The idea of Bitcoin staking is a known fact among several crypto enthusiasts. However, Bitcoin staking is not directly possible per se given that the older blockchain uses a proof-of-work (PoW) consensus algorithm.
Newer blockchain protocols using more sophisticated consensus mechanisms like the popular proof-of-stake (PoS) allow for staking of their utility tokens. This can serve as a great way to earn new coins which can thereafter be converted to Bitcoin.
Crypto staking is gaining significant traction as the world embraces blockchain technology in all its ramifications. So far, over $18 billion in total value has been staked with the nascent field hitting a 54% increase year-on-year (YoY), per data from Blockworks. This shows huge potential for crypto investors who may feel more comfortable with generating passive income from their staked tokens.
If you are keen on learning about the best platforms that offer Bitcoin staking services, then buckle down and let’s get started.
1.eToro – Overall Best Bitcoin Staking Platform
eToro is our number one pick when it comes to staking. The essence of staking is to earn passive income, and eToro does the most in this regard. Compared to other platforms, the platform offers up to 90% interest on crypto assets staked; this is the highest yield that can be earned on any crypto asset via staking.
The social trading platform only allows users who are subscribed club members to any one of the three tiers available to stake Cardano (ADA), Tron (TRX) or Ethereum (ETH). For Bronze club members, the expected yield on the crypto assets is 75% per month. This level requires nine intro days, and rewards typically begin on the tenth day of holding. Silver, Gold and Platinum members enjoy up to 85% yield monthly on staked assets. The level requires seven intro days, and rewards begin on the eighth day.
For Diamond and Platinum Plus club members, 90% yield is awarded every month on assets staked.
To cover technical, operational and legal costs of facilitating the staking service, eToro charges a small fee out of the staking yields.
2. Coinbase – Most Intuitive Staking Platform
When it comes to platforms that enable users to stake crypto assets instinctively without any guidance, Coinbase tops the chart in this regard. If you are a beginner looking for a platform that can be navigated intuitively and help reduce your errors, Coinbase is the best bet for you.
As a staking platform, Coinbase allows investors to stake cryptocurrencies such as Algorand (ALGO), Cosmos (ATOM), Ethereum (ETH), Tezos (XTZ) and on some stable coins such as DAI and USDC. As staking yields, Coinbase offers annual rates of 5% to stake Ethereum and Cosmos, 4.63% as rewards on Tezos and 4% for Algorand. For the stable coins DAI and USDC, the platform offers lower rewards at 2% and 0.15%, respectively.
Coinbase charges a 25% commission on the yields realised to compensate for the staking services offered on the platform. With the yield percentage placed on the coins stacked on Coinbase, it is possible that staking may not be profitable in the long run as the high commission set on the coin may take up most of the profits. This will leave users with a low return on investment after the due duration is completed.
3. Binance – Most Diverse Staking Platform in Assets
Binance has been proven to be the world’s largest exchange by trading volume and still ranks as one of the best when considering crypto staking platforms.
Binance takes the lead as the most diverse staking platform in terms of asset offerings and staking services. On the platform, users can stake using a flexible savings plan or a locked savings plan.
The platform offers Bitcoin staking that are classed as low-risk, while others are high-yield stakes. There are also opportunities to participate in DeFi staking like the ETH 2.0 staking.
The platform allows opportunities to stake on over 100 crypto assets, and the yield on these currencies vary depending on the type of cryptocurrency.
Binance does not charge any fees or commission for staking on the platform, which allows users to enjoy all the benefits available.
4. Kraken – Best Staking Platform for Asset Choice
Kraken holds the spot on our list as the best staking platform for asset choice, and this is due to carefully selected crypto assets listed on the platform for on-chain and off-chain staking.
The platform has listed only 12 crypto assets for staking, three of them available for eligible countries as off-chain staking assets. The assets include Bitcoin (BTC), the US Dollar (USD), and the Euro (EUR). On-chain staking assets are Kava (KAVA), Tezos (XTZ), Cosmos (ATOM), Solana (SOL), Ethereum (ETH 2.0), Flow (FLOW), Cardano (ADA), Kusama (KSM) and Polkadot (DOT).
The yields on these crypto-assets vary, and staking on the Kraken platform is free and devoid of commissions.
5. Poloniex – Most Flexible Crypto Staking Platform
Poloniex is one of the largest crypto exchanges in the world and has a 24-hour trading volume of $179million. The platform makes our list one of the top staking platforms due to its flexibility. Poloniex does not have any lock-up periods and allows users to continue to trade and sell the staked crypto assets while making passive income on them.
The platform only supports four crypto assets for staking, which include Cosmos (ATOM), Tron(TRX), BitTorrent (BITT) and WINk (WIN).
The staking yields on BitTorrent and WINk are at a variable of 8% -10%, but for Cosmos and Tron, the yield percentage varies. However, 100% of the yield rewards are remitted to investors, charge-free except on Cosmos, which charges a 25% staking fee.
Bitcoin staking is regarded as one of the most lucrative passive income opportunities to grace the crypto stage, and several factors are considered when choosing a platform to stake with.
The most important reason for staking is to yield substantial returns on investment. With this in mind, the perfect platform for staking is eToro.
The platform grants investors up to 90% yields on their assets. The fees applicable to the returns are reasonable, bearing in mind that eToro provides the most convenient process for staking.
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