This guide will be explained the best places to stake crypto containing hardware and software wallets. Also a view on the bigger trading platforms offering annual yield.
Where to Stake Crypto: Introduction
The rate at which the world’s financial industry has evolved in the past decade is nothing short of mind-blowing. Today, the entire crypto industry is on its way to completely disrupt our traditional financial market. Additionally, in a way that we can perform all our regular financial activities in a more convenient and decentralized manner. All this with the help of blockchain technology.
Before now, major financial organizations have been providing financial benefits to their customers through a wide range of investment plans. Also, these plans gave them the opportunity to earn monetary incentives. For instance, in the form of annual dividends, bond fund returns, to mention a few. As time went by, these organizations began to implement strict and rigid policies. As a result, many clients and investors started to lose faith in these kinds of institutions.
Nowadays many leading crypto companies have found ways of integrating these investment methods into their platforms. Also, in order to create an avenue for users to earn dividends in the form of cryptocurrencies. A perfect example of a trend in this industry that currently has a rising interest from investors is a process called staking cryptocurrencies.
What is staking cryptocurrency?
Basically, staking is a process by which crypto owners place a specified amount of digital assets in a wallet for a given period with the intention of earning rewards.
This process shares many similarities with most interest-bearing investments performed in the traditional financial market. However, there are some notable differences that distinguish both activities.
For instance, one major factor that makes crypto staking different is the fact that staking provides users with the right to vote in the network. Moreover, the ability to validate and authenticate transactions on the blockchain network.
All this, based on the number of stakes they hold. Also, while most stocks are bought with fiat, the staking process requires crypto assets which would be locked in a wallet for a given period.
Proof of Stake consensus
Staking is an integral part of the Proof-of-Stake (PoS) consensus mechanism, which is a direct successor to the Proof of Work consensus mechanism. In particular, The Proof of Work consensus has long been in use since the advent of the very first cryptocurrency, Bitcoin. Additionally, Bitcoin relies on mining to verify and validate new blocks on the chain. Also, it is quite expensive, power-consuming, and requires a lot of equipment to make the process possible.
The Proof-of-Stake (PoS) blockchains on the other hand produce and validate new blocks through staking. This way, it boycotts the need to rely on high-end computer hardware for blocks generation and validation on the network. Aside from being more environmentally friendly and energy-efficient, it also provides improved security and accountability.
Where to stake crypto
To start staking cryptocurrencies many options are possible, below is the list that enumerates the possibilities.
Staking from hardware wallets
Hardware wallets are one of the best and safest avenues through which you can stake cryptocurrencies. However, their high level of complexity could pose some difficulties to newbies. For example, those who do not have prior knowledge of staking. All in all, hardware wallets possess a proven track record of providing top-notch security makes them highly preferable by many today.
For clarity, hardware wallets are cryptocurrency wallets that provide holders with the ability to store their private keys in a secure physical device. Furthermore, the cryptocurrencies stored in these wallets are kept offline (known as cold storage). This limits the possibility of the wallet getting hacked even when they are connected to devices that might be compromised.
Below are some popular hardware wallets which provides staking options:
Nano Ledger hardware wallet
Launched in 2014, Ledger is well-known across the crypto sphere for providing security solutions for blockchain applications. Their state-of-the-art Nano S/X wallets are undoubtedly the most popular and secure hardware wallets in the market today (with Nano X being the latest of the two series). They are roughly the size of a flash drive and lightweight which makes them really handy.
Furthermore, with this unique wallet, users can securely store multiple tokens and stake as much as 10 different coins securely. Currently, users can only stake Tezos (XTZ) and Tron (TRX) directly using the ledger live app. For staking other coins, you will need the support of third party wallets to manage your cryptos. Also, unlike other forms of crypto wallets, Ledger offers the user more transparency and control over the staking process.
Stakeboxes are low energy consuming kits that allow users to stake cryptocurrencies in their wallets 24/7. As we all know, it is quite impractical to leave our devices constantly connected to the internet to stake coins. However, this awesome piece of hardware, users can now earn their favorite Proof of Stake (PoS) cryptocurrencies at the convenience of their homes, schools, and offices without any interference.
Currently, Stakebox has partnered with several cryptocurrencies including Reddcoin, QTUM, Cloakcoin, Pinkcoin, Whitecoin, Denarius, and Neblio to provide customized staking kits for users to earn staked coins.
Stakebox offers custom branded staking kits for 17 coins. However, while the Stakeboxes provide unmatched convenience, its major disadvantage is that unlike the Ledger Nano wallets which permit users to stake a wide range of cryptos, users will have to get multiple devices customized for each coin they intend to earn stakes from. This is quite expensive and inconvenient.
Staking from software wallets
Staking cryptocurrencies on software wallets is considerably the easiest and most cost-effective way of earning crypto. Also, with the help through the Proof-of-Stake consensus mechanism.
Different from hardware wallets where users first have to purchase their desired wallets before they start staking, software wallets are much easier to start with.
For instance, users can easily install their desired wallets on their respective devices and start staking right away. Software wallets as we all know come in many forms. Additionally, with their major distinguishing features being the sets of cryptocurrencies they support and the platforms on which they run on.
Below are some popular software wallets which provide staking options:
Trust Wallet is an open-source crypto wallet that permits the convenient sending, receiving, and storage of cryptocurrencies. Moreover, all this happens on the Ethereum blockchain only. To ensure a high level of security on the network, this software wallet allows users to store private keys on their own devices. Additionally, it also includes a backup facility for simple recovery. They provide quite a decent interface that wouldn’t pose any challenge for newbies.
The Trust wallet supports staking of 9 different coins including TRON (TRX), Tezos (XTZ), Cosmos (ATOM), VeChain (VET), Callisto (CLO), Kava (KAVA), TomoChain (TOMO), IoTeX (IOTX) and Algorand (ALGO). Trust wallet also includes a built-in decentralized exchange as well as a web3.0 browser. This browser allows users to interact with a wide range of other decentralized applications directly from the Trust wallet.
Introduced in 2017, Atomic wallet is one of the leading decentralised cryptocurrency wallet in the cryptosphere. This wallet was uniquely designed to function as both a crypto wallet and exchange, and it currently supports over 500 coins and tokens. The Atomic wallet is arguably one of the best kind of wallet for newbies because it allows users to purchase cryptocurrencies directly from their bank and also provides a user-friendly interface.
The Atomic wallet operates with a zero-fee staking policy. In other words, users can conveniently stake their crypto assets without any fees and receive rewards directly from validators.
Currently, the Atomic wallet supports staking of 8 different coins including Cosmos (ATOM), Tezos (XTZ), Ontology (ONT), Komodo (KMD), TRON (TRX), NEO (NEO), VeChain (VET) and Algorand (ALGO). Also, plans to add 4 new coins to the list are in place. They include Cardano (ADA), AWC (AWC), Icon (ICX), and Band (IFX).
Exodus is an easy-to-use software wallet which currently supports over 100 cryptocurrencies. Available both in desktop and mobile versions, this software wallet provides an easily accessible environment. In addition, users can conveniently send, receive, and exchange cryptocurrencies. With Exodus, the private keys to your wallet are securely stored on your device. It also allows users to pair their mobile and desktop wallets together so that they can have easy access to funds from both accounts.
So far, the Exodus wallet offers users the opportunity to earn PoS coins in the form of GAS by staking Ontology (ONG) and NEO (NEO). Although the Exodus wallet provides very limited options when it comes to the number of coins they support for staking, there seem to be major plans to add more token options in the nearest future.
Staking on major cryptocurrency exchanges
In recent years, a handful of cryptocurrency exchanges have found ways to incorporate the concept of staking into their platforms. In the first place, to create a much safer avenue for coin holders to earn returns when they hold coins on their exchange.
While many have embraced this major development, others have raised concerns about the fact exchanges are not as secure as staking hardware wallets and this could pose great threat for POS systems.
But so far, exchange staking has been quite lucrative for many as the deep liquidity most exchanges provide makes it much more rewarding.
Staking on Binance
Introduced in July 2017, Binance is believed to be the largest cryptocurrency exchange in the world today. Moreover, with over 450 pairs currently available on this exchange and a mind-blowing trade execution rate of 1,400,000 orders/second, Binance is one of the fastest crypto exchanges in the market today.
Aside from providing trading services, this reputable exchange also provides a wide range of financial products. Besides, all services and products are available for every user on the platform.
Binance offers an opportunity for users to earn rewards by holding several PoS coins on the platform. Staking on Binance is quite easy and it only requires you to hold any of the supported PoS-coin in your Binance wallet. After locking up your coins you can sit down and wait for the rewards coming in. Currently, Binance supports staking for 23 different PoS coins.
|PoS Coin||Minimum holding||Annual yield||PoS Coin||Minimum holding||Annual yield|
|TOMO||5||1 – 5%||ALGO||2||8 – 10%|
|ARK||5||1 – 3%||ONE||175||8 – 10%|
|EOS||0.25||1 – 3%||FET||25||8 – 12%|
|ARPA||60||1 – 10%||STRAT||2||1 – 2%|
|LSK||1||1 – 2%||QTUM||1||6 – 8%|
|THETA||10||1 – 2%||KMD||1||5 – 6%|
|LOOM||60||10 – 12%||VET||1||3 – 5%|
|KAVA||1||14 – 16%||ONT||0.1||3 – 5%|
|XTZ||1||6 – 7%||NEO||1||1 – 3%|
|ATOM||0.5||6 – 9%||TROY||250||15 – 16%|
|TRX||5||7 – 9%||ERD||700||3 – 4%|
|XLM||10||2 – 4%|
Go here if you want to start staking crypto on Binance.
Staking on Coinbase
Established in June 2012, Coinbase is one of the longest-running crypto exchanges around today. Additionally, it’s a user-friendly platform fully equipped with cutting-edge technology. Coinbase is able to provide quality exchange and brokerage services to its users without compromising on security and accountability across its network.
In particular, Coinbase also offers staking opportunities to its users, but unfortunately, this service is only available in 5 nations at the moment. They include France, The Netherlands, Spain, the United Kingdom, and the United States of America (excluding New York and Hawaii residents). Currently, the only cryptocurrency eligible for staking on Coinbase is Tezos (XTZ).
Staking on Kucoin
Kucoin is currently one of the fastest-growing cryptocurrency exchanges in the world today. Moreover, one of KuCoin’s strongest selling points is its simple and user-friendly interface. This unique exchange also provides tons of trading pairs and top-notch security. Thereby making it one of the safest centralized exchanges in the market today.
In order to maximize the benefits for users on the platform, KuCoin supports soft staking for over 20 PoS coins. The Soft Staking is currently hosted on a platform powered by the Kucoin network called Pool-X. In addition, the Pool-X platform provides users with a more flexible and easy-to-use interface. This interface helps users to setup staking coins on a daily bases. Also, users can deposit or withdraw their assets anytime they choose.
|PoS Coin||Minimum Holding||Annual yield|
|Cosmos (ATOM)||10||7 + 7.95%(reference annual yield)|
|Eos (EOS)||1.5||1.7 + 7.52%(reference annual yield)|
|Tron (TRX)||300||4 + 7.6%(reference annual yield)|
|COTI-30 days||1000||18 + 8%(reference annual yield)|
|COTI-90 days||1000||25 + 8%(reference annual yield)|
|TRX-90 days||200||6 + 7.25%(reference annual yield)|
|XTZ-90-days||200||5 + 8%(reference annual yield)|
|EOS-90 days||200||3 + 8%(reference annual yield)|
|Tomochain (TOMO)||15||6 + 7.53%(reference annual yield)|
|ROOBEE-90 days||5000||17 + 7.99%(reference annual yield)|
|XNS-14 days||10||10 + 7.59%(reference annual yield)|
|KUCOIN(KCS)||200||8% annual yield|
|V Systems (VSYS)||200||10 + 7.32%(reference annual yield)|
|Wanchain (WAN)||30||6 + 7.92%(reference annual yield)|
|ROOBEE-30 days||5000||14 + 7.99%(reference annual yield)|
|Tezos (XTZ)||2||3 + 7.78%(reference annual yield)|
|CHR-21 days||1000||25 + 7.96%(reference annual yield)|
|IOTX-30 days||2000||10 + 7.91%(reference annual yield)|
Go here if you want to start staking on Kucoin.
Soft-staking on Bitfinex
BitFinex has been around for many years in the cryptocurrency space and is one of the exchanges with the highest daily trading volumes. To start trading at this exchange you have to sign up and go to a regular KYC/AML procedure first.
This online trading company is based in Hong Kong and has been operational since 2014. It gives its users the option to trade more than 100 cryptocurrencies/pairs in exchange for USD, EUR, GPB, ETH, or BTC. Depositing EURO or USD to this is exchange is currently only available by wire transfer.
How does staking on Bitfinex work?
Recently(2020), Bitfinex launched a soft-staking program which is a logical step for this leading cryptocurrency exchange. In addition, their staking program allows you to easily and securely generate rewards by simply holding digital tokens on Bitfinex. Staking rewards can be as high as 10%* per year for supported Digital Tokens, however, these are estimated and offer no guarantees.
|PoS Coin||Minimal holding||Annual yield|
|TRON(TRX)||1||6 – 8%|
|EOS||1||0 – 3%|
|Tezos(XTZ)||1||3 – 5%|
|COSMOS(ATOM)||1||1.5 – 3%|
|Algorand(ALGO)||1||3 – 5%|
|V.Systems(VSYS)||1||8 – 10%|
Go here if you want to use the soft-staking service of Bitfinex.
Where to stake Crypto: Final thoughts
Staking is one of the safest means of earning cryptocurrencies without being exposed to a high level of risk. Furthermore, the staking process belongs currently to the latest features within the cryptocurrency industry. Besides, the crypto sphere is continuously improving and offering new services to users. Moreover, these services allow them to financially participate in the affairs and governance of blockchain.
Finally, in this guide, I have shown you the most common places to start staking cryptocurrency. Also, I hope I have given you a clear view of all possible options to start earning cryptocurrency without any risks involved.
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