Stakero Blog

Where to Stake Cryptocurrency?

Staking is available for coins whose blockchains operate on the Proof-of-Stake (PoS) consensus algorithm and its variation. The staking mechanism can be implemented through a smart contract or in DeFi protocols.

If we talk about PoS blockchains, then it is here that staking ensures the operability of the entire network. With the help of this mechanism, transactions are confirmed and new blocks are generated in the blockchain, as well as new network coins are mined. Validators are responsible for all these processes in PoS networks.

The higher the validator's balance, the more chances he has to be selected to confirm a new block and receive a reward. Generally, the more coins participate in the stake, the higher the overall reward of the validators.
Many PoS cryptocurrency holders choose to delegate their coins. Often, crypto exchanges play the role of large validators, which launch their nodes in PoS blockchains. So, PoS staking services are provided by almost all top exchanges on the market.

Centralized exchanges

Binance

As the largest exchange, Binance supports 23 staking coins. Here you can stake both popular assets and little-known cryptocurrencies. Among other exchanges, Binance offers a higher rate for Tezos. The minimum stake is only 1 XTZ. The income of each investor is calculated based on the proportion of his part in the total volume of coins that have been staked on the exchange in the last month. The remuneration is also paid once a month.

Coinbase

By blocking their ETH on the platform, Coinbase users can earn up to 6% per annum. Through the American platform, which trades its securities on the NASDAQ, you can lock any number of Ethereum 2.0. Also, XTZ and ALGO coins are available for staking here. The disadvantage is that the interest percentage is not guaranteed, but depends on the demand. The more ETH is blocked by people, the less is the rate of reward.

Gemini

Сreated by the bitcoin billionaire Winklevoss brothers, is a marketplace accessible to private and institutional investors. Gemini offers clients to invest cryptocurrency on the Earn staking platform. The service works in any of the 25 digital assets supported by the platform. However, this is not the staking that maintains the PoS work. The exchange uses invested assets for lending, thanks to which users earn interest. Earn users have to agree to the condition of complete loss of the deposit if the borrower does not repay the loan, which makes the offer less attractive for many investors.

Staking in cryptocurrency wallets

Cold staking is available on the crypto market. Crypto investors can keep their coins in special wallets and at the same time take an active part in staking. There are at least several wallets that allow you to generate passive income by locking your assets for a certain period.

This kind of staking is supported by hardware wallets like Ledger or Trezor. To participate in cold staking, you need to keep your PoS coins in your hardware wallet at all times. As soon as the coin holder transfers them to another address, cold staking stops.

Ledger hardware wallet

Almost every member of the crypto community will recommend Ledger hardware wallet when it comes to the long-term storage of cryptocurrencies. It is a cold storage wallet for cryptocurrencies. Such storage is considered safer because the money is on a physical device that is disconnected from the Internet.

In addition to secure storage, Ledger allows multiple coins to be staked. To do this, the user will need to install a cryptocurrency application on the device and create an account with Ledger Live. After that, the investor simply transfers money to it and they are automatically locked to start earning a reward.

Hot wallets

But it's not just cold crypto wallets that offer staking options. For example, hot multicurrency crypto wallets like Trust Wallet and Atomic Wallet are popular solutions among hot crypto storages that support staking.

Trust wallet

Trust Wallet is a secure multi-coin wallet that can be installed on Android and iOS mobile devices. Last year, the operator of the largest Binance crypto exchange bought Trust Wallet to improve the security of its ever-growing user base. The process of setting up a Trust Wallet is similar to that of other wallets of this kind. Trust Wallet offers a fairly wide range of cryptocurrencies that can be locked into for staking. There is an opportunity to earn on staking TRON, Tezos, Algorand, Cosmos, VeChain and others. At the same time, the list of coins available for staking is constantly expanding and new coins will be added soon.

Atomic wallet

Atomic Wallet is another well-known multicurrency wallet that is compatible with all major operating systems, including mobile ones for Android and iOS devices. Atomic allows you to stake Tezos, Cosmos, VeChain, Neo, and Ontology. To participate in staking, you need to transfer coins to a special address provided by the wallet. After receiving the reward, the investor can convert tokens into fiat currencies or other digital assets, and then manage the money through the built-in crypto exchange.

Staking-as-a-Service (SaaS) systems

There are also many staking pools and SaaS platforms (Staking as a Service) on the crypto market. All such platforms work on a similar principle. Members of these services pool their coins to increase the likelihood of being selected as a validator and gain a reward. To participate in staking, you need to register on the website platform and delegate your PoS coins. In return, you will be charged interest in proportion to the size of your stake.

Stake Capital

Is one example of SaaS platforms. The service allows you to stake Cosmos (ATOM), Loom Network (LOOM), XTZ, Livepeer (LPT) and other coins.

MyCointainer

Platform allows you to choose one of three placement options for staking more than 50 types of digital coins. These options vary in terms of payment, from $ 1 a month for the Basic, to $ 10 for the Power Max level.

DeFi staking

DeFi staking provides passive income in decentralized financial systems. It is carried out by storing coins and tokens in the respective pools. DeFi profitability is significantly higher, and the entry threshold is lower. Interest on Yield Farming is calculated every day and is immediately available for reinvestment. At the same time, no one guarantees profitability here.

MakerDAO

The main advantage of the Maker is that anyone can create their own token by investing ETH to secure it. Subsequently, these tokens are borrowed by the customers of the platform, which acts as a bank. DAI stablecoin is used in over 400 applications and services. The cost of securing each DAI is higher than the value of the token.

PancakeSwap

The largest decentralized exchange is powered by the Binance Smart Chain. Offers a large selection of pools and the ability to stake your CAKE token.

SushiSwap

The exchange has become an improved version of the existing UniSwap. When depositing money into the liquidity of the network, users receive Sushi tokens. They generate a proportionate income from the profits of the entire protocol. Even if you stop investing, Sushi will still pay interest.

Compound

Works similarly to MakerDAO the main advantage of Compound is cTokens, which are additionally created when you deposit proportion to its size. Tokens can be used as collateral for obtaining a loan. So money can be spent even while they generate interest. Even though all smart contracts have been repeatedly verified and found safe, there is a possibility of losing control over the wallets that govern all deposits.

Yearn Finance (YFI)

Starting from the first months of 2020, the protocol began to work as a distributor of invested money for projects offering better, more profitable and safer conditions.