If you love passive income, then you’ll want to know about the best staking platforms where you can get maximum returns on your staked funds. However, these platforms can be decentralized platforms (DeFi) or centralized platforms (CeFi). I previously wrote an article on DeFi vs CeFi: Which one is better? You might want to check it out.
However, it doesn’t matter what category of platforms you have a deep love for, I’ll give you options for the categories and you can make your choice based on your preference.
Is staking profitable?
Well, before you jump right in, staking for the very first time, you probably will want to know if it’s a profitable venture or not. And you’ll be right to want to know that information.
But firstly, you should know that this method of earning passive income is when you lock away your crypto asset(s) for a short or long period of time. In return for this, you get rewarded. Usually in the same cryptocurrency as staked, and sometimes in another cryptocurrency entirely.
Now, back to the question, compared to traditional interest rates with banks, staking is a very profitable way to invest your cryptocurrencies and earn passive income without any hard work. Well, for the most part, the system/blockchain/platform does the hard work for you. You only need to accumulate and compound your returns on the platform.
Can I lose crypto by staking?
We earlier established the fact that it can be rewarding/profitable to lock cryptos on different platforms, however, there’s another side to it. You can lose money as well. Or to put it in a better and non-scary way, the value of your staked cryptocurrencies can reduce during your specified staking period. However, it’s always advisable to go into locking assets long-term. That way, you can observe the market movements and also get maximum returns for your staked assets.
I thought I needed to address those very important topics; if cryptocurrency staking is safe and profitable, before listing out the best platforms you can stake your cryptocurrencies. And now that that’s out of the way, let’s jump right into it.
Best staking platforms to stake your cryptocurrencies
The Uphold platform is centralized and allows unrestricted users in good standing who reside in places approved by them to stake a host of cryptocurrencies on the platform. Presently, you can earn up to 25% APY on your staked cryptocurrencies. Compounding reward is possible on Upload; this means that the reward your earn for staking can be re-staked for even bigger returns. Cryptocurrencies that can be staked on Uphold include Kusama (KSM), Polkadot (DOT), Cosmos (ATOM), Band Protocol (BAND), Zilliqa (ZIL), Polygon (MATIC), NEAR Protocol (NEAR), Ethereum (ETH), Solana (SOL), Tron (TRX), Avalanche (AVAX), and so on.
Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency. Besides that, you can also stake your cryptocurrencies (those that are supported by the platform). You get to enjoy up to 6% APY on your staked cryptocurrencies on Coinbase (Coinbase Earn). And some of the cryptocurrencies you can stake there include Algorand (ALGO), Cardano (ADA), Cosmos (ATOM), Ethereum (ETH), Solana (SOL), & Tezos XTZ.
Like Coinbase, KuCoin is a cryptocurrency exchange that allows people to buy and sell their cryptocurrencies as well. However, it has a much wider range of assets to trade from. KuCoin staking, however, allows fixed and flexible stakes without any hard-locking period. Staking for the long term is your choice and you get more rewards for this type. You can stake your Ethereum (ETH), Binance (BNB), Polygon (MATIC), Bitcoin (BTC), Tether (USDT), USDC (USDC), Near Protocol (NEAR), and a lot more on the platform.
This article will be incomplete if I don’t mention Binance. Binance is an online exchange where users can trade cryptocurrencies as well. It’s the topmost exchange in the crypto space. It’s secure and has got lots of products to serve its many users globally. Staking on Binance is quite easy and you can get up to 104.62% APY for doing so. A few of the cryptocurrencies that can be staked on Binance include Axie Infinity (AXS), Shiba Inu (SHIB), VeChain (VET), Solana (SOL), Avalanche (AVAX), Near Protocol (NEAR), Terra (LUNA), Cardano (ADA), Polygon (MATIC).
Nexo is a centralized lending institution, it enables its users to unlock the value of their cryptocurrency holdings without having to sell their tokens. You can get up to 20% APY interest depending on the cryptocurrency and the amount you stake. You can earn on supported assets like BTC, ETH, LTC, XRP, EOS, XLM, BCH, USDT, USDC, TUSD, DAI, PAXG, USDP, BUSD, LINK, TRX, BNB, DOT, DOGE, ADA, MATIC, AXS, SOL, AVAX, FTM, ATOM, KSM, NEAR, APE, RUNE, GMX, and NEXO.
6. DeFi Swap
DeFi Swap is tagged as the best staking platform in 2022 for some reasons. It aims to be that one-stop shop for decentralized finance products on the blockchain. DeFi coin (DEFC) is the native token on this platform and can be staked for up to 75% APY on DEFC. You can buy DEFC itself for high-yield staking on BitMart, Pancakeswap, and on DeFi Swap itself.
Like any other staking platform, YouHodler can help turn your cold assets into hot profit instantly by depositing your cryptos on the platform and getting weekly interest payments. You earn up to 8.32% APY for your staked coins. And cryptocurrencies that can be staked include Bitcoin (BTC), Pax Gold (PAXG), USD Coin (USDC), True USD (TUSD), and more.
There you have it, a few best staking platforms I know in the cryptocurrency space. I hope I have been able to educate you about this. One last thing to note is, like every other crypto investment, when it comes to this option, it’s good to have in mind that you SHOULD NOT stake more than you can afford to lose. This is because things go wrong, cryptocurrencies/platforms get hacked, and when this happens, you could lose a lot.
Another tip to keep in mind is that you should diversify when it comes to staking as well so you don’t put all your eggs in one basket. In bearish days, a safer option would be to stake stablecoins.
I would love to know your opinion about this topic and I’m also open to knowing what platforms you are staking on. Leave your comments on our socials.