Module 4.0.0. Popular Third-Party Service Providers for POS
There are two groups of third-party providers that offer soft staking services:
(a) Crypto Exchanges
Top cryptocurrency exchanges that provide soft staking services include:
Binance Coinbase
KuCoin Kraken
Poloniex
(b) Staking Institutions
Popular staking institutions that provide soft staking services are:
Figment Network MyCointainer
Stake Capital Stake.Fish
Staked Stakinglab
Staking Facilities Stakewith.us
P2P Validator Dokia Capital
4.1.0. Four Important Points to Note in POS
Before you decide which service provider to use to stake your coins, there are four important points you must consider:
1. Security
What you should find out here include:
• Coin Security: Will your coins be secured with them? Has there been any security breach of their platform?
• Withdrawal: When can you access your coins? Are there restrictions? What are the withdrawal processes and requirements like? Are such processes and requirements user-friendly?
Generally, because staking is conducted on the blockchain. The waiting time to redeem your tokens varies according to the blockchain's consensus mechanism. Different blockchains require different redemption times. For example, to unstake EOS, you need to wait 72 hours, while unstaking Polkadot (DOT) requires you to wait 28 days.
However, some top third-party providers like Binance optimize the distribution process of funds and shorten the redemption time to 1 day.
2. Range of Cryptos
Is the service provider able to stake your particular crypto? Note that the range of cryptocurrencies that can be staked varies among providers.
3. Staking Reward
How much is the APR or APY being offered? Is the staking reward being calculated in APR or APY? Of course, APY is better because of its compounding factor, which is not seen in APR.
4. Staking Fees
How much will the provider charge you as staking fees? Are the staking fees the best charges you can get in the market?
Important!!! Therefore, it is your responsibility to find out where you can maximise your crypto rewards. Remember, crypto is money!