Staking is the process of delegating cryptocurrency in a wallet. When funds are staked, they are eligible to earn interest, or yield. The interest rates for staking vary but often exceed traditional savings account rates, making it very enticing for users. Especially those interested in holding crypto for a long time and don’t have immediate needs for their funds.
How much interest can you earn Staking?
Staking rates vary by platform and coin, but you can expect to see 4-8% APY (annual percentage yield) for staking Ether. Below is a list of custodial staking services.
Staking helps secure and run proof of stake (P.O.S.) blockchains and rewards those contributing with yield for doing so.
People are interested in staking because it incentives saving or holding your crypto assets. It allows you to grow your position without using riskier alternatives, such as trading or lending.
But not all cryptocurrency supports staking. For example, Bitcoin does not support staking natively, as it was not built into the protocol. Bitcoin is a proof of work (P.O.W.) blockchain. Hence, the only way to earn interest with Bitcoin is to lend it.
Ethereum, as of 2022, now supports staking natively in the protocol.
However, staking Ethereum natively is not a straightforward process. If you want to stake ETH by yourself, you must set up a validator (in effect, a powerful server) and have 32 Ether to “lock up” to begin. Not only is this costly, but it is also far too complex for most people.
Staking-as-a-service
Enter Staking services (staking-as-a-service) platforms and exchanges to the rescue!
In brief, exchanges and staking services make staking on their platform much easier, as they handle all the back end work (things like running validators and “pooling” up ETH in bunches of 32) and, in turn, take a commission of your yield for the privilege.
Comparatively, this makes staking on exchanges far less complex, as simple as clicking ‘stake’ on deposited crypto assets. Keep scrolling for more info on the three staking-as-a-service platforms we recommend.
Why do different platforms offer different staking rates?
Since exchanges and staking services run their own validators, it takes time and money to offer these resources and is just one reason why the interest rate can vary.
The staking yield rate at the protocol level is affected by many factors, such as the amount of staked coins at any time. The more coins staked, the lower the overall interest rate. This is also why staking yields fluctuate often and are hard to calculate on a yearly (APY) basis.
3 popular staking services
Cake Defi Staking
- Great rates
- Easy-to-use app
Cake DeFi is a centralized finance platform that allows users to earn interest on their cryptocurrency holdings, borrow and lend digital assets, and participate in yield farming.
One of the main features of CakeDeFi is its lending and borrowing platform. CakeDeFi also offers a range of yield farming opportunities, where users can earn rewards for providing liquidity to certain DeFi protocols or participating in other activities without requiring as much technical skills as is required by using DeFi directly.
CakeDefi offers staking as a service for Ether, DFI, and DASH.
Learn more about Cake Defi Staking
Binance US Staking
- Easy to use
- Regulated in the US
Launched in 2019, Binance US is a digital asset exchange platform licensed for US crypto investors and users.
Binance US offers a range of trading tools and features, including a user-friendly interface, advanced charting tools, and, most importantly, staking. Binance US offers staking for the following coins: ETH, MATC, SOL, ADA, AVAX, and others.
The platform also offers a mobile app for trading and staking on the go.
Overall, Binance US is a popular and well-respected digital asset exchange platform that offers a range of services for both experienced traders and those new to the world of cryptocurrency and is an excellent entry to staking.
Learn more about Binance US Staking
Kraken Staking
- Good rates
- Trusted exchange
Kraken is a digital asset exchange platform founded in 2011 and headquartered in San Francisco, California. The platform allows users to buy and sell a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, and trade various digital asset pairs.
Kraken offers staking as part of its platform.
Kraken is known for its low fees, advanced trading tools, and strong security measures. The platform offers a user-friendly interface for beginners and advanced features for more experienced traders, including margin trading, futures trading, and options trading.
Overall, Kraken is a respected and well-established digital asset exchange platform trusted by millions of users worldwide.
Learn more about Kraken Staking
An alternative to staking
If staking isn’t for you, you can look into other crypto interest account platforms. Below is another great platform to consider.
Haru Invest
- Very easy to use
- Great interest rates
Haru Invest is a great platform offering high-interest rates outside of staking and supports BTC, ETH, USDT, USDC, and XRP.
TLDR;
Staking is the process of delegating cryptocurrency in a wallet. When funds are staked, they are eligible to earn interest or yield. The interest rates for staking vary but can meet or exceed what you see in traditional savings accounts, making it very enticing for users interested in holding crypto for a long time and not having immediate needs for their funds.
Staking rates vary by platform and coin, but you can expect to see 4-8% APY (annual percentage yield) for staking Ether.
Staking allows you to grow your position without riskier alternatives, such as trading or lending. Investors are interested in staking because it incentives saving and holding crypto assets by rewarding those who contribute with yield while helping secure and run proof of stake (P.O.S.) blockchains.
No, Bitcoin does not support native stake, as it was not built into the protocol. Bitcoin is a proof of work (P.O.W.) blockchain. The only way to earn interest with Bitcoin is to lend it.
Yes. As of 2022, Ethereum now supports staking natively in the protocol.
If you want to stake ETH by yourself, you must set up a validator (a powerful server) and have 32 Ether to” lock up.” Suppose you do not have 32 ETH or access to a validator. In that case, you can utilize staking services (staking as a service) platforms and exchanges.”If you want to stake ETH by yourself, you must set up a validator (a powerful server) and have 32 Ether to “lock up.” If you do not have 32 ETH or access to a validator, you can utilize staking services (staking as a service) platforms and exchanges.
As of 2022, The Coin Interest Rate team recommends Cake Defi Staking, Binance US Staking, and Kraken Staking.
CakeDefi offers staking as a service for Ether, DFI, and DASH. Learn more about Cake Defi Staking.
Binance US offers staking for the following coins: ETH, MATC, SOL, ADA, AVAX, and others. Learn more about Binance US Staking.
Kraken offers staking for the following coins: ETH, MATC, SOL, ADA, DOT, and others. Learn more about Kraken Staking
If staking isn’t for you, you can look into other crypto interest account CeFi platforms such as Haru Invest.
