Cryptocurrency staking has become one of the best ways for investors to earn passive income. You simply stake your coins in a protocol, and you get to enjoy benefits like airdrops and new token giveaways.
While Bitcoin cannot be staked directly, rewards generated from staking can be converted to Bitcoin. This gives room for the growth of the benchmark crypto and the broader nascent industry.
If you’re a passive investor looking to make some money, we’ve outlined some of the best staking platforms available in the market below:
1. eToro: The Overall Best Platform For Staking
If you’re interested in earning passive income through cryptocurrencies, we recommend using eToro.
eToro has become one of the best platforms for Bitcoin staking. The broker offers several impressive trading and investment offerings. However, for the exclusive eToro Club members, a staking service allows you to earn passive income.
With eToro, you get to stake some of the most popular proof-of-stake (PoS) coins – including Cardano (ADA), TRON (TRX), and Ethereum 2.0 (ETH 2.0).
The primary benefit of eToro is that its staking yields are truly outsized. eToro offers up to 90% yields on staked coins, marking the highest rate of yields available on any staking platform. Note, however, that your yields will depend on the membership group you fall into.
For eToro Diamond and PLatinum Plus members, yields can hit 90%. But, they go lower to 85% for Silver, Gold, and Platinum members, while Bronze members get up to 75% in staking yields.
In terms of holding periods, eToro offers nine intro days. This means that your yields start to ring from the tenth day of staking.
However, if you’re a Silver, Gold, or Platinum level subscriber, your intro period is pegged at seven days. So, your rewards start to run from the eighth day.
eToro offers a calculator to find daily snapshots of your total staked tokens. This number is divided by the number of days staked, summing up your expected staking rewards. Note that eToro will charge a small fee on your staking rewards to cover its incurred costs.
2. Binance: The Best Staking Platform for Diversity
For avid cryptocurrency enthusiasts, Binance needs no introduction. The company is the world’s largest crypto exchange by daily trading volumes, and it is a ubiquitous name in the market.
Binance has grown significantly over the years, expanding into different facets of the industry. The company’s staking service – known as Binance Earn – has also fleshed out, expanding into the most diverse staking service on the market.
Today, Binance Earn supports staking in different coins – including ETH 2.0, QTUM, Harmony (ONE), Eos (EOS), VeChain (VET(, Tezos (XTZ), and more.
Users can choose between staking with a locked or flexible savings plan. At the same time, they can participate in decentralised finance (DeFi) staking.
Reward percentages on Binance Earn will vary based on the coins you choose to stake. But, small-cap coins tend to generate higher rewards than their large-cap counterparts, so you want to keep that in mind when choosing the right coin to stake.
3. Coinbase: Best Staking Platform for Americans
With Binance holding murky regulatory positions in different countries, Americans might be looking for a platform that is more regulatory-compliant. This is where Coinbase thrives.
The exchange is one of the best platforms for Bitcoin staking. Coinbase has been operating since 2012, and it is regulated by agencies like the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN). Coinbase’s stock even trades publicly, showing how its standing is with the American regulators.
Coinbase offers staking through a dedicated service as part of its products suite. The staking service is quite diverse, offering access to staking in several coins across the board – including ETH, Algorand (ALGO), USDC, XTZ, Dai (DAI), And Cosmos (ATOM).
As you would expect, staking rewards on Coinbase vary. Currently, ATOM has the highest yields with 5%, while USDC is the lowest with 0.15%. Coinbase allows you to begin staking with as little as $1, so you can start small and grow your portfolio from there.
Of course, Coinbase also takes a fee out of your stalking rewards. The exchange claims that yield rates will determine their fee structure.
4. Kraken: Best Platform For Fiat Staking
Another best platforms for Bitcoin staking is Kraken. The exchange has managed to stay up there with the biggest names in the business.
Based in the United States, Kraken currently operates under supervision from the Financial Crimes Enforcement Network (FinCEN).
Kraken’s staking service is impressive for its diversity. The platform currently has 15 assets for investors to stake, diversifying its portfolio between cryptocurrencies and even fiat – you can stake the dollar and euro on Kraken.
Considering that no other platform allows users to stake fiat, Kraken appears to have found a great niche in the industry to stay.
Staking rewards on Kraken vary, as you’d expect. Currently, the most valuable coin for staking on the network is Kava (KAVA), with 23%.
The lowest is Bitcoin, with 0.25% in yearly rewards. With payouts happening twice a week, Kraken is as flexible as they come.
5. BlockFi: Impressive Profits On Bitcoin Staking
BlockFi is another interesting company that needs no introduction in the crypto space. Founded in 2017, BlockFi is looking to bridge the crypto and traditional financial spaces, offering services like lending and savings to interested customers.
Currently, BlockFi also offers an intuitive crypto staking product that allows users to stake eight assets – BTC, ETH, Litecoin (LTC), USDC, Gemini Dollar (GUSD), Paxos Standard (PAX), Tether (USDTR), and Binance Dollar (BUSD). The service is also in the process of adding stalking for Chainlink (LINK).
With an opportunity for Bitcoin staking, investors have a lot to be excited about when using BlockFi. The platform offers up to 5% in rewards for Bitcoin staking, which makes it perhaps the best in the market.
However, USDT holds the title of being the most profitable to stake on BlockFi at the moment, with 9.3% in reward rates.