How to Stake Bitcoin with a Centralised Platform

The only way to stake Bitcoin (BTC) with a centralised exchange in Australia is through a global staking platform. This is because local exchanges like CoinSpot and SwyftX both do not offer staking options for Bitcoin (BTC) or Wrapped Bitcoin (WBTC). That said, we recommend Nexo to stake BTC in Australia thanks to their high yields starting at 7% APY.

You can get started in 4 simple steps:

  1. Sign up to the Nexo staking platform.
  2. Send Bitcoin (BTC) from your Crypto Wallet to your Nexo address.
  3. Find BTC on your Nexo staking dashboard.
  4. Input the amount you want to stake and execute the transaction. Yields will be paid out to you daily.
Stake Bitcoin and more with Nexo.

How to Stake Bitcoin with a Decentralised Platform

The best decentralised finance (DeFi) application to stake Bitcoin (BTC) is AAVE. This is because they are the most battle-tested smart contract application that has over $10 billion in value locked, meaning it is highly trusted. They currently offer yields of up to 3% APY on the Optimism Network for Wrapped Bitcoin (WBTC) deposits.

You can get started in 4 simple steps:

  1. Download or login to your MetaMask or alternative Web 3 wallet.
  2. Visit the AAVE platform and the Optimism (V3) market. Learn how to add Optimism to MetaMask here.
  3. Find Wrapped Bitcoin (BTC) and select the market.
  4. Input the amount you want to deposit and execute the transaction. Yields will be paid out live every second to your wallet.
Deposit Wrapped Bitcoin (WBTC) to AAVE V3 Market.

Bitcoin vs Wrapped Bitcoin

The main difference between Bitcoin (BTC) and Wrapped Bitcoin (WBTC) is that WBTC is an ERC20 token that represents BTC on Ethereum. The benefits of using WBTC includes earning interest on your BTC deposits through DeFi applications like AAVE, as well as being able to trade BTC with other ERC20 tokens. However, the main downside is that you have to trust the smart contract application to not get hacked as your BTC is stored on Ethereum.

What Are The Risks of Staking?

The risks of staking generally come down to the platform you are using. For example, if you are using a centralised platform like Nexo, BlockFi or Celsius then the main risks are platform risks such as them getting hacked, going insolvent or shutting down.

However, if you are using a decentralised platform like AAVE or Curve Finance, then the main risk is the smart contract application getting hacked. This is because your funds are stored on an open-source blockchain that is subject to exploits and code errors.

The Bottom Line

Staking Bitcoin in Australia can be a great way to earn high yields through both centralised and decentralised platforms. However, it is important to carefully consider the risks involved and choose a platform that is trustworthy and secure. Nexo and AAVE are both highly recommended options, but it is ultimately up to individual investors to conduct their own research and make informed decisions. With the right approach and due diligence, staking Bitcoin can be a lucrative investment strategy in the growing world of digital assets.