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Investors love generating passive income, but plenty of market experts claim that cryptocurrency lacks the ability to provide a source of income. That’s not entirely true. Staking (as well as a few rewards programs) can generate interest income from the crypto that you own right now.
You can earn rewards through staking by locking up your crypto to help run the blockchains that support certain cryptocurrencies. If you’re interested in staking or a crypto rewards program, picking the right crypto exchange is essential. This will ensure that you get access to the right resources and the highest yields.
To help you choose the right crypto exchange for staking and rewards, Forbes Advisor has surveyed the best crypto platforms for staking available in the U.S.
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Show Summary
- Best Crypto Platforms for Staking of May 2023
- Gemini
- KuCoin
- Coinbase
- Binance.US
- Compare the Best Crypto Staking Platforms
- Methodology
- Crypto Staking Frequently Asked Questions
FEATURED PARTNER OFFER
Coinbase
Trading Fees
0.4% Maker Fee / 0.6% Taker Fee
Tradable Coins
200+
On Coinbase's Website
Trading Fees
0.4% Maker Fee / 0.6% Taker Fee
Tradable Coins
200+
Best Crypto Platforms for Staking of May 2023
Gemini
4.6
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Coins available for staking or rewards
40+
Ethereum staking
No
Coins available for staking or rewards
40+
Ethereum staking
No
Why We Picked It
Gemini supports more than 40 cryptocurrencies for earning rewards via its Gemini Earn program. While it’s not a staking program per se, Gemini Earn is a lending platform that lets users lend out their crypto holdings in exchange for interest payments.
Like staking on other crypto exchange platforms, users earn an annual percentage yield (APY) for participating with their crypto holdings. For example, at the time of this writing, you can earn 4.55% APY on your Solana holdings.
For those who want a more traditional staking program, Gemini offers staking for the following tokens: Polygon (MATIC) and Ethereum (ETH).
Pros & Cons
- Simple, easy-to-use interface.
- Available in every U.S. state
- You can earn interest on stablecoins like USDC and Pax Gold (PAXG)
- Limited customer service options
- Ethereum and Cardano are not available for staking
KuCoin
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Coins available for staking or rewards
50+
Ethereum staking
Yes
Coins available for staking or rewards
50+
Ethereum staking
Yes
Why We Picked It
Users can participate and earn a myriad of types of rewards with their cryptocurrency on KuCoin. The interest-bearing rewards range from being accrued from promotions, savings or stakings, which are all a part of KuCoin Earn. The fixed interest available on Ethereum 2.0 is nearly 4.7% annually.
Pros & Cons
- Offers a wide selection of cryptocurrencies eligible to earn interest income.
- You can earn interest by staking popular stablecoins such as Tether (USDT) and USD Coin (USDC).
- KuCoin is not licensed in the U.S.
- Challenging to see the differences between Kucoin Earn’s savings, staking and promotions features.
Coinbase
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Coins available for staking or rewards
6
Ethereum staking
Yes
On Coinbase's Secure Website
Coins available for staking or rewards
6
Ethereum staking
Yes
Why We Picked It
Coinbase only offers a limited number of coins for staking and rewards. But the most popular cryptos for staking are available on the platform. Depending on the selected crypto, a minimum balance may be needed for staking. For example, you must own at least $1 of SOL to stake Solana.
Pros & Cons
- Strong user reviews and security features.
- Allows users to stake Algorand (ALGO), Cosmos (ATOM),
- Ethereum, Tezos (XTM), Cardano and Solana.
- Limited selection of coins available for staking or rewards.
- Not available in all 50 states.
Binance.US
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Coin available for staking and rewards
22
Ethereum staking
Yes
On Binance.US' Secure Website
Coin available for staking and rewards
22
Ethereum staking
Yes
Why We Picked It
Only a handful of cryptocurrencies are available on Binance.US for staking, and even the most popular altcoin, Ethereum, isn’t an option on this platform for staking or rewards. That said, the process of staking and interest on Binance.US is straightforward and Binance.US users can also earn rewards, interest for staking the exchange’s native coin, Binance Coin (BNB).
Pros & Cons
- Allows staking for Audius (AUDIO), Avalanche (AVAX), Binance Coin (BNB), Cosmos, Livepeer (LPT), Solana, and The Graph (GRT), Ethereum (ETH), Cardano (ADA), and more.
- More cryptocurrencies (600+) and tokens for staking are available on its parent exchange Binance (which is not available in the U.S.)
Compare the Best Crypto Staking Platforms
| Crypto Exchange | Coins Available for Staking | Available in all 50 States? | Crypto Trading Fees |
|---|---|---|---|
| Binance.US | 22 | ✘ | 0.1% Maker 0.2% Taker (Tier I Fees) |
| Coinbase | 6 | ✘ | 0.4% Maker Fee 0.6% Taker Fee |
| Gemini | 47 | ✔ | 0.2% Maker 0.4% Taker *ActiveTrader Fee Schedule |
| KuCoin | 50+ | ✔ | 0.1% Maker 0.1% Taker *LV0 Trading Fee Level |
Methodology
We performed an in-depth assessment of the features and options offered by nearly 25 cryptocurrency exchanges, crypto trading apps and brokerage platforms that offer crypto trading options. To identify the best exchanges for staking, we looked at eight key variables to assess each platform:
- Basic Trading Features. Key metrics included the number of cryptocurrencies available to trade, the number of fiat currencies accepted, the exchange’s overall liquidity and trading fees.
- Advanced Trading Features. We looked at the availability of complex trading features like advanced order types and volume discounts for frequent trading.
- Platform Availability. While some of the best crypto exchanges are available everywhere, others have widely varying degrees of accessibility to different features by country and by U.S. state.
- Customer Service. Available types of customer support.
- Educational Resources. We evaluated the educational content offered by each platform.
- Crypto Rewards Credit Card. A few platforms offer crypto rewards credit cards.
- Security and Storage. Types of storage options, security and insurance available, plus an assessment of any large-scale hacks of each exchange over its lifetime.
- Staking and Rewards. Some platforms allow users to stake selected cryptos and earn interest payments.
These eight variables helped us benchmark the staking and crypto interest features, among others, of the crypto exchanges and brokerages we surveyed. The sum of weighted values across all or some of these key factors was calculated for each ranking to award each brokerage or exchange its overall rank.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Investing Products.
Crypto Staking FAQs
What is staking?
Staking is a unique feature allowed with some cryptocurrencies. When users stake their cryptocurrency, they lock a set amount of their crypto funds for a certain period to help maintain operations on a particular proof-of-stake blockchain system.
A proof-of-stake mechanism is a method for some cryptos to verify transactions and consensus on their blockchain networks. With this method, users are given an incentive of rewards when they stake their coins.
What cryptos can I stake?
According to Staking Rewards, more than $132 billion are locked up in supporting proof of stake. The cryptocurrencies with the highest staking market cap include ETH, SOL and ADA, in which the typical annual yield is around 4% to 5%.
While there are many cryptos available that are yield-bearing, the most common cryptocurrencies that traders stake for passive income are:
• Algorand
• Ethereum 2.0
• Chainlink (LINK)
• Polkadot (DOT)
• Cardano
Note rewards on the Ethereum network are typically locked up until the Ethereum 2.0 network is complete. Also of note, more than 10% of Ethereum is staked. Depending on the platform, traders can also stake stablecoins like USD Coin, Dai (DAI) and Tether.
How does staking work?
There are a vast number of cryptocurrencies and crypto exchanges that allow staking, and even some crypto wallets support crypto staking, too.
While Forbes Advisors ranked Gemini, KuCoin, Kraken, Coinbase and Binance.US as the Best Crypto Exchanges for Staking and Rewards, other crypto exchanges offer staking and rewards for crypto holdings. Bitstamp and eToro are a few examples.
Is staking risky?
Staking requires a “vesting,” or lock-up, period, where users can transfer or use their tokens. Users need to research the crypto they’re staking since they will not be able to conduct transactions with their token(s) for some time.
Cryptocurrency exchanges typically require a minimum lock-up period when you stake your crypto. And if a particular crypto is volatile, your tokens might be locked up (for staking), leaving you unable to sell.
Are my staking rewards taxable income?
There is no definitive IRS guidance on income taxation from crypto staking. In 2014, the IRS issued a notice that cryptocurrency is to be treated as property for federal income tax. But there is no guidance related to tax treatment for staking rewards.
That said, exchanges like Coinbase will issue users a 1099-MISC form if their crypto earnings from staking exceed $600. Other exchanges that send form 1099-MISC include Bitstamp, Binance.US, Gemini and Crypto.com, to name a few.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Editor
Farran was the deputy editor of investing & retirement at Forbes Advisor. She has extensive experience with the investing beat, having served as the former assistant managing editor of investing at U.S. News & World Report, where she also launched several newsletters. Her work has appeared in TheStreet, Mansion Global, CNN, CNN Money, DNAInfo, Yahoo Finance, MSN Money, and the New York Daily News. She's an alumna of the London School of Economics and holds a master’s degree in journalism from the University of Texas at Austin. Follow or DM her on Twitter at @farranpowell.
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