Best Crypto Staking Platform in Canada 2023 – How to Stake Crypto

Similar to Bitcoin’s proof-of-work model, using the blockchain to validate transactions and block cryptocurrency holding, proof-of-stake can be used as a passive and secure income source that is more accessible to individual users due to its features and benefits.

Our guide will provide a step-by-step overview of crypto staking and recommendations for the best crypto staking platform in Canada and cryptocurrencies to generate passive income such as interest and rewards.

Best Crypto Staking Platforms in Canada List 2022

1. DeFi Swap – Overall Best Crypto Staking Platform in Canada
2. AQRU –  Best Crypto Staking Platform In Canada With High Interests Up to 12%
3. Crypto.com – Crypto Staking Platform with More Certifications in Canada
4. BlockFi – Great Platform for New Crypto Investors in Canada
5. Coinbase – Platform with the Option to Staking ETH 2.0 in Canada
6. Binance – Canada’s Largest Crypto Staking Platform
7. Kraken – Most Trusted and Secure Stake Platform in Canada
8. Nexo – Best Platform in Canada with Flexible Lock-Up Periods in Canada for Crypto Staking

Best Crypto Staking Platforms in Canada Reviewed

Here is a list of the main characteristics of the platforms that offer crypto staking services to Canadians.

1. DeFi Swap – Overall Best Crypto Staking Platform in Canada

DeFi Swap is in the top on our list because of its revolutionary and innovative exchange. Using DeFi Swap, all your assets can be exchanged quickly and easily. Furthermore, it offers users the opportunity to redeem, liquidate, and exchange ERC-20 tokens and stablecoins. That’s why it makes it one of the best staking platforms and one of the most powerful DeFi platforms available right now.

DeFi Swap provides a stake service where users can ‘lock up’ their tokens for a specified period and receive interest payments.

There are four participation periods on its staking mechanism during which users are eligible to earn interest at a rate ranging from 30% to 75% APY. There is a higher chance of returning higher returns if you leave it longer between when your coins are locked and unlocked. It is possible to select a variety of durations from 30, 90, 180, and 365.

The DEFC coin is the native token on the platform. However, numerous digital currency pairs may also be traded via the platform, such as Bitcoin or Ethereum. In the same way, stablecoins can be used to purchase DeFi Coin, allowing investors to benefit from a higher return on investment with cryptos such as USDC or USDT.

It should be noted that the platform has had a Telegram group since its launch, where users can interact with the team behind it. More than 6,000 members have already signed up for the channel, demonstrating the Defi Swap’s rapid acceptance among investors.

Cryptoassets are a highly volatile unregulated investment product.

2. AQRU - Best Crypto Staking Platform In Canada With High Interests Up to 12%

AQRU is a platform owned by Accru Finance Ltd, a London-based financial services company. Phil Blows founded it and Digby Try in Lithuania on the belief that digital assets can offer high yields without being complicated or unsafe. Also, it is regulated by the Republic of Lithuania.

With the platform, those who purchase cryptocurrency will be able to earn a yield on their holdings in a beginner-friendly manner. In addition, it has been designed and created by a team of experienced investment, payment, and technology experts to provide a simple manner of generating returns from crypto holdings.

With AQRU, you will be able to stake on-chain 3 stable coins such as USDT (Tether), USDC (USD Coin), and DAI with an APR of 7%. If you decide to stake off-chain, you will find Bitcoin and Ethereum with an APR of 12%, and you can fund your account with fiat by bank transfer and a credit card or with crypto without fees.

You have 24 hours, no catches, no lock-ins, no questions to withdraw your money. However, please remember that if you withdraw fiat money, there will be no withdrawal fee, but you will have to pay $20 per time if you withdraw cryptocurrencies.

One of the benefits of this platform is that there are no lock-up periods, which enables you to withdraw your money whenever you want, and your earnings will be paid daily, which you can verify on the AQRU platform. Aside from that, they have an offer, so if you sign up, they will give you a free 10 USDT, and if you refer a friend, they will give you 75 USDT to split between the two of you.

Cryptoassets are a highly volatile unregulated investment product.

3. Crypto.com – Crypto Staking Platform with More Certifications in Canada

Founded in 2016 by Bobby Bao, Crypto.com is the fastest and most secure cryptocurrency exchange in Canada and one of the largest cryptocurrency exchanges in the world. In addition to all the excellent products, it also offers a variety of staking options, with over 50 products available through the crypto earn facility.

It has many security certifications, including those issued by CCSS, SGS, Burea Veritas, NIST, and a stress-tested by Kudelski Security. In addition, you may want to review the table containing the minimum stake amounts on the Crypto.com platform or app since the minimum stake amounts vary by option.

With their platform, you will be able to utilize a calculator to decide whether you would prefer a flexible, one-month, or three-month lock-up period and then evaluate all the rewards and investments you will be able to make.

By participating in CRO currency staking, you will be able to access the Crypto.com visa card, receive crypto wallet benefits, and have a better APR on your crypto credit and crypto earnings too. No matter what cryptocurrency you choose, the only thing that matters is the number of CROs in your portfolio.

Your capital is at risk

4. BlockFi - Great Platform for New Crypto Investors in Canada

BlockFi was founded by Zac Prince in 2017 and now has more than $700 million in crypto interest and rewards earned to clients worldwide to date. It offers competitive interest rates but is not currently available in the United States, but it is legal in Canada and operates normally.

BlockFi offers more than 10 products, so you can perform on-chain and off-chain staking. Also, it has a calculator on its platform to determine the amount you are generating based on the amount of money deposited, the type of currency involved, and the length of time.

If you select a currency from all the available options, you can earn APRs up to 11% with a BIA (BlockFi Interest Account). In addition, you will receive an interest payment once a month, without the need to pay fees or maintain minimum requirements.

BlockFi is the first company to launch a Bitcoin reward credit card, which provides 1.5% back in bitcoin in exchange for purchases made with a Visa credit card. You will add your Bitcoin rewards to your BlockFi Interest Account, so you can earn interest immediately.

Your capital is at risk

5. Coinbase – Platform with the Option to Staking ETH 2.0 in Canada

Coinbase was founded in 2012 by Brian Amstrong in San Francisco to enable anyone and everyone to securely send and receive cryptos; also, Coinbase may be a good choice for first-time crypto staking since the platform is reliable user-friendly.

You may not receive rewards if you remove your cryptocurrency early or your balance drops below the minimum requirement. Remember that there are 3 types of payout rate, where we cannot have our money or have rewards until they are fulfilled; for example, payout rate for Ethereum, Algorand, and Dai is daily, for Tezos is 3 days, for Cosmos is 7 days and for USD Coin is monthly.

This platform is regulated by SEC and is listed on NASDAQ, so your money will be safe when crypto staking. An important point to note is that you will not be able to stake ETH in Canada or Algorand because this country is not eligible for that. The minimum and maximum staking amounts are variables depending on the option.

You can fund your Coinbase account with only $2, and you can begin staking with only $1 in the option that suits you best. Now, let's review the six Coinbase options and their APRs as of today's date:

• Ethereum – APR 4.50%
• Algorand – APR 0.45%
• Cosmos – APR 5%
• Tezos – APR 4.63%
• Dai – APR 0.15%
• USD Coin – APR 0.15%

Your capital is at risk

7. Binance - Canada's Largest Crypto Staking Platform

The company was founded in 2017 by Changpeng Zhao in Hong Kong. In terms of volume, Binance is the largest crypto exchange globally, indicating that it is one of the most popular choices among traders from around the world when it comes to crypto staking.

We should keep in mind that international institutions do not regulate Binance crypto staking. Still, in Canada, you can use it without trouble, except for residents of Ontario.

Regarding your money withdrawal, if you choose the flexible option or DeFi staking, you will be able to do so after 24 hours. On the other hand, if you choose the option with locked staking, you must wait for the established term to expire before you can withdraw the interest generated by your staking.

They have 13 options for stake on-chain and off-chain in Binance; below, we will show you the APR percentages of each as of today that have a flexible lock-up period (Defi Staking), so you can get to know them and decide whether you would be interested in a stake in them.

• ETH – APR 1.5% - Flexible / APR 10.12% - 120 days
• BTC – APR 1.2% - Flexible / APR 8.12% - 60 days
• DYDX – APR 25.12% - 30 days
• AAVE – APR 6.49% - 30 days
• BNB – APR 5.23% - Flexible
• USDT – APR 3.12% - Flexible
• BUSD – APR 3.21% - Flexible
• USDC – APR 2.79% - Flexible
• SXP – APR 2.45% - Flexible
• LINK – APR 1.4$ - Flexible
• HARD – APR 10% - Flexible
• XVS – APR 4.12% - Flexible
• DAI – APR 3.78% - Flexible

Binance has a second model with many staking options; however, they are subject to strict lock-up periods that must be met to avoid losing money and are available in 109 options, with lock-up periods ranging from 15 to 120 days.

The advantage of Binance is that if you stake BNB, you will have the opportunity to participate in the BNB Vault, which will offer benefits such as entry into Launchpool, savings, Defi staking, and other opportunities for you. In addition, Binance's minimum deposit is $10 to fund it, but each coin has a variable minimum for us to stake, so we have to check them in detail on the Binance platform.

Your capital is at risk

8. Kraken – Most Trusted and Secure Stake Platform in Canada

Founded in 2011 in San Francisco, Kraken is one of the US's oldest and most reputable cryptocurrency exchanges. It is also a good choice for new and experienced crypto investors interested in crypto staking in Canada.

The Kraken process is very simple since it involves only three easy steps. To begin with, you must fund your Kraken account in one or more currencies or fiat that you are willing to stake. Secondly, you may choose from the available assets in your spot wallet, and finally, your staked assets will generate rewards twice a week.

When it comes to the minimum lock-up period at Kraken, customers can withdraw their funds within a few hours of the deposit without incurring any additional charges, and there is no on-period and off-period for on-chain participation.

For information regarding minimum or maximum stake amounts, you should review the table with the values of each cryptocurrency or fiat chosen within Kraken. Also, Kraken is regulated in the USA by FinCen, in Canada by FINTRAC, and for FCA in the UK.

Kraken offers a variety of stake options and varying APRs depending on the option selected, so we are going to review the on-chain and off-chain options described below; to decide what coin to stake based on market information to start staking from Canada.

On-chain currencies include:

• Cardano (ADA) – APR 4-6%
• Cosmos (ATOM) – APR 12%
• Ethereum (ETH 2.0) – APR 4-7%
• Flow (FLOW) – APR 6-9%
• Kava (KAVA) – APR 23%
• Kusama (KSM) – APR 18%
• Mina (MINA) – APR 12-20%
• Polkadot (DOT) – APR 12%
• Solana (SOL) – APR 6%
• Terra (LUNA) – APR 4.75%
• Tezos (XTZ) – APR 5%
• Tron (TRX) – APR 6-9%

Regarding off-chain, we have:

• Bitcoin (BTC) – APR 0.25%,
• Euro (EUR) – APR 1.5%
• US Dollar (USD) – APR 2%

Your capital is at risk

9. Nexo – Best Platform in Canada with Flexible Lock-Up Periods in Canada for Crypto Staking

Launched in 2018, the company has gained most of its popularity in recent years. The company's slogan is "Banking on Crypto." They seek to replace traditional banking services but use crypto as an asset. Additionally, there are currently more than 3.5 million users of this platform.

With this platform, you can earn up to 17% interest with a daily payout, and 37 staking options are available for you to choose from. Also, adding or withdrawing funds is possible at any time.

Nexo offers its customers the chance to become Platinum loyalty level customers by ensuring that at least 10% of their portfolio balance is composed of NEXO Tokens. In addition, you can earn an additional 2% interest by holding NEXO Tokens.

The platform of Nexo is equipped with a high-quality security infrastructure that allows for maximum protection of assets at all times. In addition, it has been certified with ISO 27001:2013, ensuring precise risk assessment, effective data security, and enhanced privacy.

Your capital is at risk

Best Crypto Staking Platforms in Canada - Rates Comparison

In the following table, you will find a summary of the top brokerage commissions presented above. You may want to review and compare if you consider cryptocurrency staking in Canada.

What is Crypto Staking?

Crypto Staking is locking up crypto holdings to gain rewards or earn interest. In other words, it is a method of validating transactions on the blockchain; we have to remember that a blockchain is a digital ledger of all transactions that are duplicated and distributed over the entire network of computer systems on the blockchain.

As many cryptocurrency exchanges provide staking services to their users, it will be possible for you to stake your coins directly from your wallet and also form part of the pool of stake. The good news is that accessing this method of generating profits with your cryptocurrency holding is easy and safe, but first, we must understand what proof-of-stake entails and how it works.

How Does Crypto Staking Work?

It works with the proof-of-stake; it consists of the participants being able to block coins by delegating a certain amount for the stake so that the system will randomly choose one of them to validate the next block. Also, there is a certain probability of being chosen based on the number of coins you have in your possession and the length of time you have had them.

The good thing is that this avoids centralization; otherwise, the one with the greatest number of coins in possession would create all blocks. Let us first look at the ADA currency from the Cardano blockchain as an example.

Currently, you wish to stake ADA currency which has an annual percentage yield of 5%, so you decide to stake $4 000 over six months; For one year, a $4 000 staking allocation would yield $200 in rewards, so for six months $100 would be your passive income.

There are two important things to note here; the first is that the $200 you earned during the six months would be refunded to you in the currency you made your proof-of-stake (ADA). Secondly, if the ADA currency is worth, for instance, $2, and after six months, it is worth $4, your ADA profit will be significantly increased. As a result, this is how you can earn rewards and interest by this method.

Cryptoassets are a highly volatile unregulated investment product.

Lock-Up Periods

The lock-up period is redemption time that you have to give before withdrawing or using your money. This period will be necessary whenever you wish to stake cryptocurrencies on a blockchain node. If you fail to comply with this time, you may incur a fee or penalty according to the wallet, pool of stake, or platform you have selected.

All exchange platforms that support staking have different lock-up periods and some flexibility if you need to withdraw your money before the agreed stake time, so it is essential to be informed and select a good exchange to carry out your stake.

Mining vs Staking

Staking and mining are generally defined as acts that contribute to the functioning and operation of the blockchain of a given cryptocurrency in exchange for a reward. They work using a consensus mechanism to process transactions such as proof-of-work (mining) and proof-of-stake (staking). Also, both are methods for introducing new coins to the market and circulating them.

Mining is related to currencies such as Bitcoin, Litecoin, and Monero. In this process, a mathematical problem of algorithms is solved by calculating random numbers to obtain the solution and thus validate the block, and the first person to decipher it will receive a reward.

One important factor in mining is that special machines such as GPUs or ASICs are necessary for mining. As more coins are traded or more miners are added, it becomes more complex to solve these algorithms, increasing the hash rate exponentially.

In contrast, anyone can make stakes using their personal computer or cell phone. Also, the solution is not a contest where the first person to solve a complex problem wins a reward. Instead, it works more like a cryptocurrency deposit. You may earn a reward or interest based on the APR offered by the broker with the chosen currency and the amount of time that the money remains in the broker's platform.

Staking is mostly associated with new currencies such as ADA, Binance Coin, USDC, and many more, and in addition, it is considered an improvement to mining. However, due to the high cost of mining, we as individuals cannot do it, so the best option is to educate ourselves about the market to select the best cryptocurrency and the best platform for staking, as each has several benefits and fees to consider.

On-chain vs Off-chain Staking

On the blockchain, these two transactions are distinct. On-chain transactions take place on the blockchain (distributed ledger) and can be seen by all nodes on the blockchain network; on the other hand, off-chain transactions are transactions that take place outside of the blockchain. Let's take a closer look at them below.

The on-chain transactions are considered valid when they are reflected in a blockchain, recorded on a block, and distributed throughout the blockchain, making transactions irreversible because you cannot change them. On-chain transactions are commonly referred to as staking and utilize the proof-of-stake mechanism to generate rewards and interest. It is important to note that these transactions are among those common on the market and are offered by staking platforms.

When we talk about off-chain transactions, delegated cryptocurrencies do not have to actively participate in validating block transactions and do not follow the proof-of-stake method. In addition, staking off-chain is a method of earning rewards on idle account balances such as a transfer agreement between two people, a third party, or a guarantor in the transaction.

There is also a significant difference in time since on-chain transactions have lock-up periods, depending on the platform used; the off-chain transactions are executed immediately.

Cryptoassets are a highly volatile unregulated investment product.

Benefits of Staking Crypto

Staking cryptocurrency has many benefits, but for most people, the staking rewards are the most important reason, particularly useful for investors who have a large amount of crypto in their possession and would like to have a safe and risk-free passive income after a while.

Earn Passive Income and Compound Interest

Staking cryptocurrency requires selecting the crypto you wish to stake, the amount to stake, the platform with the best APR percentage, security, and time for withdrawal without commissions. Following this, you will only need to wait for the expiration deadline and withdraw your rewards and interest in the chosen currency.

Compound interest refers to the fact that, for example, the first year you invest $1,000 in ADA and at the end of the year you receive $1,070 with the 7% APR, so the next year you invest the $1,070 and apply the 7% you receive $1,145. As a result, you will increase your money each year.

Accessibility and energy saving

In contrast to mining, staking does not require expensive computer equipment such as GPUs or ASICs, nor does it use a great deal of electricity to maintain the equipment for long periods. Also, staking can be completed on your computer or even via your mobile device, so you can reduce ambient pollution compared to mining.

Simple to Learn and Implement

Unlike other forms of investment or trading, cryptocurrency staking is relatively easy to learn, doesn't require much technical expertise, and you can start with a low-income fund, which for AQRU is $100. After that, there is no need to do anything more than defining the currency in which you wish to stake your funds, so you know about the market and the projected value, and after the defined timeframe, you will have passive income.

Cryptoassets are a highly volatile unregulated investment product.

The 5 Best Crypto Staking Coins

We have already noted that not all currencies use the proof-of-stake method, such as bitcoin, which employs the proof-of-stake method. In light of your interest in staking, you may wonder which of the many cryptocurrencies that use this method can perform crypto staking, so listed below; we provide you with a list of the 5 cryptocurrencies we recommend to their characteristics.

The market capitalization and cryptocurrency values listed are as of 18 March 2022.

Cardano

The cryptocurrency Cardano (ADA) began developing in 2015 and was launched in 2017 by Charles Hoskinson, co-founder of Ethereum and BitShares. When it was created, it had a value of $0.026, and today has a market cap of $28,679,049,123 and a value of $0.8514.

USDC

In September 2018, USDC (USDC Coin) was launched on the market and developed by the Center Consortium, composed of Coinbase and Circle Internet Financial. This cryptocurrency is a stablecoin that aims to equalize the value of the dollar, it now has a market capitalization of $52,683,241,468, and its value is $0.9998. We recommend you purchase this coin on the AQRU recommended platform in which you can receive a 7% APR

The Graph

The Graph was established in 2019 by Yaniv Tal; it indexes data from network blockchains such as Ethereum and Filecoin through a protocol and has the mission to allow for the safe and conflict-free exchange of data without the need for third parties.

Launched at $0.26, it now has a market cap of $1,968,196,469 and a value of $0.4174 per token. Also, you can stake The Graph in Binance, which offers a locked stake from 30 to 120 days at an APR of up to 8.19%.

Ethereum

In Ethereum, instead of PoS, a PoW mechanism is used, but a transition is underway with ETH 2.0 in the pipeline. The approximate date in 2022 is still to be confirmed. As the second-largest cryptocurrency after Bitcoin, it reached a value of $0.75 in 2015 when Vitalik Buterin created it and now has a market cap of $352,448,780,864 with a value per Ether $2,936.74.

Binance Coin (BNB)

Changpeng Zhao created the Binance Coin in 2017; the coin is built on the Binance blockchain and utilizes BEP2 tokens that can store and hold value. Since its launch, the coin has had a value of $0.11 and has now reached $396.12 with a market cap of $65,406,808,421.

Binance is the ideal platform for staking BNB since it is the blockchain's token, and it provides many additional benefits in your BNB Vault, depending on how many you have in your possession.

Is Crypto Staking Taxed?

It is mandatory to report cryptocurrency earned from mining, staking, or interest in Canada following the Income Tax Act. The document states that 50% of your crypto staking earnings will be taxed at the corresponding tax rate if the taxpayer can demonstrate the intent to invest rather than trade. Otherwise, it will be treated as a profit that constitutes business income, and 100% of the profit will be taxable.

Having received the cryptocurrency as a staking reward, you need to include the fair market value as of the time you received it, expressed in Canadian dollars. In any case, it is recommended you should still consult with a tax expert so he or she can provide you with the appropriate advice.

Potential Risks of Crypto Staking

Staking crypto can be a lucrative source of income, but there are also some risks to be aware of to ensure you do not suffer any losses or frauds.

Lock-Up Periods

It is a very common risk that occurs when a large amount of money is delegated for crypto staking in a short amount of time, and for some reason, before the established time expires, you must withdraw the money.

Your platform may charge you a large fee if you withdraw the money before the deadline, so you may lose a significant portion of your investment or profit. For this reason, good platforms with flexible plans are preferred, such as AQRU, so you can protect your money.

Cryptocurrency market value

Although the platform you choose can give you a very good APR, for example, in our recommended platform AQRU if you decide to stake ADA, you would have a 7% APR. However, as explained below, this does not necessarily imply that you will have a high profit.

Keep in mind that markets are volatile and that you will derive the profits you make from stacking from the currency in which you invested; according to the example, the annual APR of ADA would be 7% in AQRU, but if the currency falls sharply, for example from $0.82 to $0.50, your profit would below. So something like this may occur.

Platform security

A stable crypto-staking platform is crucial; one that is regulated has a high level of reliability and offers a high level of security since we will delegate our cryptocurrencies to them to generate interest. Then, after a while, they will deliver us the profits generated.

AQRU, Crypto.com, and BlockFi are platforms with vast experience and a proven track record that will enable us to operate reliably. However, because of fraud, hacks, and payment omissions, we need to be well informed to ensure our funds' safety.

Cryptoassets are a highly volatile unregulated investment product.

Conclusion

Throughout this guide, we provide you with all the pertinent information regarding crypto staking so you can do it from Canada and the platforms that we recommend that will ensure you the most competitive APR and conditions to generate rewards and interest safely and reliably.

Following the analysis of this information, if you choose to perform crypto staking in either on-chain or off-chain mode, you can do so right now with AQRU's recommended platform, which offers a very competitive APR in the market, as well as other benefits. So get started now by clicking the button below!

AQRU – Best Platform to Stake Cryptocurrencies in Canada

Cryptoassets are a highly volatile unregulated investment product.

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