Custodial vs. non-custodial staking: which one to choose?

In the crypto world, making informed decisions is not just advisable, it's essential. One of the most important questions you must answer is: do you want to give up control of your assets, or keep them in your hands at all times?

This is where the debate between custodial staking and non-custodial staking comes into play. While the former asks you to trust a third party to manage your funds, the latter lets you retain full control over your private keys.

Why choose non-custodial staking and how does Stakely enhance your security?

A custodian is an entity that handles and stores your assets. By using a custodian, you give up control over your private keys, which can increase the risk of losing access to your assets if the entity faces a security or financial issue.

Custodial staking

This method is based on platforms, often exchanges, that offer you the opportunity to earn rewards and manage your staking for you. In reality, all the technical work falls on them, and you simply watch the rewards accumulate.

Advantages:

• Simplicity: Custody platforms handle all the technical aspects, simplifying the process for less experienced users.
• Quick access: Everything is done within the same platform.

Disadvantages:

• Loss of control: When using a custodian, you give up direct access to your assets.
• Hacking risks: Custody platforms are prime targets for cybercriminals.
• Fewer governance rights: By losing control over your tokens, you forfeit the right to participate in governance proposals.
• Centralization risks: The concentration of assets in custody platforms can undermine the decentralization of the ecosystem. For example, nearly 30% of staked ETH is on centralized platforms, weakening governance and centralizing power.

Our approach is simple: connect your wallet, delegate, and you're done. Your cryptocurrencies remain yours, your private keys are safe, and everything that happens is recorded on the blockchain for transparency.

Advantages of delegating with Stakely

• Full control: No one, except you, can access your assets.
• Enhanced security: Without intermediaries, you minimize risks.
• Governance rights: You remain involved in protocol decisions.
• Strengthens decentralization: You help build a more decentralized and fair network.
• Competitive fees: We charge only a small percentage of your rewards, with no hidden fees or minimums.

Disadvantage

Some may claim that staking without custody is complicated or lacks support. But at Stakely, we’ve made it as easy as opening your wallet.

At Stakely, we don’t just offer custodial-free staking; we offer trust, transparency, and freedom.

• Ease of use: You don’t need to be a technical expert to use our platform or delegate with us. Each of our services is designed to make staking simple.
• Transparent fees: Forget hidden charges or minimum deposits. We only take a small fee from the rewards generated, all managed through immutable smart contracts.
• Advanced security: We offer staking insurance against slashing and are certified under strict security standards such as ISO/IEC 27001:2022 and SOC2.
• Diversification across multiple blockchains: From Ethereum to Cosmos, you can delegate in over 30 networks with us. Keep your rewards active and risks spread across different platforms.

Staking with custody may seem like the obvious choice if you're looking for convenience. But remember, convenience often comes at a high price: loss of control, hacking risks, and less participation in the network.

On the other hand, staking without custody, especially with Stakely, offers the best of both worlds: security, autonomy, and an easy-to-use service that maximizes your rewards.

Join Stakely today and take advantage of non-custodial staking across more than 30 blockchains. Keep full control of your assets, maximize your rewards, and contribute to a more decentralized and secure ecosystem.