The emergence of DeFi has created fresh opportunities to earn interest on your digital assets through a process known as “crypto staking”. By staking crypto, you can receive rewards for supporting the blockchains that underpin specific cryptocurrencies. To take advantage of this, selecting a suitable crypto exchange is vital to ensure access to the necessary resources and the highest yields.
To help you make an informed choice, we’ve identified the best crypto-staking platforms based on supported cryptocurrencies, staking rewards, ease of use, and more.
What is Crypto Staking?
Staking is a process where you lock your crypto assets for a predetermined time to support the operation and security of a blockchain. In return for staking your assets and participating in the network validation, you receive staking rewards as a cryptocurrency. These rewards are calculated as a percentage yield and are often much higher than the banks’ interest rates.
Staking has become a favoured method of generating profits from crypto investments without needing to trade coins. Staking is only achievable via the proof-of-stake consensus mechanism, used by specific blockchains to select trustworthy participants and validate new data blocks added to the network.
Each blockchain has its unique set of regulations for validators. For instance, Ethereum’s blockchain mandates each validator to stake a minimum of 32 ether, valued at around $45,000 as of Sept. 16, 2022.
Benefits & Risks of Crypto Staking
Staking is a good option for investors interested in earning yields on their long-term investments and is not concerned about short-term price fluctuations. According to data, the average staking reward rate of the top 261 staked assets is over 11% annual yield. It’s crucial to note that rewards are subject to change over time.
You can select a staking pool with low commission fees and a reliable track record of validating many blocks to maximise rewards. This increases your potential rewards and reduces the risk of the pool being penalised or suspended from the validation process.
Staking has no major drawbacks because you only lease your coins to the validator while retaining complete control and ownership. The only potential disadvantage is the expected profit since some coins are highly volatile or have a high inflation rate. A drop in the coin’s value can reduce the staking interest you’ve earned.
When staking a coin, it’s essential to consider its real-world application. Many staking coins are designed solely for staking purposes and have no specific use cases, such as payment or hedging. The reward rate may be high, but their usability potential could be higher, resulting in coins with little value in the future.
10 Best Places to Stake Crypto In Australia
Below are the top 10 platforms famous for the best crypto staking services in Australia based on our careful comparison.
CoinSpot
CoinSpot is among the best Australian crypto staking exchanges. It has long established a name for itself as a highly trustworthy and secure platform with ISO 27001 certification. CoinSpot is ideal for newcomers because of its user-friendly features and attractive staking service for various coins.
Staking on CoinSpot is a safe and straightforward way to earn passive income from your tokens. It supports over 30 cryptos for staking, with rewards ranging from 2.9% to 45%. A tiered staking system allows users to earn higher yields by staking more tokens. Staking rewards are paid out weekly and not locked in, so you can withdraw your funds anytime.
There is no lock-in period, giving you ultimate flexibility; hence, you can withdraw, sell, or swap your staked crypto at the last minute without any difficulty. Staking crypto on CoinSpot is a superior option to using a decentralised platform like AAVE or Compound, which carry smart-contract risks.
You can quickly contact the 24/7 support team via live chat or email if you encounter any difficulties. You can read our detailed CoinSpot review to learn more about its features.
Binance
Binance, the world’s largest crypto exchange by trading volume, provides multiple features, including staking. It is an ideal platform if you have a diverse portfolio and want to earn interest on all your coins. Although not all 600+ coins can be staked, Binance staking feature is available for over 70+ cryptocurrencies.
Binance offers flexible staking options on some coins and locked staking for 30, 60, or 90 days. The longer you lock your digital assets, the higher the interest rate you’ll receive. However, the 90-day locked options are frequently selected for some popular coins. Binance staking rates are lower when you opt for a shorter locked period.
Aside from staking, this exchange platform provides many other ways to earn money, which you can explore in greater depth in our Binance review. Overall, it’s one of the best crypto staking platforms for you to reap profits from your coin holdings.
Swyftx
Swyftx provides a passive income opportunity for cryptocurrency holders through its Swyftx Earn feature. This feature, previously called staking, offers over 20 popular crypto assets on which users can earn interest.
Among the coins available for earning are ETH, BTC, ADA, SOL, ATOM, DOT, ALGO, KAVA, and other DeFi markets. The minimum spend is AU$1, with no associated fees or maximum limit.
Swyftx users can earn the highest APY crypto staking of 101% and get paid daily. Hence, Swyftx stands out as our top recommendation for earning interest on your crypto. Read our Swyftx review to learn more about its features.
Bybit
Bybit is an Australian-based crypto exchange that offers a variety of Bybit Earn products for traders to earn passive income, making it one of the best places to stake bitcoins and other digital assets.
Featured products are Flexi Savings, where you earn interest on your crypto; Liquidity Mining, where you can earn yield derived from trading fees; Dual asset, where you can enjoy high returns in low-volatility markets.
Bybit Earn provides you with a high yield or the ability to acquire profits in the short term. For example, Flexi Savings or Shark Fin are both principal-guaranteed and ideal for those with a low-risk appetite.
If you’re looking for something with high yield, Liquidity Mining or Dual Asset is your best option, with the possibility of earning up to 524.08% APY.
Kraken
Kraken is a good choice for those new to cryptocurrency and staking. You can purchase crypto quickly and begin staking immediately. In addition to two fiat currencies (USD and EUR), you can stake 10 kinds of coins. The crypto you stake determines the interest rate, with staking rewards of up to 20%.
Once you stake your coins, you will earn rewards within minutes. Depending on the cryptocurrency, you will receive weekly or bi-weekly payments, and the payments will start immediately. This is an advantage compared to other exchanges that lock in your coins until the staking period ends.
While some individuals may criticise Kraken for not offering as many staking options as Crypto.com or Binance, it is a great place to start for beginners interested in staking. For a comprehensive review of this exchange, check out our Kraken review.
Crypto.com
Crypto.com staking is available for over 35 cryptocurrencies, and rewards can range up to 12.5%. The longer the lock-up period, the higher the interest rate will be. You can easily stake your coins on Crypto.com’s app or its website.
Besides, you can stake stablecoins like TrueAUD, USDC, and USDT, allowing you to earn interest on your crypto while avoiding market volatility.
However, staking rewards are not compounded and are paid out only upon unstaking your crypto. The highest staking rewards are available for individuals with high trading volumes who use Crypto.com’s credit cards.
Nonetheless, users who commit their cryptocurrency for up to three months can increase their earnings, although locking is not mandatory to earn rewards.
eToro
eToro provides secure and convenient staking services that offer high-interest rates to users while addressing their security concerns. Users can receive monthly rewards without completing tasks apart from locking up their crypto for a specific period.
The platform supports staking for two digital assets: Cardano (ADA) and Tron (TRX). The reward system is dynamic and based on an investor’s staking ability, with rewards commensurate with their eToro club membership.
There are five levels of membership: bronze, silver, gold, platinum, and platinum+. Platinum+ members keep 90% of their monthly staking yield, making it one of the most reliable platforms for crypto staking.
Kucoin
Kucoin, established in 2017, has grown to become one of the most popular crypto-staking platforms globally, according to Coinmarketcap. The exchange offers two staking programs: Soft Staking and Pool X.
Soft staking lets users earn daily rewards in suitable cryptocurrencies, including ATOM, TRX, IOST, KSM, and others. Meanwhile, Pool X supports over eight cryptocurrencies, such as EOS, TRX, and TOMO, and users can earn from staking and proof of liquidity.
Staking interests range from 5% to approximately 20%. Kucoin charges a minimum of 5% and a maximum of 8% for staking fees.
Bitstamp
Bitstamp is a well-established crypto exchange among veteran crypto professionals and financial institutions due to its expertise. Founded in 2011, Bitstamp has a clean dashboard with a professional feel, making it an excellent choice for users who want a professional trading app to suit their staking needs.
The institutional-level feel extends to Bitstamp’s security. The exchange claims to store 98% of its crypto funds on cold wallet storage, which is offline wallets not connected to the internet and thus safe from hacking attempts.
Due to cold staking, Bitstamp only offers two cryptocurrencies for staking currently Ethereum (ETH) with a flat rate of 4.82% APY and Algorand (ALGO) with 5% APY. Staking is flexible as there are no lock-in periods, and the rates are high, with a reasonable minimum of 0.1 ETH or approximately $200.
Zipmex Australia
Zipmex is a regulated digital asset exchange with more than 300,000 users across Australia, Singapore, Thailand, and Indonesia. Users can earn daily interest on digital assets, including BTC, ETH, LTC, USDC, USDT, and more. Zipmex’s ZipUp+ offer enables users to make up to 7% daily earnings on US dollar stablecoins and up to 10% on cryptocurrencies.
For even higher interest rates on their crypto holdings, users can join the Zipmex ZipLock program and earn 14% interest on the Zipmex Token (ZMT) and up to 11% interest on US stablecoins. The ZMT token is an ERC-20 traded digital asset native to Zipmex, which provides users with several benefits, such as trading fee discounts, higher interest rates on earnings, and more.
All digital assets you stake with Zipmex get insured with BitGo, which gives US$100M protection insurance.
How to Select a Staking Platform?
Choosing the right platform is as important as the rewards before staking your coins. To make an informed decision, follow some practices below.
Never take a founder’s or team’s word for granted regarding new DeFi platforms, especially if you are a non-tech person. Review Reddit and Twitter to see what other users say about the protocol. Dev users usually alert the community to any signs of foul play or code vulnerability that they spot, which can prevent a rug pull.
Annualised rewards or APYs are not the only crucial factors to consider. It is also essential to consider the platform’s reputation and age. Stick with reputable places instead of risking your crypto wealth on fishy-looking platforms that promise high staking yields.
Use reliable analytics like CoinMarketCap to verify information on a PoS-based platform, staking-as-a-service platforms, and third-party staking services.
Finally, carefully read the terms and conditions of the platform before staking your coins. These rules include whether the wallet needs to be connected to the internet 24/7, whether staked crypto has to go through a cooling period before being unstaked, and the minimum staking amount, among other factors.
How to Stake Cryptocurrency?
There are several options to stake crypto, depending on your technical, financial and research skills. One option is to use an online service that offers staking for a commission, allowing you to buy crypto using fiat currency. Some popular cryptocurrency exchanges provide this service.
Alternatively, you can join a staking pool where investors pool their crypto funds to earn more staking rewards. To participate in a staking pool, you must first transfer your crypto to a crypto wallet and then choose a staking pool to send your crypto through.
You can also become a validator to stake crypto, but this requires setting up your staking infrastructure, which can be complex and expensive. This involves obtaining the proper computing equipment and software and downloading a copy of the blockchain’s transaction history. For instance, staking on the Ethereum network requires a minimum of 32 ETH, which is unnecessary when staking through a pool or an online platform.
Crypto Staking FAQs
Should I stake my cryptos?
Staking is a good option for long-term investors interested in generating returns and are unconcerned about short-term price fluctuations. If you anticipate needing your money returned before the end of the staking period, you should avoid pledging it.
What are the best cryptos to stake?
According to Staking Rewards, the proof of stake ecosystem currently locks over $132 billion. The best coins to stake include ETH, SOL, and ADA, which offer around 4-5% annual yields. Other popular yield-bearing cryptos include Algorand, Ethereum 2.0, Chainlink, Polkadot, and Cardano.
Is staking crypto profitable?
Crypto staking can be profitable in the long run, allowing traders to grow their coins over time, with compounded interest leading to even more significant gains. However, staking is not a get-rich-quick scheme, and traders should not expect significant returns in a short period.
Where to buy crypto to stake?
You can buy digital assets on the best crypto exchanges such as CoinSpot, which supports staking for over 30 coins. It also provides 24/7 live chat support, an NFT marketplace, and high levels of security. However, traders should know the risks of holding cryptocurrency on online exchanges.
Is staking cryptocurrency safe?
Staking cryptocurrency is generally considered safe, but risks are still associated with keeping your crypto on online exchanges. Cryptocurrency prices can be volatile, and if the value drops dramatically, traders can lose a significant amount of money.
There may also be hacking attacks, potentially leading to the loss of assets. To increase security while staking, traders can use a wallet like Exodus, where they retain control of their private keys.
Can I lose crypto by staking?
When staking crypto, traders cannot lose their coins, and they will always own at least the same number of coins they placed in, increasing over time as they earn rewards. However, traders should note that the value of the crypto may drop, leading to a decrease in the total dollar amount of coins held. This is true whether they are staking or not.
Final Thoughts
CoinSpot is among the best crypto staking places in Australia due to its high-level security and user-friendly features. Whether you are new to the crypto market or experienced, CoinSpot offers a complete range of tools and services to meet their needs.
With extensive experience in the industry, CoinSpot has earned a reputation for providing high-quality service and establishing itself as one of the most trusted names in the Australian crypto industry. Its stringent security measures safeguard users’ funds against cyber threats and unauthorised access, providing traders with peace of mind knowing their investments are protected.
