Launched in 2019 to support Binance Smart Chain, BNB coin is currently the most staked and one of the most stable crypto assets. Many investors have concluded that staking BNB is a much better alternative to trading it. In this article, we will present you with the best places to stake Binance coins.
Best Places to Stake BNB Coin
Since the most popular way of staking BNB is by using a crypto exchange, we will present you with our top choices. These are the best crypto exchanges for staking BNB in terms of many essential factors, such as ease of use, security, fees, and rewards.
The best place to stake BNB (Binance Coin) would be using Binance crypto exchange. It implemented the staking feature in March 2021 and allows you to earn rewards between 0.35% and 12.99% APY, depending on whether you choose fixed or flexible staking. However, note that you will need to lock your coins for at least 120 days to receive a reward.
To start staking, the minimum deposit is 0.001 BNB for locked staking, but there is also a maximum limit of 0.5 BNB. If you prefer flexible staking, you should choose BNB vault, but it offers much lower rewards of only 0.35% APY.
You can also stake BNB using Binance’s high-yield dual investment platform. It invites users to commit their BNB coins to earn three-digit APY rewards when the Binance coin reaches a certain price. At the time of writing, the target price is $235 which allows a reward of roughly 130% APY.
Not only does Binance provide higher-than-average rewards, but it also charges no fees for staking BNB. However, you should know that Binance is more suitable for experienced than beginner users, as the interface is somewhat complicated and not easy to use. Binance has different video tutorials about staking, but we found that they still did not explain everything in a way that an entry-level user can fully understand.
If you are looking for a beginner-friendly exchange to stake BNB, then KuCoin might be your ideal choice. It is an exchange based in Hong Kong and is widely known for the variety of coins it supports. Right now, you can trade over 700 different coins and stake over 50. With its fixed and flexible facilities, KuCoin is a good choice for both entry-level and advanced users.
Staking on KuCoin is very simple. You just need to buy Binance tokens or transfer and hold them in your wallet. You can earn up to 8.25% APY by locking BNB coins for only 14 days, and 3.69% APY for staking the coins for 7 days. Finally, you can earn a 1.12% APY reward for flexible staking.
The current rewards percentage won’t go lower until a certain number of coins have been staked, but at the time of writing, only 1% of the quota has been reached for flexible staking. However, it is much different for fixed staking. The quotas fill up quickly, and when we tested it, there were no more spaces for 7-day staking, and the quota for 14-days staking was at 85% capacity.
Still, KuCoin is the best choice for entry-level users who want a no-fuss approach. It provides high staking rewards in an easy to navigate platform.
Crypto.com is a major crypto exchange platform, known for its simplicity of use, low trading fees, and decent staking rewards. Right now, you can earn up to 5% APY for staking BNB tokens on this platform.
However, the platform also offers “soft” staking, which allows users to start earning rewards by holding a certain number of BNB tokens in their Crypto.com wallet. You can earn 0.10-0.25% for flexible staking, 1.00-4.00% for 1-month staking, and 2.00-5.00% for 3-month staking.
On the other hand, higher APY comes with a certain price - you must have already staked or are willing to stake CRO coins. Rewards will be very low if you don’t stake at least $400 worth of CRO, and for the highest APY percentage, you must stake $40,000 worth of CRO.
While the staking requirements on Crypto.com are high, the good thing is that you don’t have to possess a huge technical knowledge to start earning. Also, the platform was first released for mobile devices, and its app is currently one of the best mobile apps for crypto staking or trading. Crypto.com is more suitable for beginners than platforms such as Binance. However, the high CRO staking requirements might not be appealing to users with smaller amounts of capital.
#4. Trust Wallet
Trust Wallet is a software wallet that provides a very high APY percentage of up to 30% when staking. It is a non-custodial wallet and supports over 1 million different crypto assets across different blockchains. You can also use it to buy and sell crypto, and even trade NFTs.
To start staking, you just need to download the mobile app and deposit or buy BNB. Then, you need to go to the Binance website to choose from the list of validators.
However, the security and accessibility of this wallet are still questionable. The application doesn’t have a two-step authentication and is only accessible on smartphones and certain Mac computers. Also, the fact that the app has already been hacked in the past can turn away potential users.
On the other hand, the decentralized nature of TrustWallet might be appealing to certain users. It doesn’t require users to submit any personal information at the start and is only required when users buy crypto assets from partner exchanges. The wallet also doesn’t charge any fees for staking, since it is completely user-owned.
How to Stake BNB?
There are three ways to stake BNB. The first way is to become a validator and stake directly on the Binance Smart Chain. The second way is the most popular and it involves becoming a BNB delegator by staking tokens on one of the crypto exchanges that we mention below. Finally, you can stake BNB by using one of the specialist software wallets. It is easy and simple to stake using any of these three methods, so let’s see how you can do it.
1. Become a Validator
Being a validator requires the installation of the full node, which also requires a powerful computing system. After you create an account, you will need to go to the faucet page to enter the BNB Smart Chain address to obtain the testnet fund, which will then need to be run on the installed full node.
Then, you will need to transfer BNB coins to the Binance Chain after verifying the information. After that, you simply need to declare your candidacy as a validator.
2. Use a Crypto Exchange Platform
This is the ideal choice for entry-level users since it is beginner-friendly and requires almost no technical knowledge. First, you need to create an account on a crypto exchange platform that supports staking. Let’s use Binance as an example:
After you have created and verified your account, buy or transfer BNB coins to the Binance wallet. Go to the website and select “Binance Coin”, then choose between fixed or flexible staking. Enter the desired amount for staking, click “Stake Now”, and that’s it. As simple as that!
3. Stake Using Software Wallet
Staking coins using a software wallet is easier than the previous method, but the whole process of staking can be more involved. Unlike staking on the crypto exchange, this option allows users to select validators. However, there are some things you should consider before you begin.
First, the validator has the ability to choose the minimum and maximum commission rates, and also, you should keep an eye on the voting power of the validator. Besides, you should note that the current APY percentage can vary between 0% and 7.28%.
What is Binance Coin?
Binance Coin is a native coin of the BNB Chain, which focuses on Decentralized Finance applications. The coin is based on the ETH blockchain and is operated by Binance, which is currently the largest crypto exchange platform in the world.
Basically, BNB coin runs on two chains: the Binance Chain and the BNB Smart Chain. The first chain supports DEX and supports the BEP-02 coin standard, but it doesn’t support smart contracts. On the other hand, the BNB Smart Chain supports smart contracts and doesn’t have limited usage like the Binance Chain.
With a 24-hour trading volume of over $1 billion, BNB coin is among the top five crypto assets.
How does Staking Binance Coin Work?
To earn rewards from staking, users can take their BNB coins to become either validators or delegators at the Binance Chain. The chain works on a Proof of Stake protocol and has 41 validators that are responsible for validating transactions and making the network secure by locking their coins. Those validators are elected every 24 hours by delegators, who stake their coins to select validators.
Advantages of Staking Binance Coin
One of the first advantages that we noticed is that Binance is an emerging ecosystem. With the Binance Chain, the facilities to support staking have significantly increased recently, and it seems that they will continue to increase.
Besides, there are more validators than most of the other networks. Right now, the Binance Chain has 41 validators, which is impressive.
Finally, BNB is a high-value crypto asset. At the time of writing, the coin is currently trading at between $220 and $230.
Downsides of Staking Binance Coin
Obviously, staking Binance coin has some disadvantages, too. First, the reward rates are prone to change. They are dictated by the crypto market, which can sometimes be quite volatile.
Another thing we should mention is that locked staking removes the control of assets. On top of that, no matter which crypto exchange or wallet you choose, they can all be susceptible to malicious attacks.
With the ongoing evolution of the Binance chain, the number of validators on the network has increased significantly, which positively affects the APY. All of the platforms that we mentioned are great choices, but the final choice depends upon several factors. We would strongly recommend you check out the Binance platform, but if you are a beginner in staking, you might want to try KuCoin. On the other hand, if you want a simple platform then make sure to check out Crypto.com, or TrustWallet if you want higher rewards.