What is Staking?

Staking is the process of setting aside cryptocurrency in order to validate transactions made on the Proof of Stake (PoS) blockchain, and is a mechanism for improving the security of the network. When you stake your cryptocurrency, you receive staking rewards in return for your contribution to the blockchain network. The reward is generally represented as a percentage of the amount of cryptocurrency you are staking. In simple terms, staking is similar to placing money in a bank, where you leave your funds there and receive interest in return. The rewards are paid in the same coin that you have staked, for example if you stake ADA, you will receive rewards in ADA. Staking has become a popular way for crypto investors to earn passive income or interest on their digital assets, while they HODL for the long term.

Top Places to Stake Cryptocurrency

#1. Bybit - best place to stake crypto in Australia

Bybit is a secure and reliable crypto exchange in Australia, and thanks to its wide range of Bybit Earn products that enables traders to earn a passive income, it emerges on the top of our list of best places to stake crypto. 

The products it offers include Flexi Savings where you can earn interest on your favorite crypto; Liquidity Mining where you can earn yield derived from trading fees; Dual Asset where you can earn high returns in low-volatility markets; Shark Fin where you can earn guaranteed profits as long as the price of your chosen crypto asset remains within the preset price range; and Launchpool where you can stake and earn free tokens. 

The best thing about Bybit Earn is that there’s a product for everyone, whether you’re looking for something low-risk, for something that gives you high yield, or something that allows you to acquire profits in the short term. For example, if you have a low risk appetite, you can opt for either Flexi Savings or Shark Fin, both of which are principal-guaranteed. Looking for something with high yield? Go for Liquidity Mining or Dual Asset and enjoy up to 524.08% APY.

Excited to start earning with Bybit? Click here to register now and receive $10 FREE Bitcoin when you deposit $100.

#2. CoinSpot - most secure place to stake crypto

CoinSpot is one of the top cryptocurrency exchanges in Australia and also makes our list of best staking. It is Australia's most trusted and secure platform, has been around since 2013, and holds ISO 27001 certification. CoinSpot is perfect for newcomers, because it is easy to use, and offers staking on 21 different coins. 

When you stake your crypto on CoinSpot, there is no lock-in period, which means you have ultimate flexibility. If you decide last minute to withdraw, sell or swap your staked crypto, you can do so without any troubles at all.

If you find yourself stuck at any point, you can easily reach out to the helpful and friendly support team via live chat, or email. You can also follow our step-by-step guide on how to stake with CoinSpot.

For new users of CoinSpot, sign up with our link here, to receive $20 FREE Bitcoin as a generous welcome offer! 

#3. Binance - highest number of staking options

Binance is the world's largest crypto exchange based on trading volume, and is packed full of features including staking. If you have a very diverse portfolio and want to earn interest on all of your coins, Binance would be the most likely place you can achieve that. Although you cannot earn interest on every one of their 600+ coins, they have the highest number of coins that you can stake, with over 70+ options. 

Flexible staking is offered on some coins, and also locked staking for 30, 60 or 90 days. The longer you lock for, the higher the interest rate that you will receive. However, we have noticed that for some popular coins, the 90-day locked options are often sold out. You may need to choose a shorter locked period, and therefore lower interest rate.

Besides staking, there are many other ways to earn money on Binance, which you can read about it in more detail here. Overall, Binance is one of the best methods for earning interest on your crypto.

#4. Crypto.com - best for added benefits while staking

Crypto.com is an excellent app for buying and selling cryptocurrency, as well as staking 47 different coins. When you stake on Crypto.com, you can choose flexible terms (where you can stop staking at any time), or you can lock your coins in for 1 month or 3 months. The longer you choose to lock your crypto, the higher your interest rate will be. You can even stake stablecoins such as TrueAUD, USDC, and USDT which is a great way to earn interest using crypto without worrying about market fluctuations reducing your portfolio value. As you can see in the screenshot below, if you stake stablecoins for 3 months, you receive 10% APY. This is much higher than any interest rates available from banks in today's economic climate.

The biggest drawcard about staking with Crypto.com is the host of added benefits you receive if you stake their native coin, CRO, which has been rising in popularity since Crypto.com paid $700 million for the naming rights of Staples Arena for 20 years. The first benefit is that you receive higher interest rates on all your staked coins if you stake $5,000 worth of CRO. Other benefits include 100% rebate on Spotify and Netflix, 10% rebate on Airbnb and Expedia bookings, up to 5% cashback in CRO when you purchase using their free Visa debit card (loaded with your own AUD, not crypto) and even airport lounge access. 

You can start receiving benefits if you stake just $500 of CRO, and receive the free Ruby Red Visa debit card. You will earn 1% cashback in CRO on all purchases you make. For example, say you load up your Visa debit card with AUD and buy a mobile phone that costs $1,000 using your card, you will receive $10 worth of CRO in your account automatically after you make the purchase. This is a great way to gradually increase your cryptocurrency portfolio over time, without spending any additional money. To read more about Crypto.com, take a look at our in-depth review here.

One thing to remember is that if you lock your staked crypto for either 1 month or 3 months, you are not able to access that until the expiry date has been reached. This means that if the price of your staked coin begins to plummet, you won't be able to sell it before the price drops further. Make sure you weigh up the benefits and risks before locking in your crypto for a fixed term. It may be worth choosing the flexible term, but receive a lower interest rate.

#5. Kraken - best place for beginners to stake crypto

For complete beginners to cryptocurrency and staking, Kraken is a great place to get started. You can easily buy crypto instantly and start staking straight away. There are 10 different cryptocurrencies you can stake, as well as two fiat currencies (USD and EUR).

As you can see in the image above, the interest depends on which coin you are staking, with a maximum of 20% on Kava. You will start earning rewards for your coins within minutes of staking, and you will receive reward payments weekly or twice a week (depending on the crypto), starting straight away. This is an advantage over some other exchanges, where you are locked in and don't receive the rewards until the end of the period.

One criticism I hear about to using Kraken for staking is that there are not as many options as Crypto.com and Binance. Although this may be a valid point, Kraken is a really good starting point for beginners that want to get into staking. They make it very easy, and there is live chat support to assist if you have any questions. For a full review of Kraken, take a look here.

#6. Exodus - best wallet for staking

If you are after a more secure way to stake your cryptocurrency, using a desktop or mobile crypto wallet like Exodus is an excellent choice. Many options for staking require your crypto to be stored on an online exchange which has increased risk, due to the chance of the exchange getting hacked. Exodus wallet is different, because you retain control of your private keys at all times. Exodus allows staking on 8 different cryptocurrencies: ADA, ALGO, ATOM, DAI, ONT, XTZ, VET and SOL, and storage for over 100 more.

As you can see in the screenshot above, the interest rates are quite good, especially for ADA and SOL which are two very popular coins for staking. The interface on Exodus wallet is very intuitive, and it is simple to start staking with the click of a button.

The only real limitation to Exodus wallet is the limited number of staking coins supported, but this number may grow in the future.

Is staking crypto worth it?

Yes, it is worth staking your cryptocurrency if your plan is to hold it for the long term. You may as well grow your crypto portfolio by passive means while it sits there. Depending on the coin you stake, the annual interest you receive can be up to 101%, which is a very good result for doing nothing besides hold the coin.

If you are new to cryptocurrency and you haven't bought any yet, and you want to figure out whether you should buy some so you can stake, that depends on your personal acceptable level of risk. The cryptocurrency market is volatile, and already high-risk as it is, and if you stake your cryptocurrency in a fixed term, then you risk losing money if the price drops and you cannot withdraw it. If you believe in the technology behind cryptocurrency and trust the projects that you are putting money in will be successful in the future, then staking is worth it. Since you will be holding for the long-term, you may as well earn interest on it at a much higher rate than any Australian banks can provide.

Is staking cryptocurrency safe?

Yes, the act of staking cryptocurrency is safe, but the risk of owning cryptocurrency and holding it on an online exchange remains. The price of cryptocurrency can drop dramatically and you can lose a lot of money, or the exchange you store your coins on can get hacked, and you can lose access to your crypto assets. If you want to be safer while you stake, you can use Exodus wallet, where you still retain control of your private keys.

Is staking crypto profitable?

For a long-term investment, staking cryptocurrency is profitable, because you are growing your coins over time, and these are being compounded so you earn even more interest as time goes on. Of course, if the value of your coin increases as well, then your gains are even higher. However, if you plan on quickly making a lot of money, I would say that staking is not profitable in that way.

Where should I buy crypto to stake?

If you don't own any cryptocurrency yet, you can buy some at any of the best cryptocurrency exchanges for Aussies. One of the best options is CoinSpot, which is very user-friendly, offers over 430+ different coins, and staking on 21 cryptocurrencies. CoinSpot also has 24/7 live chat support, an NFT marketplace, and extremely high levels of security.

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