The 3 Best Crypto Staking Platforms in the UK — 2024
If you are a crypto investor who has a long-term outlook on investing, or who believes in the transformative potential of blockchain technology, then you will most likely want to keep hold of your crypto. Pretty self-explanatory, right?
But if you are reading this article, the odds are that rather than having your crypto sitting in your wallet, doing nothing, you are looking for a more proactive HODL approach, and there are few better ways of doing this than staking. However, like most crypto services, not all providers are equal in terms of accreditation, value, or ease-of-use, and the same goes for staking.
This article will therefore provide a concise overview of the ins and outs of crypto staking, a look at 3 of the best staking providers in the UK for 2024, and a look at an alternative approach for being proactive with your crypto holdings.
We’ll discuss:
What is Crypto Staking?
- How Does Staking Crypto Work?
- How to Stake Crypto as a Delegator
- What are the Benefits of Staking Crypto?
- The 3 Best Crypto Staking Platforms in the UK [2024]
- Crypto Strategies - An Alternative to Crypto Staking
Let's dive right in!
What is Crypto Staking?
Put simply, crypto staking is when a crypto user commits a percentage of their tokens to a crypto exchange/staking platform or pool in order to support the security of a Proof of Stake (PoS) blockchain. This is usually locked up for a certain period of time, and in return, users who stake earn rewards that are often paid in the form of additional tokens. Due to these rewards usually coming from network transaction fees and newly minted tokens, staking is widely seen as a stable way for crypto holders to not only safeguard their assets, but also grow them over time.
How Does Staking Crypto Work?
In terms of how staking crypto works, everything starts with the selection of validators. These are people (or groups) who ensure the safety of a blockchain by confirming transactions and adding new blocks, and this is primarily done by running nodes (a blockchain server). Validators are subsequently rewarded for their efforts, but there are also penalties (usually slashing rewards) for any misbehavior or network downtime.
In order to be selected as a validator, you normally have to stake a sizeable amount of cryptocurrency, and have a good track record of holding it for a long time. The higher the stake, the better the chances of being chosen to validate transactions and add new blocks to the blockchain.
However, this doesn’t mean you need to become a validator yourself. Many staking platforms allow you to simply delegate your tokens to professional validators, who handle the technical work while you share in the rewards.
How to Stake Crypto as a Delegator
Staking crypto as a delegate is very simple.
Firstly, identify a staking pool, platform or exchange that offers a good APY for your desired token. Then delegate an amount (in your desired token) that you are satisfied with, and this will then be locked up for a predetermined period. While your tokens are staked, they will be contributing to the network’s overall security, and in return, you will be earning passive rewards; which depending on where you are staking, could be distributed daily, weekly or even monthly.
And there you have it, you now are earning yield on your crypto!
It is important to note that there are some new staking mechanisms which have burst onto the scene, which depending on the token and staking platform, can now offer flexible staking. This can be best exemplified with liquid staking, which is ideal if you want to dabble in the world of DeFi staking. But for regular investors with a long-term outlook to investing and network security, then traditional staking is perhaps better suited.
What are the Benefits of Staking Crypto?
Staking crypto offers a range of benefits, especially for long-term investors. Below are some of the most commonly associated benefits:
1) Earning passive income
As already mentioned, one of the most appealing benefits for both delegators and validators who stake crypto is being able to earn passive income via staking rewards. So rather than have your crypto assets do nothing in your crypto wallet, staking allows you to essentially HODL while generating a stable APY which often ellipses any traditional interest rates you'd find at your bank.
2) Supporting a blockchain
The other main benefit of staking is supporting your preferred blockchain project. As explained earlier, your provision of crypto tokens is effectively helping to secure the network, which requires a vibrant community of validators and delegators to ensure everything is running smoothly.
3) Energy-efficient
Another incentive to stake (especially in 2024 and beyond), is that it's a much more energy-efficient process compared to mining (found with Proof of Work blockchains), making it a more environmentally friendly way of supporting your favourite blockchain.
4) Lower risk compared to trading
Staking provides a more stable way to grow your crypto compared to the high volatility of trading. Since you’re locking your tokens into a network and receiving consistent rewards, it helps reduce the stress and uncertainty of trying to time the market or handle rapid price fluctuations. For investors who prefer a low-risk, long-term strategy, staking is an attractive option.
5) Compound growth
Many platforms allow you to automatically reinvest your staking rewards, which leads to compound growth over time. This means your earnings grow at an accelerating rate as both your initial stake and your rewards contribute to generating even more returns, further enhancing your long-term investment strategy.
The 3 Best Crypto Staking Platforms in the UK [2024]
Before we delve into UK crypto staking platforms, as always, we would like to make it clear that ICONOMI shall never encourage readers to choose a platform, product or crypto asset based upon the contents of an article, and that any review is more a reflection of the views and research of the author.
But for informational purposes, in order to come up with the 3 best crypto staking services in the UK, the author of this article has decided to use a combination of positive social media sentiment, the amount of tokens available, APY amounts (which are indicative, and can change), and whether a service provider is regulated to gauge quality.
1) Coinbase
Coinbase is the UK's biggest crypto exchange by daily active users (DAU), and makes number 1 on our list due to the platform's unmatched reputation, regulatory adherence (regulated by the FCA), user-friendly dashboard, and staking variety; Coinbase Earn has staking options for 153 assets.
Lock up periods on Coinbase Earn are defined by protocols, and can range from a few hours to a few days.
Staking options (and APY)
Below are some examples of the staking options:
Ethereum (ETH) - 2.33% APY (EST.)
Cosmos (ATOM) - 13.88% APY (EST.)
Tezos (XTM) - 5.50% APY (EST.)
Cardano (ADA) - 1.85% APY (EST.)
Solana (SOL) - 4.89% APY (EST.)
2) Kraken
Number 2 on our list is Kraken, which besides being one of the world's most reputable cryptocurrency exchanges, also provides an excellent service for UK crypto investors who want to earn staking rewards.
Also regulated by the FCA, Kraken makes the list due to the platform's incredibly easy staking process (a few clicks), world class security, no minimum staking, and no lock up periods.The only downside is lack of variety, as the platform offers staking services for 15+ cryptocurrencies, and limited impact on network contribution (due to no lock up periods).
Staking options (and APY)
Below are some examples of the staking options:
Mina (MINA) - 7-10% APY (EST.)
Ethereum (ETH) - 1-4% APY (EST.)
Tezos (XTM) - 5-8% APY (EST.)
Cardano (ADA) - 2-5% APY (EST.)
Kava (KAVA) - 3-6% APY (EST.)
3) Crypto.com
Last but not least we have Crypto.com, which is also regulated by the FCA, and appears to be a popular destination for many UK users who want to stake their crypto. Besides having no lock up period like Kraken, Crypto.com's biggest selling point is perhaps its variety in the way you can stake, including on-chain staking, Cardholder CRO Staking, Liquid Staking, and non-custodial staking through the Crypto.com DeFi Wallet.
Although better than many other providers, a few people have criticised the platform's user experience (not as easy to use as others), as well as some unanticipated fees.
With regards to how many tokens that platform supports, 29 assets can be staked on Crypto.com.
Staking options (and APY)
Below are some examples of the staking options:
Stacks (STX) - 8.6% APY (EST.)
Solana (SOL) - 6.58% APY (EST.)
Ethereum (ETH) - 2.3% APY (EST.)
Polkadot (DOT) - 15.47% APY (EST.)
Kava (KAVA) - 6.51% APY (EST.)
Crypto Strategies - An Alternative to Crypto Staking
And there you have it, 3 of the best platforms for staking according to the research methodology of the author of this article! But whilst cryptocurrency staking is one of the most respectable ways for long-term HODLers to put their crypto to work, it's important to be aware of other alternatives for long-term proactivity, and crypto strategies provide a compelling alternative.
Crypto strategies are essentially expertly managed and diversified crypto portfolios that are hosted digitally, and where users can easily invest in these strategies by allocating a portion of their crypto holdings.
When it comes to the best crypto strategy provider in the UK, none come close to the expertise, accreditation (FCA regulated), user-experience and service quality that ICONOMI provides. This is hardly surprising given how the crypto investment platform arguably pioneered the concept of crypto strategies, and given how more than 100,000 users all over Europe are using ICONOMI's services, it's safe to say the platform is doing something right.So the question at hand - why are crypto strategies a good alternative to crypto staking?
Although investing in crypto strategies does not contribute to a blockchain's network health, for long-term crypto investors who are more profit-driven, ICONOMI's crypto strategies have the potential to bring about much better gains than staking can ever achieve, and offer much more flexibility (due to users being able to withdraw funds whenever). Although some might argue that crypto strategies do not provide the same level of stability compared to staking, the beauty of this long-term investing model is that through intelligent diversification, some crypto strategies can somewhat minimise the chances of massive losses, and provide consistent returns from a historical perspective. However, no matter how well some strategies have performed, losses are still always possible, so users should always invest cautiously, and never invest an amount they can't afford to lose.
Below are some examples of notable crypto strategies on the ICONOMI platform, and their performance year to date (YTD):
1) Blockchain Index
Return (YTD) - +100.37 %
Structure: Bitcoin (39.73%), Ethereum (29.29%), Binance Coin(10.00%), Solana (9.12%), Cardano (1.53%), Avalanche (1.28%)
2) Diversitas
Return (YTD) - +109.67 %
Structure: Bitcoin (33.38%), Ethereum (15.06%), Injective Protocol (16.21%), Solana (9.60%), THORChain (10.55%), Avalanche (8.10%)
3) CARUS-AR
Return (YTD) - +61.33 %
Structure: Bitcoin (19.36%), Ethereum (13.95%), Cosmos(12.68%), Osmosis (7.34%), NEAR Protocol (5.56%), Stacks (4.26%)
Conclusion
If you are looking to be proactive with your crypto holdings, then staking is no doubt an excellent way for long-term investors to earn passive income — all whilst supporting the security of your favourite blockchain networks. For this reason, the author has made an effort to provide a digestible guide that highlights the ins and outs of staking, and the best platforms to stake tokens in the UK.
However, while staking provides stable returns, platforms like ICONOMI offer innovative crypto strategies that could potentially deliver higher rewards through diversified portfolios. The choice between staking and a more diversified approach ultimately depends on your risk tolerance, investment goals, and long-term strategy.
So whether you opt for staking, or prefer the flexibility of managed crypto strategies, the key is to stay informed and proactive. The best way to do this is conducting your own research, and making a decision that aligns with your risk tolerance and financial/non-financial goals within crypto.
If you enjoyed this article, you may be interested in our other titles:
Crypto Business Accounts You Should Know About [2024]
Best Crypto Fund Option in the UK [2024]
4 Best Crypto-Friendly Banks in the UK [2024]
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