With the growing popularity of the cryptocurrency market, we hear a lot about new terms. One such term that has been around for a long time is “staking” — a practice many popular cryptocurrencies use to verify transactions. Staking rewards investors without having to sell.
Factors to consider when choosing a staking or rewards platform include the rate at which you can earn rewards, how often they’re paid out, how easy it is to withdraw your assets from the program, and the number of cryptocurrencies allowed.
In this article, we will be discussing the best staking platform for US citizens.
What is a Crypto Staking Platform?
A crypto staking platform is a crypto exchange, broker, or app that lets you earn rewards on cryptocurrencies. To earn rewards, you commit your cryptocurrency to the platform, known as staking. That platform then pays you a rewards rate on your deposit. If you want to stop, you can unstake your deposit.
There’s almost always a variable rewards rate for staking crypto, meaning the rewards rate can change with market conditions.
The types of cryptocurrency you can stake depend on the platform. Some platforms support staking with a handful of cryptocurrencies, while others give you dozens of different staking options.
How Does Crypto Staking Work?
Staking is when you commit 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 checks a block of transactions, adds it to the blockchain and receives a staking reward for their contribution. Examples of cryptocurrencies that use proof of stake include:
You can stake crypto without a staking service, but it’s not relatively as easy. You’ll need to store your crypto in a blockchain wallet, and you’ll 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 a few clicks. This is also a big advantage if you’re not comfortable storing your cryptocurrency.
It’s worth mentioning that “staking” is often used as a catch-all to cover how you earn rewards on your crypto. For example, some people refer to crypto lending programs as staking. They’re not, but crypto lending can also be an effective way to earn crypto rewards.
The Best Staking Platform for US Citizens
eToro
eToro is an Israeli social trading and multi-asset brokerage company under SEC regulation that offers industry-leading fees and low account minimums. However, eToro has since created a portal that allows you to stake your idle cryptocurrency investments. What we really like about this platform is that as soon as you buy digital assets at eToro, the respective tokens will automatically be staked on your behalf.
eToro offers automated rewards on three of the best staking coins. This includes Ethereum, Cardano, and Tron. In terms of fees, this will depend on your eToro member status and location. For instance, while bronze members and US clients will receive 75% of the monthly staking yield that eToro is able to obtain, diamond and platinum+ account holders retain 90%.
eToro is also one of the best crypto staking platforms for 2022 should you wish to engage in a flexible arrangement. By this, we mean that there is no requirement to lock up your crypto tokens for any period of time. On the contrary, you will continue to earn staking rewards on eligible tokens in your eToro crypto wallet until you decide to cash out. This subsequently prevents the need to transfer staking coins between competing platforms.
In choosing eToro as your go-to staking provider, a full range of other benefits are on offer. For example, you will be staking your crypto assets in a heavily regulated ecosystem, as eToro is licensed by the SEC, FCA, ASIC, and CySEC. Moreover, should you wish to buy crypto at eToro, you can deposit funds with US dollars for free with a debit/credit card, ACH, bank wire, or an e-wallet. And, instead of paying expensive commissions, you only need to cover the spread.
As two of the best crypto staking providers, eToro and Coinbase, choosing between the plethora of brokers and exchanges can be challenging. But eToro standout because it is regulated by SEC.
Conclusion
The staking process has a lot to offer for both those involved in the world of crypto and those outside of it. Stakers can earn interest, increase the value of their coins, and give back to the community. They may also enjoy faster transaction speed.
