Best Crypto Staking Platforms – Earn Crypto Via Staking

Nowadays, crypto investors are earning a huge “interest income” from their digital assets. Since you can stake digital asset holdings at various platforms. Hence, staking cryptocurrency has become a very popular method to earn passive income. The staking of digital asset holding is known as Proof-of-Stake or PoS coins. But, you must stake your assets in the best crypto staking platforms.

No matter what, staking digital asset has risks that involve principal loss. Sometimes, there is fluctuation in the underlying digital asset which is being staked. Hence, it is necessary to choose the best crypto staking platform. So that, you as a cryptocurrency owner can earn a staking reward for participating in the network.

Before you stake, make sure to understand the purpose of Crypto wallets and the difference between hot wallet and cold wallet. Then, learn how to keep your crypto safe in a trusted wallet.

Our strong recommendation is to store all your crypto in cold wallets like

  1. Ledger Nano Hardware Wallet
  2. Trezor Hardware Wallet

Crypto investors view staking as investing in fixed income securities. For instance, think of them as regular returns from money market funds or bonds. However, staking digital assets are more prone to risk than the bonds due to its not so long track record. In this article, we will guide you to the best crypto staking platforms. But first, let’s discuss what is crypto staking?

 

What Is Crypto Staking?

In the world of cryptocurrency, staking means “locking up” of a digital asset to secure the network with your stake and in return receive a reward. Crypto investors hold their digital assets in a proof-of-stake blockchain network’s wallet. However, the duration of staking can change from time to time and from one crypto to another.

Key Points To Remember About Crypto Staking

  1. You can use your locked assets to achieve consensus. You must lock the best staking crypto in a smart contract and they are unavailable to you to withdraw for the staking period.
  2. Consensus is necessary to secure the network and propagate transactions on the blockchain network.
  3. To ensure the validity of every new transaction which has to be in writing to the blockchain.
  4. Validators are those who stake their Bitcoins in a PoS blockchain.
  5. Validators get rewards for locking their assets and providing services to PoS blockchain.
  6. Staking Crypto Rewards are in the form of new crypto coins or tokens.
  7. A validator must stay committed to the blockchain they are staking with a good coin or token balance. In this way, they can run a secure network and also continue to receive rewards regularly for years.

How Staking Cryptocurrency Is Performed Efficiently At Blockchain level?

Validators must provide a stable service to ensure efficient working of a blockchain. Sometimes, these blockchains can slash the validator’s stake for being dishonest. Sometimes for their malicious behavior. Blockchain networks have specific ways of functioning that are:

  • Blockchain assigns a significant staking period. In this period a validator cannot retrieve their cryptocurrencies.
  • Blockchains also have a certain amount of small thresholds for cryptocurrency staking.
  • Some blockchain have a built-in mechanism. A validator can delegate their Bitcoins to another validator on the blockchain. In this case, delegators get the rewards from their validators that are on a platform.

Rules of Crypto Staking – PoS Blockchain For Staking

Validators have a specific set of rules in every Proof of Stake PoS blockchain. These rules define financial and technical requirements for becoming a validator. Some of these rules are:

  1.     A small stake size that a validator can invest
  2.     2. To perform a validating task, blockchains have specific algorithms to select validators
  3.     Distribution of staking rewards among the validators. Blockchains calculate rewards based on various factors. Such as consensus mechanism participation, stake size, and amount of staking Bitcoins

How To Earn Crypto By Staking?

Crypto investors use staking to lock their funds in a crypto coin. In this way, they can earn crypto in the form of interest. When you hold your crypto coin for a specific period, then you get the benefit of price appreciation. Many proof-of-stake (PoS) cryptocurrencies allow earning crypto by staking.

You can get handsome crypto or coins by locking your assets. Some of the best crypto for staking are

  1. Ethereum 2.0 (ETH 2.0)
  2. Tezos (XTZ)
  3. Cardano (ADA)
  4. Dash Coin (DASH)
  5. Polkadot (DOT)

Crypto Staking Rewards – How To Earn?

When you hold the smallest balance of your eligible stake cryptocurrencies. Then you can earn rewards on the crypto staking blockchain platform. Some platforms have rules of a bonding period for best staking coin.

Once your staking asset period has finished bonding, then you can earn rewards. You can earn rewards two times a week from the PoS process. But, you keep the ownership of your cryptocurrency.

 

Solo Staking Vs Staking Pool

There are 2 ways to stake or vote and receive rewards.

  1. Solo Staking – If you have the minimum coins or tokens all by yourself, then you can stake alone and receive all the rewards for yourself when your chance to secure the network comes. However, remember that solo staking is only recommended for advanced users who can make sure they can keep their staking hardware and software configured correctly and run in 24×7 without any issue.
  2. Staking Pool or Stakepool is available for those who don’t meet the minimum and want to stake together with others in a pool. It is completely safe to pool together and stake. You are always in control of your private keys. You only delegate the voting rights to someone else, instead of you voting and confirming every transaction on the blockchain. Most Crypto PoS protocols now allow you to delegate your vote to a Staking pool’s always online wallet and not give any access to your crypto funds.

How Do Crypto Staking Rewards Work?

Crypto staking blockchain platforms calculate rewards with your contribution stake and splits the total pool into the percentage of your contribution. The protocol returns rewards to the staking pools and then the staking liquidity providers in turn send your portion of the rewards, after deducting their staking service fee.

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After every staking cycle or epoch, your staking rewards hit your cryptocurrency wallet. Various platforms can provide best crypto staking rewards. There are two ways in which these platforms calculates reward are

  • The amount of cryptocurrency you hold in a particular wallet and lock it up to secure the network and vote. You will get more potential rewards if you hold more cryptocurrency on your wallets and stake more. Staking pools stake on behalf of individual users and act as validators of the network.
  • Frequency of produced blocks by the cryptocurrency network through staking and stakers and stake pools.

Will Crypto Staking Reward You With A Fixed Percentage Payout?

Since the rate of cryptocurrency staking rewards depends upon various factors. First, the protocol of the cryptocurrency network. The cryptocurrency network takes account of various things.

For instance, the performance of the validator, staked amount, or savings rate of a network. Hence, the crypto staking reward may go down or move up. These factors determine the reward percentage that will credit to your cryptocurrency wallet.

Always look out for the service fee and efficiency of your staking pool validation to estimate what your crypto staking reward will be. This is where the maximum variance can happen, among other factors.

Will Customer Receiving Crypto Staking Rewards Pay Taxes?

US customers have to report the crypto staking rewards to the Internal Revenue Service (IRS) tax reporting agency.

Various staking platforms with domicile in US provide 1099-MISC to those who earn more than the $600 staking rewards. Even if they miss sending out the forms, that doesn’t dissolve you of your responsibility to show it to IRS. So, please be diligent in tracking your crypto staking reward and reporting. You can one of the best crypto tax preparation softwares to make it easy for you.

What Are Staking As A Service Platforms?

Crypto investors can stake their eligible digital assets to a third party as a service. These third party service platforms take care of various aspects of the crypto staking process. Including financial and technical aspects of the staking process. They charge a service fee as a fixed percentage amount of the cryptocurrency staking reward.

What Is The Aim Of Staking As A Service Platforms?

  1.     To enable those investors who do not have technical knowledge about cryptocurrency staking.
  2.     Investors can easily participate in the crypto staking economy. These services decrease the various technological barriers that arouse during entry.
  3.     They help to provide a stake in a Proof-of-Stake network. Thus, anyone can earn a token.
  4.     Generally termed as easy staking or soft staking.
  5.     They provide a service called exchange staking. It allows investors to keep their digital assets in the trading account wallets. If this is the case, investors earn fresh tokens as an interest.

Best Crypto Staking Platforms

There are various staking platforms that handle technical sides of the staking process. In exchange, they charge a small amount of service fees. All of these are part of the best crypto staking platforms list but they are in no specific order.

Stake Capital

Stake Capital has its headquarters in Europe and can be your choice of trust for DeFi for PoS blockchains and De-Fi products. They have your back to participate without any friction in emerging digital crypto economy. They provide financial services and platform as a service along with De-Fi and staking networks.

In addition, with the help of Stake Capital, you can easily deploy complex strategies to improve your return on digital assets through lending, leveraging, borrowing, staking as a service and swapping.

Stake Capital is a service provider that supports various DeFi services. Through their revenue sharing DAO, they support many derivative products. With the wide support of assets and maximizing returns, it can be one of the best crypto staking platforms. Investors can use their range of strategies to maximize results with their staking as a service.

Founded 2019
Based France
Staking Service Fee 0-10%
Stakable Assets
  • Cosmos (ATOM)
  • Livepeer (LPT)
  • Idex (IDEX)
  • Loom Network (LOOM)
  • Aion (AION)
  • Tezos (XTZ)
  • Kava (KAVA)

 

Staked

Staked has been the trusted staking and DeFi lending partner. They help investors to annually compound their crypto by 5% – 100% through crypto staking. To earn further the best crypto coins for staking, staked can be your platform.

Staked.us works with institutional investors and help earn yield while you stake with them. They offer one of the largest blockchains support for their staking service. They also boast about having the right technology to give you the highest yields with your investments at any time.

Founded 2018
Based New York
Staking Service Fee 5-10%
Stakable Assets
  • Ethereum 2.0 (ETH)
  • Polkadot (DOT)
  • Cosmos (ATOM)
  • Cardano (ADA)
  • Tezos (XTZ)
  • Decred (DCR)
  • Dash, Tron, Kusama, ICON, Edgeware, Zilliqa, NEAR Protocol, Elrond, Matic Network, Kyber Network, Horizen, Synthetix Network Token, Algorand, Terra, IRISnet , Celo, Kava

 

Figment Networks

Figment Networks offers institutional-grade node infrastructure on more than 20 protocols. They also have customizable options based on the specifications of the protocol. Additionally, they have the availability of third party custody solution. You might consider Figment Networks as your best crypto staking platforms.

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Founded 2019
Based Canada
Staking Service Fee 0-15%
Stakable Assets
  • Livepeer (LPT)
  • Cosmos (ATOM)
  • Algorand (ALGO)
  • Aion (AION)
  • Kava (KAVA))
  • Tezos (XTZ)
  • Horizen (ZEN)
  • ICON (ICX)
  • IRISnet (IRIS)

 

Stake.Fish

Stake.Fish invest efforts and time to set up their robust validator nodes. They even put measures for security around validator nodes. They spend a significant time performing diligence on each blockchain they support. Besides infrastructure, they have their own tokens staked on the validators. Stake.Fish can be one of your best crypto staking platforms.

Founded 2019
Based South Korea
Staking Service Fee 10-20%
Stakable Assets
  • Alogrand (ALGO
  • Cosmos (ATOM)
  • Loom Network (LOOM)
  • Tezos (XTZ)
  • Kava (KAVA)
  • EOS (EOS)
  • Livepeer (LPT)
  • Aion (AION)

 

Staking Lab

Staking Lab offers a comprehensive platform to various investors for PoS coins. Besides they are a platform for investing in masternode coins and also share instant nodes. They provide a high uptime reward infrastructure. They also provide frequent rewards to even those having a small amount of Bitcoins. It can be the best crypto staking platforms due to its many features.

With Staking Lab, your rewards are comparatively better and frequent. The reason being that you will be staking in a community under this service provider.

Founded 2019
Based Germany
Staking Service Fee 7.5%
Stakable Assets
  • Phore (PHR)
  • Reddcoin (RDD)
  • PIVX (PIVX)

 

Staking Facilities

Staking Facilities ensures a highly secure validation infrastructure. As they deploy best practices that are Cryptocurrency industry-leading. They also equip an advanced monitoring system that quickly detects network anomalies. Hence, they immediately respond to any kind of incident.

Staking Facilities have a continuous service operation. As they have distributed their nodes in various geographical regions. You can invest your best crypto for staking here. Besides, every validator has a large self-bond. To ensure that Staking Facilities’ financial incentives remain aligned with all customers.

Founded 2019
Based Germany
Staking Service Fee 0-10%
Stakable Assets Cosmos (ATOM)

Aion (AION)

Tezos (XTZ)

 

MyContainer

My Container works in 3 simple ways that are:

  1. Purchase or transfer best crypto staking coins.
  2. MyCointainer utilizes the blockchains’ power to generate stable profits. Blockchains’ power includesProof of Stake and Masternodes.
  3. Provide regular profits.
Founded 2019
Based Estonia
Staking Service Fee 9%
Stakable Assets Phore (PHR)

PinkCoin (PINK)

Bitbay (BAY)

CloakCoin (CLOAK)

PIVX (PIVX),

Particl (PART)

NavCoin (NAV)

OKCash (OK)

Wagerr (WGR)

BlackCoin (BLK))

 

Exchange Staking Service

There are multiple exchanges that provide staking as a service to make it easy for you to earn rewards while you keep your crypto with the exchanges. Here are the top 5 best crypto exchange as a staking service for US investors

Staking In Binance

Binance is the leading crypto exchange service provider of digital assets. This digital exchange service provider is very much established. Especially for the retail traders as one of the accessible trading platform. Its new-launched Binance Chain provides an exchange for a huge number of crypto assets.

Founded 2017
Based Malta
Staking Service Fee 0%
Stakable Assets
  • Algorand (ALGO)
  • NEO (GAS)
  • Tron (BTT)
  • Kava (KAVA)
  • Komodo (KMD)
  • Stellar (XLM)
  • Stratis (STRAT)
  • Qtum (QTUM)
  • Ontology (ONG)
  • VeChain (VTHO)

 

Coinbase Staking

Coinbase is one of the largest digital asset exchange service in the world. The exchange and wallet provider Coinbase offers different services. Investors leave their tokens from staked Tezos (XTZ) in the Coinbase wallets.

Coinbase is also about to offer its initial public offering (IPO) in 2021 and they are the most trusted and regulated in the US in my opinion. So, you can just invest and forget for novice investors. If you have experience with Crypto, please move it to your hardware wallet and stake it from there to keep it much more safe but this requires more complex steps.

Founded 2011
Based United States
Staking Service Fee 25%
Stakable Assets Tezos (XTZ)

 

Staking In Kraken

Kraken is a trading platform that offers many leading Altcoins. It is a popular choice for both retail and professional traders.

Founded 2011
Based San Francisco
Staking Service Fee 0%
Stakable Assets Tezos (XTZ)

 

Kucoin Staking

Kucoin is the pioneer out of the best crypto staking platforms. It also provides a service considered as soft staking. Investors can stake a wide range of assets on this reputable platform.

Founded 2013
Based Singapore
Staking Service Fee 10%
Stake-able Assets In Kucoin Crypto Exchange
  • Aion (AION)
  • Cosmos (ATOM)
  • Internet of Services (IOST)
  • EOS (EOS)
  • DeepOnion (ONION)
  • Neblio (NEBL)
  • Energi (NRG)
  • TomoChain (TOMO)
  • NULS (NULS)
  • Loom Network (LOOM)
  • EOSForce (EOSC)
  • V Systems (VSYS)
  • Loki (LOKI)
  • IoTeX (IOTX)
  • WAN (Wanchain)
  • Elastos (ELA)
  • Tezos (XTZ)
  • PIVX (PIVX)
  • Algorand (ALGO)
  • Tron (TRX)

 

Poloniex Staking

Poloniex is one of the best crypto staking platforms in the world. Besides having an array of features for both advanced and novice traders. It also offers an amazing exchange staking service.

Founded 2014
Based Boston
Staking Service Fee 25%
Stakable Assets Cosmos (ATOM)

 

How To Pay Taxes On Crypto Staking Rewards?

Even though the new coin making ways are different. Crypto staking is like cryptocurrency mining.  IRS has not issued any specific guidelines for cryptocurrency tax treatment. Congress lawmakers wrote a letter to IRS to clarify Crypto Staking tax and asked to keep it simple too.

Generally, the tax-collecting rules made for mining are used for staking as well. If you are investing your assets on the best crypto staking platforms. You must know the tax guidelines on crypto staking rewards.

  • Any tokens or coins received will have a tax in the form of income. This will happen at the time of receipt. That means when the staking platform transfers crypto in your wallet.
  • The coins’ market value on the day of receiving will be the basis for the taxable income.
  • Tax rules will be applicable to business or hobby investors.
  • You have to first calculate the value of crypto in USD for each day to generate a taxable amount.
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Disclaimer : This is just my understanding of Crypto staking tax and I’m not a qualified individual to comment on the situation. Please seek competent advice from financial advisor for financial needs and tax advisor for tax needs.

Capital Gains Tax On Crypto

In the US, crypto gets the same treatment as property for tax purposes. You need to calculate the capital gains each time you sell a cryptocurrency. Besides your trade or otherwise dispose of the cryptocurrency. Besides you need to report the capital gains on your tax return.

Frequently Asked Questions

Is Crypto Staking Worth It?

Yes, with crypto staking, many investors have become rich or millionaires. It is an excellent way of earning passage income. All you need to do is stake your digital asset holding. But crypto staking is a risky venture. The reason being that the value of the underlying digital assets fluctuates significantly. Investors should not stake cryptocurrency more as there is a danger of losing assets.

Crypto enthusiasts feel upcoming years are the best year for crypto staking investing. Yet, you must choose the best crypto staking platforms.

What Is The Best Platform To Stake Crypto?

Coinbase is one of the biggest and best crypt staking platforms in the United States. One of the easiest places to begin with coins. It offers wallet and exchange, kind of 2 in 1 service. Coinbase also supports Litecoin, Ethereum, and Bitcoin cash. It provides easy access to transfer funds in and out.

Coinbase has a secure wallet that you can access through a Web or mobile app. Coinbase is a leading digital asset service provider in the US due to its many features. It utilizes redundant digital as well as paper backups besides two-factor authentication.

Fee charges of Coinbase are:

  • About 1.49% for US transactions from Coinbase wallet or a bank amount.
  • Add on of about 3.99% fixed fee with purchase using debit or credit card.

How Much Can You Make Staking Crypto?

The annual earnings of a crypto investor can be between 2-16 %.  The earnings through staking crypto depend on various factors. Such as project fluctuations, and the ratio of validator’s token holding. Moreover, it depends on the staking platform as well. Hence it is mandatory to have the best crypto staking platforms.

Takeaways – Best Crypto Staking Platform

  1. Crypto investors are earning a huge “interest income” from their digital assets. For which it is essential to choose from the best crypto staking platforms.
  2. Crypto investors hold their digital assets in a proof-of-stake blockchain network’s wallet.
  3. Validators get rewards for locking their assets and providing services to PoS blockchain.
  4. Validators must provide a stable service to ensure efficient working of a blockchain.
  5. Various staking platforms that handle the technical sides of the staking process.
  6. Various platforms take care of various financial and technical aspects of the staking.
  7. When you hold a small balance of your eligible stake cryptocurrencies. Then you can earn rewards on the crypto staking blockchain platform.
  8. Coinbase is one of the biggest and best crypt staking platforms in the United States.
  9. The earnings though staking crypto depends on various factors. Such as project fluctuations, and the ratio of validator’s token holding.
  10. Generally, the tax collecting rules made for mining are used for crypto staking as well