Staking platforms enable investors to earn passive income on idle crypto holdings. They’re particularly popular with long-term investors seeking additional returns.
There’s a lot to consider when selecting a platform, such as lock-up terms, interest rates, supported coins, and safety.
Read on to discover the best crypto staking platforms; we rank and review the leading providers for 2024.
List of the Best Crypto Staking Platforms
According to our research, listed below are the best crypto staking platforms for 2024:
- Margex – Use Staking Balances as Collateral When Trading Perpetual Futures
- MEXC – Flexible and Fixed Staking Plans With APYs of up to 25%
- OKX – Decentralized Wallet With Thousands of Aggregated Staking Pools
- Bybit – A Great Option for Ethereum Liquid Staking With Zero Gas Fees
- Binance – Competitive Crypto Staking Pools With Principal Protection
- BingX – Stake 52 Popular Coins With Short and Medium-Term Plans Available
Reviewing the Top Crypto Staking Platforms
Let’s take a closer look at the top crypto staking platforms. The following reviews cover everything investors need to know. Read on to choose the right staking provider.
1. Margex – Use Staking Balances as Collateral When Trading Perpetual Futures
- Coins available for staking: 5
- Ethereum staking? Yes
- Staking custodianship: Custodial
- Highest staking rate: 5% on Ethereum, USD Coin, Tether, and Binance USD
Margex is an unconventional staking platform, considering it specializes in perpetual futures. Nonetheless, it offers competitive staking rewards on five cryptocurrencies. Those staking Ethereum, USD Coin, Tether, or Binance USD will earn interest rates of 5%. This is reduced to 4% when staking Bitcoin. Crucially, staking balances can be used as collateral.
For example, suppose you’re staking $1,000 worth of Bitcoin. Margex offers 100x leverage on Bitcoin futures, converting to a 1% margin requirement. This means the $1,000 being staked can open a futures position worth up to $100,000. Even so, the staking coins will continue to earn interest, even when utilized as collateral.
Margex also offers a user-friendly staking calculator. Just select the coin and amount to see the estimated rewards. We also like that staking payouts are made daily, so you can fast-track the earning potential via compound interest. Other popular features on Margex include a free demo platform, copy trading, and a user-friendly app for iOS and Android.
Pros
- Earn staking rewards of up to 5%
- Use staking balances as collateral
- Staking payouts are made daily
- Get leverage of up to 100x when trading futures
- Also one of the best crypto staking apps
Cons
- No regulatory protections are offered
- Supports just five staking cryptocurrencies
2. MEXC – Flexible and Fixed Staking Plans With APYs of up to 25%
- Coins available for staking: 18
- Ethereum staking? Yes
- Staking custodianship: Custodial
- Highest staking rate: 25% on Core DAO
MEXC is not only one of the best no KYC exchanges but it’s also a great option for staking. It supports 18 staking cryptocurrencies; many offer competitive APYs. For example, MEXC pays 4.8% and 6% on Ethereum and XRP, respectively. Stablecoins like Tether and USD Coin both pay 5%. The best crypto staking rewards are available on Core DAO, which yields 25%.
However, Bitcoin comes with an APY of just 1.8%. Most staking plans are flexible, meaning the coins can be withdrawn at a moment’s notice. Others come with stricter terms, which also impacts the APY. For example, Toncoin offers an APY of 5% on a 30-day period. This increases to 7.5% when holding for 60 days, and 10% for 120 days.
MEXC is also a top option if you’re planning to buy and sell cryptocurrencies. It supports over 2,800 markets, including the best meme coins like Dogecoin and dogwifhat. It also offers 200x leverage when trading perpetual futures. MEXC is also a great option for trading passively. Simply choose a trader and automatically mirror their positions.
Pros
- Supports 18 staking cryptocurrencies
- Competitive rewards of up to 25%
- Most staking plans come with flexible terms
- No KYC procedures (limits apply)
- Lists over 2,800 trading markets
Cons
- The platform isn’t regulated
- Bitcoin APYs are just 1.8%
3. OKX – Decentralized Wallet With Thousands of Aggregated Staking Pools
- Coins available for staking: 535
- Ethereum staking? Yes
- Staking custodianship: Non-custodial
- Highest staking rate: 35.06% on Aero
OKX is a popular crypto exchange that also offers a decentralized wallet. The latter has an in-built staking aggregator that connects with thousands of external pools. Simply choose the staking coin and OKX obtains the best rates. You can also select specific liquidity providers, or use a combination for increased efficiency.
OKX is particularly attractive for staking stablecoins. It offers APYs of up to 14.45% and 10% on USD Coin and Tether, respectively. You can also get 10.9% when staking DAI. Other popular options include Ethereum, Solana, and Wrapped Bitcoin. These currently yield 8.25%, 8.25%, and 9.12%, respectively. Unlike many staking platforms, OKX’s decentralized wallet is 100% non-custodial.
This means only the user controls their private keys. And that counterparty risks are avoided. Moreover, OKX’s wallet comes with proprietary software. It supports iOS/Android mobiles, Windows/Mac desktops, and Chrome browsers. Alternatively, you can connect another wallet to OKX while remaining on-chain. OKX also supports crypto swaps and an NFT marketplace.
Pros
- Choose from 535 staking cryptocurrencies
- Maximum APY of 35.06%
- Earn over 10% on multiple stablecoins
- Staking is facilitated by a non-custodial wallet
- Native software for iOS, Android, Windows, Mac, and Chrome
Cons
- Some liquidity pools have limited TVLs
- Not a suitable option for beginners
4. Bybit – A Great Option for Ethereum Liquid Staking With Zero Gas Fees
- Coins available for staking: 171
- Ethereum staking? Yes
- Staking custodianship: Custodial
- Highest staking rate: Multiple coins offer three-figure APYs
Bybit is also one of the best crypto staking platforms. It currently supports 171 coins and tokens, making it a great choice for diversified portfolios. It’s also a solid choice for staking Ethereum. While the APY is currently just 2.82%, Bybit offers ‘liquid’ staking rewards. This means the staked coins can instantly be put to good use, potentially increasing the yield.
Here’s how it works; you receive 1 stETH for every 1 ETH staked. That stETH can be used on other Bybit products, such as spot trading or perpetual futures. The ETH is returned to the Bybit wallet once the stETH is repaid. Although Bybit offers custodial staking, everything is on-chain. This means the staking rewards are determined by the Ethereum blockchain.
Moreover, no Ethereum gas fees are charged when staking and unstaking. Those seeking higher staking returns might consider a short-term stablecoin plan. For example, Tether yields up to 300% on a three-day term. Bybit has partnered with fiat on-ramp providers, so you can also buy staking coins directly. Accepted payment methods include debit/credit cards and bank transfers.
Pros
- The best option for Ethereum staking
- Liquid staking payouts in stETH
- Stake on-chain without paying gas fees
- Some coins offer three-figure APYs
- Other products include spot, futures, and copy trading
Cons
- Liquid staking won’t be suitable for novice investors
- Operates as an unregulated exchange
5. Binance – Competitive Crypto Staking Pools With Principal Protection
- Coins available for staking: 17
- Ethereum staking? Yes
- Staking custodianship: Custodial
- Highest staking rate: 19.9% on MANTRA
The world’s biggest exchange, Binance, is also worth considering when exploring staking sites. It offers ‘principal protection’ on multiple cryptocurrencies, giving investors peace of mind. This means Binance will honor the original investment, plus the stated returns, irrespective of broader market conditions. Binance has significant proof of reserves, so should have no issue meeting these promises.
17 staking cryptocurrencies are supported; terms and APYs vary depending on the pool. For example, Binance pays 3.13% and 4.98% on Ethereum and Solana staking on fixed terms, respectively. It also offers 4.98% on BNSOL. This is a liquid staking coin developed for Solana. However, we found that stablecoin yields are less competitive than other staking platforms.
For example, Tether and USD Coin yield just 3.43% and 3.91%, respectively. Nonetheless, the highest crypto staking rewards are offered on MANTRA, currently at 19.9%. Binance also runs promotional rates on newly listed markets. For instance, it’s offering an APY of 18.9% on Self Chain for a limited time. In addition to staking, Binance offers spot, futures, and options trading across hundreds of pairs.
Pros
- Principal Protection ensures users receive at least the stated yield
- Staking pools are backed by the world’s biggest exchange
- Earn APYs of up to 19.9%
- Offers an in-house liquid staking coin for Solana
Cons
- Stablecoin yields are below the industry average
- Some staking pools come with limited availability
6. BingX – Stake 52 Popular Coins With Short and Medium-Term Plans Available
- Coins available for staking: 52
- Ethereum staking? Yes
- Staking custodianship: Custodial
- Highest staking rate: 21.03% on Tether
BingX is a popular crypto exchange supporting spot trading and leveraged futures. It also offers staking pools for 52 cryptocurrencies. Some pools support multiple plans, ranging from a day to several months. For example, BingX offers APYs of 21.03% on Tether on 1-7 day plans. However, this is reduced to 6.01% when holding for 90 days.
Bitcoin comes with an attractive APY of 5% on flexible terms, meaning withdrawals are allowed at any time. BingX is also a great option for staking meme coins. For example, Dogecoin, BOOK OF MEME, Pepe, and dogwifhat each yield 10% on flexible plans.
Another way to earn passive income on BingX is via copy trading. Verified traders can be filtered by past performance, cumulative earnings, number of copiers, and other important metrics.
BingX will also appeal to investors who prioritize privacy. It offers a KYC-free experience; only an email address or mobile number is collected. BingX is offering a generous welcome package to new customers. This is worth up to 6,000 USDT depending on the deposit size.
Pros
- Earn up to 21.03% on Tether deposits
- A great option for staking meme coins
- Copy trading is also supported
- Manually trade the spot and futures markets
- No KYC procedure when joining
Cons
- APYs are sometimes reduced when limits are reached
- Leveraged products won’t be suitable for newbies
How To Choose a Crypto Staking Site
Many providers offer staking rewards, but picking the right option can be challenging. This section discusses the key criteria when choosing the best crypto staking platform.
Safety and Security
The most important factor is that you’re using a safe staking platform. Additionally, it’s wise to explore internal security tools. At a minimum, the majority of client-owned cryptocurrencies should be stored in cold wallets, preferably with multi-signature technology and 24/7 surveillance. Two-factor authentication and device whitelisting are also notable. These security features protect staking accounts from unauthorized access.
Available Coins
The best crypto staking platforms support a wide range of coins. This often includes Ethereum, Solana, and BNB. Some platforms also offer passive rewards on non-staking coins, such as Bitcoin and XRP.
The rewards are often generated through loans or by providing exchange liquidity. Either way, ensure your preferred coins are available before proceeding.
Interest Rates
It makes sense to focus on staking platforms offering the best interest rates. Just remember that APYs are often variable. For instance, they’ll likely be reduced during more volatile market conditions. Additionally, rates can be determined by the selected term.
For example, BingX offers 21.03% when staking Tether for up to a week. However, you’ll get just 6.01% on a 90-day term. The same concept can also happen in reverse. For instance, you might get higher staking rates on longer terms.
Payout Frequency
The payout frequency is another important factor to assess. This determines how often the staking rewards are distributed. Ideally, you’ll receive daily payouts. This will enable you to immediately reinvest the rewards into other staking pools.
In doing so, you’ll benefit from compound interest. That said, don’t forget that the original investment (principal) won’t be returned until the staking term is over.
Custodianship
Most staking platforms offer a custodial service. This means you don’t own the private keys to the provided wallet. This invites counterparty risk, considering you need to trust the platform will honor staking payouts and withdrawals.
Those preferring a non-custodial service might like OKX. It offers a self-custody wallet that doubles up as a staking platform. The OKX wallet never touches client-owned funds and the user controls their private keys. However, this isn’t the case with OKX’s main exchange, so ensure you’re using the right platform.
Liquid Staking
Traditional staking can result in opportunity costs. This is because the staked cryptocurrencies can’t be used for other investment prospects. However, some platforms offer liquid staking. This means you’re lent another coin until you unstake.
For example, those staking Ethereum on Bybit receive an equivalent number of stETH coins. stETH can be used for other Bybit products, such as trading. Similarly, Margex clients can use staked cryptocurrencies as collateral. This offers trading capital of up to $100 for every $1 staked.
Limits
Some staking platforms have limits on the best-paying products. The APY is automatically reduced once these limits are reached.
For example, BingX offers 5% interest when staking Ethereum on flexible terms. However, anything over 1 ETH receives just 1.3%.
How Does Crypto Staking Work?
Staking is a passive income tool, enabling investors to earn yields on crypto holdings. Traditional staking is available for cryptocurrencies on the proof-of-stake (PoS) mechanism. This includes Ethereum, Solana, and Cardano, among others. The staked coins are locked in the respective blockchain for a minimum number of days.
This keeps the blockchain secure and ensures participants are rewarded. Participants receive their staking coins, plus interest, once the term has finished. This is similar to holding bonds, where the principal is paid on maturity. However, traditional staking often comes with high minimum requirements. For example, solo Ethereum staking requires at least 32 ETH, currently worth about $80,000.
This is why many investors use third-party platforms like Margex, and MEXC. Minimums are often just a few dollars, so investors of all budgets are welcome. This is because staked coins are grouped and rewards are distributed proportionally. Do note that staking yields are in addition to price appreciation. Meaning – you still benefit if the staking coins increase in value.
An Example of Crypto Staking
Here’s an example of how crypto staking works:
- You stake 10 ETH
- The staking pool offers a fixed APY of 3%
- You unstake your coins after 12 months
- This means you’ve earned 0.3 ETH in staking rewards (3% of 10 ETH)
- Your balance is now 10.3 ETH (10 ETH + 0.3 ETH)
How to Choose Which Cryptos to Stake
Staking tools not only support proprietary coins but secondary tokens too. Some investors will buy cryptocurrencies specifically for staking rewards, so it’s wise to know what factors to consider.
This section explains how to choose cryptocurrencies to stake.
Available APYs
Some staking cryptocurrencies attract higher APYs than others. This is often down to the project’s reputation and market capitalization. For example, established coins like Ethereum and Solana typically offer the lowest rewards.
Conversely, new cryptocurrencies provide much bigger payouts. This is because demand is weaker, so projects must incentivize investors to stake their holdings.
Upside Potential
It’s best to buy staking coins that have the greatest upside potential. After all, price appreciation can be significantly higher than staking APYs. For instance, Ethereum staking averages 2-5% annually, depending on the platform.
However, the Ethereum price has increased by over 65% in the past year. Similarly, Solana staking offers average payouts of about 4-8% per year. The Solana price has increased by almost 590% over the same period. Therefore, consider the longer-term picture when selecting staking coins.
Sustainability
Staking rewards must be offered sustainably. Understanding how the rewards are generated is crucial. This is often through inflationary practices. For example, approximately 2 ETH is added to the circulating supply per verified block.
This increases the supply, meaning existing holders are diluted. However, Ethereum has implemented a burning mechanism, where a percentage of gas fees are removed from the supply. This reduces the inflation constraints and makes Ethereum staking viable.
Liquidity
Liquidity is crucial when selecting the best cryptocurrencies to buy. This should also be considered when staking. Crucially, you don’t want to be left with cryptocurrencies you’re unable to sell. For example, suppose you earn APYs of 500% on a small-cap token.
However, the token has limited liquidity on crypto exchanges. As such, you can only sell a small percentage of those holdings. This won’t be an issue when staking large-cap coins like Ethereum and Cardano, with billions of dollars worth of liquidity available around the clock.
Differences Between Crypto Staking, Lending & Liquidity Mining
Staking, lending, and liquidity farming are popular tools that enable crypto investors to earn passive income. However, the underlying methods differ.
Here’s what to know:
- Staking: Traditionally, staking involves depositing coins into a PoS blockchain, such as Solana or Ethereum. This keeps the network secure and decentralized. The staking rewards are often generated by inflationary practices and distributed proportionality.
- Lending: Crypto lending tools enable people to borrow funds, often on an over-collateralized basis. Lenders receive interest on the deposited funds, covered by borrowers. This tool often pays more than staking, considering the risks of default.
- Liquidity Mining: This passive investing tool provides liquidity to exchanges. It requires two equal amounts of crypto, which creates a trading pair. For instance, $500 worth of both Solana and USD Coin. Liquidity miners earn a percentage of trading fees generated by the respective pool.
Each method comes with differing risks and rewards. It’s important to understand how each works before proceeding.
How Profitable Can Crypto Staking Be?
Staking profitability depends on two key factors:
- The staking APY obtained
- Whether the coin’s value rises or falls, and by how much
Ideally, you’ll be staking coins offering a high APY and high growth potential. These two metrics will enable you to maximize the returns.
For example:
- Let’s say you buy 100 SOL, each valued at $150. This brings the total investment to $15,000.
- You immediately stake that 100 SOL on a 12-month basis, with an interest rate of 7%.
- After the term passes, you’ve earned staking rewards of 7 SOL(7% of 100 SOL).
- You also receive the original 100 SOL principal.
- This takes your total holdings to 107 SOL.
- The SOL price has since increased to $250.
- The 7 SOL staking rewards are worth $1,750 (7 x $250).
- The original 100 SOL is worth $25,000 (100 x $250).
- Your total investment is now worth $26,750.
Do note that the above returns can be compounded when receiving more frequent payouts. This is because you can reinvest those payouts into the same staking pool. This compounds the returns, as you earn interest on the newly deposited coins.
Additionally, there’s no guarantee that the staked coins will increase in value. If they don’t, you could lose money if the generated staking rewards aren’t sufficient. In the above example, we mentioned that SOL offered a 7% interest rate. If SOL declined by over 7% after 12 months, the investor would be at a loss.
How to Start Staking Crypto
We’ll now explain how to stake crypto at Margex, our top-rated pick for 2024.
- Step 1: Open a Margex Account – Visit the Margex website to register an account. Tap on ‘Register’ then open the registration confirmation email and tap the confirm link to complete the account registration process.
- Step 2: Deposit Funds – Margex supports a wide range of payment methods, including direct crypto deposits or buying crypto with a bank card via Changelly or ChangeNOW.
- Step 3: Buy Staking Coin – Now search for the staking coin you want to purchase by clicking on the ‘Buy Crypto’ option and follow the instructions to purchase the cryptos of your choice via Changelly or ChangeNOW.
- Step 4: Head Over to the Wallet Page – Navigate your way to the ‘wallet’ page and tap on the stake/unstake slider to stake your wallet balance for the specific crypto.
- Step 5: Earn Staking Rewards—Once you’ve activated staking for tokens within your account, staking payouts are measured and allocated to the wallet balance daily. According to the Margex website: “Staking yield is calculated based on the lowest value of the balance since the previous yield payout for the corresponding coin/token.”
Conclusion
We’ve ranked the best crypto staking platforms, with Margex being our top choice. Margex stands out for its low fees, user-friendly dashboard, and simple staking process.
It’s also possible to buy staking coins with convenient payment methods, and automatically earn rewards once the grace period passes.
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References
- Explainer: What is ‘staking,’ the cryptocurrency practice in regulators’ crosshairs? (Reuters)
- Earn rewards while securing Ethereum (Ethereum.org)
- Crypto exchange Kraken settles with SEC for $30 million, will close U.S. staking operation (CNBC)
- Earned money from crypto or NFTs? 5 times you need to report it to the IRS, according to a CPA (CNBC)