Crypto

Top crypto apps for staking: Staking platforms reviews for 2022

  • December 16, 2021
  • Front

The crypto world is a complex yet exciting place that few people fully understand. One of the biggest attributes of crypto is that you can actually stake your crypto assets and earn interest from them. Staking is when a user locks up his crypto assets on a specific crypto protocol for a certain amount of time and receives rewards for doing so. If you are not planning to sell your crypto anytime soon, then it might sense to earn interest on your crypto holdings!

There are some impressive protocols that can offer staking rewards. For example, some people stake TIME tokens on wonderland.money, in order to earn over 80,000% APY on their tokens. Of course, remember that staking in a protocol like this is incredibly risky, as the TIME token is new and may not hold its price up so well. When so many new $TIME tokens are getting constantly created, how will the $TIME token manage to keep its price up so high? Therefore, even with such high APY, it is still possible to have your holdings worth 0 over time.

In general, however, most staking protocols yield their users anywhere from 2% to 10% a year on their crypto assets. These yields may not be as attractive as the ones on wonderland.money. Still, they are definitely safer bets, as the users are staking coins that are more “reliable” compared to TIME, such as Bitcoin ($BTC), Ethereum ($ETH) or Litecoin ($LTC). So, which staking apps are the best?

We will review some popular staking apps, considering the ratio of how much risk investors are willing to take versus how much crypto knowledge they have. Therefore, we will split this into 3 categories: Crypto staking apps for beginners, for advanced traders, complete degenerates.

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Staking apps for beginners

One important element for complete beginners is a friendly UI. Connecting one’s bank account should be a breeze, and overall it should be so obvious how to stake that even your grandmother can figure it out. Therefore, the apps that meet these conditions are Coinbase and Crypto.com.

Coinbase allows you to stake certain crypto assets with only a few taps of a button. All you need to do is activate the “crypto rewards” button to receive the staking rewards. One of Coinbase’s best staking features is that you can stake and unstake at any time, for no fee. This is different from most staking protocols, where people have their tokens locked up for a certain amount of time before retrieving them.

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Coinbase makes it easy to stake and earn rewards. Via [Coinbase]

Crypto.com is very similar to Coinbase, in terms of how easy it is to stake on the platform. It provides two staking methods: flexible staking and fixed-term staking. The flexible staking allows users to stake and unstake at will. The fixed-term staking offers higher percentage yields, but then your crypto is locked up and cannot be removed until the staking period is over. This can be good if you were going to hold onto the asset anyways, but it definitely poses its own set of risks.

Staking on a fixed-term could increases yield rewards. Via [Crypto.com]

Beginners could enjoy staking benefits just as much as seasoned professionals. Apps like crypto.com and Coinbase try making it simple and user-friendly!

Staking apps for advanced traders

It may make sense for more seasoned or advanced traders to constantly be chasing the highest yield opportunity. This is referred to in the crypto community as yield farming, and many “yield farmers” are constantly looking for the best strategies to yield them the highest returns possible. 

In general, there are higher staking APY possibilities in the world of Defi. This means that one would need to have a wallet that connects to Web3.0, such as Metamask or Trust Wallet

You can check where your crypto can earn the most interest at any given moment. Via [Defi Rate]

Stakingrewards.com shows people the best places to stake crypto for the best available interest yields. They can stake their crypto assets themselves, in a decentralized manner. The process may be more complicated and risky, but users get to enjoy 100% of their staking rewards since there are no middlemen in the process. The website is good for advanced traders as it also shows a 30 day historical average of each staking APY. This is important, as sometimes staking rewards can be more than 8000% APY but only be that high for a concise amount of time. 

Advanced traders often stake their Cardano ($ADA) bags by delegating their ADA to the network. In February 2021, more than 70% of the entire Cardano supply was staked. This shows how popular it is to stake Cardano.

Staking apps for degens

Many advanced traders also know how to do yield farming but simply don’t want to put in the effort. This is when Donkey Finance truly shines: people could potentially copy others’ yield farming strategies and get the same high APY as the pros. The risk that comes here is that some of these APY farming strategies have never been audited, so people could be taking big risks with their crypto assets and end up losing everything. 

A general rule of thumb in the crypto world: if the APY is too high, then there is probably something fishy going on, and it might be a scam. Of course, that doesn’t stop the degenerates from investing in incredibly risky projects, like SquidDAO or HunnyDAO.

Some people choose to stake LOVE on HunnyDAO  even though it’s considerably risky.Via [Hunny DAO]

A good resource for Degenerates who want to maximize their staking yields is to look for OHM forks. A fork is a copy of another project just deployed on the blockchain. The original projects fork the OlympusDAO project, a project which at first glance seems sustainable, until we realize that the price of OHM can only stay high as long as nobody is selling. A rather complete resource for OHM forks can be found on ohmforks.com.

Another common strategy degens use to maximize their staking rewards is to stake their liquidity pools early, when the yield farming rewards are first released. This strategy is much less common nowadays but still exists. 

Staking WETH/BANANA tokens. Via [OHM Forks]

 

The risk of staking these LP tokens is of course impermanent loss. In the example above, you must contribute an equal amount of WETH and BANANA to the liquidity pool, then stake your LP tokens in order to earn a share of 100 BANANA per day and 13.48 SUSHI per day. The more people start joining the liquidity pool and start staking their LP tokens, the more people the rewards are shared with, the less APY there is for this LP staking. Therefore, these high APYs are usually not sustainable, and sometimes only last a few days to even just a few hours. During this time, the price of BANANA and WETH can drop significantly. So, you may be collecting rewards, but since your crypto is worth much less now you have actually lost money by staking your LP tokens. Of course, this has never stopped a degenerate from trying to make a quick buck on these insanely risky yield farming strategies.

Full disclosure for these degen staking apps: they are mainly made for fun and for degens only. You will most likely lose your money if you start fooling with the degen staking apps.

Most people lose their money in crypto, that is no secret. The higher the yield, the higher the risk. There is a reason why nobody can stake their Bitcoin for 100% APY: Bitcoin is not in the same family as these low-cap degenerate coins that promise easy life-changing gains. Therefore, always do your own research before investing in anything.

In conclusion, if you’re still looking to stake crypto regardless of the risk, you could first stick to the simple staking apps. You may earn less, but the chances of losing your money are lower compared to Stakingregards.com or Donkey Finance.  It is interesting to know what kinds of staking possibilities exist out there, but most of them are extremely risky and complicated. For the average user, a simple and direct staking app will do the trick just fine!

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