Staking is an increasingly coveted activity in the crypto-sphere for generating passive income. Given the current craze in the crypto markets, it’s becoming essential to master this process to optimize your ROI.
In this guide, we’ve chosen to explore 5 of the best staking sites available in 2024. These are Coinbase, Kraken, eToro, Binance and KuCoin. Each of these platforms has been evaluated according to rigorous criteria. Here you’ll find a comparative analysis including features, associated fees, and each platform’s specific pros and cons to help you make an informed choice.
Our comparison of the 5 best staking platforms online
After browsing the various offerings in the field regarding the best crypto staking site, here are 5 of our top picks.
Coinbase
Founded in 2012, Coinbase is one of the largest CEXs in the United States. It offers a variety of services including crypto and fiat exchange as well as crypto staking. It is a major player in the crypto universe and has around 98 million users.
On Coinbase, the following cryptos can be staked. The exchange enjoys good press and is already listed on the NASDAQ stock exchange.
| Cryptos | APY | Commission |
|---|---|---|
| Avalanche (AVAX) | 8.44% | 35% |
| Solana (SOL) | 4.68% | 26%-35% |
| Tezos (XTZ) | 4.37% | 35% |
| Polkadot (DOT) | 9,277% | 35% |
| Cosmos (ATOM) | 5.71% | 26%-35% |
| Ethereum (ETH) | 2.74% | 25% |
| Cardano (ADA) | 2% | 26%-35% |
| Polygon (MATIC) | 2.78% | 35% |
Coinbase features
- Intuitive user interface
- Best staking coins
- Available in several countries
- Enhanced security with two-factor authentication (2FA)
- Integrated wallet available on PC and smartphone
Pros and Cons
- Regulated platform with over 90 million users
- Stake more than a dozen cryptos
- No fees for staking and unstaking cryptos
- Fairly high commissions on staking rewards (at least 25%)
- Unavailable in some regions
Coinbase
- Enhanced security
- Automatic rewards
- Flexible withdrawal
Coinbase
Kraken
Founded in 2011 by Jesse Powell, Kraken is a cryptocurrency exchange renowned for its robust security. It is one of the best-known and longest-running exchanges in the cryptocurrency space, offering users the ability to buy, sell, and trade a variety of cryptocurrencies, including Bitcoin, Ethereum, and other altcoins.
Aside from this, the platform also offers staking for over 20 assets. It also provides a range of additional services, such as margin trading, futures contracts, and more. Kraken is both suitable for beginners and professionals.
| Cryptos | APY | Commission |
|---|---|---|
| Cardano (ADA) | 3-6% | 6-20% |
| Flare (FLR) | 0.1-2% | 6-20% |
| Ethereum (ETH) | 1-4% | 6-20% |
| Mina (MINA) | 12-18% | 6-20% |
| Polkadot (DOT) | 12% | 6-20% |
| Tezos (XTZ) | 25% | 6-20% |
Kraken features
- Regulated and secure platform
- Low staking fees compared with the competition
- Kraken Pro’s advanced trading features
Pros and Cons
- Up to 28% APY on staking
- Commissions of up to 26%
- More than twenty cryptocurrencies to stake
- High transaction fees if you’re not using Kraken Pro
- Staking services restricted in certain regions
Kraken
- Supports over 150 cryptos
- Up to 23% APY
- Instant rewards
Kraken
eToro
Founded in Israel in 2007, eToro is a trading platform renowned for its innovative features, including CopyTrading. Its users can invest in a wide range of assets, including stocks, fiat currencies, indices, ETFs (exchange-traded funds), and cryptocurrencies.
The platform also offers an educational hub aimed at beginners and professionals in crypto and trading. For the time being, the broker only offers two staking assets but plans to complete the offering very soon.
| Cryptos | APY | Commission |
|---|---|---|
| Cardano (ADA) | 75% to 90% | N/A |
| Tron (TRX) | 75% to 90% | N/A |
eToro features
- Regulated online trading platform
- Various assets to trade (stocks, cryptos, ETFs, CFDs, etc.)
- Various tools for professional trading
Pros and Cons
- Simple, user-friendly staking platform
- Stored assets are managed and secured by the site
- eToro offers generous staking rewards for Platinum members
- Only 2 tokens are available for staking (ADA and TRX)
- No flexible staking
eToro
- Intuitive user interface
- Active investor community
- Advanced trading tools
eToro
Binance
Founded in 2017 by Changpeng Zhao, Binance is the largest crypto CEX. It offers a wide range of cryptocurrency-related services, including trading, portfolio services, margin trading, futures, and options, as well as staking and various decentralized finance (DeFi) offerings.
It can be accessed in over a hundred countries, and you can stake more than twenty assets. The commission on staking rewards varies between 25% and 35%.
| Cryptos | APY | Commission |
|---|---|---|
| BNB | 0.7-2.5% | 35% |
| Cardano (ADA) | 0.46-3.6 | 30% |
| Cosmos (ATOM) | 2.08-15% | 30% |
| Ethereum (ETH) | 3.28% | 25% |
| Fetch.ai (FET) | 0.1-11% | 35% |
Binance features
- Exchange with high liquidity
- Its native crypto (BNB) has the 4th largest market capitalization
- Advanced features such as technical and algorithmic tools.
Pros and Cons
- A variety of cryptos to stake
- Stablecoin staking (USDT, USDC, USDP)
- The exchange often lists promising tokens
- Low transaction fees
- Platform in trouble with the law in the US
- Fairly high staking commissions
Binance
- Simplified staking process
- Competitive returns
- High security
Binance
KuCoin
KuCoin is a CEX founded in 2017, and based in Hong Kong. It offers access to a wide range of cryptos, including lesser-known altcoins and emerging tokens. The exchange provides access to various DeFi services including staking.
| Cryptos | APR | Commission |
|---|---|---|
| HYDRA | 25% | N/A |
| DOT | 7.5% | N/A |
| TRX | 3% | N/A |
| ATOM | 12% | N/A |
| INJ | 13% | N/A |
KuCoin features
- List new promising cryptos
- Over 40 stakable cryptos
- Intuitive PC and smartphone interface
Pros and Cons
- Low capital requirements to start staking
- Enhanced safety
- Available in several countries
- Staking commissions are not clearly specified
- Currently being sued by the SEC
KuCoin
- Enhanced security
- High rewards
- Intuitive user interface
KuCoin
Our recommendation for the best staking platform
With the plethora of staking websites, Coinbase stands out as our preferred option for cryptocurrency staking. With competitive rewards of up to 8% for some cryptocurrencies, and the possibility of withdrawing staked assets at any time, Coinbase also ensures great flexibility.
In addition, Coinbase supports a variety of blockchains and offers educational resources to help users refine their staking strategies.
Despite the relatively high commissions, Coinbase remains the best crypto staking platform.
Coinbase
- Regulated exchange
- An easy-to-use platform
- Free crypto training offered
Coinbase
What is staking crypto?
What is the meaning of staking? Staking is a process that enables crypto holders to earn crypto rewards by locking their assets in a given blockchain. This practice is used by blockchains that rely on the Proof of Stake (PoS) consensus mechanism.
The practice was first conceptualized in 2011 by the Peercoin project but was popularized over time by Ethereum via its “The Merge” upgrade. Other blockchains such as Cardano, Tezos, and Polkadot, have also helped popularize staking by putting it at the heart of their consensus and governance mechanisms.
How does staking crypto work?
Staking on Proof of Stake (PoS) networks is an alternative to mining on Proof of Work (PoW) networks. Instead of requiring significant computing power, PoS enables cryptocurrency holders to contribute to transaction validation and network security by locking their tokens.
By locking their cryptocurrencies, they gain the right to participate in the consensus process and are rewarded with additional cryptos.
In concrete terms, when you stake your cryptos, you lock them into a specific wallet that is connected to the blockchain network. These tokens serve as a guarantee of the network’s security and integrity.
In exchange for your investment, you receive rewards in your wallet in the form of new cryptos. It’s a bit like generating interest, which is proportional to the quantity of cryptos stored and the duration they’ve been stored.
Is staking profitable?
So is staking crypto worth it? Staking is a profitable activity in theory. For most cryptocurrencies, the reward rate varies according to different factors:
- The number of participants in the blockchain: the higher the number, the lower the reward, since it’s shared by all.
- Marketing campaigns: some new projects offer sliding-scale rates to attract new users. The rewards, while initially attractive, tend to fall drastically as the number of stakers increases.
- Cryptocurrency lock-in time: in general, the longer the period, the higher the annual interest rate, also known as APY (annual percentage yield).
- Staked volume: the higher the staked volume, the higher the profits.
With rewards reaching double digits, staking can be particularly profitable. The gains are far more attractive than the interest rates offered by traditional banks.
Impermanent loss, a variable not to be neglected
The impermanent loss is when your staked tokens lose value. In fact, it’s possible for the losses incurred by your tokens to exceed the staking rewards over a given period.
For example, you stake 100 SOL (Solana) over 6 months. Your rewards are 5 SOL (5%) over the period, so you now have 105 SOL. However, over the same period, the SOL/USD pair has lost 25% of its value. So, despite staking, the value of your SOL wallet has fallen.
Are staking and farming the same thing?
Farming and Staking are two popular DeFi strategies for generating passive income. However, they differ significantly in their approaches. Farming, also known as Yield Farming, involves depositing cryptocurrencies in liquidity pools to facilitate various operations on DeFi platforms: swapping, trading, etc.
In return, you generate interest or receive additional tokens. This is a more complex and risky method, as it depends on the market price fluctuations and the performance of the used DeFi platform.
On the other hand, as explained above, staking simply involves locking assets into a blockchain to support transaction validation. Participants are rewarded with additional tokens. It’s a bit like earning interest on a savings account.
Can you stake any crypto?
Staking is specific to cryptocurrencies whose blockchain uses the Proof of Stake (PoS) consensus mechanism or one of its variants such as
- Delegated Proof of Stake (DPoS)
- Liquid Proof of Stake
- Nominated Proof of Stake (NPoS), etc.
In these ecosystems, crypto holders can participate in transaction validation and network security by locking their assets into the network. Apart from Ethereum, cryptos such as Cardano and Tezos are stakable, while others that use the Proof of Work (PoW) mechanism, such as Bitcoin or Litecoin, are not.
Why consider staking?
There are a couple of reasons to stake your tokens.
Accessibility
Staking is an accessible and environmentally friendly activity that represents a good way to grow your capital without any effort. It allows you to earn interest on your crypto holdings without necessarily requiring specialized equipment, as is the case with mining.
Blockchain security
Staking plays a crucial role in preserving the integrity of blockchain networks, as cryptocurrencies based on the Proof of Stake model depend on stakers to validate transactions.
In addition, staking also supports the ecosystem of a specific cryptocurrency in which an investor believes. It enables asset holders not only to earn rewards but also to play an active role in the governance and future development of the network.
Attractive rewards
In terms of profitability, staking can be highly advantageous, depending on the crypto and market conditions. Rewards significantly exceed those offered by traditional finance.
Are there risks to staking?
So is staking crypto safe? Although generally very profitable for users, there are still staking risks.
The first one is the volatility of cryptocurrencies. These assets can fall quite quickly, and staked assets are also subject to price fluctuations.
In addition, your profits may be lower than expected. So beware of the promises made by staking platforms.
These should be chosen with the utmost care, since the risk of hacking is real, and users could lose their funds in the event of an exploit. That’s why the Tokize team recommends the most secure platforms.
Staking also means the unavailability of funds. Indeed, it often requires users to lock their cryptos for a period.
Meanwhile, the cryptos are unavailable for other uses, such as trading or day-to-day expenses. So if, for example, prices fall significantly on the crypto market, you won’t be able to quickly sell your staked assets to limit your losses.
Which are the best cryptos for staking?
Crypto staking rewards depend on a number of criteria, such as the best staking rate (APY), the stability of the crypto, the reliability of the underlying project, etc. But overall, here are our top 3 most promising cryptos to stake.
Akash (AKT): a promising DePIN token
AKT is one of the best coins for staking with an average APY of 17.24%. This is one of the highest yield crypto staking for legit tokens. It’s easy to stake with the Keplr wallet. Stakers delegate their AKTs to the validators of their choice and earn interest daily. The unbonding period is generally 21 days.
Solana (SOL): Ethereum’s first competitor
SOL is one of the largest cryptocurrencies. Over the course of the year, the token is performing well. Solana’s average APY is around 4.68% on Coinbase.
Ethereum (ETH): the largest TVL
Ethereum has the second-largest market cap behind Bitcoin. Given the blockchain’s widespread adoption, the crypto’s APY is relatively low at around 2.74% in 2024. However, ETH remains a safe asset to stake, given the upgrades its blockchain regularly undergoes.
What is unstaking?
Unstaking is the process that allows users to retrieve their previously staked cryptocurrencies. Although unstaking can be initiated at any time, it is sometimes subject to a period known as the “unbonding period.” This period ensures that stakeholders act in the best interests of the network, reinforcing the trust and stability of the ecosystem.
This is the length of time assets remain inaccessible until they become available. It can vary greatly from one platform to another or from one crypto to another.
For example, if you stake AKTs in your Keplr wallet on April 3, 2024, and unstake them on May 3 of the same year, you will have to wait 21 days before you can actually access your funds on May 24.
Our 3 tips for choosing the right staking platform
Here are 3 tips for finding the right staking app.
Put safety first
You should always opt for a well-established staking app with a good track record. Make sure the platform you choose applies advanced security measures. And make sure it’s regulated before you invest.
Analyze the rewards and staking conditions
Take your time to really research the staking option offered by the website. Not all platforms offer the same APYs.
Compare the rates, but be aware that higher APYs are associated with greater risk. Check conditions such as minimum staking period and associated fees.
Support and Mobile app
A good platform offers responsive customer support and resources to help you manage your investments. Choose sites that can be accessed on mobile devices and PCs, and whose interface is easy to use.
How to stake crypto?
Here are the steps involved in staking on a dedicated platform:
Choosing which cryptocurrency to stake
To do this, take into account not only your cryptocurrency wallet but also the APYs offered by the platform.
Choosing a staking platform
Using a platform like Coinbase will allow you to delegate the staking of your cryptos simply and securely. Be sure to check the APYs and the terms and conditions!
Lock your coins and benefit from compound interest. Staking platforms generally impose a lock-in period for stored cryptocurrencies. This varies from 7 to 120 days on average.
Our methodology: How did we review and choose these staking platforms for you?
To find the best crypto staking platform, our review is based on rigorously defined criteria. Here are just a few of them:
Safety
Safety is our top priority. We examine the safety track record of each platform. We check if the website has suffered any technical incidents in the past, and how it has resolved them.
In addition, the platform’s ability to protect user data from unauthorized access is assessed. Reviewed features include encryption and secure data storage.
Regulation
A transparent platform must comply with the regulations of the country in which it operates. Reputable staking platforms must have accreditation to operate legally and offer staking services.
Ease of use
We also evaluate the platform’s accessibility. At this level, we test the UX to ensure that it allows easy deposit, staking and withdrawal. Likewise, accessibility on various devices (PC, smartphone) is not left to chance.
List of stakable cryptocurrencies
A good staking platform offers a variety of crypto options for staking, allowing users to diversify their investments. We therefore take a look at the selection of assets available for staking, as well as the staking options on offer, such as flexible or fixed staking.
Staking reward and fee structure
The fees associated with staking can significantly affect ROI. We therefore analyze what each platform offers, in terms of withdrawal fees and percentages deducted from staking rewards. This will enable users to plan their investments efficiently.
