The first-ever cryptocurrency was introduced to the world in the year 2009 and that first-ever decentralized crypto was Bitcoin. And ever since then, this market has been on the rise. With every passing year, more and more traders showed their interest in this market, and for that reason, there have been many developments in this field. These developments helped traders a lot to earn huge profits out of simple methods. And staking is one of them. For all those traders who are new to the field and don’t know much about crypto staking, then this article is going to be very helpful for you. We are going to look into the concept of staking and see some of the best staking-as-a-service platforms.
What Is Cryptocurrency Staking?
Before the concept of staking was introduced, traders had a conventional method of earning profits which was to buy and sell cryptocurrencies. But that method has many risks. For example, if a trader buys a coin, the price may decrease, which can cause him some great losses. But with crypto staking, this risk has been reduced by a significant amount. So let us start with the basic concept of what staking is.
In the world of crypto trading, staking is known as the concept of holding coins. For example, a trader is owning a certain amount of staking coins. He has to hold those coins for a time period to add the next block to the blockchain, and this way, traders can earn some profits. But not only this, the platforms which offer to stake are also offering rewards to the traders who buy and stake coins.
Before the mechanism of proof-of-stake was introduced, there was a mechanism known as proof-of-work. This mechanism required developers to solve extremely complex mathematical equations through their supercomputers. This method required developers to invest a huge amount in preparing their computers which were able to solve those equations easily, which will help them to add the next block to the chain. POS is a relatively convenient way to validate the blockchain. It simply requires traders to buy a certain amount of coins and hold them. That is all they have to do to validate the next block.
Because POS is extremely convenient, traders prefer this over POW. Regardless of POS being a new concept to the market, still, it is getting pretty popular among experienced traders. Now that you know the basic concept of what staking is let us dive into the topic of this article which is staking-as-a-service platforms.
What Are Staking-as-a-service platforms?
Staking-as-a-service platforms are basically staking services providers who are helping traders to stake POS coins through them. It is not necessary that you need a staking-as-a platform to help you to stake coins, traders can do that on their own as well, but that will require some complexities in it. The whole concept of staking-as-a-service platforms is to help traders who are not that experienced and don’t know much about the staking mechanism are able to stake easily. Through these platforms, traders can stake their preferred POS coins with total ease, and they don’t even need to get into the technicalities of staking.
Staking-as-a-service platforms are working to help traders. In return, they charge a very reasonable price. Usually, that price is taken from the staking reward that traders earn with the help of the staking-as-a-service platform. The traders who are not that experienced or are not aware of the technicalities involved in staking can now easily stake coins with these platforms. If you are wondering that how easy it is now to stake POS coins, then let me tell you, the traders who are using staking-as-a-service platforms are just required to buy a certain amount of POS coins, these coins are kept in the account of the traders, and at the end, they get rewards in the form of tokens. These tokens are usually consumed by just traders, but staking-as-a-service platforms take a very hefty amount of the total reward from that token. But what they provide is very big. All of the technical parts of the staking process is taken care of by these platforms.
These platforms have all the gadgets and experience which a new trader lacks. The team is working side by side to help new traders to stake POS coins with total ease. But in order to start staking with such ease, first, you have to find a platform that is offering this service, as many exchanges and brokers are also providing this service but what staking-as-a-service platform is providing is simply remarkable. And I have done research to gather the names of top staking-as-a-service platforms which are working day and night to provide their services to the traders. But before we get into the list, I would like to clarify some of the popular terms which revolve among traders. “Soft staking” is a term often used for this type of staking, which means if a trader is working with a platform that is going to help that trader with the technical part, and all that trader has to do is invest is known as soft staking. The concept of soft staking has become extremely popular because this allows new as well as experienced traders to stake with complete convenience. Just imagine you can bypass all of the technical work that is holding you back from investing in POS coins. Yes, that is right, there are many traders who are hesitant to invest in POS mechanism because they think that they lack the experience and technology required to stake a coin, but with these platforms, traders will be able to change this concept and stake POS coins by just going to the platform and investing their money in it.
As we have discussed soft staking, there is another term that is often confused with soft staking, and that is “exchange staking”. This term is basically a concept where different exchanges are providing the same services as staking-as-a-service platforms does. In fact, these exchanges can also be referred to as staking-as-a-service platforms if they are providing a platform where traders can come and stake POS coins without getting into the technicalities. So let us first see a list of the top 7 staking-as-a-service platforms:
Top 7 Staking-as-a-service Platforms
· Figment Networks
The first one on the list is Figment Networks. This is a platform that originated in Canada. Even though this platform is not as old as some other platforms, that doesn’t mean that it is less than any other well-known platforms. In Fact, it is on the number one of this list that proves the credibility of this platform. The platform was introduced in 2019 with an aim to provide the best platform to the traders who want to stake POS coins.
This platform is providing the latest technology of tools and software, which are going to help new traders to stake POS efficiently. The POS coins that are being offered on this platform include one of the most famous cryptocurrency Ethereum, Tezos, Polkadot, Livepeer, Solana, Algorand and many more as well. This platform is kept on the top because of the very low staking fees, which is 0% to a maximum of 15%, which is most competitive, and no other platform is offering such services at such a low price.
The second one on the list is MyContainer. This is a platform that originated in Estonia, and within a very short period of time, it gained enough popularity that many traders prefer this platform over any other staking-as-a-service platforms. The main reason for the popularity and why most traders prefer this platform over any other is the very user-friendly interface. The platform knows that there are some traders who are not much aware of crypto staking, so this platform is providing a very convenient platform where traders can come and stake POS coins.
The platform was founded in 2019 and is gaining popularity every day among experienced but especially new traders because of its user-friendly platform. MyCointainer offers a wide variety of assets to stake, which includes Phore, Bitbay, PinkCoin, and many more as well. The staking fees of this platform vary from 0% to 28%.
· Stake Capital
The third one on the list is Stake Capital. It was founded in 2019 and has had many traders as their customers since then. This provider should be on this list because of its latest technology which it has integrated with its platform. Stake Capital has all of the latest technology and networks for staking, which is going to help traders stake their preferred POS coins efficiently.
The staking fee of this platform is kept as low as 0% to 10%, which is very competitive on this list, it is going to help traders to stake POS coins by paying the minimum amount of profit to the platform, and most of the profit is dispatched to the trader. It offers Loom network, Livepeer, Idex and many more POS coins on its platform.
This platform was initiated in South Korea, and it was very popular among the traders of South Korea in the beginning, but as time went on, it expanded its roots to other parts of the country as well, and now many traders who are located in the different parts of the world prefer Stake.Fish as their staking-as-a-service platform. It is one of the best platforms which traders can use to stake their preferred POS coins. The interface of this platform is kept extremely simple and user-friendly, which will give traders that ultimate ease when they are staking coins.
The platform was founded in 2019, and the prices are kept slightly higher than others on this list. But the prices justify the services that Stake.Fish is providing to its customers. It has the latest technology and one of the best customer service support, which helps traders to stake POS coins and counter any errors faced during the process.
The platform is offering Algorand, Cardano, Solana, Kava, and many other POS coins to the traders.
The fifth platform on this list is Staked, which was founded in the city of the United States Of America, “New York”. This platform has relatively much higher staking fees which vary around 0% to 54%, which means that the platform can charge half of the staking rewards from the traders. But this price is justified as it is providing one of the best staking platforms and the most popular POS coins to stake. The platform is claiming 5% to 100% of secure compounding of POS coins which is quite promising for a platform that was just started two years ago in 2019. The most popular POS coins are listed on this platform, for example, Tezos, Decred, Cosmos, and many others as well.
This platform is a Germany based staking-as-a-service platform that is working in the market to compete with some of the best providers all over the world. One of the distinctive features of the Staking lab is the ability to host master nodes, these master nodes can be hosted for a variety of POS coins, and developers who are willing to host are welcomed here. The interface of the platform is kept extremely simple, which is going to enhance the experience of traders as well as developers.
The staking fee of this platform is fixed at the rate of 7.5%, which is surprisingly cheap. There are many other platforms that are offering the same or even fewer features to the traders but at a much higher and variable rate. Stakinglab is offering its services in Phore, Reddcoin, and many more popular and potent POS coins.
· Dokia Capital
This platform was founded back in 2019 in Bucharest. It is at the last of this list, but that doesn’t mean it lacks anything which others are providing. Because this platform is not so popular among experienced traders, Dokia Capital is not getting the audience that it deserves, but it is changing at a very rapid pace. With every passing day, more and more traders are registering with this platform because of the staking prices. It starts from 0% and goes maximum up to 15% which is quite competitive among this list. At this price, the Dokia Capital is offering some of the most popular POS coins such as Cosmos, NEAR protocol, Solana, and many other popular options as well.
Top 3 Exchanges offering “Exchange Staking”
As we have discussed earlier, there are two types of platforms that are offering to stake. The first one is the staking-as-a-service platforms which are specialised in only offering a platform where traders can stake POS coins with ease. The second type is exchanges which are allowing traders to stake POS coins. These platforms don’t only offer a platform to stake POS coins but also provide other services to the traders as well which we are going to be discussed below.
Binance is one of the best and top cryptocurrency exchanges that a trader can find in the world of cryptocurrencies. It was founded back in 2017 and has become one of the top crypto exchanges. Binance specialises in providing a platform to exchange different currencies with trading assets, but not only that, but Binance is also offering staking features that allow traders to stake POS coins very easily and conveniently.
The platform is offering two types of staking methods. The first one is the traditional method in which traders are required to buy POS coins and hold them for a certain period. In return, they will get rewards in the form of tokens. But Binance is also offering DeFi projects to help experienced and exploring traders to test their luck through this method. The platform is offering its services without charging any fees, which makes it one of the easiest choices to make while choosing your staking platform.
If you are in the field of crypto trading, then you must have heard of Coinbase. It is the second on the list after the Binance exchange, and it is competing with the top exchanges and giving a really hard time to others. The platform was founded back in 2011 and has been working in the market for more than ten years now. The platform is offering traders to stake three major POS coins, which are Cosmos, Ethereum, and Tezos, with a staking fee of 20% to 25% from the rewards.
The third and the last one on this list is KuCoin which was founded in Singapore in 2013. The exchange was first providing its services as a crypto exchange, but recently, in 2019, when the POS mechanism gained enough popularity, this platform started to offer POS coins to the stake. The platform has a wide variety of POS coins listed on its platform to stake. This extensive list includes Algorand, Cosmos, Tron, and many other popular and less popular but potent POS coins as well.
It should be kept in mind that while choosing any of the above-listed options, you should be aware of which asset you are looking to stake. If a platform is offering your preferred POS coin, then you should make your decision wisely.