Crypto staking is gaining mainstream adoption as a means of generating passive income. By staking your cryptocurrencies, you earn rewards because your tokens are used to validate blockchain network transactions. One profound phenomenon about staking cryptocurrency is that it offers returns that exceed those you could earn in a savings account.
We have prepared this article as a guide to choosing the best platforms to stake your Tezos tokens. We incorporate into this work several factors of consideration like the APY offering and our verdict on each platform. We advise that you read carefully, as we believe that our work will provide credible guidance to make informed investment decisions. Apart from staking platforms, you can stake directly with Tezos validators.
What is Staking
Staking involves delegating your crypto holdings in order to earn rewards. In the process of staking, a certain number of tokens is allocated to the governance model of the blockchain thereby locking them out of circulation for a specified period of time. The tokens are usually used to govern the blockchain if the network uses a proof-of-stake (PoS) system. A PoS system ensures that coins are staked to produce new blocks in the blockchain, for which participants are rewarded.
10 Best Staking Platforms for Tezos (XTZ)
Tezos is an open-source blockchain that executes peer-to-peer transactions and serves as a platform for deploying smart contracts. It also facilitates user participation in decentralized finance (DeFi), decentralized applications (dApps), and non-fungible token (NFT) projects. Its native cryptocurrency is known as "tez" or "tezzie". Staking your Tezos (XTZ) allows you to passively earn rewards for your help to secure the network. So you can go through this list and see the best platforms that best suit your choice.
Binance officially launched XTZ staking together with ATOM and TRX on the 20th of October, 2020 at a promo rate of 20.58% APY. At the time, your tokens are locked until it attains maturity before they're withdrawable. Maturity is determined by the staking product you bought. Currently, Binance offers an APY of up to 7.12% and 2%, with a 30-day staking period and a flexible duration respectively.
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Stake your Tezos token and earn up to 7.12% APR on your holdings.
As we've always noted in all of our staking posts, Binance is a great choice when deciding where to stake your Tezos token. The platform combines its prolific service features which include security and customer care services, together with a very competitive APY offering for Tezos tokens.
Tezos was first listed on this Exchange for staking on the 11th of December, 2019 at an APY of 6%. Currently, your APY return is at the rate of 5%-7%, at a flexible time duration. Withdrawals are made on Mondays and Thursdays. All staking coins on Kraken are initiated on-chain. You can click on the link below and subscribe to this staking service.
Tezos staking rate for Kraken Exchange: On-chain Yearly rewards 5-7%
Stake your Tezos token with this Exchange and earn up to 7% APY on your holdings.
One unique factor with Kraken Exchange is its intuitive interface and is also one of the best crypto-staking platforms for fast reward distributions. Although it is registered as a money service business in the US, one consistent issue with this Exchange has been security.
Tezos was launched on Coinbase on the 6th of November, 2019 with an APY offering of 5% at the time. Currently, the estimated annual return for Tezos staking on Coinbase is 4.63%. Your pending rewards increase in real-time is always displayed on the app, and once your initial holding period completes (i.e. between 35–40 days), you'll receive rewards in your account every 3 days. Also, do note that staking rewards are only paid on crypto assets purchased on the Coinbase platform.
Tezos staking rate for Kraken Exchange: 4.63% APY
Stake your Tezos token here and earn up to 4.63% APY on your XTZ holdings.
Coinbase is one of the most beginner-friendly crypto platforms available. Although Coinbase staking is not available to US investors. Compared to other mainstream Exchanges, Coinbase has the least amount of tokens listed on its platform for staking.
OKX launched Tezos for staking on their platform on the 7th of November, 2019. From that time till now, many adjustments have been made to the Est. APY and the duration of staking range from flexible to fixed duration. The minimum staking amount is 50 XTZ and the redemption time is 24 hours. OKX makes it easy to buy crypto and then stake it.
See below the different APY offering for staking Tezos tokens with OKX.
Stake your Tezos tokens with this Exchange and earn up to 11.71% APY on your holdings.
OKX has remained arguably the largest staking service provider, and their staking interface is integrated into the Exchange itself making it easy to buy and stake your Tezos tokens.
Kucoin launched XTZ for staking on the 21st of September, 2019 at an APY, and to date, the service is run on what it refers to as soft staking, which is another name for flexible staking. Currently, you earn 2% APY when you stake XTZ with this Exchange. Please understand that KuCoin adjusts its staking proportion based on the total amount of token value and the withdrawal records of the platform wallet each calendar day.
Tezos staking rate for Kucoin Exchange: 2%APY
Stake your Tezos token and earn up to 2% APY on your holdings.
One unique factor about Kucoin is that it offers high yields on some of the best low-cost crypto assets available in the market. For Tezos token, it has decided to limit its offer to a soft staking program, making your choices limited to this product. Although, However, Kucoin is not licensed to operate in the United States.
Youhodler offers an annual staking reward of 5% APY, and their staking services are available on both mobile (Android & IOS) and desktop devices. All you need to do is sign up/in, deposit XTZ into your Tezos non-custodial wallet, and receive your rewards on a weekly (7 days) basis.
Tezos staking rate for Youhodler Exchange: 5% APY
Stake your Tezos tokens with Youhodler and earn up to 5% APY on your hodlings.
One limiting factor for this Exchange is that it is not available in the US, and the minimum deposit requirement is $5. However, in order to earn interest on your assets, you must meet a minimum of $100 or more, depending on the cryptocurrency. The platform is intuitive, but not as user-friendly as other mainstream Exchanges.
Staking with this platform is limited to just the flexible staking product, and you earn 5% APY when you stake your Tezos toke with the Exchange. Do note that Bitrue power piggy is the platform for staking cryptocurrencies with Bitrue Exchange.
Tezos staking rate for Kraken Exchange: 5% APY
Stake your XTZ tokens with Bitrue Exchange and earn up to 5% APY on your hodlings.
From the list we've provided here, Bitrue seems competitive in its rewards for Tezos staking, being one of the best platforms that offer the highest APY returns. However, it has not received encouraging reviews with regard to its security, and navigating its platform is not as intuitive as major crypto Exchanges.
For this Exchange, you're rewarded 3% APR of your deposits for making your Tezos tokens available to prospective borrowers. To qualify for this offer, each user must register on CoinDCX and fulfill the KYC requirements, and the minimum tenure for generating passive returns is 7 days. Although you can withdraw your assets anytime, if you withdraw before the minimum tenure, you may not be entitled to any reward.
Tezos staking rate for Youhodler Exchange: 3% APR
Stake your Tezos tokens with this Exchange and earn up to 3% APY on your hodlings.
Comparing the list we have prepared for Tezos staking, this Exchange is part of the least competitive. The interface is not as intuitive as expected and it's not available to users from the US.
From our lists, we have Binance and OKX topping the list with regard to their APY offerings. Binance is the better due to the Exchange's management and integrity, however, OKX still remains popular for its elaborate offers. Users are expected to know what is priority to them, rewards offer, or Exchange integrity. Other platforms are equally viable for staking, hence, we've provided all information needed to choose the best platforms for your Tezos staking.