Best place to stake Polygon (MATIC)

Best place to stake Polygon (MATIC)

Robert McDougall 

January 23, 2023

Cryptocurrency

Staking in crypto has already become a popular way to earn passive income. The process of staking begins when an investor delegates or locks up their coins for a certain period of time to support the network. In exchange, investors earn rewards or returns on their investments. Being the ninth most staked coin at the time of writing, Polygon (MATIC) is one of the best coins for staking and earning rewards. In this article, we will present you with the best places to stake Polygon and clarify everything that you need to know.

Best Places to Stake MATIC (Polygon) in 2023

  1. Binance - Best place to stake MATIC 
  2. Bybit - Runner-up best place to stake MATIC 
  3. Crypto.com - Best app to stake MATIC
  4. KuCoin 
  5. Lido Finance
  6. MetaMask

Where to Stake Polygon?

Below is the list of the best places you can stake Polygon. We have reviewed these platforms with various factors in mind, such as total supply, staked amount, ease of use, and some other useful features.

#1. Binance

Binance is the best place to stake Polygon overall, considering all that it has to offer. Launched in 2017, it is the largest centralized exchange by trading volume, and it also allows users to stake a wide range of cryptocurrencies, including MATIC on the Polygon network.

One great thing about staking MATIC on Binance is that you will earn higher rewards if you stake for longer periods. For example, when you stake for 30, 60, or 90 days, you earn rewards of 5.2%, 6.47%, and 19.6% respectively.

Another advantage about staking Polygon (MATIC) on Binance is that you can keep 100% of your gains, as Binance won’t charge any fees. However, consider that it will take 2-3 days to redeem your staked assets. Despite this little drawback, Binance is still our #1 choice for staking Polygon.

#2. Bybit

Bybit is a popular platform, well-known for its broad variety of markets and trading pairs you can choose from. Based in Singapore, the platform supports traders from all over the world, including Russia, Japan, and South Korea.

Bybit has recently introduced staking, which offers rewards of 0.55% APY for staking Polygon. However, the only staking package for Polygon is a flexible term, so the rewards are generally lower compared to Binance which has fixed staking durations. A good thing is that rewards will stack on a daily basis, and you can withdraw them anytime.

There is a minimum staking amount of 150 MATIC coins, but also, there is a maximum investment of 30,000 coins that can be delegated. Overall, the platform is best suited for frequent traders who have at least some experience with staking.

#3. Crypto.com

Launched in 2016, Crypto.com is another great option for staking MATIC. The platform offers over 250+ coins you can trade, and has a very intuitive interface. Staking is done through the mobile app, but note that rewards for staking can vary. Factors like the lockup period, the number of coins available in the wallet, and the USD value of your CRO coin all have an effect on the APY amount.

There are three lockup periods on Crypto.com. There is a one-month fixed term, a three-month fixed term, and a flexible agreement. Of course, fixed staking yields better rewards, but you can’t withdraw your money until the term expires. However, if you also stake CRO coins, you will get certain bonuses.

The higher the number of CRO tokens staked, the higher rewards you will get for staking other coins, including MATIC. For example, let’s say that you want to stake $1,000 worth of MATIC. If you have less than $4,000 CRO staked, the APY will be 11%, and a 2% bonus reward paid in CRO.

However, if you stake $40,000 or more worth of CRO, the APY will be 12.5%. On top of that, the rewards are paid weekly, and the platform doesn’t charge anything for staking Polygon. Another nice thing is that with a debit card, you can spend your fiat currency and get up to 5% cashback paid in CRO.

#4. KuCoin

KuCoin is a well-known platform for its advanced trading features, wide range of 700+ tokens, and very low fees. It offers many different coins for staking, including MATIC, BNB, and more. Both flexible and time-bound staking is available, which allows users to stake Polygon coins effortlessly.

Flexible staking currently offers only 4.13% ROI, which isn’t much compared to other platforms. However, KuCoin features several promotions on which you can earn up to 12.34% APY. Also, a two-week option offers an APY of 9.27%, which is quite decent.

On top of that, the platform charges only 8% of the rewards in fees. Considering the APY and fees ratio, this platform could be an excellent choice for you to start staking.

#5. Lido Finance

Lido is a platform that aims to make staking as simple as possible while maintaining the security of its users’ funds. However, an interesting thing about this platform is its liquidity staking system.

The system allows you to mint new coins based on your staked assets on a one-to-one basis. These coins track the same pricing data and you can redeem them for the original coin. You will notice that they are usually identified as “st” in front of the ticker symbol.

If you stake MATIC on this platform, you will be rewarded with stMATIC coins. Then, you can use those coins on a secondary market, such as DeFi to generate multiple yields on your initial investments.

The platform offers an APY of 8.7%, and there are no lockup periods. You can literally withdraw your coins whenever you want. However, there is a fee of 10% on all earnings, which is also the highest staking fee on this list.

#6. MetaMask

Being an Ethereum digital wallet, MetaMask is a digital wallet that mostly interacts with the Ethereum network. However, it is also customizable with different blockchain networks as well. Although staking is not a native feature of this wallet, you can integrate it into some host network and put idle crypto to work.

The average APY for staking with MetaMask is around 6.52%. To start staking, you first need to go to the official Polygon Staking website and select a validator. Then, just tap on “Delegate” to connect your wallet that contains Polygon coins.

However, there is a thing to note; this type of staking can be expensive since all transactions must be completed using the Ethereum blockchain. It means that you need to own ETH to pay gas fees. A good thing about MetaMask is that you won’t have to pay any fees for staking.

What is MATIC?

MATIC is the native coin on the Polygon network, and powers most network activities, such as staking and governance. It was also one of the top-performing digital assets in 2021, which definitely shows its potential. In 2019, the coin’s lowest worth was $0.003021, and two years later, it hit its all-time high in December and was worth $2.92.

How does Polygon Staking Work?

Staking Polygon coins involves locking up the coins for a determined period in order to secure the Polygon network. This leads to decentralizing the platform and making it much more difficult to hack.

When investors lock up their MATIC coins, they delegate the coins to some of the validators to run nodes on the network. These nodes are essential for the network’s security, and in return, the earned rewards are shared between the investors.

Investors can also become delegators and collaborate with others to secure the Polygon network. Simply put, delegators are crypto users who don’t run the nodes themselves, usually because of the lack of required hardware, or the lack of huge minimum required money that needs to be invested.

Instead, they “delegate” their coins to a validator and get a certain percentage as a reward. However, sharing rewards with a validator can sometimes be risky. If a validator gets banned or commits a punishable behavior, delegators will also lose the money they invested.

How Much Can You Earn Staking Polygon (MATIC)?

The answer to this greatly depends on the number of active validators on the network. However, the Polygon network has already allocated about 12% of its 10 billion tokens as a reward for staking.

At this point, the APY percentage on the Polygon network is 14.3% for both validators and delegators. Note that some of the top-performing crypto exchange platforms offer APY percentages of between 4% and 19%, usually within the first three-month period.

Pros of Staking Polygon

Obviously, the primary benefit of staking Polygon is that you get a passive income for doing almost nothing. Another benefit is that you can use MATIC to vote. The fact is that MATIC doesn’t perform only one function, so apart from using it to get rewards, you can vote and contribute to any proposals on upcoming projects.

Staking Polygon also makes you contribute to the network’s success. The mission of staking is to secure the network, which is crucial to ensure that the network doesn’t have a single chance of being hacked.

Cons of Staking Polygon

The primary drawback of staking MATIC is that you won’t have access to your coins for a certain period. While some platforms offer flexible staking, investors still won’t be able to do much until the locking period ends.

Another thing to keep in mind is that the value can drop at any time while your coins are locked. Since you can’t trade or transfer assets during the lockup period, you might lose some of the fiat assets you used to buy crypto.

Conclusion

Polygon (MATIC) is one of the top-performing crypto assets today, and you can’t go wrong by staking with any of the platforms on our list. Binance is our #1 choice, but you might find another platform more suitable for you.

Most platforms also don’t charge any fees for staking. KuCoin charges 8% maintenance fees, but it also provides a great ratio of APY and fees. Lido Finance has the highest fees of 10%.


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