If you’ve been investing in cryptocurrency for some time and you aren’t yet staking crypto, there’s no better time to learn more and get started. The best crypto staking platforms can help you begin staking and earning rewards. Of course, there are factors to consider before you begin staking crypto.
With varying types of crypto staking platforms available, doing a little research is always suggested. Below you will learn about what is involved with staking crypto so you can better decide what the best crypto staking platform will be for you.
What Is Crypto Staking?
Staking crypto allows you to take crypto investments you’ve already made and earn interest or rewards on them by “locking them up” — similar earning interest on a 6-month bank certificate of deposit (CD). Locking up your crypto investments may mean you are unable to access your digital assets for a set period of time while you potentially earn interest or rewards on these investments.
Crypto staking also helps strengthen blockchain networks while giving potential earnings in interest and rewards. Dive into the full explanation of what it means to stake crypto.
How Does a Crypto Staking Platform Work?
A crypto staking platform works because of the investors that help and allow it to. Individual investors who lock up their crypto holdings are enabling new transactions to be verified. The verification of each of these transactions helps to ensure the security of the blockchain.
The more transactions that are occurring, the more security you continually have running through your network. The fees that are assessed with these transactions can then be earned by the crypto holder that verified the transaction. While it can seem complicated, it’s really quite simple. Help the network and earn!
What to Consider With a Crypto Staking Platform
Ensure you keep yourself and your crypto investments protected as well as possible. Learn all there is to know about crypto staking before you register with a platform.
Is the Platform Regulated?
The best crypto staking platforms are regulated and this means they implement legal and ethical practices for their customers.
Keeping the information you need upfront and ensuring you know the potential gains and risks is a must. As with any investment, it is wise to make sure you are working with one that is regulated so you are more protected.
HEX (Hybrid Crypto Exchange), for example, follows the same types of compliance protocols as Centralized exchanges, ensuring that all LPs, traders, and counterparties have passed KYC, AML, and other compliance checks.
Multiple Payment Options
When considering the best crypto staking platform, knowing which ones support multiple payment options is key. While it may not be the most demanding factor, it provides simplicity when you’re looking to invest more or pull funds out.
Several of the best crypto staking platforms allow you to use bank transfers, credit cards, or crypto transfers for your payment options.
Good UX and Customer Support
UX refers to the user experience and when you are working with a lackluster crypto platform for any crypto needs, this likely won’t be a good one. The best crypto staking platforms continue to advance and are becoming more and more user-friendly for all types of investors.
Not only is the ease of function important to consider, but think about when the time comes that you need assistance with crypto staking. Knowing you are working with a platform that has a live agent you can talk to is a peace of mind any investor deserves.
Don’t force yourself to figure it out on your own. Staking crypto comes with many questions and the best crypto staking platform will answer those before you get started.
Platform’s Staking Process, Terms, and Conditions
This is one of the major factors to consider when you are looking to begin staking crypto. Every crypto staking platform has varying terms and conditions and their processes, minimums, and other practices may vary as well.
This is where working with a regulated crypto staking platform will allow you to know every single detail right upfront. How long do you have to stake your crypto? What other factors do you need to know beforehand? When investing, always be sure to read the print, no matter how fine it may be.
Fees with the Staking Platform
Another important factor to consider before you begin staking crypto is the associated fees. Considering this is how many crypto staking platforms can make their money, this is critical to look at to ensure you can help yourself earn more.
Always take a thorough look at the fees and limits associated with the crypto staking platform you are interested in.
While the list of supported cryptocurrencies on staking platforms continues to grow as they do, different crypto staking platforms may support different cryptocurrencies. This makes it essential to know what cryptocurrencies the platform you are looking at supports.
Reputation & Trustworthiness
A no-brainer here, investing on a platform that isn’t trusted is a bad move. The best crypto staking platform will be a regulated one that has proven their secure commitment to its customers. Without a solid reputation, it’s unlikely you can trust them for a stable investment and these are the best to avoid.
Types of Crypto Staking Platforms
Now that you know a little more about crypto staking platforms, we’ll go more in-depth into the varying types available.
Centralized Exchanges (CEX)
Centralized exchanges remain a popular option for crypto staking. Often considered one of the easiest ways to begin staking crypto, the steps are minimal.
With a list of currencies available for staking, it’s easy to see your options. You then make sure you have your desired cryptocurrency available in your wallet and begin staking.
Staking-as-a-Service platforms, or SaaS platforms, are different from your traditional crypto platforms as they strictly support crypto staking. These platforms take a portion of your earned interest or rewards as they are essentially the middleman for your crypto staking.
Similar to an exchange, you start by setting up an account. You can then invest in new crypto or deposit existing crypto investments. These types of platforms typically support staking multiple coins and cryptocurrency options.
DeFi, or decentralized finance platforms, are well known to have the most secure practices when it comes to crypto staking platforms. This is largely due to their structure and the fact that the individual users remain in control. When staking with DeFi liquidity pools, you are basically lending them your crypto.
You are allowing them to use your crypto for investing in other crypto projects or transactions. While a DeFi platform may be more secure and stable, your earnings are often less than other types of crypto staking platforms.
If you’ve already invested in crypto and have it sitting in your cold wallet, you can still begin staking, it just takes a little more effort.
You do need to ensure you’re storing your crypto in a wallet that supports crypto staking. This process just requires you to hold the desired crypto in your wallet and you can start earning.
Institutional Crypto Staking: Safe and Secure with HEX
By combining aspects of both the centralized and decentralized exchanges, Apifiny has opened the doors for greater earning potential more securely for Institutional Investors. They’ve brought crypto investors the predictable, efficient, and secure trading, staking, and investment options they deserve.
In addition, HEX offers an excellent user experience and customer service for those that have signed up for an account. Apifiny has brought about an incredible product that can be your one-stop shop in the world of crypto staking and investing. Stake crypto safely and look into a HEX account with Apifiny today.
Frequently Asked Questions
Is staking crypto worth it?
Staking crypto is a great and simple way to earn passive income on investments you’ve already made. When the right steps are taken, staking crypto can certainly be worthwhile.
What exchange is best for staking crypto?
The best exchanges for staking crypto may vary depending on your unique requirements. Apifiny changed the crypto investment game when they brought about HEX. HEX combines the ideal features and attributes involved with trading keeping things efficient.
Does your crypto grow while staking?
As long as the value of cryptocurrency is trading well, then you are likely to see an increase in your crypto while staking. The longer you stake your crypto, the greater the chances you have of earning larger profits. Different crypto exchanges have different requirements for staking, be sure to research them completely before you begin.