Best Staking Platforms and Best Coins to Stake

Decentralized finance (DeFi) has witnessed exponential growth in the last two years. Of all the activities performed in the sector, staking has remained one of the foremost. As of Q2 2021, the amount of staked assets had risen to $171 billion, with crypto staking rewards outperforming the interest offered by bank savings accounts.

As the crypto markets are setting new all-time highs, investors in cryptocurrency are looking to diversify into new ways to increase their holdings and earn crypto passive income, as an alternative to trading.

How to Stake Crypto – Quick Guide

Best Crypto Staking Platform in March 2023

What is Crypto Staking?

Crypto staking is the process of locking your coins on a platform and earning interest on it over time.

Staking is the central premise of the fledgling proof of stake (PoS) technology, which many blockchains are now adopting. With PoS, participants lock (or “stake”) their coins on a protocol. Stakers are regarded as validators on the blockchain.

Your annual percentage yield (APY) will be proportional to the amount of money you have in the staking pool – the more coins you stake, the more you earn. Staking crypto has grown in popularity, with many projects seeing high returns and online guides on how to stake crypto appearing in mainstream financial publications.

The Ethereum 2.0 staking contract is currently the single largest holder of ETH tokens, with over 7.16M Ether tokens valued at $21.7 billion, at press time.

In this crypto staking guide we’ll review some of the best crypto staking platforms to earn crypto passive income on.

Compare Crypto Staking Platforms – Top 3 List

1. eToro

eToro is a popular exchange among cryptocurrency enthusiasts. While it predates cryptocurrency and started as a stock trading app in 2007, it quickly expanded to become an industry-leading versatile FinTech platform, supporting multiple asset classes, including cryptos. It recently hit a milestone of 20 million users in 2021.

Known as eToro Staking, its crypto staking service allows you to lock your coins and earn rewards. Customers who stake with eToro get their payouts deposited in their wallets monthly.

eToro staking currently supports crypto staking in Ether (ETH), Cardano (ADA), and TRON (TRX). Cardano’s ADA is the most staked cryptocurrency with over $60 billion locked in value, per data from StakingRewards.

There are nine staking intro days before rewards are calculated for ADA. While TRX has seven staking intro days.

eToro pays a reward percentage of the monthly staking yield based on the tier system of the eToro membership Club. Investors can earn between 75-90% of the monthly yield.

This tier system varies from Silver, Bronze, Diamond, and Platinum membership. Platinum membership is the highest tier. These members get 90% of the monthly staked yield of their assets.

When you sign up for eToro Staking, you will get a daily snapshot of your holdings so you can track your performance. Your returns are deposited at the end of the month in the same currency that was staked. eToro staking is currently open to users in the United States, United Kingdom, and Europe.

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Your capital is at risk.

2. Binance

Binance is the world’s leading cryptocurrency exchange, with billions in assets being traded daily. Binance offers exposure to some of the largest crypto assets like Bitcoin, Ethereum, and several others. It also provides crypto staking services.

Using its ‘Binance Earn’ crypto staking service, Binance allows you to earn interest on the staking coins you have in your wallet. The service has three staking options, namely locked staking, DeFi staking, and ETH 2.0 staking.

Locked staking allows you to hold your coins for a pre-fixed period, between a week to three months. Funds are stored in your wallet, and you can withdraw whenever you want – although at a cost.

Binance’s DeFi staking is focused on DeFi projects.  Although they are considered the best coins to stake in terms of generating higher yields than locked staking, they are inherently riskier. ETH 2.0 Staking is the third option. ETH 2.0 allows you to earn staking rewards by supporting the Ethereum 2.0 network from your Binance wallet.

Binance doesn’t charge staking fees when you use Binance Earn. But that might change soon. You can stake 69 assets on the exchange, as well as five flexible DeFi staking assets. These include Filecoin (FIL), Shiba Inu (SHIB), AOL, Kusama (KSM), and the Binance Coin (BNB).

Your staking reward will vary on Binance, based on the asset staked, staking coins amount, and lock-up period.

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3. Coinbase

Coinbase is a US-based and leading exchange that emerged in 2021. The crypto platform provides crypto trading services and staking services across different PoS pools.

To enjoy the staking service on Coinbase, users have to verify their identity with a valid TIN and reside in a location where staking is allowed.

Coinbase allows users to stake on the following assets: DAI, USDC, Cosmos (ATOM), Tezos (XTZ), Algorand (ALGO) and largest altcoin Ethereum with an APR of 5%. Coinbase launched the pool for Eth2.0 staking in April 2021. 

Unlike Binance, the pools available for staking on Coinbase are limited. Coinbase charges a commission for staking tokens on behalf of its users.

Additionally, because Coinbase is US-based, US users are taxed on staking rewards as long as they are above $600, as provided by the 1099-MISC tax policy. 

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Compare Crypto Brokers & Exchanges

As well as eToro, you can stake crypto on ByBit, Binance, KuCoin, Coinbase and Bitfinex.