The Five Best Apps For Staking Crypto
Which crypto investment apps are the best for staking crypto? Learn about the features and benefits of the most popular crypto-staking apps.
Crypto staking allows users to passively earn Bitcoin and other crypto rewards by locking up crypto holdings to support a blockchain. Crypto apps can make the staking process smooth and even offer staking pools so that stakers can participate with smaller investments.
What is Staking, and What Kind of Cryptocurrency Can I Stake?
Think of crypto staking as the equivalent of earning dividends on shares of stock or interest on a savings or money market account. It allows you to use your current crypto holdings as a security for transactions along part of the blockchain network – essentially, your crypto "vouches for" the accuracy of each transaction documented on that portion of the chain.
Users can stake directly from their digital wallet – the process is automatic, so it's fairly simple for investors to do. Or, crypto holders can opt to use crypto exchange services or staking apps that handle the details of staking, but these services charge a commission on the profits.
Although staking returns are higher than the interest you'd earn from a savings or money market account, the risks can be higher, too. This is due in part because your ROI is in cryptocurrency, which is volatile, and in part because you may be required to commit your crypto for a certain amount of time (similar to placing money in a certificate of deposit – it's still yours, but you can't use it for the length of the contract). And, if your investment or the staking system doesn't work out, you could lose your investment.
That being said, staking is an indirect method of earning crypto and takes much less effort than mining Bitcoin yourself.
What Types of Crypto Allow Staking?
Not all cryptocurrencies use staking; the ones that do are often referred to as "proof-of-stake" cryptos. These are the ones whose platform can be programmed for staking. Stackable cryptos include:
Other cryptocurrencies use proof-of-work, which relies on mining. Mining requires extensive computing and electricity and generally doesn't support staking. Proof-of-work cryptos are:
Factors That Make an App Great for Crypto Staking
Using a crypto staking app makes it easier to earn passive income since the app takes care of all the details for you. However, not all crypto investing and staking apps are created equal, so be sure to look closely at each one's features before downloading. These are some of the key things you need to consider when choosing an app for staking crypto:
Fees - Check whether there are fees, and if so, is it a flat fee per transaction or a percentage of your investment profit?
Security - How secure is the app? What security protocols would the app provide? Is the protocol custodial (centralized) or noncustodial (decentralized)?
Flexibility - Does the app include options to unstake your holdings? When staking in a pool, how many pools can you participate in? Is it possible to continuously stake and not have to miss a cycle?
Minimums - What is the minimum investment that must be made to participate in the staking pool?
APY Rewards - What’s the average annual percentage yield you will earn from staking with the app?
Assets Offered - How many cryptocurrencies are available to stake through the app? Flexibility to diversify your portfolio?
Convenience - How intuitive is the app? How easy is it to access support or help when you need it?
Security is a big concern with crypto staking and investment apps. Read the terms and conditions and the security details carefully before entrusting your crypto wallet to the app. The fee structure is important too. A good app will ensure that the fee structure is easy to understand and fair for investors. If you have to look for details of how fees are assessed, or if the structure seems convoluted, then be wary.
If you're new to crypto, take the time to read reviews of the app and look at online demos to find one you feel comfortable navigating.
5 Best Apps for Staking Crypto
We've evaluated some of the most popular crypto-staking apps available, factoring in the things we listed above: fees, user-friendliness, security, and user support. We also look at the rewards offered for staking, minimum or maximum amounts, the length of the lock-in period, and how frequently you receive a payout.
Uphold offers compounding returns for up to 25% ROI. The app supports 23 cryptos, including ETH, ADA, SOL, XTZ, ADA, etc., and users can stake them weekly. Perhaps the best feature is the option to remove your crypto from the stacking pool at any time – there is no lock-in period. The commission for staking rewards is 15%.
2. Cake DeFi
The transparency Cake DeFi is among the best – the company published quarterly reports of its growth and rewards paid out, which is unusual among staking apps. There is no minimum investment, and the app allows for compounding staking as well as one-click unstaking (no lock-in period). However, users must wait for days before they can begin staking.
Kraken is one of the largest crypto exchanges and allows staking for 17 major cryptos at up to 21% APY (though Bitcoin is only 1%). Some currencies allow for immediate unstaking, while others have a lock-in period, and the app is transparent about which ones permit unstaking. It offers rewards for staking in addition to any ROI users receive, and the app pays out at least weekly.
Binance is the largest staking platform in terms of volume, with over 100 cryptos supported for staking. It offers both locked and flexible staking and although the locked staking allows for withdrawals, the investor loses any rewards if they withdraw their stake early. The rewards for flexible staking are lower than those locked. Binance holds funds for a minimum of 30 days before payouts, although some cryptos may allow payouts after 10 or 15 days.
Xverse is unique among other crypto staking apps in that it is free and offers native Bitcoin rewards with an average of 10% APY. Xverse is a self-custody wallet, meaning no one other than yourself has control of your wallet and funds never leave your wallet during the staking cycle(s). Stakers have the option to lock their STX, the native token of the Stacks blockchain, for up to six cycle sat a time. Xverse is also fully transparent in the amount of awards distributed with each stacking cycle. The Stacking pool is compatible with iOS, Android, and desktop and stackers can participate for as low as 100 STX. It's designed for easy use for investors just getting into crypto investing and staking, with a reliable customer support team.
Choosing the right app for crypto staking doesn't have to be complicated. Xverse stands apart from other applications because it’s free and focuses on the investor's needs, from tight security to excellent customer support and transparency with reward payments. Moreover, Xverse pools rewards users with real, native Bitcoin. The company's business practices are transparent and easy to view directly from the website, so users can feel confident understanding exactly how staking will be managed.
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