive.
Pros:
- Flexible interest accounts
- 15+ coins supported
- Attractive yields
Cons:
- No locked staking products
- Requires frequent compounding
If you seek a one-stop platform to trade and earn yield on major crypto assets with daily interest payouts, ByBit is worth considering. Sign up for ByBit here.
8. Atomic Wallet
Atomic Wallet is a non-custodial multicoin wallet rather than an exchange, still allowing users to stake 15+ cryptocurrencies directly from its intuitive interface.
It provides an easy onboarding experience by not requiring users to set up multiple wallets to stake various coins, while retaining control of keys. Expected yields vary greatly depending on asset.
Pros:
- intuitive staking mechanism
- No need for multiple wallets
- User retains custody
- Clean, beginner-friendly UI
Cons:
- Fewer supported coins than exchanges
- Less ability to track reward details
Atomic Wallet excels in its simplicity that retains self-custody. This makes it appealing for novice stakers wanting to earn yields without relying on a centralized platform. Download Atomic Wallet here.
9. eToro
eToro is an Israel-based social trading brokerage that supports staking for Cardano (ADA), Tron (TRX), and Ethereum (in certain regions).
Staking returns are quite competitive but diminish significantly based on the user‘s club tier, which designates the commission eToro charges on rewards. Bronze tier sees a 25% cut while higher tiers like Diamond take 10%.
Pros:
- Social/copy features differentiated offering
- Supports fractional stakes (~$25 minimum)
Cons:
- Just 3 supported assets currently
- High fees for lower tier users
eToro lets investors automatically mimic staking strategies from top performers on the platform. It appeals predominantly to its existing userbase but has limited appeal beyond that currently. Sign up for eToro here.
10. Cake Defi
Cake Defi offers attractive yields by leveraging DeFi lending in addition to staking. It supports assets including DASH, Litecoin, Bitcoin Cash , Cosmos, Polkadot, and more.
The transparency about its DeFi funds and operations are a particular advantage relative to other "black box" yield sites. Expected returns vary between 30-80%+.
Pros:
- Excellent transparency
- Very strong yields
- No minimum amounts
Cons:
- Still a "newer" platform founded in 2019
- DeFi yields carry smart contract risk
For investors comfortable with DeFi risks in return for yield, Cake Defi is among the most transparent platforms offering lucrative staking options. Sign up here.
11. Stake.Fish
Stake.Fish runs validator nodes across six different crypto networks, allowing users to delegate assets to those nodes to earn yields without relying on a custodian.
Supported networks include Celo, Cosmos, Kusama, Skale, Terra, and more – with yields ranging between ~10-20% APY depending on the project. Minimum amounts to delegate start around $10.
Pros:
- Non-custodial asset protection
- Video guides make onboarding easy
- Low minimum amounts
Cons:
- Still requires some technical comfort
- Limited coin selection
Stake.Fish is ideal for intermediate crypto stakers who prefer the security benefits of participating in proof-of-stake without relinquishing ownership of assets. Check it out here.
12. MyCointainer
MyCointainer automates staking and masternodes to generate yields on holdings across more than 30 coins and tokens. The platform aims to make earning passive crypto income simple for newcomers.
Expected returns vary greatly depending on the asset and type of staking, from ~1% on stablecoins to ~500% for some exotic masternode holdings. The platform does take undisclosed cuts from rewards however.
Pros:
- Suitable for crypto beginners
- Many unique niche assets
- Clean intuitive interface
Cons:
- Closed source masternode fund details
- Large spread of returns
MyCointainer lowers barriers to entry for casual cryptocurrency investors seeking to stake across both popular and lesser-known coins. Check it out here.
13. Nebeus
Nebeus is a European-based crypto platform allowing users to either stake or "rent" their holdings to earn yields as high as 13%, settled in the crypto asset rented or stablecoins.
Support coins include BTC, ETH, USDT, USDC as well as smaller cap assets like DOT, SOL, ATOM, ZEC, XRP, XMR and more. Both staking and rentals carry no platform fees.
Pros:
- No platform commissions
- Unique rental feature
- 14 supported assets
- Licensed as crypto custodian
Cons:
- Platform still gaining traction
- Fewer DeFi bells & whistles
If you‘re based in Europe and value a simple, transparent platform offering competitive yields on major crypto assets with no strings attached, Nebeus in worth evaluating. Check it out here.
Key Takeaways for Beginners
Cryptocurrency staking offers a compelling tool for investors to put idle holdings to work generating yields on autopilot. But before jumping in, keep a few tips in mind:
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Don‘t stake any funds you may need short term or cannot afford to lose. Understand liquidity restrictions and volatility risks for each asset.
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Research staking yields being offered carefully. If returns seem too good to be true, they often are. There can be serious risks associated with certain DeFi protocols promising massive yields.
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Consider starting small in both amounts staked and number of platforms used to get your feet wet. Don‘t over-complicate with too many accounts simultaneously.
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Bookmark staking reward calculators to project your expected returns over various time horizons using estimated yields. Some assets have APIs allowing accurate yield calculations.
Conclusion
Staking has deservedly garnered tremendous traction among crypto investors seeking to maximize passive income potential in their portfolios. The platforms highlighted in this guide represent the top all-around options available today that balance factors like security, yields, coin support, fees, and ease-of-use.
No one solution will check every box or suit every investor‘s needs. Assessing your individual priorities and risk tolerance is key in determining which platform suits you best. The ongoing explosion of innovation across decentralized finance means exciting new offerings will continue emerging at a breakneck pace as well.
But whether you‘re looking to stake Ethereum as part of the gradual transition to Eth2, take advantage of attractive yields to grow your positions in established tokens like Polkadot or Solana, or research upstart niche protocols promising big returns, following prudent due diligence is essential.
I hope this guide has provided ample ideas, resources and tools to help you take the plunge into crypto staking. Don‘t hesitate to reach out with any other questions! Happy staking!
