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Proof-of-stake tokens can help you earn passive income with crypto pretty easily. Just because this method can earn you lots of passive income in the long run, crypto staking has become a popular option amongst young crypto investors these days. If you want to use the staking method as well, you will need to learn more about some of the best crypto staking platforms before you start. Making the right decision can help you maximize your passive income over time.
While the platform you use for staking is completely up to you, going through a list of some of the most popular platforms can certainly help you in lots of different ways. In this article, we are going to talk about some of the best platforms you can choose when you decide to stake your crypto tokens.
Staking Your Cryptocurrency
Most of the cryptocurrency-related platforms are basically exchanges, allowing people to buy and sell cryptocurrency with ease. However, other platforms have shifted their objectives and have added more features to provide their cryptocurrency investors with the most amount of value. An ideal crypto staking platform would allow you to easily stake your cryptocurrency and allow it to be used for verifying transactions on their blockchain.
When you perform staking a specific cryptocurrency, you are practically showing your optimism for that cryptocurrency to grow in the future. Additionally, instead of letting your cryptocurrency assets sit idle, you get the opportunity to earn more passive income with them. Once you get the reward tokens, you can stick them as well to add to your daily income.
Best Crypto Staking Platforms
Since crypto staking is one of the best methods to earn with crypto assets with minimum risk, it has become a favorable choice for many investors. In order to choose the best crypto staking platform, you must do due diligence and choose wisely.
Here are some of the best crypto staking platforms you can choose from in 2022.
Binance
Binance is obviously one of the most well-known and the largest crypto staking platforms out there. The platform is basically a cryptocurrency exchange and offers staking for up to 100 different types of tokens. There are lots of projects supported by Binance in which you can stake your tokens and start earning passive income. You also get to choose from a wide variety of time periods for which you want to lock your tokens.
Binance is known for offering the most amount of yield for smaller time periods. They use daily changes in token value to maximize their profit. The platform limits allocation on every token pool for staking. This keeps everything exclusive, and you start seeing results almost instantly after buying and staking the tokens. This is the main reason why you should use Binance for crypto staking and earning passive income.
Aqru
Aqru is another valuable entry into the list of top cryptocurrency staking platforms in 2022. The main highlight of this platform is that it is very easy to understand, and even a complete beginner to cryptocurrency staking can easily use it. There are no unnecessary features and complications on their mobile application, which you can download for free today.
Another good feature of this platform is that you are allowed to deposit money both in the form of a fiat currency or cryptocurrency. Much like other cryptocurrency staking platforms, the return you earn on Aqru completely depends on the tokens you choose to stake.
Despite all of its features, Aqru is notorious for the heavy withdrawal fee it charges when you try to withdraw funds from your account. This can even offset the profit you earn by staking in the short term, and is also the main reason why many investors avoid it.
Gemini
Gemini also makes its space in the list of top cryptocurrency staking platforms in 2022 because of its features. The platform offers up to 43 cryptocurrencies for staking. This makes Gemini one of the largest platforms in terms of staking tokens being offered.
Surprisingly, the platform does not proclaim itself as a staking platform. Rather, it provides you with the option to deposit your cryptocurrency tokens for a specific period of time in order to earn interest against them.
In addition to all the other features, the platform is popular amongst investors because of the ease of withdrawing your funds. The money you make depends on your skated token and its amount.
Crypto.com
Crypto.com, in addition to being one of the biggest cryptocurrency exchanges around the globe, also serves as a cryptocurrency staking platform. This is the reason why it has made its way into the list of top cryptocurrency staking platforms. Millions of people around the globe are actively using Crypto.com on a daily basis. The platform offers a whooping 250 tokens and has lots of other features as well.
The Crypto Earn function on the platform allows you to explore more money-making opportunities. After you have deposited your cryptocurrency tokens into the wallet, the platform will automatically use your funds to lend cryptocurrency to traders. The traders then use the loan and return it with interest. This way, you get a part of that interest as your reward on a daily basis.
There are various reasons for the popularity of Crypto.com as a crypto staking platform. For example, the platform keeps updating the prices in real-time and quickly as they keep fluctuating in the open market. The interest you earn depends on the number of investors looking to lock their crypto in the wallet. The platform has its own crypto token, which you can stick to as well. The CRO token gives more APY as compared to other tokens on the platform.
eToro
The eToro platform is well known for its features, and this makes it one of the best platforms to skate your crypto tokens. The platform has evolved from just being a crypto broker to being a staking platform allowing its investors to earn passive income. The staking part of eToro is one of its most popular features. Whenever you make a purchase, the eToro platform stakes the token bought by you automatically.
The platform currently works by automatically staking up to three different cryptocurrency tokens. The fees charged by the platform depend on your profile and your assets. You should choose a platform like this in 2022 if you want to stake your crypto without much hassle. There’s no time limit on staked assets on eToro.
Coinbase
Coinbase, being one of the biggest cryptocurrency platforms in the entire globe, is a mandatory addition to the list of top crypto staking platforms in 2022. It is really easy to use, and even beginner crypto investors can start trading and staking their crypto tokens on Coinbase easily. The platform is also a crypto exchange in addition to being a crypto staking platform. Coinbase supports up to six crypto tokens for staking. They also have plans to introduce more crypto staking opportunities in the future.
Unlike most of the other staking platforms, Coinbase doesn’t require you to purchase tokens from their own platform. If you have tokens in an external wallet, you can transfer them to your Coinbase account to stake. It is one of the easiest platforms to start staking on. All you need to start with a basic account on Coinbase is to provide your personal information, and you will be good to go within a few minutes.
Kraken
Kraken is another valuable addition to the list of crypto staking platforms. The platform currently supports tenten cryptocurrencies for staking and plans to add more in the near future. Moreover, the APY of interest you can earn with staking on Kraken is around 20%, or even higher in some cases. This is one of the highest interest rates being paid on staking as compared to other staking platforms.
The platform actually uses your skated cryptocurrency to provide liquidity in the market. There’s no limit on the amount of time you need to deposit your cryptocurrency. However, you can increase your earnings considerably by staking for a long period of time.
Once you skate your cryptocurrency with Kraken, the platform will pay you the profits one or two times a week. The amount of profit and frequency of payments depends on the cryptocurrency you choose to stake.
How Does Crypto Staking Work?
Many cryptocurrencies work in the proof-of-stake model. In the case of these cryptocurrencies, every new transaction is added to the Blockchain with the help of staking.
After you choose to stake your tokens, the platform chooses validators from a list of people who have staked their cryptocurrency to process new transactions. So, if you stake a large number of coins, you’re more likely to be chosen as the validator for new transactions.
Once a block of cryptocurrency transactions completes on the blockchain, the system mints new crypto coins and distributes them amongst the validators of that specific block. The reward comes in the form of the same cryptocurrency you’re staking. However, some blockchains give away other cryptocurrencies as a reward as well.
So, if you want to earn cryptocurrency with the help of staking, you’ll have to stake cryptocurrency, which uses the proof-of-stake model. After buying that cryptocurrency, all you have to do is choose the number of coins you want to stake and the desired staking platform.
Your cryptocurrency is still under your control after you stake it. You have just provided an exchange with the rights to use those coins for staking, and once you choose to trade those coins or do something else, you can easily unstake those coins. Keep in mind that some cryptocurrencies and skating platforms require you to stake your coins for a specific period of time.
You can only stake cryptocurrencies that use the proof-of-stake model. This model is becoming popular because the proof of work model, an alternative to the proof of stake model, is very energy inefficient and requires you to use lots of computing power to process transactions. An example of this is Bitcoin.
The proof of stake model can easily process a large number of transactions without using much power, hence its popularity.
How To Stake A Cryptocurrency?
While staking cryptocurrency might look like a cumbersome task at first, it is actually an easy and straightforward process once you learn how it works.
Let’s discuss how you can easily start staking your proof of stake cryptocurrency.
Buy A Proof of Stake Cryptocurrency
As we already mentioned, not every cryptocurrency supports the proof of stake model. Therefore, you will need to learn more about cryptocurrencies that support the proof of stake model and buy one or more of them to start the process.
You can buy cryptocurrencies like ADA, ETH, SOL, DOT, and a few others to start staking them.
Just knowing more about proof of stake cryptocurrencies is not enough knowledge to help you stake responsibly. You’ll have to learn about how staking a certain cryptocurrency can benefit you before you can invest your money and time into staking it. Once a cryptocurrency is selected, you can buy in from a crypto exchange and start staking with the help of below-mentioned steps.
Transfer The Tokens To Your Wallet
Once you select a specific cryptocurrency to buy, you will have to purchase it from your cryptocurrency exchange and transfer it to your wallet to stake it. Some exchanges work exclusively with specific coins to provide better staking rewards for those specific coins. In this case, you can easily buy the required amount of select crypto from the exchange and stake it directly right from the exchange to start earning right away.
However, if your exchange does not support staking cryptocurrency, you will have to transfer the friends to a wallet that does so. While you can easily download a free wallet application on your mobile to start staking, we recommend using a hardware wallet if you want additional security.
Once you’re inside the wallet, you can choose the amount and type of cryptocurrency you want to deposit in it. This way, you’ll be left with an address to which you can direct your transaction. Now, visit your exchange account and put the wallet address in the required field to send the specified amount of crypto coins into the wallet.
Time To Find A Staking Pool
A majority of cryptocurrencies use staking pools to maximize the effect of staking and to maximize the rewards as well. Lots of crypto traders join hands in the staking process through the pool, and the chances of them completing a block and earning big rewards increase significantly.
You’ll need to find a pool if it is mentioned mandatory in the staking protocols of your selected cryptocurrency.
Here are a few things you should look for when choosing a staking pool to join.
The size of a staling pool is one of the most important factors you should consider before joining it. Small pools have fewer chances of being selected as validators for whole blocks. But once a small pool gets selected, the participants enjoy higher rewards as the total reward needs to be divided among fewer members.
However, do not choose a pool that’s too small, as it can ultimately fail to secure the role of a validator. On the other hand, since the size of the reward is fixed by many cryptocurrencies, joining a large pool means earning less reward. So, always choose a mid-sized staking pool for consistent and reasonable results.
Make sure that the server uptime of your staking pool is as close to 100% as possible. That’s because no member earns anything if the servers of a staking pool are down.
If your pool charges a specific percentage of the reward as a fee, make sure that the fee is reasonable. Usually, the fee will range between two to five percent depending on the cryptocurrency you’re staking and the popularity of the pool chosen.
Once you’ve found a good pool, you should stake your cryptocurrency through that pool to start the reward earning process.
Here are the benefits you’ll enjoy from staking your cryptocurrency.
- Staking is one of the easiest ways to earn interest in your crypto holdings.
- It’s way better for the environment as compared to mining.
- Unlike mining, which requires you to purchase expensive tools, staking doesn’t require you to invest in any tool.
- By staking, you are actually taking part in the process of keeping the blockchain efficient and swift.
Conclusion
Proof of stake has proven to be much better as compared to the proof of work system in cryptocurrencies. That’s the main reason why many investors are now investing in staking rather than investing a lot of money in tools and equipment to go through the cumbersome process of mining.
However, in order to start skating and earning money, you’ll have to find the right platform and a good cryptocurrency that pays you a reasonable APY with minimum fluctuations in its market value.
Crypto Comeback Pro is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today. (Ad)
