If you have proof of stake cryptos like Cardano Polkadot Solana and many others and you aren’t staking, you’re literally losing money.
Proof of stake cryptos have staking rewards. Which mean they pay a reward of more coins for staking their crypto.
We’re going to go through the best centralised and decentralised ways to stake your coins and earn those new coins in this article.
Firstly what’s the difference between staking on an exchange versus in a decentralised wallet.
Well, the major difference between the two is when you stake through an exchange, you’re essentially transferring the ownership of your coins to the exchange while they’re being staked.
The risks of your account getting compromised are also higher in exchange than in a wallet. But bigger exchanges invest in their security, so this risk can be mitigated by sticking to more established exchanges.
Looking at the largest crypto exchanges might already give you a good judgment, but further due diligence won’t hurt.
The advantage of staking on an exchange is that it’s just easier to do so. Especially if you’re staking for the first time, and they can also offer higher staking rates for some coins.
I suggest weighing the potential risks and rewards when choosing between staking on an exchange or in a wallet.
The first exchange on the list is Kraken which offers staking for ADA ETH 2.0, Solana and some other big coins right now.
Ada has a 4–6% APY, and ETH has around about a 5–7% APY that will change as ETH 2.0 launches though. But you can also stake Polkadot and Kusama on Kraken both at 12%
Kraken has no minimum staking time required. So you can actually earn rewards immediately. So, for example, if you stake for a few hours and then unstakes your funds, you’ll still get pro-rated rewards on the next payout date.
There are also no fees for staking and unstaking your cryptos except for ETH 2.0, where Kraken charges an admin fee, and Kraken will be taking a small fee out of your rewards for their service. But that doesn’t really matter as it’s the headline rate that you get that’s most important.
Locked Up Periods
Most exchanges normally have minimum redemption periods, and flexible staking is only available for some coins. Whilst the no minimum staking time is available for all coins in Kraken.
If you’re looking to stake on an exchange, then it’s good to know that Kraken is regulated for the most part in the locations that they operate. So that’s nice for what it’s worth.
Next on our list is Kucoin which offers staking through Poolx, which is a different service, but it is still run by them. Poolx has a token called pol. Short for proof of liquidity that you can earn as you use the platform and then sell them in Kucoin for extra profit.
Kucoin offers flexible term staking where you can stake and unstake whenever you want. But it gives lower APY than locked-in or long-term staking, which requires a minimum redemption period.
As an example staking your ADA in a flexible term deposit gives 1.5% APY whilst locking it in for the longer term gives you 3.5%.
In any case, these are not competitive rates for ADA as its APY is usually between 4% and 55, like the rates you get on Kraken.
You can also stake your Polkadot tokens for five per cent in a flexible term and eleven per cent in a locked-in term with a minimum redemption period of 28 days.
In comparison, Kraken’s APY for dot is 12%. Of course, APYs change all the time, so definitely check all the time. But the real bonus of using Kucoin is the choice of coins that you can stake on the platform.
Alternatif Altcoins — High APYs
Aside from the popular coins, I mentioned Kucoin also supports staking for many other altcoins like Matic and link, as well as smaller coins that you probably won’t see on other exchanges. Read More…