Best crypto staking platforms in 2024

What is crypto staking?

Crypto staking is the practice of "locking up" your digital tokens for a set amount of time in order to improve the functionality and security of the corresponding blockchain network. In exchange, you will have the chance to make money by staking your tokens. Usually, investors have an interest reward (3-30% per year). That's why crypto enthusiasts consider staking is an excellent passive type of investment.

What is a crypto-staking APY?

The term "annual percentage yield" for cryptocurrency staking refers to the compounded yearly staking return expressed as a percentage. An annual percentage yield is more prevalent in the cryptocurrency world than an annual percentage rate, and it includes the fact that over time, you also receive interest on your interest payments.

What coins can I stake?

Staking isn't an option with all types of cryptocurrencies. It's only available with cryptocurrencies that use the proof-of-stake model. So, you need a cryptocurrency that validates transactions with proof of stake. Start by learning more about any proof-of-stake cryptos that catch your eye, including how they work, their staking rewards, and the staking process with each one.

Top 5 crypto staking platforms

In our search for the best crypto-staking platforms in 2023, we focused on a specific set of criteria. From an investment perspective, this covered metrics such as the yields on offer, lock-up terms, and the number of supported tokens.

In terms of security, we explored whether each platform holds a regulatory license and what systems are in place to ensure your crypto-staking endeavors are conducted in a safe environment. We also looked at the customer service options.

The findings of our crypto-staking platform can be found below:

ByBit

Bybit Review

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If you fear fixed-term staking, ByBit offers additional flexible staking to ease your concerns. Besides, the ample choice of top coins makes it a perfect staking destination.

ByBit savings support staking in BTC, ETH, USDT, Bit, SOL, DOT, and so on. What’s missing is compound staking, and you will have to reinvest manually for continuous earnings.

Regardless, ByBit staking is one of the most flexible offerings in the crypto space with industry-leading APYs that you shouldn’t miss.

Binance

Binance Review

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One of the top cryptocurrency staking sites for people seeking large returns is Binance. The almost 100 different staking coins that can be supported by this well-known exchange platform span a wide spectrum of projects and APYs. Additionally, Binance provides a range of options for the length of time you want to lock up your tokens. Normally, this covers a time frame of 10, 30, 60, or 90 days.

Coinbase

Coinbase Review

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Coinbase is perhaps the best crypto staking platform to consider if you are a beginner who is also looking to buy and sell digital assets in a secure environment. This is because, in addition to staking services, Coinbase offers a regulated and user-friendly exchange platform. As of this writing, Coinbase supports six digital currencies that can be staked. This is inclusive of Ethereum, Algorand, Cosmos, Tezos, Dai, and USDC. Rates on offer vary from 0.15% APY on USDC to 5% on Cosmos.

Crypto.com

Crypto.com Review

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Crypto.com, one of the top cryptocurrency staking sites, enables users to profit from holding stablecoins for an annual return of up to 14%. At Crypto.com, there are daily rewards, weekly incentives, and monthly rewards available for staking. Users also have the option of individually or collectively staking their currencies.

The platform's user-friendly design makes it simple for you to manage your stake rewards. They offer a mobile app so you can manage your investments while you're on the road. With just a few touches, you can establish a staking time that can be flexible or long-term.

Kraken

Kraken Review

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According to CoinMarketCap, Kraken is the fourth largest crypto exchange. In addition to allowing staking in 12 crypto assets, Kraken also supports unstaking for most crypto assets.

When you unstake, you are taking your staked money out so that you can trade or withdraw it. As a result, there is no bonding period in practice.

Also, Kraken gives you staking rewards once or twice a week depending on the coin you stake. As you earn rewards, you can stake them further to maximize your earnings.

Kraken refers to this method as on-chain staking. In select countries, they also offer off-chain staking. As a final note, Kraken does not charge a fee for staking or un-staking.

Is crypto staking a good idea?

Yes, it is!

Earning interest on your cryptocurrency investments is an excellent way to grow your income. If you need to withdraw your cryptocurrency holdings, many platforms allow you to do so at any time.

However, there are some companies that require you to keep your crypto in your savings account for a minimum period of time. In this case, you are more exposed to cryptocurrency price volatility. A falling cryptocurrency's value would make your investment worth less even though you'd earn interest.

What is the minimum staking period?

The minimum staking period is the minimum amount of time an account needs to be staked to a consensus node before the account is eligible to earn rewards. The minimum staking period is one day, which is 24 hours.

How to stake crypto

Here’s a step-by-step guide on how you can begin crypto staking.

Step 1

Make a decision about which cryptocurrency exchange to use. Choose a reputable, well-known exchange with a large currency selection.

Step 2

Sign up for an account with a cryptocurrency exchange. In order to complete the registration process, you will need to provide your personal information and verify your identity.

Step 3

Make a deposit into your account using fiat money.

Step 4

Select a cryptocurrency that you are interested in buying and staking. The number of cryptocurrencies you invest in is up to you. Make sure you research your options before making a decision.

Step 5

Buy your chosen cryptocurrency. To submit and complete a buy order for cryptocurrencies, follow the steps provided by the exchange.

Step 6

Join the exchange’s staking pool. While staking can work differently depending on the cryptocurrency, most use staking pools. Crypto traders combine their funds in these staking pools to have a better chance of earning staking rewards. Research the staking pools available for the cryptocurrency you have.

Best coins to stake in 2024

Here are a few of the major cryptocurrencies you can stake and a little bit about each one:

1. Tether (USDT)

Tether is one of the top coins to stake in 2022, with yields being as high as 12.3%. Tether ranks as the biggest stablecoin based on market cap.

As a stablecoin, Tether creates tokens when they deposit funds into their reserves and burn the equivalent amounts as funds are extracted or withdrawn. As a result, fewer coins will be in circulation, which means demand and price increase. This means you can earn more when staking coins like Tether.

2. USD COIN (USDC)

USD COIN is a digital currency backed by U.S. dollars. The currency allows people to send, spend, and exchange money around the globe quickly and safely.

Staking USD COIN comes with lower risk because it’s backed by an outside asset—typically, USD. Like other digital assets, USD COIN has a burning mechanism. The coin is “burned” whenever someone sells it for fiat currency (USD).

3. Ethereum 2.0 (ETH)

Investors can earn passive income by staking Ethereum 2.0 (ETH). To stake with this coin, you’ll need to own at least 32 ETH. The platform has now moved to a proof-of-stake model, which validates transactions using nodes run by stakers. Currently, more than $12 billion in ETH has been staked so far. Stakers of ETH could receive a maximum annual reward rate of 18.10%.

4. Binance Coin (BNB)

Binance is the most popular crypto exchange in the world. Its native coin, BNB, is one of the world’s top staking coins. One of the reasons for this is that BNB has multiple use cases, which include:

BNB coins are burned on a quarterly basis, in which Binance buys back BNB, and destroys it. This process will continue until Binance has burned 100,000,000 BNB.

The average annual return for staking BNB is between 6–9%, with returns as high as 30%, which depends on transaction fees.

5. Solana (SOL)

Solana is a blockchain-based smart contracts platform. Solana’s native cryptocurrency, SOL, is a stackable token that can be used to facilitate on-chain transactions and pay for network fees. SOL token holders can earn rewards and help secure the network.

The APY for SOL depends on the number of transactions per day, but on average, APY rewards are between 7 to 8%.

The primary Solana token burning mechanism is the burning of a portion of each transaction fee.

6. Cardano (ADA)

Cardano (ADA) is a blockchain platform that validates transactions without high energy costs. It can be used to create smart contracts for DeFi, to create Dapps, and mint new cryptocurrency tokens.

Staking Cardano is a great way to earn passive ADA income as you earn interest from your crypto holdings.

Therefore, if you’ve been a long-term holder of ADA, you can stake Cardano to increase returns. The yields will typically be higher than traditional investments. And you won’t have to worry about the hassle, cost, and risk that come with a mining rig.

7. Cosmos (ATOM)

Cosmos is a decentralized, customizable platform where new startups can effortlessly create their blockchains service. The aim of the platform is to bridge the gap between different blockchain service providers, facilitating the communication process among them.

ATOM is the native coin of Cosmos. When staking ATOM, you have the ability to contribute to the security and governance of the Cosmos Hub, and earn rewards for helping to secure the network. When staking ATOM, the typical APY is 9.7%.

8. Tezos (XTZ)

Tezos is a blockchain with one of the biggest ICO funding campaigns, with the goal to handle upgrades and development without the need for hard forks, like Ethereum and other blockchains. When staking Tezos, you can passively earn rewards for your help to secure the network. The more Tezo coins you stake, the more money you can earn.

9. Polkadot (DOT)

Polkadot is a decentralized blockchain that provides interconnectivity and interoperability between blockchains. In order to stake on Polkadot, you must own their native coin, DOT. By staking your Polkadot, you can help to secure the network and validate your transactions. As a result, you get a reward in return. The staking reward is around 13%.

10. Algorand (ALGO)

The Algorand blockchain is an open-source blockchain that operates with the goal to be scalable, secure, and decentralized, all at one time.

This helps to solve one of the most persistent problems facing cryptocurrency—scalability. Its proof-of-stake model that’s essential for securing blockchains and making sure no one can create new tokens out of thin air that they didn’t earn.

Participating in Algo’s consensus mechanism is simple. Each address holding at least one Algo in a non-custodial wallet in order to earn rewards. The annual reward for staking Algo is 3.07%. So, for example, if you own $1,000 in Algo, you could earn around $30.7.

Methodology for compiling our ratings of crypto exchanges

Traders Union applies a rigorous methodology to evaluate crypto exchanges using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include: