The emergence of new cryptocurrency markets (such as Stablecoins and DeFi tokens) opens new opportunities to earn interest on your cryptos by participating in something called “Crypto Staking”.
Crypto staking simply refers to locking up your coins or tokens to earn a reward which can then be withdrawn or accumulated, acting as a form of passive income on your digital assets. Staking can sometimes be more profitable than mining or trading, although it does come with additional risks, which we will cover in this article.
The pros and cons of crypto staking
|Risks of staking cryptos||Pros of staking cryptos|
|Price volatility – the underlying crypto asset could drop significantly in dollar price||High interest returns compared to the banks|
|Not your keys, not your crypto – if you store your crypto with a third-party they control your crypto||Some pay interest daily|
|Failing projects – new DeFi coins offering high yields could collapse and leave you with nothing||Some have flexible staking, allowing you to withdraw at any time|
|Hacks – your custody provider could get hacked and you lose your coins||It is now possible to stake your coins using your hardware wallet|
Best websites to stake your crypto for daily returns:
- Zipmex Australia
- Crypto.com Earn
- Synthetix DeFi
- Binance Australia
- Gemini Earn
- Kraken Staking Coins
- Kucoin Soft Staking
- Finder Crypto Earn
1. Zipmex Australia
Zipmex is an established and regulated digital asset exchange with over 300,000 registered users across Australia, Singapore, Thailand and Indonesia.
You can earn daily interest on your digital assets such as BTC, ETH, LTC, USDC, USDT and more. Through ZipMex’s ZipUp offer, you can enjoy daily earnings of up to 7% on US dollar stablecoins and earn up to 8% on your crypto.
To earn even higher interest on your digital assets you can join the ZipMex ZipLock program and earn 14% interest on Zipmex Token ZMT and up to 11% interest on US stablecoins. The Zipmex ZMT token is an ERC-20 traded digital asset native to Zipmex, where users can enjoy multiple benefits such as trading fee discounts, higher interest rates on earnings, and much more.
All digital assets staking with Zipmex are insured with BitGo, which provides insurance of US$100M protection.
2. Crypto.com Earn
Crypto.com Earn offers an extensive number of supported tokens and coins, with 40+ cryptocurrencies and stablecoins available.
Through Crypto.com you can earn up to 14.5% on Polkadot (DOT); 14% p.a. on stablecoins including USD Coin (USDC), Tether (USDT), Dai, TrueUSD (TUSD), Paxo Standard (PAX); 8.5% p.a. on BTC and ETH; 6% p.a. on native token CRO, and 5% on many others including Litecoin (LTC), Cardano (ADA), Binance Coin (BNB), ChainLink (LINK), and even DogeCoin (DOGE) and Shiba Inu (SHIB).
Calculate your earnings by visiting crypto.com and find out what interest your crypto could be making.
3. Synthetix DeFi
Synthetix is a decentralised asset issuance and trading protocol which offers DeFi crypto staking for Australia. The Australian established platform enables synthetic asset creation on the Ethereum blockchain. Synthetic assets are ERC20 (Ethereum-based) tokens that track the price of an underlying real-world asset.
Staking involves depositing and locking up the native SNX token in a collateral pool, which acts as liquidity for the Synthetix Exchange. Users can trade Synths on the Synthetix Exchange and profit from price movements. Staking SNX allows anyone to earn rewards by contributing collateral to the Synthetix protocol. Users who lock up SNX receive returns in the form of more SNX and get a share of the trading fees from people trading on the platform.
For great tips on the best way to stake Synthetix, watch the video below on How to Stake Synthetix Network Token (SNX).
4. Binance Australia
Binance Staking is dedicated to increasing user staking income offering people earn rewards by just by having their coins held on the exchange. Binance offers a variety of ways to earn crypto returns through staking.
Locked Staking: the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.
DeFi Staking: DeFi (Decentralised Finance) is a way of providing financial services to users through smart contracts. Existing DeFi projects aim to provide higher annualised earnings for specific currencies.
The BNB Vault: As a BNB yield aggregator, BNB Vault will combine Flexible Savings, BNB DeFi Staking, and Launchpool to give you the best APY returns, up to 20%.
For more on staking your crypto with Binance watch the Binance Australia Online Masterclass – Introduction to Staking on Binance video:
5. Gemini Earn
Gemini Earn is a lending program through which you may choose to lend your crypto to certain institutional borrowers and earn interest on your crypto.
On the Gemini platform, customers can view their combined trading balance and earn balance, as well as the interest they’ve earned. You can receive up to 7.4% APY on your cryptocurrency, which compounds daily against your crypto (including held stablecoins).
To earn interest on your crypto with them, just open an account and purchase any amount of cryptocurrency, then opt-in to Gemini Earn program to start earning interest directly on your balance.
Unlike many staking competitors, with Gemini you can redeem and move your cryptocurrency back to your trading account (plus interest) at any time.
Watch the promo video for Gemini Earn:
6. Kraken Staking Coins
Kraken Staking Coins offers staking to earn money on your crypto, just buy assets to fund your Kraken account and choose from the assets that are eligible for staking.
Kraken offers a wide range of cryptos for staking with a 20% return on KAVA, 12% returns for staking DOT and KSM, and 4-7% for ETH, SOL, ADA, ATOM and XTZ. Kraken also offers small annual percentage returns for others including BTC and USD.
Visit Kraken.com to see all of the cryptocurrency coins they offer for staking, or watch the video to learn more:
7. Kucoin Soft Staking
KuCoin Soft Staking is a program run by the Korean crypto exchange that provides liquidity with your staked crypto.
KuCoin will support Soft Staking for these coins: Cosmos (ATOM, EOSEOS), Tron (TRX), Internet of Services (IOST), Neblio (NEBL), DeepOnion (ONION), Energi (NRG), NULS (NULS), TomoChain (TOMO), EOSForce (EOSC), Loom Network (LOOM), Loki (LOKI), V Systems (VSYS), Wanchain (WAN), IoTeX (IOTX), Tezos (XTZ), Elastos (ELA), PIVX (PIVX), Ontology (ONT), Decred（DCR, Terra (LUNA), DAI (Dai), and Kusama (KSM).
It claims 1 out of 4 crypto holders worldwide is with KuCoin, and through KuCoin’s pool-x you can earn money on your crypto by investing to earn stable profits through its professional asset manager.
KuCoin offers 77.39% APR by staking HYDRA, 12.7% annual yield on DOT and many more, including DeFi tokens such as ALPACA finance offering 34.8% returns and 91.8% for pharma industry token CTI.
BlockFi have a BlockFi Interest Account (BIA) offers earnings of up to 7.5% APY on your cryptocurrency. BlockFi claims to be available in Australia, although we have had reports with account problems outside of the U.S.
The interest accrues daily and is paid monthly to your account as BlockFi aims to bridge the worlds of traditional finance and blockchain technology to bring financial empowerment to clients on a global scale.
Nexo is a website which offers you to earn up to 12% on your idle digital assets with interest paid out daily.
Nexo offers 8% APR on top coins such as BTC, ETH, DOT, XRP, BNB, LTC, ADA, LINK and others. Holders of its native token NEXO and other stablecoins including USDT, DAI, USDX, USDC, HUSD, PAX can earn 12% APR. They have an interest calculator on their website to see how much interest you could be generating over a time period of 1 year.
With Nexo your assets are insured up to $375 million by BitGo and Ledger. They also claim to have 2 million platform users worldwide.
10. Finder Crypto Earn
Last but not least is one of the best Australian-based comparison websites who have just launched support for cryptocurrencies on their Finder.com.au App.
Finder earn will initially offer 4% returns for staking crypto on the app. The Finder crypto earning program will be released in October 2021.
Staking your crypto held with third-parties is risky and your capital is at risk as a result or not controlling your private keys. The main questions to ask yourself are: If you’re not staking and earning rewards, are you leaving money on the table? How risky is crypto staking? Can you lose your coins? How long will staking rewards last with high percentage returns?
To get started with crypto staking, all you need to do is buy and hold your coins with one of the third-parties listed above. They will then add them to a service or mining pool that provides market liquidity, and in return you will earn a small interest. The realised profits you gain from staking are determined by what provider you choose, what digital asset you invest in, how much you hold, and for how long.
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