What is DeFi Staking? The Best DeFi Staking Platforms in 2022
DeFi staking is a process of locking up digital tokens to earn rewards and interest. In this guide, we will review the best crypto-staking platforms for 2022.
DeFi staking is an activity where you deposit coins to participate in maintaining the operations of a proof-of-stake (PoS)-based blockchain system. It helps the network achieve consensus and rewards users who participate. In staking, the right to verify transactions depends on how many coins get locked inside the wallet.
Like with mining on a PoW platform, participants get rewards for finding new blocks or for adding transactions to the blockchain. Besides having a reward system, PoS blockchain platforms are scalable and have high transaction speed.
How Does Staking Work?
As we’ve already established, staking is how new transactions are added to the blockchain that uses the proof-of-stake model. First, participants make a pledge to the protocol using their crypto. After it, the protocol selects validators from among these individuals to confirm transaction blocks.
The chances that you’ll be chosen as a validator will be higher if you pledge (well, stake) more coins. Verified transactions will then become new blocks on the blockchain. PoS is necessary for cryptocurrencies that support staking. Whoever participates in successfully creating a new block gets a reward in crypto. If the block turns out to be bad, the stake is lost in what’s called a ‘slashing’ event.
You can stake these currencies-Tezos, Cosmos, Polkadot, Solana, and Ethereum 2.0 that use the proof of stake method.
The Best DeFi Staking Platforms in 2022
Let’s run through the best crypto stacking platforms that you can use today.
AQRU is one of the best crypto staking platforms that is easy on the eye and free of unnecessary jargon. You can also use the user-friendly Aqru mobile app to access your crypto staking account.
Aqru allows you to deposit both fiat currency (EUR and GBP) and digital tokens (Bitcoin and Ethereum and stablecoins such as USDC and USDC Maple). Yields depend on the specific crypto asset that you wish to stake.
For example, supported stablecoins pay the highest yield of up to 7% per year. Bitcoin and Ethereum both yield 1% per year without lock-in terms.
The platform achieves these APY rates by lending out your capital to both retail and institutional investors that seek to borrow additional crypto. As such, consider the risks involved. There are no fees charged to withdraw funds from the Aqru platform when cashing out fiat currencies. However, crypto withdrawals are charged a flat withdrawal fee of $20 – which might make Aqru unsuitable for small investments.
Unfortunately, Aqru isn’t available to the residents of the United States of America.
2. DeFi Swap
DeFi Swap is specifically built to facilitate staking using its native DeFi Coin (DEFC). This decentralized cryptocurrency exchange and crypto farming platform offers 4 staking periods: 30 days, 90 days, 180 days, or 365 days. Depending on how long you’re willing to lock your coins, you can earn interest rates from 30% to 75% APY.
The easiest way to get DeFi Coin is by using DeFi Swap’s exchange. You can swap from most major cryptocurrencies, including Bitcoin, Ethereum, BNB, and more. DeFi Swap also lets you purchase DeFi Coin with stablecoins, making it easy to earn a higher yield on tokens like USDC and USDT.
As the platform is new, it could offer more staking options and even higher rates as it expands.
eToro, an SEC-regulated cryptocurrency broker, offers industry-leading fees and low account minimums. However, eToro has since created a portal that allows you to stake your idle cryptocurrency investments. One of the advantages of this platform is that as soon as you buy digital assets at eToro, the respective tokens will automatically be staked on your behalf.
eToro offers automated rewards on Ethereum, Cardano, and Tron. Fees depend on your eToro member status and location. For instance, while bronze members and US clients will receive 75% of the monthly staking yield that eToro is able to obtain, diamond and platform+ account holders retain 90%.
In the case of eToro, you won’t need to lock up your crypto tokens for any period of time. You will be able to continue to earn staking rewards on eligible tokens that you hold in your eToro crypto wallet until you decide to cash out. This subsequently prevents the need to transfer staking coins between competing platforms.
Another advantage of eToro is that you will be staking your crypto assets in a heavily regulated ecosystem, as eToro is licensed by the SEC, FCA, ASIC, and CySEC. Moreover, should you wish to buy crypto at eToro, you can deposit funds with US dollars for free with a debit/credit card, ACH, bank wire, or an e-wallet.
Crypto.com is one of the world’s largest cryptocurrency exchanges that was launched in 2016. The platform has millions of clients on its books. Crypto.com is known for offering simple and low-cost exchange services across more than 250+ tokens.
Crypto.com also offers staking services via its Crypto Earn facility. In short, once you deposit your chosen digital tokens, Crypto.com will allocate the funds to provide loans to account holders that wish to borrow capital. The end-borrower will subsequently repay the funds with interest added on top, which you will receive on a daily basis. \
Stablecoins such as USDC and TrueGBP attract an APY of 12%, while in the case of Bitcoin and Ethereum, this stands at 6.5%. Specific rates will also depend on whether you are happy to lock your tokens up for one or three months, or with no redemption clause at all.
And, you will earn higher APYs if you stake CRO tokens – the native digital asset of Crypto.com. So, by joining Crypto.com, you will have instant access to a large suite of digital tokens that you can buy with a debit card at just 2.99% – so the platform will suit active traders.
Being founded in 2018, MyCointainer obtained a financial license in Estonia and got a permit to trade fiat currencies in the same year. Since then, it has been actively growing both the number of coins provided on the platform and the number of active users (2022 goal is 750k). This platform is looking to launch its own coin and expand the range of services, including DeFi protocols.
MyCointainer offers a number of ways to earn cryptocurrency. You may keep coins in your wallet, delegate them to MyCointainer nodes directly from your wallet or place them offline. MyCointainer is aimed at becoming a universal crypto community where earning cryptocurrencies would be a clear and transparent process that doesn’t require 24/7 to get the hang of it.
You can make a fortune with Polkadot and Cardano to a lot of promising coins. It’s a license (No. FVT000255) platform that prioritizes secure transactions and can function as a FIAT currency exchange and a crypto wallet provider. You can protect your assets by placing them in a so-called cold wallet which means storing them offline rather than online.
With MyCointainer, you can buy or exchange coins starting with 1 EUR. And, as a new user, you will also get a welcome bonus for joining the platform. MyCointainer staking fees are one of the lowest fees offered on the market. However, with the POWER subscription, you can avoid fees and get access to limited Masternodes.
This trusted altcoin exchange supports Ethereum, Algorand, Cosmos, Tezos, Dai, and USDC that can be staked. Rates on offer vary from 0.15% APY on USDC to 5% on Cosmos. It is aimed at supporting additional staking coins in the coming months. Note that you do not need to buy crypto on Coinbase to be eligible for staking rewards. You can just transfer the tokens you would like to stake from an external wallet.
You can open a verified account in less than five minutes by providing some basic personal information and a copy of your government-issued ID.
If you are looking to earn high rewards this crypto-staking platform is the best option for you. Binance supports nearly 100 different staking coins – which covers a wide range of projects and APYs. Moreover, in terms of how long you wish to lock your tokens up – Binance offers various options. This typically covers a period of 10,30, 60, or 90 days.
One of the best offers is Moonbeam (GLMR) which is available to stake on the Binance website for a 10-day lock-up period alongside a super-high yield of 239%. After all, the platform offers more than 1,000+ markets (60 in the US) at industry-leading fees.
In the case of Binance, for every $1,000 traded, a fee of just $1 is collected. In addition, by depositing funds, you will be paid a rate of interest on your idle crypto assets.
Tips to Getting Most Out of Staking
Use the following useful tips to maximize your staked coins:
- The more tokens you stake, the higher your potential for rewards.
- As the APYs change regularly you should also be wary of the APYs, otherwise known as the annual percentage yield.
- A few staking platforms alternate what they pay stakers. This may see the APY rise or drop depending on the token staked.
- A low APY is largely because of a growing number of stakers.
- On the other hand, a high APY could denote that only a few people are staking that PoS asset.
To sum up, DeFi skating enables the users of DeFi Market to act as validators for transactions and earn profit for doing it so. Skating is one lucrative way for DeFi users to monetize their crypto assets, above and beyond crypto trading. As POW (proof-of-work) is not a very sustainable model for blockchain, most blockchains are shifting to or adopting POS (proof-of-stake) consensus. With that Defi staking seems to have a sustainable and lucrative future.
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