Staking could be quite a lucrative way to participate in the crypto market, and Polkadot is one of the best cryptocurrencies for staking. Many $DOT investors now find out that some exchanges offer up to 12% annual returns on staking Polkadot and want to know where is the safest and, generally speaking, the best place to stake your coins.
Here’s everything I learned after a few hours of research on the topic.
Kraken is a United States-based cryptocurrency exchange and bank that allows buying/selling and staking Polkadot. It’s one of the oldest exchanges in the market ( founded 2011 ). As of September 1st, 2021, Kraken offers 12% annual return on your Polkadot.
Binance is a relatively new cryptocurrency exchange founded in 2017 and is domiciled in the Cayman Islands. Despite that fact, Binance is the largest exchange globally in terms of daily trading volume. As of September 1st, 2021, Binance offers 11.51% est. APY if you lock your $DOT for at least 30 days.
Bitfines also offers staking Polkadot. The cryptocurrency exchange is quite safe and easy to use. It’s a Hong Kong-based exchange owned and operated by iFinex Inc. The company has been involved in a few accidents resulting in stolen coins. Recently, Bitfinex has become a much safer place to store your cryptocurrency.As of September 1st, 2021, Bitfinex offers 7% es. APY if you stake your Polkadot with them
Polkadot.js is a chrome extension that allows managing Polkadot accounts directly in the browser, but at the same time, you can use this tool for staking the coins. The difference between the aforementioned crypto exchanges and Polkadot.js is that you will deal with staking directly.
To stake $DOT on Polkadot.js you will need at least 80 coins and some knowledge in this field. Here’s a great tutorial on how to use the platform. The good news is that you can get even better APY up to 16-18% with this method.
In conclusion, the best way to stake your Polkadot if you’re a beginner is Kraken. It’s safe, easy to use, and offers a great return on your investments.
And remember – trading and staking cryptocurrency is risky, and prices could plunge.
Read more: How to Restore an Old Ripple Wallet