Staking is a popular option for cryptocurrency owners because it can generate passive income for individuals who want to become full-fledged validators or join a staking pool. Stake a variety of famous cryptocurrencies, including Polkadot. But which platforms are best for Polkadot staking, and why?
Is There a Minimum Required to Stake DOT?
Remember the 120 DOT minimum requirement before becoming a validator by staking Polkadot. This amounts to about $4,700 at the time of writing, so be sure you can invest that amount. You can, however, join a staking pool with much less (though the minimum requirements vary depending on the platform you use).
Binance is a well-known cryptocurrency exchange. It was founded in 2017 but is already one of the most popular cryptocurrency exchanges. Binance currently has a trading volume of more than $114 billion, allowing users to stake several crypto coins, including Polkadot. So, why did you choose Binance?
To begin with, there is no minimum fund requirement for staking Polkadot on Binance, making it financially accessible to everyone. Second, Binance rewards Polkadot staking through its DOT slot or para chain auctions. This entails staking Polkadot for a project you’re interested in so that it can become a para chain. (A para chain is a project-specific blockchain that works with the main Polkadot network.)
Binance is offering a $30 million Warm-Up incentive for individuals who stake their Polkadot in one click beginning November 4, 2021 (divided among all participants). Good! You gain tokens from projects that win the auction, but this can sometimes be a gamble.
The KuCoin exchange was founded in Hong Kong and is well renowned for having one of the world’s most amazing and extensive trading pair offerings. The platform presently has an amazing $6.5 billion in trade volume. It allows users to stake numerous crypto coins, including Polkadot, with daily rewards ranging from five to fourteen percent of the amount placed. Furthermore, you don’t have to lock up your staked funds when doing this.
Pool-X, a trading platform available on the KuCoin exchange, is required to stake in this manner. You can also use Kucoin’s para-chain slot auctions to stake your DOT. There are now a variety of different projects available for bidding on KuCoin. This operates similarly to the para-chain auctions hosted on Binance’s exchange platform. However, remember that your project may not win and you may not receive any rewards.
Kraken’s cryptocurrency exchange is one of the greatest places to stake cryptocurrency in general. It’s a well-known and trustworthy exchange operating for almost a decade. Since its inception, it has become a tremendously popular platform for buying, selling, and staking various cryptocurrencies, with a current trade volume of over $2 billion. But what makes Kraken so good at staking Polkadot in particular?
It provides excellent rewards for staking Polkadot. Currently, you can get a yearly reward of 12% of your staked Polkadot, one of the highest reward percentages Kraken offers! In addition, the exchange’s staking minimum is only 0.2 DOT, so you don’t need much money to start staking Polkadot on Kraken.
However, staking on Kraken is costly. To avoid a bad surprise at the end of your staking period, the exchange now takes a 15% of your total annual earnings. There are other exchanges and platforms that do not charge a fee for staking, so if you want to keep the entirety of your rewards, it may be worth examining those before attempting Kraken.
4. Lido (and Moonbeam)
Unlike the first three platforms described here, Lido is not a cryptocurrency exchange. Rather, it is a platform for liquid staking. In September 2021, the platform partnered with Moonbeam, a Polkadot smart contract platform, and stated that users would soon be able to join in staking their DOT funds.
Though you can’t yet stake your Polkadot on Lido and Moonbeam, the platforms are expected to provide users with a mechanism to stake their DOT funds while also obtaining liquidity for these funds. We’ll have to wait and see if these platforms deliver on their promises to users.
Polkadot.js, in a nutshell, is a browser plugin that controls your cryptocurrency accounts and transactions. It is not a cryptocurrency exchange or a liquid staking platform, but it allows users to stake DOT.
Polkadot suggests creating two accounts: a stash account and a controller account. It is also recommended that you have multiple DOT in your controller account as well as a small amount of DOT in your stash account. If you choose to stake on Polkadot.js, you can expect a 10% return on your original staked tokens. Remember that this is less than other platforms offer, like Bitfinex or Kraken.
Bitfinex, founded in 2012 as a peer-to-peer Bitcoin exchange, is another popular trading platform. It has developed enormously since then and has a significant trade turnover of around $1.7 billion. Bitfinex presently allows you to purchase and sell various coins, including DOT. Furthermore, you can stake your Polkadot funds on the Bitfinex platform.
Staking your DOT on Bitfinex can earn you up to 14% in annual rewards, and there are no staking costs. However, Bitfinex will lock up your DOT tokens for the mandatory staking period. However, the exchange states that your funds will be carefully stored in cold wallets (which are known to be far more secure than hot wallets), so you shouldn’t be concerned about any unintentional losses.
It’s Easy to Stake Polkadot & Earn Passive Income
Every year, more platforms add support for Polkadot staking, and there is now a diverse choice of sites. So, if you want to stake your DOT, explore the platforms listed above. They’re well-known and secure and pay excellent rewards for staking your funds.