Best staking platforms
Best staking platforms
Crypto staking: our top 3 for generating passive income
Staking cryptocurrencies is a way to generate passive income, a bit like dividends from a stock, or coupons from a bond. Except that since we're talking about cryptocurrency and not companies, obviously that's not quite right 😉. And obviously, some yields announced for staking are far from bond yields!
We'll start by providing some brief explanations about staking. Then we will above all present to you 3 good platforms to put into practice and start earning 5%, 10%, 15% returns per year thanks to your cryptocurrencies
What is cryptocurrency staking?
What is staking used for?
Crypto staking comes from the famous proof of stake, Proof-of-Stake (PoS). It is a validation consensus used by many blockchain protocols.
So in concrete terms, staking cryptocurrencies on a blockchain makes it possible to validate the transactions that take place on it. It is therefore an essential element in the functioning of a protocol.
How does cryptocurrency staking work?
I tried to summarize for you how staking works in the illustration above, which I will detail later.
The principle is as follows: to be able to validate a transaction on a blockchain and add a block, you must first immobilize your tokens on the network concerned. By putting your tokens into play (“at stake”), you put yourself in a position to be designated as a validator of a block.
This designation is done randomly. In some protocols the number of locked tokens increases your chances, in others it is more random.
Validators can confirm transactions or not. In the event of non-compliant confirmations, validators may be excluded. Conversely, validating a transaction in accordance with the rules entitles you to a reward. This is generally paid in the cryptocurrency of the blockchain concerned.
IS IT OBLIGATORY TO IMMOBILIZE YOUR CRYPTOS?
Normally yes, but in fact, liquid staking platforms like Lido allow you to stake ETH, immobilized, but to recover stETH in exchange, which you can use on other platforms, while your ETH is working.
What cryptocurrencies can you stake?
✅ By definition, all protocols that operate with Proof-of-Stake (PoS) allow staking. This is for example the case of Ethereum, Solana, Cardano, etc.
To stake Ethereum yourself, which is possible from The Merge, you must have at least 32 ETH. This represents approximately €48,000 in September 2023 😅. If this is the case, and you have made all the technical settings necessary to stake, then you can be designated as a validator, and receive a reward when you validate a block of the Ethereum blockchain. It is this reward which corresponds to the interest generated by staking.
What type of investor is staking suitable for?
In my opinion, staking is one of the fundamentals of investing in cryptocurrencies.
For those who wish to invest for the long term, it is a way to put their money to work by generating a return. Not staking on a long-term crypto investment (when you can) is like letting your money sleep in your current account. This should be avoided ❌!
If you want to learn more about the basics of investing in cryptos, you can sign up for my email program for free. You will receive 1 email per day for 7 days to discover the different facets of crypto investment and my advice.
Notre sélection des 3 meilleures plateformes de staking crypto
1.feel mining
2.bitpanda
3.binance
