The 4 Best Places to Stake MATIC

Looking for the best place to stake MATIC (Polygon)? In this guide, we’ll explore the best options for you based on factors like ease of use and reward rate!

The 4 Best Places to Stake MATIC

Here are some of the best platforms where you can stake your MATIC tokens. 

Polygon Website 

You have the option to stake your crypto directly through the Polygon website. You can connect with the network securely through wallets like MetaMask and Coinbase Wallet and stake your MATIC with a validator. 

Staking through Polygon is a great method to maximize your rewards since exchanges won’t be taking a cut of your profits. However, beginner investors may prefer the user-friendly interface that most centralized exchanges offer. 

At the time of writing, staking through the Polygon website offers a 4.95% interest rate. 

Binance/Binance.US

As one of the largest cryptocurrency exchanges globally, Binance (and its US subsidiary, Binance.US) offers a user-friendly platform for staking MATIC. 

At the time of writing, Binance.US offers 3.1% rewards for staking MATIC.

Lido 

Lido is one of the most trusted DeFi protocols in the ecosystem. The platform is known for offering high liquid staking rewards — which allows users to easily stake and un-stake their assets. 

 Currently, the protocol offers daily staking rewards on MATIC with an APY of 4.2%. 

Kraken

Kraken is known for its focus on security and its user-friendly interface. Currently, Kraken offers rewards of 1-3% on MATIC staking. 

Kraken also offers 3-6% bonded staking rewards on MATIC. When your assets are ‘bonded’ on Kraken, you will not be able to un-stake your crypto until a 3-28 day waiting period is complete.

How to Stake MATIC on the Polygon Website

Staking MATIC on the Polygon website involves a few simple steps:

• Open your MetaMask wallet. 
• Select the network dropdown in the top-left corner. 

• Next, choose Polygon in the dropdown menu. 

• Visit the official Polygon website, then click on the link labeled ‘Connect Wallet’. 

• Connect your MetaMask wallet. 
• Choose the "Stake" option and select a validator you wish to delegate your MATIC tokens to.
• Enter the amount of MATIC you want to stake and confirm the transaction.

What is Polygon?

Polygon, formerly known as MATIC Network, is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.

Polygon is a Layer 2 network built on Ethereum. Polygon was designed to address some of the Ethereum network’s limitations. By building on the Polygon network, developers can create scalable and high speed applications that still leverage Ethereum’s world-class security. 

How does Polygon staking work? 

Polygon relies on the Proof of Stake consensus mechanism. When you stake MATIC, you help to validate transactions and ensure the security of the network. In return, you are rewarded with MATIC tokens. 

What rewards should I get for staking Polygon?

Staking rewards on Polygon depend on several factors, including the amount of MATIC staked, the validator's performance, and the overall network participation rate. 

Generally, stakers can expect an annual yield ranging from 5% to 20%. These rewards are distributed as additional MATIC tokens. 

Is staking MATIC worth it? 

Staking MATIC can be a great way to earn passive income on your cryptocurrency holdings. To determine whether staking MATIC is ‘worth it’ for your specific situation, you should consider potential risks (as discussed in the section below). 

Is staking Polygon risky? 

Staking MATIC does come with potential risks. 

Reward slashing: If the validator behaves maliciously, your stake may be slashed. Choosing reputable and reliable validators can mitigate this risk. 

Potential vulnerabilities: If your staking provider has vulnerabilities, it’s possible that you may lose access to your staked cryptocurrency in a hack or an exchange bankruptcy. Again, the best way to mitigate this risk is to choose trusted staking providers. 

Volatility: MATIC and other cryptocurrencies are volatile. This means that the value of your staked crypto as well as associated rewards may drop significantly. 

How are my Polygon staking rewards taxed? 

Staking rewards from MATIC and other cryptocurrencies are subject to tax. 

When you earn MATIC through staking, you’ll recognize income based on the fair market value of your crypto at the time of receipt. 

When you dispose of your cryptocurrency, you’ll incur a capital gain or loss depending on how its value has changed since you originally received it. 

For more information, check out our guide to crypto staking taxes.