Staking cryptocurrency: where can you stake your coins?

In this blog:

• What is staking
• Why should I stake?
• Custodial vs. Non-Custodial
• Popular Custodial Solutions
• Popular Non-custodial Solutions
• Making a choice!

What is staking?

We’ve written extensively about the technical side of staking, what a staking wallet is, and where you should start. We think those blogs are worth your time; however, if you’re busy, here’s a brief refresher on staking:

Stakers validate transactions to keep the blockchain safe. Stakers work collaboratively to contribute to the health of the network by validating transactions and adding new blocks. Stakers are required to set aside a ‘stake’ of the currency they are securing. If you are staking 10% of the coins on a network, you can validate 10% of transactions. Stakers then receive rewards in the native currency.

Why should I stake?

Where do we start? Well, there’s the positive effect staking has on the collective. The more people staking, the more secure and robust that network is. Many crypto enthusiasts are incredibly passionate about keeping the network safe. However, for most people, this feel-good reason isn’t always enough. Luckily for them, staking rewards you in the currency you're helping to secure, so it's a win-win! If you’re wanting to know how to stake crypto, read our introductory guide to staking.

Custodial vs. non-custodial

We will always champion non-custodial solutions. There are secure custodial solutions out there, but we believe in the user having complete control of their financial assets. However, some reputable custodial solutions have made our list. As always, this is not financial advice, and we strongly suggest that you do your due diligence!

Popular custodial solutions

• Coinbase staking: Coinbase is as close to a household name as you will get in cryptocurrency. They pay close attention to the user experience, and their onboarding is great. If you’re overwhelmed by cryptocurrency, coinbase is a fantastic place to start.
• Binance: Naturally on the list, Binance is the largest exchange in the world. You can stake Bitcoin and other non-POS assets through their custodial DeFi staking service.
• StakeHound: Bridging the gap between staking and DeFi (decentralized finance), Stakehound offers a secure custodial staking solution using partners who allow offline custody of coins and full insurance on digital assets. An excellent choice for those who want secure custodial solutions.

Popular non-custodial solutions

• Ledger: one of the first hardware wallets around, Ledger offers non-custodial staking through their online platform. Ledger allows you to stake your coins easily while maintaining complete security and control.
• Divi Wallet: Sure, we’re biased. But Divi is the best. Here, you can use staking vaults to stake without an internet connection, right from your mobile, with complete control of your coins.

Time to make a choice!

There is only one person who can determine your risk tolerance or what will work. That person is you. Cryptocurrency is about self-empowerment and allowing users to choose the solutions that work for them. Never base your opinion on one blog or one person. If you’re interested in understanding the risks of staking crypto and how you can mitigate them, read our blog on the subject. We can’t tell you what the best staking coins are (except for Divi), but we can help you understand how to make an informed decision on where to stake! There is an incredible amount of information on the internet about staking, so take your time to learn the risks and best practices, so you can make the most informed decision!

If you know where you’re going to stake but need the best staking crypto-list to kickstart your research, start with these coins:

• Cardano
• Tezos
• Divi
• Cosmos
• Tron
• Algorand

Upon release, the Divi Wallet will provide the best staking experience in the crypto space. Make sure you don’t miss it. Sign up for updates at wallet.diviproject.org.