Do you own or plan to own cryptocurrency soon?
If the answer is yes, you might want to earn extra cash while you HODL on for the longer term. Crypto staking is a great way to earn income from just holding cryptocurrency.
Below, I take you through what staking is and walk you through Australia's best Crypto staking platforms for 2022.
What is Crypto staking?
Crypto staking is mainly used in verifying transactions in cryptocurrency. It is the process of locking up cryptocurrency to a blockchain network to validate transactions or mint new tokens. It enables those participating to earn a reward.
Staking uses a consensus system referred to as Proof of Stake (PoS). This system works by stakers validating blocks by depositing their tokens as collateral, ensuring an honest approach when validating. The reward is given when the task is complete in the native cryptocurrency.
Setting up a staking system involves knowledge of the cryptocurrencies infrastructure and maintaining and running a node yourself. There is an easier way, and it's as simple as:
1) choosing a cryptocurrency exchange that enables staking,
2) picking the cryptocurrency to stake and the amount
3) then pressing submit
Best Crypto Staking platforms Australia
1. Swyftx
Swyftx is my top choice as the best staking platform in Australia and who also operates in New Zealand. It is friendly to first-time investors and offers over 300 different coins to buy and sell and staking on 15 currencies. It is cheap to start since the minimum amount you need to stake is just $1. It offers flexible staking with no lock-in period. They have a limited number of staking options compared to other staking options. Swyftx also accepts Trust accounts as well as personal accounts. Customer support is 10/10
Pros | Cons |
No Lock in periods | Limited number of staking options |
Highest APY is 63% | |
$10 BTC for free on sign up | |
Get $10 Bitcoin free on sign using the Link below
2. Crypto.com
This app is an excellent app for buying and selling cryptocurrency. It offers to stake for 47 different coins. While staking using crypto, the longer the crypto is locked, the higher the interest rates. But one thing to note is that while you close staked crypto, the stake is inaccessible until the expiry date has been reached. Crypto also earns high-interest rates on stable coins.
Pros | Cons |
Crypto Visa card available | Lock up periods of 3 months |
25 USD when you stake for a Ruby card | |
47 coins to stake | |
3. Binance
This is the world's largest crypto exchange based on the volume of trades. Investors who have a diverse investment and want to earn good interest binance help achieve that. Binance stakes over 88 different coins and offers flexible and locked staking options. Most popularly staked cryptocurrencies are sometimes a problem to stake since they are occasionally at capacity.
Pros | Cons |
88 coins to stake | Top staking options may be at capacity |
Good platform for new & experienced | |
Multi-feature platform with many options | |
4. Coinspot
Coinspot is one of the largest crypto exchanges in Australia based on the volume of users. The platform itself is one of the most user-friendly platforms, and customer support is 10/10. Coinsport has one of the widest ranges of cryptocurrencies, with over 330+ to choose from. There are only 6 cryptocurrencies to stake, but there are no lock-in periods.
Pros | Cons |
Most popular Crypto platform in Australia | Limited staking options |
$10 Bitcoin free on sign up | |
330+ cryptocurrencies | |
Referral code: Y9V27J
5. Zipmex
Zipmex is relatively new in Australia but offers a very simple way of buying, selling and earning rewards in crypto. Zipmex has over 17 cryptos which you can trade and supported by their app. There are lock-in periods, but Zipmex provides the opportunity to earn on the most popular coins such as Bitcoin and Ethereum. ZMT is the Zipmex propriety token, and high interest can be earned on this.
Pros | Cons |
Free ZMT when you lock 250 ZMT | Lock up periods apply |
Earn on BTC and ETH | |
Easy to use and quick sign up | |
*Lock 250 ZMT and you earn 2.5 ZMT instantly. Lock 5,000 ZMT & you earn 25 ZMT
Is staking profitable?
If you intend to own Crypto for the long term, this is a great way to earn "interest" while owning cryptocurrency. These earnings are usually paid daily and can be compounded, so you earn more as time goes on. Some popular staking coins include:
Kava @20% APY*
Polkadot @ 12-12.5% APY
Polygon Matic @11-12% APY
Solana @ 6-6.5% APY
Cardano @ 4-4.5% APY
*APY = Annual percentage yield
Risks involved
Though crypto staking offers above-average returns for crypto investors, it is associated with risks that you need to be aware of.
1. Market Risk
Market risk is one of the most considerable risks many investors face when staking. Crypto investors are majorly advised to choose the assets they decide to stake keenly. The illiquidity of investments makes it difficult to sell to your investment; therefore, staking liquid assets with high trading volumes reduces liquidity risk.
2. Lock up periods
When staking assets with lockup periods may make it difficult to assess your staked assets. One needs to stake assets without a lockup period to mitigate lockup risk.
3. Delayed Staking rewards
Some staking assets delay staking rewards making skaters wait to receive their prizes. To avoid delays, investors choose stake assets they pay on bonuses daily.
In Summary
Crypto staking will continue to grow in Australia, so finding the best platform is essential. My top choice is Swyftx because it is straightforward, has good staking options and customer support is always on hand to answer any question quickly.
Comments