Best 25 crypto exchanges with staking in 2024

High-yield staking offers on Binance
High-yield stakings offers example

Cryptocurrency staking gives investors, and traders, the chance to earn a passive income in the form of an interest paid for their cryptocurrency holdings, with variable rates and depending on the “staked” asset.

The staking option, offered by every top crypto exchange, also allows investors to be paid interest on selected cryptos, even if a particular digital currency’s price is in a bear trend, or, while waiting for a bull market.

What is cryptocurrency staking?

Cryptocurrency staking works similarly to a bank's savings account. Account-holders can lock deposits for some time with a bank, that typically will lend these funds to other banks or companies. In return, the bank will pay the savings account holder a, currently low, interest rate.

Thus, when you stake your cryptocurrency assets with an exchange, acting like a bank, you will lock up the coins to participate in running the blockchain. In return, you will earn an interest, calculated in annual percentage yields (APY). Crypto exchange’s APY rates are typically much higher than any interest rate offered by traditional banks.

In a nutshell, cryptocurrency staking allows investors to gain daily interest from their dormant funds. And the best part is that most top crypto exchanges allow compounding.

This means that the daily interest received can be compounded to the initial staking amount, for the duration of the staking, and with compounding, the daily number of coins received will always increase. Everyday!

How does cryptocurrency staking work?

When you stake a crypto asset that you own with a crypto exchange, you will earn a percentage rate for the amount staked, calculated for the duration of the staking, and rewarded daily.

Staking usually happens via a “staking pool”, and to simplify, a staking pool is similar to an interest-bearing savings account. The reason why the staked crypto will earn rewards while locked is that the blockchain will put the staked amount to work.

Cryptocurrencies that allow staking use a “consensus mechanism” called Proof-of-Stake (PoS). PoS is the way that digital currency networks ensure that all transactions are verified, and secured, without a bank or payment processor in the middle. And if you decide to stake your crypto assets, it becomes part of that process.

What are the advantages of cryptocurrency staking?

Every market is subject to the most basic law of demand and supply. This means also that every market will experience periods where prices will go up and periods where prices will drop.

Several long-term crypto holders look at staking as a safe way of earning a passive income on a bear market while expecting a market recovery. It’s more advantageous than having the assets collecting dust in a crypto wallet.

Cryptocurrency staking has also the added benefit of contributing to the security and efficiency of the blockchain. By staking some of your digital assets, you are contributing to enhancing the blockchain, by increasing its resistance to attacks and strengthening its ability to process transactions.

What are the disadvantages of cryptocurrency staking?

Cryptocurrency staking often requires a locked period (commonly known as vesting), where the staked crypto can’t be transferred for a certain time.

This can be a drawback, especially in a very bull market. If a digital currency that you are currently staking surges in price rapidly, reaching new ATHs, you won’t be able to trade your staked tokens, as they are locked in staking.

Fortunately, at the cost of a lower APY rate, most top crypto exchanges offer an alternative – flexible staking. Flexible staking pays investors a lower APY rate compared to locked staking but allows the investor to quickly withdraw the staked crypto and sell it if needed.

Before staking your digital assets, it is paramount to research the specific token and staking requirements and confirm the staking terms and conditions.

How do I start staking my cryptocurrencies?

Cryptocurrency staking is generally open to anyone who wants to participate. The easiest way is via a reputable crypto exchange, that allows you to contribute any amount of the accepted cryptos to a staking pool.

Check out our list of the 25 most popular and well-rated crypto exchanges with cryptocurrency staking, and start earning a passive income on your digital currencies today.