ByZac McClure, MBA · Reviewed byArthur Teller, CPAUpdated on September 20, 2023 · minute read
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Discover the top crypto staking platforms available, selected by our panel of experts. Recommendations include Aave, Bake (formerly known as Cake DeFi), and Lido, each offering unique features and opportunities.
Our team of crypto tax professionals has also identified and reviewed the best crypto exchanges available for US crypto users, including Binance.US, Crypto.com, and Gemini.
In this article, we give our expert’s top three picks of both crypto staking platforms and crypto staking exchanges. We begin with our top choices of the best staking platforms for DeFi.
Self-custody is important to many crypto holders, so these platforms offer the best in crypto staking options for those who truly want to control and grow their own crypto portfolio with DeFi.
For those new to crypto, the centralized exchange options below may be a better alternative to start staking quickly, although our recommended DeFi platforms are relatively easy to use.
Aave
Best for staking at scale
Bake
Best for peer to peer lending and borrowing
Lido
Best for DeFi staking overall
Methodology
How our crypto tax professionals selected the best DeFi crypto staking platforms
Our expert team conducted research into various DeFi platforms to choose the best staking options. The methodology for this takes into account multiple criteria in order to assess the overall performance and reputation of each platform.
Our aim here is to provide a comprehensive overview of our chosen platforms' staking capabilities while also considering higher-level aspects such as security, support, and educational offerings. We’ve also included some key pros and cons for our chosen platforms.
The crypto industry remains largely unregulated, and some exchanges operate with limited transparency, presenting risks to users. We prioritize the safety and security of our readers' investments, which is why we focused on more established DeFi platforms with proven track records.
“Crypto users should understand that DeFi staking is starkly different from earning interest at a traditional bank. The risks are different, there is no FDIC protection, and crypto remains widely unregulated even as notable efforts are ongoing to change that.
Because of this, we strongly recommend customers stick to well-established and reputable DeFi staking platforms to mitigate potential risks. And when the time comes to file your crypto taxes, rely on expert tax professionals who can ensure you remain compliant and get the most out of your crypto each and every tax season.” - Arthur Teller, CPA - COO Tokentax
Aave
Best for staking at scale
Aave operates as a DeFi crypto lending platform and supports ERC-20 tokens including ETH, MATIC, and WBTC. Generating yield through lending is straightforward on Aave, and the platform is a top choice for DeFi staking at scale.
+ Pros & Cons
Pros
User-friendly interface for a smooth and straightforward experience.
Compatible with popular wallets like MetaMask and Coinbase Wallet.
No identity verification needed ensures privacy and quick access.
Flexibility to swap to another token or withdraw funds on demand gives users liquidity and control.
Cons
Staking may only be financially rewarding on a larger scale, potentially excluding smaller investors.
Lack consumer protection typically associated with traditional lending services.
Collateral may be liquidated abruptly, posing risk.
Some networks have a restricted range of token choices, limiting diversification.
Insufficient transaction reporting capabilities may limit comprehensive analysis.
+ Why we like it
Aave's platform is non-custodial, which means users control their transactions from their personal crypto wallets. When supplying tokens to Aave, users deposit them into a smart contract that may liquidate the collateral tokens if necessary to repay a loan.
Currently, Aave V2 remains active and compatible with the Ethereum network, Polygon, and Avalanche. Aave V3 supports Ethereum and expands its compatibility to include additional Ethereum-compatible networks like Arbitrum, Optimism, and more. V3 is now the default, providing enhanced risk management features and a larger selection of networks and tokens.
User-friendly interface, compatible with popular wallets.
Non-custodial platform, ensuring privacy and quick access.
Flexibility to swap tokens or withdraw funds on demand, providing liquidity and control.
Bake
Best for peer to peer lending and borrowing
Bake (formerly Cake) is a DeFi platform based in Singapore, launched in 2020. The platform offers a multitude of opportunities for staking and earning rewards with various cryptocurrencies, including popular assets like Bitcoin and Ethereum. Over a million users benefit from Bake’s investment platform and centralized exchange that connects users to DeFi ecosystems.
+ Pros & Cons
Pros
Access to a wide range of staking digital assets, including popular cryptocurrencies like Bitcoin, Ethereum, and ERC-20 tokens.
Peer-to-peer staking DeFi lending and borrowing protocol, offering higher interest rates and quicker fund access.
Easy-to-use stake wallet portfolios and performance tracking for seamless asset management.
Capability to trade derivatives with leverage for enhanced trading strategies.
Crypto staking services for passive income generation and asset security.
High APY period of up to 20% presents an attractive opportunity for growth.
Cons
Trading stake fees may be relatively higher compared to other exchanges.
Limited support for some lesser-known currencies and tokens.
Long freeze time for high APYs.
Users may only borrow in DUSD and cannot convert DFI rewards to other coins.
+ Why we like it
Staking services are at the core of Bake's offerings. Users can securely stake and store their cryptocurrencies while earning rewards for doing so. This passive income generation mechanism ensures that users can grow their wealth without actively trading, all while ensuring their digital assets' safety.
Bake also offers a peer-to-peer lending and borrowing system, powered by a blockchain protocol, and an extensive collection of over 200 coins and tokens, ensuring that users have ample choices when it comes to staking and trading. With the platform's annual percentage yield (APY) period going up to an impressive 20%, users have the potential to enjoy substantial returns on their investments.
Wide range of staking assets, including popular cryptocurrencies.
Peer-to-peer lending and borrowing system with higher interest rates.
High APY period of up to 20%, offering attractive growth opportunities.
Lido
Best for DeFi staking overall
Lido is a leading, popular DeFi platform that provides staking solutions for various cryptocurrencies through a user-friendly interface, with competitive fees and generous referral rewards. It’s one of the best staking platforms operating and our top choice for DeFi staking.
+ Pros & Cons
Pros
Friendly interface caters to DeFi staking beginners, ensuring a smooth experience.
stETH offers liquidity, enabling users to utilize their ETH while participating in staking.
Emphasizes decentralization and provides governance tokens for active engagement.
Operates as a semi-custodial service, potentially limiting complete control over assets.
Fees for staking rewards.
Staking rewards may be subject to taxation, with no built-in reporting assistance.
+ Why we like it
Lido contributes liquidity to numerous cryptocurrencies. Users can effortlessly stake their tokens and receive equivalent tokens pegged to their staked funds, which enables them to participate in yield farming within DeFi.
Lido provides an elegant interface that allows ETH holders to effortlessly stake their cryptocurrency. In a few clicks, users can have their ETH staked and receive stETH directly in their wallet. Lido ensures complete transparency in its fee structure and transaction costs even before connecting your wallet, allowing users to make informed decisions about whether to stake with Lido or not.
User-friendly interface, ideal for DeFi staking beginners.
stETH offers liquidity, enabling use of ETH while staking.
Complete transparency in fee structure and transaction costs for informed decisions.
Here are our top three choices of centralized crypto exchanges that provide staking, available to users in the US. These credible and established exchanges allow you to purchase, trade, and exchange cryptocurrency without self-custody and are generally easier to use for those new to crypto over the DeFi options above.
As we saw with the FTX collapse in 2022, centralized exchanges do involve risk, as these exchanges hold your crypto for you. You’ve probably heard the phrase “not your keys, not your crypto,” and this holds true today. That noted, the following exchanges are highly credible and have weathered the recent crypto bear market, so we’re happy to recommend them. In every case, do your own research and be sure you understand the risks involved in purchasing and staking crypto.
Binance.US
Best for new users
Crypto.com
Best for mobile staking
Gemini
Best for institutional staking
Methodology
How our crypto tax professionals selected the best crypto staking exchanges
Our team did comprehensive research into various cryptocurrency exchanges to select the best staking options. Our methodology takes into account multiple criteria to assess the security, performance, reputation, and level of support from each platform.
We evaluated the staking options for prominent cryptocurrencies like Ethereum and Cardano, considering the number of coins available for staking. We also looked at the range of coins offered on the platform, in addition to fiat currencies. Further, we examined other trading features, platform availability in the US, customer service quality, educational resources, and security measures.
Our aim here is to provide a quick, comprehensive overview of each exchange's staking capabilities. By taking this holistic approach, we are able to offer a high-level assessment of the packages each platform offers. We’ve also included pros and cons to assist readers in making informed decisions.
The crypto industry remains largely unregulated, and some exchanges operate with limited transparency, presenting risks to users. We prioritize the safety and security of our readers, which is why we focused on more established and credible cryptocurrency exchanges.
“Crypto users should understand that staking crypto through centralized exchanges is vastly different from earning interest at a traditional bank. The risks are different, there is no FDIC protection, and crypto remains widely unregulated even as notable efforts are ongoing to change that.
We strongly recommend customers stick to well-established and reputable centralized cryptocurrency exchanges to mitigate potential risks. When the time comes to file your crypto taxes, consider relying on our team of expert tax professionals who will work to ensure you remain compliant and get the most out of your crypto this and every tax season.” - Arthur Teller, CPA - COO Tokentax
Binance.US
Best for new users
Binance is the largest exchange in the world, and among the most credible and trusted. Binance.US, Binance’s exchange for US customers, offers a limited selection of cryptocurrencies for staking. The staking process and earning interest are straightforward and easy, making Binance.US one of the best crypto staking platforms available for those new to crypto.
No lock-up periods, so you can begin or end staking assets at any time.
Credible and trusted exchange.
Easy to use for those new to crypto and staking.
Available for US users. International users can stake with Binance.
Cons
Limited selection of cryptocurrencies and tokens for staking compared to Binance itself, which offers a broader range of staking options (600+).
+ Why we like it
When using Binance.US, third-party service providers handle the staking process on your behalf and ensure your funds are kept securely in offline wallets for added protection. Rewards are directly generated through blockchain validation by the protocols supporting each staking asset. These rewards are then passed on to you without any intermediary involvement.
Large and trusted exchange for crypto staking.
Easy process for newcomers.
Direct rewards from blockchain validation.
Crypto.com
Best for mobile staking
Crypto.com generates yield through off-chain staking. With staking APRs available on numerous popular cryptocurrencies, it offers over twenty assets for users to stake and flexible staking during terms. With an easy-to-use app, Crypto.com more or less ensures a seamless staking experience for its customers, however new they are to crypto and the concept of staking.
+ Pros & Cons
Pros
User-friendly app for easy navigation and staking process.
Opportunity to earn staking rewards on a wide selection of cryptocurrencies.
Weekly rewards are deposited into your Crypto.com wallet.
Flexibility in staking duration.
Cons
Tiered structure for APR, requiring higher CRO staking for optimal rewards.
No desktop support, limiting accessibility for users preferring desktop interfaces.
Not available in New York State.
+ Why we like it
Crypto.com pays rewards in the same currency that was used for staking, conveniently transferred to your crypto wallet. The platform employs a tiered loyalty structure, necessitating the staking of a certain amount of Crypto.com's native coin, CRO, to unlock the highest APR rewards.
With its diverse offering and user-friendly interface, Crypto.com is an established and credible centralized exchange for staking crypto.
User-friendly app for seamless staking.
Wide selection of cryptocurrencies to stake.
Weekly rewards directly to your wallet.
Gemini
Best for institutional staking
Staking your cryptocurrency assets can often be a complex endeavor, involving decentralized platforms and technical know-how. Gemini Staking aims to simplify the process and offer users a more accessible way to generate staking rewards. This platform combines the benefits of decentralization with the reliability and security of Gemini, providing users with a seamless staking experience.
+ Pros & Cons
Pros
Available in 60+ countries and all 50 U.S. states.
Simple and easy-to-use interface.
Gemini is a New York trust company regulated by the New York State Department of Financial Services.
Cons
Limited token options for staking: MATIC, SOL, and ETH.
Limited customer service options.
Fees are slightly higher than some other crypto brokerages.
+ Why we like it
Gemini offers competitive network rewards, enticing users to participate in the decentralized ecosystem and earn potential gains. One notable advantage of Gemini Staking is the absence of gas fees. By eliminating these additional costs, users can focus on staking without worrying about the financial burden of gas transactions.
Gemini Staking is also open to institutions of all sizes, catering to a wide range of companies seeking exposure to decentralized staking. The platform aims to simplify the process, enabling businesses to apply for an account and start accruing rewards promptly.
Simplified staking with decentralization and security.
When comparing crypto staking exchanges and apps, there are several key factors to consider to help you find the best crypto staking platforms for your goals. Always do your own research and determine for yourself whether you trust a given platform and know the risks involved when staking, whether through DeFi or CeFi.
Cryptos Supported Check the list of cryptocurrencies each platform supports for staking. Some platforms may offer a wide range of options, including the option to purchase crypto directly from the platform, while others might have a limited selection and require you to transfer your crypto in from elsewhere.
Staking Rewards APY Compare the staking rewards Annual Percentage Yield (APY) offered by each platform. Higher APY means you can earn more passive income from staking your cryptocurrencies.
Staking Fees Look for platforms that offer staking with low or zero fees. Some platforms may charge a percentage of your staking rewards as fees, while others may have fixed subscription fees or no fees at all.
Security & Custody Consider the security measures and custody options provided by each platform. Non-custodial (DeFi) staking allows you to have full control over your private keys, while custodial options on centralized exchanges and platforms may offer added convenience but come with some security risks.
User Experience & Reputation Evaluate the platform's user interface and ease of use, and look at credible reviews from other users about their experience. A user-friendly platform can make staking and managing your assets more convenient.
Staking rewards are subject to taxation for US taxpayers both as income at the time of receipt and capital gains when you decide to dispose of them. To determine the taxes on your crypto staking rewards, you need to report their fair market value when you receive them, which will serve as your cost basis. If and when you later sell your staking rewards, you will use this cost basis to calculate any resulting capital gains or losses.
It's essential to report the fair market value of staking rewards at the time of receipt and accurately calculate capital gains or losses when disposing of them. Tax rules for staking crypto can differ between countries, and some may have more lenient tax policies.
US taxpayers typically report staking rewards as "Other Income" on Form 1040 Schedule 1 and report capital gains or losses on disposal with Form 1040 Schedule D. International taxpayers can refer to our helpful country guides for more information.
Here are answers to common questions about the best crypto staking platforms and how to find the best staking platforms for your goals.
What is staking?
Crypto staking involves holders participating in transaction validation on the blockchain to ensure accuracy and consistency. This is done by computers on the network or through third-party staking services.
By staking crypto, holders can earn rewards because the staked crypto actively contributes to the blockchain's operations through a consensus mechanism called Proof of Stake, which ensures transaction verification and security without intermediaries like banks. Through crypto staking, individuals support the network and receive rewards in return.
What cryptos can I stake?
It’s possible to stake dozens of different cryptocurrencies. Popular cryptos for staking include Ethereum, Polkadot, Polygon, Solana, Tether, and USD Coin.
Is cryptocurrency staking safe?
Done properly and on a credible platform, crypto staking is generally safe. Nothing in crypto is without risk, however, so it’s important to work with a credible staking platform and understand the terms and staking process before committing.
Which crypto offers the highest staking rewards?
At time of writing, Decimal (DecimalDEL) can be staked with Coinbase for an estimated reward rate APY of 109.69%. Rates are subject to change, so always check with your preferred staking platform for current information and understand the risks involved before purchasing and staking crypto.
To stay up to date on the latest, follow TokenTax on Twitter @tokentax.
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Arthur came to TokenTax after 12 years at KPMG. A specialist in partnership taxation and enterprise tax software, he is a licensed CPA in both California and Illinois and a member of the AICPA.
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