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Best crypto staking platforms

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Crypto staking platforms have become more and more popular in recent years, with the total value of staked crypto assets rising around 1,100% from 2020 to 2023.

This article will list the best crypto staking platforms in 2024 as well as how to use them. Let’s get started!

What is crypto staking?

Crypto staking simply refers to holding crypto assets over time in order to receive rewards. However, while the concept is similar, there are many different types of staking.

For example, Ethereum users can stake ETH in order to validate transactions on the Ethereum network. This allows the network to continue operating while incentivizing users in the process.

Another example of crypto staking is in providing liquidity for decentralized exchanges like Uniswap. In this example, a user might stake ETH and USDT to help ensure that there is enough liquidity for traders to use when exchanging currencies.

Centralized exchanges like Kraken and Coinbase also act as crypto staking platforms, allowing users to stake crypto as part of a loyalty rewards program.

Crypto users are often given the choice of flexible staking, where they can withdraw their funds at any time, or bonded staking, which requires them to stake funds for a fixed amount of time before they can withdraw.

Staking can offer higher rewards than traditional financial services such as savings accounts or bonds. Staking is also considered higher risk than these services due to the volatility of the assets typically being staked and the reliance on centralized crypto exchanges or decentralized platforms, both of which can be vulnerable to threat actors.

Top 10 crypto staking platforms in 2024

Cryptocurrency staking platforms come in many shapes and sizes. Here are our top picks for the best platforms to stake crypto in 2024.

Kraken

Kraken is a crypto exchange based in the U.S. that offers flexible and bonded staking options with yields of up to 26% in some cases. Users can stake Cardano, Ethereum, Polkadot, and 17 other crypto assets on Kraken. Often praised for being one of the more user-friendly options available for staking, Kraken is one of the most popular crypto staking sites in the world as of 2024.

Coinbase

Coinbase offers APYs (annual percentage yields) of 2% to 9.27% at the time of writing, much higher than the interest rates typically offered by banks or mainstream financial institutions. Coinbase is a popular choice in the crypto industry due to its regulatory compliance and longevity as a crypto exchange. The exchange takes a high commission on staking rewards compared to other crypto staking platforms.

Binance

Binance is the world’s largest crypto exchange by trading volume. It’s a controversial exchange which has been restricted or banned in many jurisdictions due to clashes with regulators and an ongoing money laundering lawsuit courtesy of the U.S. SEC, and users would do well to factor in lack of regulatory compliance when considering Binance as a staking platform. Having said that, Binance offers competitive APYs of up to 10.5% and is often cited as one of the best platforms for staking crypto in the world.

KuCoin

KuCoin is a crypto exchange headquartered in Seychelles that offers staking for around 50 cryptocurrencies with potential rewards of up to 25% in some cases. KuCoin is a popular crypto exchange for staking due to its high APY and wide selection of assets. It’s worth noting that the exchange has suffered security breaches in the past.

Nexo

Nexo is a crypto staking platform that allows users to borrow, lend, and spend crypto as well as earn rewards of up to 16%.

Nexo is currently unavailable in the United States and the United Kingdom, and the fee structure can be complex and difficult to understand for the uninitiated. However, it remains a popular app for staking crypto in over 200 jurisdictions thanks to its regulatory compliance and wide range of financial services.

Where is best to stake crypto?

Nobody can tell you what the one best place to stake crypto in 2024 is. Your decision depends on a number of factors, like exactly what you’re looking for in terms of rewards, your risk appetite, the assets you want to stake, and the legal jurisdiction where you reside.

The best thing to do is to look into each of the major staking platforms until you find one that’s right for you! That’s if you find one that’s right for you, of course.

One point that should be made very clear is that staking is not without risk, and we’ll explore that risk in more detail in the next section.

What are the risks of staking crypto?

The main risk of staking crypto is, arguably, the volatility of crypto assets. When staking assets like ETH or ADA, you’re typically hoping to make a profit from the rewards, and while some users do indeed achieve this, others fall afoul of crypto market crashes and end up losing money rather than earning it.

This is especially true for bonded staking, where users lock assets away for a fixed amount of time.

Of course, even staking stablecoins, crypto assets designed to remain stable in value, is risky. First of all, stablecoins can and do fluctuate in value and even collapse entirely, although such events are quite rare. The TerraUSD stablecoin depegged and lost around 99% of its value in 2022, resulting in around $40 billion worth of investor assets lost from the ecosystem.

Staking also requires that users put their trust in the staking platform they’re using.

Decentralized projects are vulnerable to smart contract exploits or perhaps being more centralized than advertised, whereas centralized projects are famously vulnerable to hacking and theft.

Risks are, of course, present in traditional finance, and this section is not intended to put you off the idea of staking entirely but simply to be responsible and informed when entering the cryptocurrency markets.

FAQ

What is the best place to stake crypto?

The best place to stake crypto depends on your preferred assets, APYs, and risk appetite, as well as the legal jurisdiction where you live.

What are the safest crypto staking platform?

Crypto safety is a complex issue, and the prevailing sentiment has gotten it wrong multiple times in recent years, such as with the FTX exchange, which was widely trusted even in mainstream finance. People seeking to invest in or use crypto products would do well to thoroughly research the safety of a crypto platform themselves before using it, paying attention to regulatory compliance as well as the reputation and track record of the project and its staff.

What are the best cryptos to for staking?

ETH is a popular choice for staking, as are stablecoins like USDT and USDC. Stablecoins are often considered lower risk due to being less likely to fluctuate in value. Of course, lower risk coins often pay out lower APYs, with high APYs being reserved for high-risk assets.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.





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CryptoQuant Hails Binance Reserve Amid High Leverage Trading

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Crypto analytics platform CryptoQuant has conducted a deep dive research into Binance and other centralized exchanges to uncover how susceptible they are to liquidity risks. With the crypto ecosystem trading at a very high premium, exchanges require high liquidity to meet growing demands. Of its findings, CryptoQuant singles out Binance and OKX as platforms to watch out for.

What Makes Binance Stand Out from Centralized Exchanges?

According to CryptoQuant, it analyzed the leverage levels of top centralized exchanges. It conducted this exercise to evaluate their liquidity, default risk and how crypto reserves backs trading activity. The analysis also employs leverage ratio calculation to estimate trader’s exposures.

Based on this, the analytics firm singled out Binance as an exchange with robust reserves. The trading platform maintains this reserve despite the significant growth in open interest this year. This is signficant, considering how Binance Futures list new tokens to fuel this expansion including Solana’s Fartcoin.

“Its reserves in Bitcoin, Ethereum, and USDT comfortably exceed its open interest. Binance also reported the lowest and most stable leverage ratio among major exchanges, with a ratio of 12.8 in December 2023, rising slightly to 13.5 in December 2024,” the CryptoQaunt report reads.

As pointed out, this stability and the 2.6x expansion in Bitcoin open interest on the platform from $4.45 billion to $11.64 billion implies that the exchange can handle unexpected liquidations.

As the report hinted, smaller exchanges like OKX also maintain low leverage ratios.

Centralized Exchanges and Avoiding the FTX Saga

In addition to the Binance spotlight, CryptoQuant also mentioned Gate io, Bybit, and Deribit. However, the report noted that these trading platforms have the highest leverage ratios in the market pegged at 106, 86, and 32, respectively. Notably, this figures show open interests for Bitcoin and Ethereum is higher than the existing reserves available on these centralized exchanges.

The analysis concluded by flagging the impact of high leverage trading, one of the major causes of the FTX Derivatives Exchange collapse. This report serves as an eye opener that can help traders manage risk per platforms they trade on.

Meanwhile, FTX is at the tail end of its bankruptcy proceedings. As Coingape reported earlier, FTX has set January 3 as the date to commence creditor repayment.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Binance Futures updates leverage and margin tiers for multiple USDⓈ-M perpetual contracts

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Binance’s updated leverage and margin tiers offer improved trading options for select trading pairs, bringing both potential rewards and risks for crypto traders.

The leverage and margin levels for USDⓈ-M perpetual contracts, including DAR, ME, CAKE, IOTA, LPT, ONE, and ZEN, will be updated by Binance Futures today, with effect from 08:15 UTC on Dec. 19, 2024.

USDⓈ-M stands for USD-Margined Futures, a type of cryptocurrency futures contract offered on platforms like Binance. It refers to stablecoins such as USDT (Tether) or BUSD (BUSD), which are pegged to the US dollar. These contracts are settled in these stablecoins, rather than traditional fiat currency or the underlying crypto asset.

Depending on the contract and position size, the revised leverage tiers will vary from 1x to 75x, enabling traders to fully benefit from their leveraged positions in the crypto market.

Leveraged positions of traders will be impacted by the new maintenance margin rates, which range from 1.00% to 50.00%.

Margin is the total amount of collateral needed to open and sustain a trading position, whereas leverage is the borrowing of funds to increase the size of a position. The possible return increases with leverage, but the chance of loss also goes up.

By adjusting the margin and leverage tiers, Binance Futures continues to give traders more choices to control risk and profit from volatile crypto market movements.

Traders must keep themselves updated with Binance Future trading rules and exercise risk management, particularly when working with high-leverage instruments over several contracts and margin holdings.



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Pudgy Penguins (PENGU) Token Glitch Fixed by Binance with Airdrop Surprise

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Binance has resolved a data glitch that affected the Pudgy Penguins PENGU token listing and caused discrepancies in market data. The issue stems from a delay in updating token information by CoinMarketCap, affecting the token’s market capitalization and fully diluted valuation.

However, the platform swiftly addressed the situation and announced a 135 million PENGU token airdrop for eligible users. This aims to compensate the users who have faced challenges due to the issue.

Binance Resolves PENGU Token Data Glitch with Airdrop

On December 18, Binance announced the resolution of a data issue affecting the Pudgy Penguins (PENGU) token following its listing on the exchange. The problem stemmed from a delay in updating key data points, such as market capitalization and fully diluted valuation, provided by CoinMarketCap. This caused discrepancies in the displayed information for the Pudgy Penguins. The exchange quickly identified the issue and notified CoinMarketCap, which subsequently updated the data.

To address user inconvenience, Binance announced a 135 million PENGU token airdrop for those who purchased Pudgy Penguins (PENGU) between 14:00 and 14:37 UTC on December 17. The airdrop will be distributed based on the volume of PENGU tokens each eligible user purchased during the snapshot period. It emphasized that blockchain transparency makes on-chain data the most reliable, with third-party data used for convenience.

This swift action by the top crypto exchange underscores its commitment to user satisfaction. By addressing the issue promptly, the exchange not only fixed the problem but also provided compensation to impacted traders. The airdrop serves as a goodwill gesture, reinforcing the exchange’s reputation as a responsive and customer-focused platform.

PENGU Token Price Surge and Market Context

The PENGU token saw a significant price surge following its listing on Binance, with a 500% increase in its value within 24 hours. At the time of writing, the token exchanged hands at $0.029. Its all-time high reached $0.05, reflecting strong investor interest and market enthusiasm following the listing. The rapid rise in PENGU’s price highlights growing interest in the Pudgy Penguins project. As more users discover the token, further gains are likely.

In contrast, the Simon Cat (CAT) token, which also saw a listing on Binance, experienced a decline in its price. The CAT token was trading at $0.000043, down 31% in the last 24 hours. Despite this drop, the token’s market capitalization is at $290 million, with trading volume reaching $600 million.

The surge in PENGU’s price highlights the excitement surrounding new listings. This potential for price movement is catching the attention of traders. The performance of one token could influence trends across the broader cryptocurrency market.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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