Best Crypto Staking Platforms | The Ascension by Motley Fool
Staking involves committing your crypto assets to a blockchain to support the network and validate transactions. In return, you receive crypto rewards.
This is only an option with cryptocurrencies that confirm transactions using a model called proof of stake. To process transactions, these cryptocurrencies choose validators who have staked their own crypto. The validator verifies a block of transactions, adds it to the blockchain, and receives a staking reward for their contribution. Here are examples of cryptocurrencies that use proof of stake:
You can stake crypto on your own without a staking service, but it’s not that simple. You will need to store your crypto in a blockchain wallet, and you will also likely need to join a staking pool with other crypto investors. Staking platforms, on the other hand, allow you to stake your crypto in just a few clicks. This is also a big advantage if you are not comfortable storing your cryptocurrency.
It’s worth mentioning that “staking” is often used as a catch-all to cover all the ways you earn rewards on your crypto. For example, some people refer to crypto lending programs as staking. This is not the case, but crypto loans can also be an effective way to earn crypto rewards, which is why we have included loan programs on our list of staking platforms.
READ MORE: What is staking in crypto?
Are there any fees for crypto staking?
Cryptocurrency staking fees depend on the staking method and cryptocurrency you choose. Many platforms do not charge any staking fees, but some do. You can find this information on the platform’s fees page.
If you decide to stake crypto without using a platform, you will most likely need to join a staking pool. These pools are made up of groups of investors who pool their crypto for a better chance of earning rewards. Most staking pools charge pool fees. This amount can vary, but between 2% and 5% is common.