Guide to the Best Cryptocurrency Staking Platforms

Key Takeaways:

• Cryptocurrency staking is a way for investors to earn additional income with cryptocurrencies, such as earning interest from a savings account or money market fund.
• Staking has seen significant growth, with investors staking more than $700 billion at the time of this writing.
• Just like choosing a bank or brokerage firm for traditional investments, it is important to choose a trustworthy and trustworthy cryptocurrency staking platform.
• Staking rewards (and risks) vary greatly across different platforms and cryptocurrency assets.

We love staking. Because it’s an easy way to make sure that cryptocurrency investing works for you. Similar to earning interest on a traditional savings account, staking your cryptocurrency with a trusted service allows you to earn extra cryptocurrency while you sleep. Perhaps this is why staking has seen significant growth. As of this writing, investors have invested more than $700 billion.

If you are interested in staking, the first decision you need to make is choosing a trustworthy platform. To help you make this decision, we researched our favorite cryptocurrency staking platforms and evaluated their fees, usability, security, and reliability.

With over 110 million verified users worldwide, Coinbase is one of the most popular cryptocurrency exchanges in the world. It is also the first US-based cryptocurrency exchange to be approved by federal and state regulators.

In addition to being a marketplace for buying and trading over 250 cryptocurrencies, Coinbase also offers users the ability to earn rewards for their tokens through staking.

The staking service is called Earn on Coinbase (not to be confused with Coinbase Learn). To use your savings for staking, you must have a fully verified Coinbase account and reside in a jurisdiction where staking is legal.

As of this writing, Coinbase Earn supports staking for seven cryptocurrencies: ETH, ADA, DOT, POL, SOL, XTZ, and ATOM. Staking rewards range from 2.00% to 10% APY, and staking fees range from 26.3% to 35% depending on token and account status.

Earnings Evaluation on Coinbase

• ease of use: A key reason for Coinbase’s continued popularity is its simplicity and ease of use. The platform’s interface is beginner-friendly, making it one of the best choices for staking.
• trust: Coinbase’s biggest strength, especially in a highly regulated cryptocurrency market like the United States, is its strict compliance with regulations, including anti-money laundering (AML) and know-your-customer (KYC). It is also one of the few cryptocurrency companies listed on a major stock exchange (Nasdaq).
• security: The platform is protected using advanced encryption technology. There have only been a few reported hacking attempts. You can also access additional security features for your account, such as two-factor authentication (2FA).

KuCoin Staking

Headquartered in Seychelles, Kucoin is a relatively popular online cryptocurrency exchange and staking platform in over 200 countries. However, due to lack of licensing and other compliance issues, KuCoin staking is not available in the United States.

If you live outside the US and want access to over 40 staking tokens, KuCoin is worth a look. Promised rewards range from 1.5% to 15% or more for exotic high-risk tokens.

Kucoin supports all native staking tokens as well as lesser-known tokens such as SUI, HYDRA, APE, and TIA. To attract users from international markets, KuCoin offers spot trading and staking services with lower fees than its competitors.

Kucoin Staking Evaluation

• ease of use: If you are an experienced cryptocurrency trader, KuCoin is relatively easy to use. However, the platform lacks guides, tips, and documentation, making it not very beginner-friendly or intuitive.
• trust: Seychelles, KuCoin’s main base of operations, is a tax haven with lax regulations that favor financial crimes such as money laundering. Additionally, this exchange is not regulated by any reputable body in North America, EU, or Australia.
• security: Kucoin uses industry standard security features including regular audits, cold wallets, and multi-signature wallets. Despite all these measures, the exchange has been the target of several major hacks over the years, including the 2020 hack that resulted in $280 million in losses.

Gemini Staking

Gemini is a well-known US-based cryptocurrency exchange launched by the Winklevoss twins in 2014. The platform is available in more than 60 countries, including the United States. The staking service is simply called Gemini Stake.

Gemini supports around 100 major cryptocurrencies, but you can only stake on the platform with SOL, ETH, and MATIC tokens. Staking is available in all US states except New York.

Due to limited token availability, staking reward prospects are relatively low, ranging from 2.74% to 5.74% APY. On the other hand, the commission is reasonable at 15%. Gemini also has an advanced staking option called Stake Pro for institutional customers.

Gemini Staking Evaluation

• ease of use: Although it doesn’t have the same level of educational content as Coinbase, Gemini is relatively easy to use. The interface is linear and intuitive both on the website and in the app. However, starting in 2020, we have received many consumer complaints that more appropriate support is needed.
• trust: In 2022, Gemini was accused of failing to conduct due diligence on a third-party partner (Genesis Global), causing losses to customers using its Earn program. In February 2024, Gemini was ordered to pay more than $1.1 billion to customers.
• security: Most user funds within the platform are stored in cold wallets. The platform uses all security measures including 2FA authentication and advanced algorithms. Although the exchange has not suffered any major fund hacks, a serious data breach in 2022 resulted in the personal information of 5.7 million Gemini users being stolen.

Binance Staking

Binance is the world’s largest cryptocurrency exchange in terms of international users and trading volume. Initially headquartered in Shanghai, the company moved its operations to Tokyo and then to Malta. As of 2024, the holding company is headquartered in the Cayman Islands.

Staking on Binance.com, a global platform, comes in many forms, including DeFi staking (high risk), ETH 2.0, and locked staking. The platform supports various forms of staking for at least 100 tokens.

Binance.com is not available to US customers, but its sister website Binance.US offers staking services for a limited number of tokens (18 in total).

Staking rewards for these tokens can reach 16.6%. However, Binance charges a fee of up to 35% on staking rewards and trading using US dollars is prohibited.

Binance Staking Evaluation

• Ease of Use: The Binance platform is generally user-friendly. However, beginners may find the interface a bit overwhelming due to the variety of trading options and other advanced services. Additionally, it does not have a built-in wallet and does not support USD deposits.
• trust: Regulators in the U.S. and other countries have accused Binance and its founder of numerous financial misconduct. In 2023, the company agreed to pay $4.3 billion to settle money laundering charges. The SEC has also filed several lawsuits against both the international and US versions of the platform. Many of these cases are still ongoing.
• security: Binance, the world’s largest cryptocurrency exchange, has been targeted by hackers several times. In 2022, hackers stole more than $500 million from blockchains linked to exchanges. However, the platform protects your funds through cold wallets, encryption, and 2FA authentication.

Investor Implications

Overall, staking is a great way to earn “interest” on your cryptocurrency investments. Our investment approach involves maintaining quality cryptocurrency investments over the long term, making staking a low-risk strategy that maximizes returns.

Trust, legitimacy, security, platform fees, and staking options are important factors when choosing a staking platform. Always do additional research on the platform before committing your funds.

In terms of striking a balance between token availability, ease of use, compliance, and reliability, we believe Coinbase is the best staking platform for both new and seasoned users.

It’s important to note that while many platforms promise double-digit staking rewards, these are usually on lesser-known, high-risk tokens. You can expect more modest returns using more established PoS tokens such as ETH, ADA, and SOL. (Click here to see the best staking percentage)