Where to Stake Polkadot

Where to Stake Polkadot

Robert McDougall 

January 2, 2023

Cryptocurrency

Polkadot (DOT) is among the most popular cryptocurrencies to stake and earn income from. It can be staked using various supported cryptocurrency staking platforms or on-chain wallets. In this article, we are going to cover some of the best places for staking Polkadot.

Top 8 Places To Stake Polkadot in 2023

1. Binance (Best Overall)

One of the main things that makes Binance the best choice overall are its above-average rewards for DOT staking. The Polkadot flexible savings are also great for beginners who want to earn some passive income without locking their assets. This cryptocurrency exchange platform allows stakers to earn up to 36.79% APY. 

However, Binance is not available in the US. Moreover, even though the platform offers convenient features for beginners, the interface can be a bit complicated for newbies. If you are new to crypto, we recommend you check out the other platforms on this list.

Advantages
  • Around 125 cryptocurrencies available to stake
  • Largest crypto exchange in the world
  • Very secure and reliable
Disadvantages
  • Not available in the US

 2. Bybit (Best Short-Term Option)

Bybit makes an excellent choice for short-term flexible staking. It is widely-known as an outstanding trading platform for its liquidity and trading volume as well as crypto margin. Moreover, traders who opt for Bybit will be able to earn rewards for staking not only Polkadot, but several other tokens as well.

The estimated reward for staking this particular token is 1.77% APY, which is way lower than most of its competitors. The low reward for staking this currency is attributed to the absence of any locked staking products. The only way to go with this platform is flexible staking. But keep in mind that the entry barrier for staking DOT is much lower than on most other platforms – a minimum of 2 DOT.

Advantages
  • High bonuses
  • Very low entry barrier for DOT staking
  • Outstanding liquidity and trading volume
Disadvantages
  • Not the best option for beginners

3. Ledger Nano Wallet (Best Security)

Many people consider the Ledger Nano Wallet to be one of the best physical assets for holding and staking Polkadot. As this hardware crypto wallet stakes DOT tokens offline, it is known for being secure and reliable. On average, Ledger users can earn up to 14% APY for staking. However, to start staking DOT, you need to stake around 80 DOT tokens. 

Keep in mind that even though there are no staking commissions, the Ledger Nano Wallet device is not the most ideal option for beginners. The main reason is there is an upfront cost to purchase the device. This can be a downside for a lot of people who have just started learning about staking. 

Advantages
  • Extremely reliable and secure
  • A variety of supported coins
  • Small and minimalistic design
Disadvantages
  • Not the most affordable option

4. Kraken (Best For USA)

If simplicity is what you are looking for, Kraken may be the most ideal option. It is one of the world’s leading exchanges and is well-known for its simple and straightforward interface and design. With Kraken you can stake Polkadot, as well as 11 other assets and hold them in the Kraken Wallet. Plus, you can earn up to 12% APY by staking DOT tokens. 

If at some point you decide to leave the staking position, you can easily do so by transferring tokens from the staking to the spot wallet. The best thing is that there are no locked periods. You can exit the staking position any time you want. However, a little downside you should keep in mind is that Kraken charges a 15% commission on all staking assets.

Advantages
  • Very simple and straightforward interface
  • No locked periods
  • A broad selection of digital assets
Disadvantages
  • Kraken charges a 15% commission on staking assets

5. Crypto.com (Best Mobile App)

Crypto.com is the favorite choice of a lot of people. It is well-known for its extensive line of services such as an NFT marketplace, spot trading, Visa crypto card, Crypto Earn, etc. This platform was primarily made for mobile phones and it allows not only seasoned investors, but beginners as well to trade and earn rewards on various coins. This platform is also popular because users only need 1 DOT to start staking. 

If you want to go with flexible staking, you can earn up to 1.45% APY. However, if you opt for 1-month or 3-month staking, you can earn as high as 14.5%. Still, the difference between rewards is often very wide as it depends on CRO tokens. So, if you want to earn the highest APY possible, you need to stake CRO tokens worth $400,000.

Advantages
  • Best crypto mobile app
  • Great for both experienced investors and beginners
  • No platform commissions
Disadvantages
  • Some services are not offered in the US

6. KuCoin (Best For Beginners)

Supporting over 700 cryptocurrencies and with its trading volume exceeding $7 billion, KuCoin is one of the preferred staking platforms. The flexible staking option allows users to earn up to 7.31% APY. To stake Polkadot on this platform you must use their trading platform called Pool-X. The minimum staking requirement is only 0.2 DOT. 

Keep in mind that unlike with regular staking, KuCoin users receive their rewards only once the lease period is over. In other words, you stake your tokens in a project and after the project wins the slot bid, the rewards are generated. However, if it fails to win the slot bid, the tokens are returned to the user’s account. A little downside to this platform is the 15% commission fee. 

Advantages
  • Extensive line of coins
  • Great customer support
  • Quite simple to use
Disadvantages
  • Has the commission fee of over 15%

7. CEX.IO (Best For Flexible Staking)

UK-based cryptocurrency exchange platform CEX.IO allows investors to convert their fiat money into digital assets. It makes a great choice not only for beginners but for seasoned investors as well. CEX.IO also features convenient tools that allow users to analyze the market before investing in crypto. 

The minimum required to start staking Polkadot is only 1 DOT token. There are no fees or commissions that will eat into your staking rewards. Keep in mind that this platform doesn’t have liquidity as high as some other leading exchanges.

Advantages
  • Licensed and regulated
  • Supports over 200 cryptocurrencies
  • No hacks on this platform have been reported so far
Disadvantages
  • Has the commission fee of over 15%

8. Bitfinex (Lowest amount of DOT Required)

Bitfinex has almost everything you may be looking for - high trading volume, high traffic, and high liquidity. It also has all the top-shelf features that make it stand out from the crowd. These include margin trading, advanced trading platform, an OTC market, a P2P financing utility, among others. 

If you want to earn up to 7% APY by staking Polkadot, you simply need to hold the DOT tokens in the Polkadot wallet. However, the greatest thing about this platform is that there are no minimum requirements for staking. Even if you invested just 1 DOT, you would have 1.7 DOT by the end of the year. Keep in mind that the rewards for DOT are very low compared to Kraken and Binance, for instance.

Advantages
  • Very high liquidity
  • Great option for experienced traders
  • No minimum DOT required
Disadvantages
  • Rewards for DOT are not that high

What Is Polkadot?

Created in 2016, Polkadot is a cryptocurrency that aims to provide a web application or decentralized internet that enables blockchain networks to communicate with each other. Its native currency is the DOT token, which is primarily used to connect multiple chains into one network, allowing parallel and flawless transactions.

Can You Stake Polkadot?

People with Polkadot can stake their tokens, which contribute to the governance of the blockchain network. They will also receive rewards paid in DOT tokens; rewards can vary depending on the staking platform you are using. The most common methods of staking DOT include using a hardware wallet, a crypto exchange, or the network’s software Polkadot-JS.

Risks Of Staking Polkadot

The crypto business always comes with certain risks that you must take into consideration before you start. Here are the main risks you should consider:

  • Locked staking: Not all platforms feature the flexible staking option. Some offer only locked staking, meaning you can’t do anything with the assets during the lock-in period.
  • Hacking: If you are not staking Polkadot on a hardware wallet, your assets are more vulnerable to hacking attempts. Even though the crypto platforms have dozens of security measures, sometimes they are not enough to prevent hacks.
  • Worse punishment for high stakes: Those with larger staking pools usually receive worse penalties than those with the less popular ones.

Our Bottom Line

When staking Polkadot, you get a chance to earn passive income, without actually interacting with the crypto economy. Still, investors using official Polkadot-JS or hardware wallets need to choose the right validators, as it helps maintain the future of the Polkadot ecosystem. 

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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