The list of investment options in the crypto space is getting longer and longer. Staking is one of the newest options on that list. In this guide, you will be introduced to the concept of staking and you will find a list of the best staking-as-a-service providers in 2020.
What is Staking?
Proof-of-stake (PoS) networks use computers to validate transactions. The winning validator is chosen through a combination of random selection and the amount a participant is staking. Once the winner validates the transaction, they receive a reward in the form of new coins. The staked coins act as collateral for validating the transactions.
Staking simply means earning tokens for holding tokens in exchange for helping to secure the blockchain. Effectively, staking is like earning interest on a fixed income investment vehicle, such as a corporate bond.
Cryptocurrency staking is a technical process that requires a relatively high level of crypto know-how. Additionally, you will have to continuously run your computer to increase your chances of earning a reward. As a result, several platforms are helping non-technical investors to stake.
For only a percentage of your staking rewards, staking-as-a-service providers make life easier for investors by taking care of the technical side of the staking process.
Top Staking-as-a-Service Providers
Below, you will find a list of five reputable staking-as-a-service providers that you could use to “soft stake” digital assets in 2020.
Coinbase Custody is one of the best staking-as-a service platforms in the market. This provider offers crypto asset custody for institutions and it supports coins like Tezos.
To start staking on Coinbase Custody, all you have to do is apply for an account. The estimated annual return for staking XTZ with this provider is 6.6 percent.
- Segregated cold storage to keep investors’ crypto assets safe.
- Regulated by the New York Department of Financial Services.
- Users can chat with a bot or make a call when they need help.
MyCointainer is a one-stop solution for staking, buying, and investing in cryptocurrency. The Estonia-based staking-as-a-service provider enables users from across the globe to stake over 50 different PoS-based digital assets via its web-based platform.
MyCointainer offers three different rewards programmes you can choose from Basic, Power Plus, and Power Max.
Using the Basic plan, you start staking for as little as $1 and gain access to 14 shared masternodes. The Power Plus plan, which costs €3.99 p/m, enables you to receive all staking rewards without a percentage fee taken off. Additionally, it provides access to a wide range of shared masternodes. Finally, the Power Max plan, which costs €8.99 p/m, allows users to make use of the entire product suite that MyCointainer has to offer. This includes zero staking fees, access to shared masternodes, a chance to win giveaways, and more.
- Beginner-friendly online platform.
- Fiat currency deposits are supported.
- Mobile app for Android and iOS to track staking earnings.
Canada-based Figment Networks provides one of the best staking services in the crypto asset market. The platform supports Tezos, Cosmos, Kusama, Livepeer, Kava, Chainlink, Terra, IRISnet, Horizen, Harmony, ICON, Algorand, and Aion.
To start staking on Figment, click the “Stake Now” tab, and choose the token you want to stake from the drop-down menu. For each token, Figment avails a calculator where you can determine your daily, monthly, and yearly returns.
- Figment offers support services via Telegram and email. Additionally, you can book a 30-minute call with them.
- Users maintain control of their tokens at all times.
Staked is a staking-as-a-service platform that supports Tezos, Decred, EOS, Livepeer, and Factom. The New York-based company says that investors can get annual returns from five to 100 percent.
- Users can schedule a call to get support services.
- Staked uses secure staking infrastructure.
- Staked does not mention regulatory compliance.
Stake Capital is a decentralised financial company that enables users to stake Loom, Livepeer, Cosmos, Tezos, and Kusama. To begin staking on Stake Capital, click on the token of your choice, and follow the given instructions.
- Stake Capital uses a hardware security module (HSM) to sign transactions offline.
- Users get live support to help them with the staking process.
Dokia Capital is a Bucharest-based staking-as-a-service provider. To start staking, click the “Staking” tab and choose the token of your choice.
The platform currently supports Cosmos, Terra, Kava, and IRISnet. Under each token, you will find the estimated amount of returns you can make daily, monthly, and annually.
- Offers email and chat support services.
- The company utilises multi-tier security to prevent attacks.
Going forward, staking-as-a-service could become a dominant trend in the crypto markets as more individuals and institutions seek to generate revenue via staking coins.