Proof-of-stake blockchain networks provide opportunities for coin holders to earn returns while contributing to the security of their favourite networks. As such, several crypto-staking platforms have risen to help people get the best rewards.
However, only the best crypto-staking platforms provide the security needed to secure coins long-term and the flexibility to bolster users’ trust.
Our guide explores the best crypto staking platforms on the web that provide the best returns, implement industry-standard security measures, and are easy to use. We explore their pros and cons, highlight their features, and outline what makes them stand out.
By the end of this guide, you should be able to pick the best staking platform for the cryptos you wish to stake.
Looking for a quick answer? Here are our top 3 crypto staking platforms to use for earning returns from staking.
Lido is a liquid staking platform that allows Ethereum and Polygon holders to stake tokens and generate returns in a decentralised manner. The platform is the largest Ethereum staking platform, holding roughly $35 billion worth of ETH.
Lido rose to prominence during Ethereum’s migration to a proof-of-stake network. Then, users couldn’t withdraw their stake. However, thanks to an upgrade in early 2023, called the Shapella upgrade, stakers could unstake their coins whenever they wanted. Since then, Lido’s TVL has grown.
Lido stands out because it is the first platform to introduce liquid staking to the Ethereum ecosystem, a staking method where your stake is represented by a proxy token that can be used for financial purposes instead of your staked coin.
Liquid staking allows you to stake your Ethereum on Lido for 3.04% per year or your MATIC at 4.30% and still participate in financial activities like lending. Lido does this by issuing a proxy token called stETH for every ETH staked.
stETH represents the staked ETH and assumes its value. It can then be used for lending and other activities that the original ETH would be used for if it wasn’t being staked.
You’ll need a crypto wallet like MetaMask with some ETH in it to use Lido. Navigate to the website, connect your wallet, and deposit ETH into the pool. You will then receive stETH equivalent to the value of your staked ETH.
If you wish to unstake your ETH, simply unstake it by burning stETH or swapping stETH for ETH on decentralised exchanges like Uniswap.
Lido combines the best aspects of staking platforms: decentralisation, security, and flexibility. Unlike many centralised exchanges, there are no reports of Lido being breached. Anyone can stake on Lido no matter their location, and staked ETH can be unstaked at any time, no questions asked.
Binance is a large crypto exchange that offers a holistic crypto experience which includes trading, investing, NFTs, and staking.
The exchange offers direct Ethereum staking at a 3.04% APR. Like Lido, Binance offers a liquid staking derivative called WBETH that can be used across multiple DeFi protocols to earn more yields.
Rewards are paid daily if you hold WBETH, and unstaking ETH is as easy as redeeming WBETH for ETH.
Binance is a preferred staking platform because of its industry-standard security measures. Decentralised platforms are left to handle security as no official, legally mandated security standards govern them.
On the other hand, centralised exchanges have industry standards for information security, which Binance adheres to.
Moreover, WBETH can be used as collateral for loans on the Binance platform or as a margin for leveraged trades.
We chose Binance because it is a great platform, especially for crypto investors, as they can carry out all their investing activities from a unified location.
RocketPool is another decentralised staking platform that allows users to stake Ethereum in a decentralised manner. However, it stands out from competitors like Lido by making it easier for users to run nodes.
To run an Ethereum node, you must stake at least 32 ETH, around $114,000 as of writing, which is more expensive than the average person can afford. RocketPool lowers this barrier by offering a Node staking feature.
Node staking allows users to run Ethereum nodes with 16 ETH instead of 32 ETH and earn higher rewards than if they only deposited ETH like with other platforms. With node staking, users earn up to 6.33% APR compared to the 3.00% for basic staking.
Furthermore, if you stake the platform’s native token, RPL, you can earn an additional 9.22% annually.
To begin using RocketPool, connect your decentralised crypto wallet and deposit ETH into the pool for regular staking or follow the onscreen instructions for node staking.
RocketPool is a great platform for people who understand the intricacies of staking and wish to generate more from their staking activities.
Jito is a fairly recent staking platform for the Solana network. Similar to Lido, the platform allows SOL holders to stake their coins for a yearly yield and issues a proxy token, called a liquid staking derivative, to represent the staked coin.
We included Jito on our list because it takes liquid staking a step further by including MEV rewards for users’ staked SOL.
MEV stands for maximum extractable value and includes gaining rewards by reordering transactions in a transaction block. MEV is similar to front-running in traditional markets, where high-frequency traders can see the trades of regular traders before they are executed.
So also, MEV bots can see the transactions when they are still in the mempool, a queue of transactions waiting to be executed and added to the blockchain.
MEV bots can then re-order these transactions to generate more profit for the validator. Most MEV operations are done in a way that does not cause any harm to users’ transactions.
Jito participates in these MEV operations and rewards stakers with a higher APR. As of writing, Jito’s APR is 7.90%.
Jito is a decentralised platform that requires only a Solanna wallet, like Phantom, to stake SOL.
Jito is one of the best options for staking SOL. Its MEV-boosted rewards keep its offering above most others in the space.
Kucoin is a centralised exchange offering features that allow users to buy, trade, invest in, and do more with cryptos. The exchange provides several products that allow users to earn a return on their crypto, a prominent one being the staking feature.
With Kucoin, you can stake several cryptos on-chain from the comfort of your account dashboard as the exchange handles the back-end processes.
Kucoin offers staking services for over 40 cryptos, including majors like Solana, Cardano, Polkadot, Cosmos, Celestia, Injective, Avalanche, Polygon, and Sui. The yield provided differs according to the chain; however, they are displayed on the page.
You’ll need to subscribe to the staking product for each crypto, at which point you’ll be shown the minimum and maximum limits.
To begin staking with Kucoin, sign up for an account and submit KYC documents to get verified. Next, you need to fund your account. You can buy crypto with a credit card, deposit fiat into your account, or use a third-party service to buy Bitcoin with Apple Pay.
Kucoin is an excellent option for people who wish to earn returns from multiple chains or who wish to shop around for the best rates. The platform allows users to manage their investments from a unified place, making it easy for even non-crypto users.
Coinbase is the largest crypto exchange in the US, providing a one-stop shop for all crypto needs, from investing to trading, borrowing, and even crypto-powered debit cards.
The exchange also offers staking services for users that pay out a set annual percentage rate for each supported crypto, of which there are 121, more than enough.
One thing we particularly like about Coinbase is that it supports stablecoin staking, which allows users to earn a yield on their stablecoins. This can appeal more to users because the value of stablecoins to fiat does not change.
Cryptos like Ethereum and Solana can rise and fall in price. If the fall is too great, it could erode the profit from staking, rendering the entire process unprofitable. Stablecoins, on the other hand, do not carry this risk.
You can stake USDC on Coinase at 5.14% per year as of writing; however, this could change with time. To get up-to-date rates, visit Coinbase’s earn page.
To begin, sign up for a Coinbase account, pass KYC, and deposit funds using a credit card, PayPal, Apple Pay, Google Pay, or SEPA, depending on your region.
Coinbase is a great (and only) option for US residents who wish to benefit from staking as other exchanges have been forced to shut down their staking services within the US. The ability to stake stablecoins for yields that rival US Treasuries is also a plus.
EigenLayer is a new platform that offers a new type of staking service called restaking, which is an experimental concept that involves staking already staked assets.
Restaking is using coins from one network to secure other networks and earning rewards for doing so. The concept stems from the fact that all decentralised networks must have a consensus mechanism that outlines rules for securing the network.
Usually, every network has its own set of rules and validators. However, with restaking, new networks can use the validators of other networks, like Ethereum, to secure their networks without building on top of the original networks.
EigenLayer is at the forefront of restaking and currently holds $10 billion worth of Ethereum staking derivatives, tokens from other liquid staking platforms (EigenLayer doesn’t hold any native ETH).
The project is still in its early stages, so there are no rewards yet; however, current restakers are eligible for the project’s token, which is scheduled to drop sometime this year. After the drop, restaking will attract a yearly return.
EigenLayer is a decentralised platform. As such, only a decentralised wallet like MetaMask is needed.
EigenLayer is at the forefront of restaking technology. This gives it a market-mover advantage, provided it succeeds. In the meantime, it allows users to be part of a potentially profitable venture. However, caution is advised, especially as it currently doesn’t offer rewards.
Kraken is another centralised exchange that offers staking services as a way for people to grow their portfolios without additional effort. You must select the cryptos with attractive returns and subscribe to them on the Kraken platform.
Kraken supports staking for 17 cryptos, including popular ones like Cosmos, Solana, Algorand, Polkadot, Ethereum, and new chains like Dymension. The rates vary with the network as different networks return different rates.
To begin using Kraken, sign up for an account and pass KYC by submitting a government ID and proof of address, such as a utility bill that displays your registered address. You can then deposit funds into your account or buy crypto directly using payment methods like a credit card.
With funds in your account, you can then begin staking. Note that Kraken takes a 20% commission from staking rewards.
Kraken is a great backup for users who wish to stake on multiple chains from a single point but may not be able to access Coinbase or Kucoin.
Crypto staking is securing a crypto network by locking up its native coin with validators who process transactions and get rewarded for doing so. By staking your coins with a validator, you share in the profit they make while helping to secure the network.
Crypto staking became popular because of the proof-of-stake consensus mechanism, which chooses nodes to process blocks based on the amount they have staked. These staked tokens are slashed if nodes (also called validators) act dishonestly.
Hence, the more tokens a validator has staked, the more likely they are to be chosen to process blocks because they have more to lose if they act dishonestly.
However, to maintain decentralisation, networks select a pool of validators and randomly select from within the pool. The more tokens you have staked, the more likely you are to be included in the pool.
Staking in its original form requires a significant amount of upfront capital, usually more than the regular Joe can afford. For example, to stake on the Ethereum network, you need at least 32 ETH, which is around $114,000 at current prices; not exactly affordable.
Plus, having 32 ETH doesn’t guarantee you will be selected to process transactions, as several other validators may stake a lot more than the minimum 32 ETH.
To get around this, validators create and maintain pools where regular people can deposit ETH to help increase the amount the validators stake and hence increase their chances of being chosen to process transactions and earn the rewards for doing so.
Most staking today is done this way. Regular people deposit much smaller amounts into a pool, and the cumulative volume of several people’s deposits allows the validators to be chosen to process transactions. The validator then shares the reward with everyone who deposited ETH in the pool according to their deposited proportion.
While we used Ethereum as an example, most staking on other chains work this way.
There are various staking platforms out there; however, not all of them are suitable, especially for large funds. Here are a few things to look for when searching for a staking platform.
Security is the foremost consideration because security breaches could lead to losing your funds. Unlike crypto exchanges that can recover from breaches, staking platforms must have a clean record of security, especially if they are decentralised.
The returns a staking platform offers are an important consideration because they determine how sustainable the platform is. Centralised platforms usually offer slightly lower returns than their decentralised counterparts because they have more overhead costs.
However, too low returns may signify that the platform may be charging a lot more for its services (Kraken, for example). In this case, you may want to use a different platform if the return is your foremost concern.
Some platforms, especially centralised platforms, may limit how much you can deposit into their staking pools. In this case, you must ensure you have up to the minimum limit or that your capital does not exceed the maximum limit.
Some platforms enforce a 1-day withdrawal period for retrieving staked assets. We’ve seen decentralised platforms impose a 21-day cooldown period, especially Cosmos-based chains like Osmosis and Dymension.
Ensure you are aware of any cooldown periods or withdrawal delays before placing funds into a staking pool.
You must be careful when choosing a validator to stake with because the validator’s stake (including your funds) will be slashed if they act maliciously or fail to perform some needed technical tasks.
Sometimes, validators get slashed because they forget to import their slash protection history when moving machines or clients. There are multiple instances where a validator may mistakenly perform a slashable offence.
If this happens, the validator’s stake is slashed according to the network rules, and the validator may be permanently removed from the network (as with Ethereum).
Crypto staking and crypto lending are activities that investors can get involved in to generate a return on their idle crypto; however, they are wildly different.
Despite the risk of slashing, staking remains highly profitable. Here are some benefits of staking.
The most appealing benefit of staking is the opportunity to earn passive income on crypto you already own. Networks like Cosmos offer returns that exceed that of Treasury bills and some bonds in most countries, making them more appealing, in some cases, than conventional income-producing assets.
When you stake, you are contributing to the security of the network you stake on, which in turn ensures its longevity and secures your income source. It is a cycle that strengthens the more and the longer you stake.
Taxes on crypto staking rewards depend on the legal laws in your jurisdiction. In the US, for instance, especially in places like New York, staking rewards above $600 are considered taxable income and must be reported.
In other countries, staking rewards are only taxable if they are withdrawn and used for another activity but not if they are re-added to the staking pool or compounded.
Speak to a legal tax professional within your region to ensure you are in line with local laws.
Crypto staking regulation depends on the crypto regulations of the country you are in. Regulators in some countries frown upon crypto staking, like the US SEC, which raised lawsuits against centralised exchanges like Kraken on the grounds that their staking services served as unregulated securities operations.
In this case, while there were no clear rules, regulators moved to regulate by enforcement, which is something centralised exchanges face in countries where crypto regulations are a bit muddy and underdeveloped.
Crypto staking is not without risks. Some of these to keep in mind include:
Security risks include the risk of breaches and theft. While both centralised and decentralised platforms run this risk, it is more prevalent in decentralised exchanges, even though there are fewer instances of decentralised staking platforms being breached.
The risk is still higher for decentralised platforms because there are legal actions that centralised platforms can take to make users whole, especially if they are fully licensed in the jurisdictions they operate in.
On the other hand, decentralised platforms, which tend to be unregulated, may face liquidity issues if they are breached and may need to resort to other methods to make users whole, which may be more costly than desired.
Slashing risk involves the possibility of losing funds due to a validator acting in a manner that is deemed malicious or slashable by the network. This behaviour may not be intended to be malicious; the validator may simply lack experience and may make mistakes, which is why staking with a validator involves trusting in their expertise.
If a validator gets slashed, everyone loses money, and in cases of networks like Ethereum, the validator is permanently booted off the network.
For this tutorial, we signed up to Binance to stake Ethereum.
To create a Binance account, navigate to the website and click on the Sign Up icon at the top right corner of the homepage. Fill in your email or phone number and password. Alternatively, you can use a Goole account or Apple ID to avoid using multiple passwords.
After creating an account, you’ll need to verify your identity before gaining access to staking services. Do this by submitting a government ID and a proof of address document like a utility bill clearly showing your address.
Deposit funds into your account by either buying crypto with a credit card, a third party solution, or by adding funds into your account; the third option is not available everywhere. If you already own crypto, you can easily deposit it into your Binance account.
Navigate to the Ethereum staking section under the Earn section and stake ETH to get WBETH.
We explored the best crypto staking platforms and chose Lido as the best decentralised staking platform and the best overall platform because of its decentralised nature, its strong operating history of no breaches, and its flexibility.
Meanwhile, Coinbase is our best centralised staking platform because it supports 121 stakable assets, is available in major markets like the US, and offers some of the highest yields among centralised exchanges.
Before choosing a staking platform, ensure you are aware of the platform’s policies on security, maximum and minimum limits, withdrawal periods, and operating expertise.
Before staking with a centralised platform, ensure that it is licensed to offer staking services within your jurisdiction. For decentralised platforms, ensure its smart contracts are audited and that it has been operating for at least a year without any issues.
To learn more about staking cryptos, visit our guide on the best staking cryptos or you can learn even more fundamental concepts of how to invest in cryptos.
The platforms covered in this guide were chosen through rigorous testing, research, and reviews. We paid attention to security, transparency, reputation, deposit and withdrawal methods, and returns.
The platforms listed are the best we found in the various categories we listed them. For example, we found that Coinbase was the best option for US users as it is one of the only platforms that offers staking services in the US.
Check out our why trust us and how we test pages for more information on our testing process.