Cryptocurrency Newest Crypto Posts

Top 5 Best Crypto Exchanges for Staking 2021

Crypto staking is an imitate model of how investors lock assets in banks intending to gain interests as rewards. It involves locking up a section of your crypto assets for a stated duration in exchange for extra coins and other tokens. The process is part of contributing to a particular blockchain network, and it is also vital in confirming transactions.

This concept is applicable for cryptocurrencies that utilize the proof-of-stake model as opposed to the proof-of-work model, which requires intense computing power. Staking requires one to choose crypto that dwells on PoS and choose the amount to stake. Before we get into the top 5 best crypto exchanges for staking lets go over some of the benefits to it.



Benefits of Staking Crypto

While most cryptocurrencies use proof-of-work to add blocks, staking crypto requires proof-of-stake, which has been revealed to be efficient and cost-saving. This is because it requires less energy, as crypto mining requires intense computing power. Staking has also been appreciated for its environmentally friendly nature.

Moreover, staking does not require equipment and in-depth technologies when minting. Just by holding your assets for a certain duration, you can earn interests and other rewards. Some cryptocurrencies have generous interests that can be very profitable. Staking is also a mechanism of supporting the crypto you have invested in, enabling a seamless flow of transactions and security. Let’s look at some of the exchange platforms and how they operate:


1. Binance US

Binance US is ranked as one of the largest platforms in terms of cryptocurrency trading volume. Rather than its numerous paths to make bucks, users can stake and earn rewards. Calculation of rewards is based on the number of rewards on stake, inflation rate, and period of stake.



Pros

  • They do not charge any fees for staking, which maximizes the user’s benefits.
  • It has a vast coin range for trade.
  • Traders enjoy a lot of additional services.
  • It offers locked, ETH 2.0, and DeFi staking.
  • There are lower barriers in staking amounts, time lengths, and catches.

Cons

  • Not available in all the states.
  • It has limited opportunities when staking assets.
  • Users can face complications when navigating the site.
  • Defi staking requires prowess due to intense risks.
  • Users may experience poor customer support.

Coins Available for Staking

Binance US supports staking in QTUM, EOS, ONE, VeChain, XTZ, ATOM, and ALGO.


2. BlockFi

It is a financial service company located in New Jersey whose main role is developing products for cryptocurrencies. Funds at BlockFi are accounted for by Gemini Trust company. You can use the platform to acquire loan funds in USD rather than selling your crypto assets. Additionally, you can earn interest by staking where your assets are lent out to gain interest.



Pros

  • It is available worldwide.
  • Users can execute instant trades.
  • The platform requires no commission fees.
  • It does not have monthly fees or minimum deposits.
  • You can use it as collateral rather than selling your crypto assets.

Cons

  • The platform does not support joint or custodial accounts.
  • Users have extreme limitations on free withdrawals.
  • There is a loan rate volatility.
  • Borrowing has a risk of losing your crypto assets if the crypto value drops.

Coins Available for Staking

BlockFi allows users to gain interest in their assets, and they have several assets for staking such as USDC, PAX, LTC, PAXG, BUSD, LINK, DAI, UNI, and BAT. The platform also supports non-US users using USDT to earn interest.


BlockFi Up To $250 Free

3. eToro

eToro is a cryptocurrency trading platform that is also renowned for social copy trading. The platform executes staking for its users and rewards them monthly on the crypto assets that were retained. They then cut a small margin of the profits to cater for the incurred operational and technical costs.



Pros

  • No action is needed on the user’s part.
  • They ensure maximum transparency and security on funds.

Cons

  • Limited funds for staking.
  • The platform deducts a share of your interests.
  • They execute the entire staking process.

Coins Available for Staking

Currently, eToro allows staking for Cardano (ADA) and Tron (TRX) though they claim that plans are been developed to add more crypto assets. Each asset has a different timeframe for users to become eligible. Cardano requires at least nine days, while Tron has a threshold of at least seven days.


Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.


4. Coinbase

There are several parameters that users must attain to execute staking on Coinbase. Your identity must be verified, pass the minimum balance threshold, and have an eligible cryptocurrency on Coinbase. The block frequency production also affects the reward rate.



Pros

  • Holders can earn rewards via inflation.
  • There is an opt-out option for holders.
  • Users with higher holds can receive more potential rewards.
  • Block frequency production can elevate your rewards.

Cons

  • There is no utmost guarantee that you will receive the interests.
  • The platform is not eligible for replacing assets due to slashing.
  • There is a commission on all rewards generated.
  • Fluctuation in the value of digital assets may affect the price of your staked funds.

Coins Available for Staking

The platform supports Algorand (ALGO), Cosmos (ATOM), Etherium (ETH), and Tezos (XTZ) coins for trading. ALGO and ETH have a daily reward payout rate, while XTZ and ATOM have three days and seven days reward payout rate, respectively.


5. Kraken

Kraken is one of the veterans in the cryptocurrency scope as it was launched in 2011. It is owned by Payward Inc and supports coins and fiat staking. The platform has both on-chain and off-chain staking. In On-chain, staking gets executed with Proof of Stake, while Off-chain allows staking using Kraken internal programs.



Pros

  • They offer instant rewards without awaiting lockup duration.
  • It has one of the highest fixed returns in the crypto industry.
  • Payments are made twice a week which is among the fastest.
  • It has both on-chain and off-chain staking.

Cons

  • Reward rates are prone to change based on Kraken’s terms and conditions.
  • Both your Kraken account and staked assets are not protected by insurance.
  • There may be a bonding duration for some coins.
  • Off-chain staking can only be executed in eligible countries.

Coins Available for Staking

The platform allows staking on Etherium 2.0 (ETH 2), Polkadot (DOT), Cardano (ADA), Solana (SOL), Kusama (KSM), Cosmos (ATOM), Flow (FLOW), Kava (KAVA), and Tezos (XTZ).


Final Thoughts

Staking has proven to elevate the cryptocurrency industry to another level. It has helped investors and traders to make bucks by simply holding their funds for a certain period. It utilizes the Proof of Stake model, which has numerous benefits such as efficiency, profitability, environmentally friendly, enhanced security, and supporting crypto platforms where your stakes exist.

However, adequate knowledge is required when executing staking. This is because as far as there are generous benefits, there is margin for losses and potential risks. You can eliminate a good amount of these risks by going with anyone of the top 5 exchanges. If you would like to learn more about staking click here.


 

Related posts

Robinhood Crypto Review

admin

Is Uphold Legit In 2021? – See My $6000 Crypto Account

admin

Best Bitcoin App With Lowest Fees

admin