Crypto.com, Gemini, BlockFi, Olympus, no shortage of platforms offer staking and rewards to its users. But not all staking platforms are created equal—staking rewards can range from high to low and from generous to moderate. With most platforms somewhere in the middle, neither overly generous nor overly austere.
Staking rewards arose when blockchain protocols realized that the proof-of-stake mechanism was significantly faster and more robust in its energy consumption than its predecessor. And so, the brightest minds in Silicon Valley created this new mechanism, and with that came an army of new validators seeking rewards.
Unlike the traditional proof-of-work model where miners typically earn Bitcoin or Ethereum, in the proof-of-stake model, rewards range from native cryptocurrency to voting rights for a certain community to stable coins like USDT. There is a wider array of rewards for validators as well as the moral cause of supporting a more environmentally conscious mechanism to power blockchains.
What to Look for in Staking?
Staking is a concept that is often confused with other crypto activities when it comes to earning passive income with your crypto. In the case of deciding which staking platform to use, there are a few things you have to consider before investing in any specific protocol or decentralized exchange.
- What is the rate at which you can start earning rewards?
- How often will you be paid out? Is this a yearly yield or a monthly or even a weekly return?
- The ease of pulling out your stake—is it easy to pull your money out? This is something you must consider because there will be transaction fees when pulling out any amount from a staking pool. Companies will typically encourage the user to keep their token in the pool and punish those who withdraw by imposing often harsh withdrawal fees.
Top Performing Staking Platforms
This is a list of some of the best returns on the market at the moment. Each with its unique set of rewards and yields.
Crypto.com is easily the most recognizable of different staking platforms. With its own native CRO token, users across the world can access this centralized exchange and lock up a plethora of currencies. With each country, allowing the holding of certain tokens over others and with some having a holding period of up to 180 days. What Crypto.com does right in its staking is its ability to stay fluid and adjust to users in their geographical zones. With some zones earning up to 14% in annual returns.
Kraken, next to the most well-known platform, is a lesser-known project with some of the highest returns on the market. Kraken boasts a 20% annual return to its staker and offers 10 different currencies, users can take advantage of. There is also no minimum time that users have to stake their tokens on the platform, allowing for easy withdrawal without the heavy fines imposed by other platforms.
BlockFi is another crypto juggernaut with its very own platform and architecture set up for staking its native token as well 13 as others. The only difference here is there is no actual staking, rather BlockFi pays out its validators with interest payments. And these payments can range from as low as 0.1% to as high as 0.9%. BlockFi also allows users the ability to pull their funds out at any time without penalty.
All in all, there are certainly some platforms that offer better rewards than others but the best platform for you will come down to your specific investment strategy and what you’re looking to get out of staking. Each platform will be different and have its advantages as well as its disadvantages.
With the right amount of guidance and a little bit of wit, surely in no time, you’ll find your very own staking paradise — just make sure to stick to the guidelines.