Staking is a relatively easy way to earn passive income from cryptocurrency. There are a number of factors that determine how much you can earn from crypto staking. For example, the platform you use, the currency you stake, and the staking period affect how much you can earn from staking.
A natural question after reading all of this would be: what is staking crypto all about? And how much do I need to start staking crypto?
We’ll answer these questions one by one.
What is staking crypto?
Staking is a type of holding. You lock your currency for a certain amount of time in the platform and get rewarded for your holding. The more you hold and the longer your staking period, the more profits you earn.
Some platforms use the staked cryptocurrency to validate newly added blocks to the chain. This is one way of keeping the chain safe and error-free. Other platforms, especially exchanges, will allow soft-staking. This type of staking is where you just hold your cryptocurrency, and the platform pays you a fixed percentage. In this case, the platform will be the one validating on-chain additions on your behalf.
There are other types of staking. For example, pool staking and staking your cryptocurrency yourself. In this article, we’ll focus on different platforms and their criteria for staking.
How much do you need to start staking?
Staking is more of a science than an art. With that said, you can rely on various platforms to stake your cryptocurrency. We’re breaking down various platforms and their requirements to stake.
eToro is one of the biggest trading platforms that supports three major cryptocurrencies. These are Cardano, Tron, and Ethereum.
You can earn anything between 75-90% on your staked amount, depending on the membership type.
To stake on eToro, you don’t need a certain amount of crypto. But there are time limits in place. For example, Cardano is staked for a minimum of 9 days, while Tron is for seven days. And although there aren’t any staking limits, the minimum reward is 1 USD.
It supports 20 (and counting) cryptocurrencies for staking. Kraken supports off-chain and on-chain staking and has a reputable rewarding system.
Kraken doesn’t charge any fee on crypto staking. For on-chain staking, you don’t have any lower limit. You can stake as low as you want. But for off-chain staking, you need at least 0.00000001 BTC, 0.01 USD, or 0.01 EUR.
Kraken rewards per annum, i.e., you get 0.25% to 23% on your staked crypto. The percentage depends on the amount you’ve staked and the time you locked your crypto for.
Binance is one of the biggest names in the crypto space. With Binance, you have 100s of cryptocurrencies that you can stake. Some are more stable than others, so the percentage returns will vary from currency to currency. You will get anything between 1% and 75%.
The minimum amount for staking on Binance varies from currency to currency. But the minimum staking cycle is 30 days. You won’t be charged anything on your staked currency.
Gemini is another big name in the cryptocurrency space. It supports 40+ cryptocurrencies for staking. Gemini has a unique, rewarding system called Gemini Earn.
You’ll be lending your cryptocurrency to another person who will use it to stake it, and you’ll be rewarded by Gemini, thus the name Gemini Earn. Gemini doesn’t have a minimum staking limit or time, making it easy for newcomers to join the staking scene.
Gemini currently supports Polygon and Ethereum, with percentages varying from 3.5% to 4.3%. But the fact that Gemini is charging a fee on its staking may push some enthusiasts away.
Uphold is reaching a global audience through its unique selling pitch. It has been around for some time and supports 27 (adding more) cryptocurrencies. It boasts a 25% reward claim, applicable to certain currencies on the list.
Actual values vary from a minimum of 1% to a maximum of 25%. The minimum amount for staking on Uphold is $25, in line with their 25% claim. You will pay a 2% fee on your staked crypto. So if you’re someone who isn’t a fan of extra fees on your earnings, Gemini might not attract you.
Staking can be a good way to earn passive income, especially for those looking to get rewards the easy way. Alternatives to staking are trading cryptocurrencies, which require you to be active on the market and keep your eyes peeled.
From the above-mentioned platforms, choose one that best suits your requirements. But beware, staking can be risky. So read the terms of staking carefully before locking your currency.