Crypto Staking Explained
Staking cryptocurrency in South Africa is a means to contribute to the blockchain network by “locking up” a specified number of tokens.
Rewards, often in the form of extra currencies or tokens, may be earned in return for participation.
When an investor deposits funds into a network, the protocol on that network prevents them from being withdrawn for a certain length of time, which is advantageous to the network in many ways. This includes raising the value of a token when the supply is restricted.
If the network employs a Proof of Stake (PoS) method, tokens are typically used to regulate the blockchain and to improve its overall security. In contrast to a Proof of Work (PoW) consensus that uses mining to release assets, validate transactions and secure the network, Proof of Stake (PoS) involves participants in the network staking their tokens to validate transactions and create new blocks on the blockchain.
Validators are selected at random, and this type of selection ensures that no one entity has a monopoly on the distribution of coins. In addition, because they participate in network security, South African investors will get a proportionate compensation for staking their funds according to how much of their overall assets are being staked and how long they are staked for.
Only cryptocurrencies that employ a Proof of Stake consensus method can be staked, including, but not limited to some of the following:
Benefits of Crypto Staking
The benefits of Crypto Staking include:
- In addition to the crypto funds that they hold, crypto users in South Africa can earn additional tokens when they stake their funds. While stakers do not receive a guarantee that they will earn rewards, they can earn interest on their staked tokens.
- Staking is an eco-friendly way to validate transactions as opposed to crypto mining, which is constantly receiving backlash for the detrimental impact it has on energy resources and the environment.
- Staking provides users with voting rights, and they can also participate in network governance.
- Staking is a hassle-free way through which crypto users can grow their investments.
Best Crypto Staking Providers in 2025
South African investors have the option to use a third-party service to stake their digital assets via staking platforms and providers, which handle the technical part of the staking process, making them ideal for complete beginners.
These service providers and platforms offer their technical expertise and platform, taking payment by charging a portion of the winnings, which is normally a fixed price.
They make it easier for anybody to participate in a proof-of-stake network since they lessen the entrance hurdles (technical). Staking through third-party service providers is sometimes referred to as “soft staking” because the crypto holder is not doing it themselves.
Staked.us
Founded in 2019, Staked.us is a New York-based crypto staking provider and platform that is known to help institutional investors compound their crypto funds at a rate between 5% up to 100%. This is done by providing South African crypto holders interest when they offer liquidity to the platform by lending their crypto.
Staked.us offers more than 30 different coins that can be staked, and the fees charged for the service is between 0% to 54%. Some of the most popular cryptos that can be staked include Tezos, Livepeer, Decred, Cosmos, NEAR Protocol, Kava, and many others.
P2P Validator
P2P Validator offers crypto staking services that investors earn rewards on digital asset holdings spread across 25+ supported blockchain networks.
P2P Validator offers network validation and safe non-custodial staking. We do thorough due research on digital assets and give premium stake options, protecting over $3 billion in USD equivalent.
Some of the supported blockchains on this network include Cosmos, Polkadot, Tezos, Solana, Cardano, and many others. The staking fees that traders can expect range from between 3% to 15%, which is reasonable when compared to other providers.
Binance
Binance is one of the world’s most popular crypto asset exchanges in the cryptocurrency space. For retail traders, the Malta-based exchange has become extremely popular as a go-to platform for trading, staking, and other services.
While Binance Chain and Smart Chain are the native blockchains of the exchange, the business also provides exchange-staking for several digital assets, such as Binance Coin (BNB). The company was the first to implement three distinct forms of exchange staking, including:
- DeFi Binance Staking
- Locked Binance Staking
- Flexible Binance Staking are all options
The advantage of using Binance is that South African investors need not worry about staking fees like they would with service providers. However, there are transaction fees that investors may be liable for.
Coinbase
There is no doubt that Coinbase is one of the world’s biggest digital asset exchange trading platforms. Coinbase has a comprehensive service offering that consists of an instructional platform, an automatic investment function, a native digital wallet, and a staking service.
Three assets may be staked by Coinbase customers by leaving tokens in their Coinbase wallets. As Coinbase’s list of supported assets grows, we may anticipate more tradable assets to be added.
The fees that investors can expect when they use the staking options from Coinbase range between 20% and 25%.
KuCoin
KuCoin is one of the best exchanges through which South African investors can stake their PoS tokens. Not only does KuCoin charge lower fees (between 5% and 10%) but it offers a larger supported portfolio of blockchain networks including:
- Algorand
- Cosmos
- Aion
- EOS
- TRON
- Neblio
- The Internet of Services
- DeepOnion
- TomoChain
- Loom Network
- Tezos, and several others.
Figment Networks
Figment Networks was founded in 2019 and the provider is one of Canada’s major blockchain infrastructure and staking providers, enabling users to stake and earn rewards on over 20 protocols, including Cosmos and IRISnet. Additionally, Figment Networks supports staking using Algorand and Livepeer.
Figment Networks is sponsored by two of the most known blockchain investment firms, Prota and Lemniscap. The provider is often lauded for being a legal and compliant stakeholder with a solid internet infrastructure.
Users can easily stake their digital tokens in addition to having the necessary tools and resources to construct decentralized applications (DApps) and participate in the governance of many blockchains on the Figment Networks platform.
MyCointainer
MyCointainer is a popular investor favourite, owing to its exceptional features and attractive compensation programs for staking providers. The Estonia-based staking platform was established in 2018 has mostly been acknowledged as one of the simplest and safest methods of staking high-yielding PoS currencies.
Additionally, the software supports sophisticated automated Masternode staking for a selection of cryptocurrencies. What sets MyCointainer apart is its strong emphasis on user experience – South Africans can just purchase or deposit and immediately begin earning rewards.
The platform is accessible through the web in addition to being available as a mobile application on both iOS and Android mobile devices such as smartphones and tablets.
Coinbase Custody
Coinbase Custody is the ideal staking platform for total newcomers to cryptocurrency trading. Coinbase Custody is a digital asset custody service platform created by Coinbase Inc in 2018.
It is the first cryptocurrency custodian to provide staking with active governance and offline storage for digital currencies. Stakeholders may keep their money offline while their currencies are locked in smart contracts using this staking service provider.
This minimizes the inherent cyber dangers. The platform now supports a variety of tokens, including Solana, Algorand, Tezos, and Cosmos, with further support planned for a wide range of digital tokens including Ethereum 2.0. The returns gained via this platform vary from 6% to 20%, depending on the token that is staked.
Staking Facilities
Headquartered in Germany, Staking Facilities is another popular staking service provider that offers both crypto holders and South African investors a comprehensive infrastructure through which they can stake coins, tokens, and digital assets.
Staking Facilities is an appropriate service for individuals interested in staking their Proof of Stake assets to receive lucrative rewards on their staked digital assets.
Staking Facilities has been operational since 2019 and has made a good name for itself in the cryptocurrency space. Staking Facilities currently supports Tezos, Cosmos, Aion, Solana, and Polkadot, with staking incentives ranging from 5% to 20%.
At the time of writing, the provider’s official website indicated that it had staked more than $1.1 billion in assets.
FAQ
What are staking providers?
They are a platform and a service that takes care of the technicalities of staking PoS tokens on different blockchains. These service providers offer the infrastructure that South African investors and crypto holders need to stake and in return, they charge a certain percentage fee for their service.
How does staking work?
Staking is a consensus mechanism that involves participants on a blockchain locking tokens up in smart contracts. The system selects random validators according to the staking amounts and these entities validate transactions. As a reward for their participation, those who stake their funds are rewarded generously.
Which Crypto can be staked?
All blockchain projects that have Proof of Stake consensus mechanisms can be staked including Ethereum 2.0 (once launched), Cardano, Solana, Polkadot, and many others.
What is Cold Staking?
Cold staking is something that can protect participants on the stake network by keeping funds offline in a private crypto wallet.
Do I need a Crypto Wallet to stake?
South Africans do not need a wallet and can stake crypto assets with a cryptocurrency exchange that has a native wallet. However, many service providers do not offer a native wallet and users need their own.
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