Best Staking Coins and Tokens

Staking crypto has become one of the most popular ways for investors to earn passive income in the digital asset space. Many top cryptocurrencies offer lucrative staking rewards to those who hold and lock up their coins. In this guide, I’ll explore the best staking crypto coins of 2024, listing the top 10 tokens for maximizing your staking returns. Additionally, we’ll look at the best staking platforms, outline the benefits of staking, and dissect how crypto staking works.

Whether you’re new to staking or looking to optimize your strategy, this article covers all you need to know to make the most of your crypto funds.

What Is Crypto Staking?

Crypto staking is a great method for crypto enthusiasts to earn passive income. By diving into the world of crypto staking, investors have the opportunity to receive staking rewards thanks to the proof-of-stake (PoS) algorithms, all without the traditional hustle of mining a cryptocurrency. This presents a significant advantage over the older method of crypto mining, which demands costly equipment and hefty electricity expenses. Instead, with staking, individuals can easily get involved through specialized wallets or even via some crypto exchange platforms.

Years of research have gone into developing this technology, which has had positive effects on the security and scalability of blockchain networks. Besides, it facilitates increased decentralization. Whether you’re looking for more ways to diversify your portfolio or want to take part in something truly revolutionary, crypto staking may be the answer you’ve been looking for.

Here are some key things you need to know before you start crypto staking:

• Annual Percentage Yield (APY). Staking rewards are typically expressed as APY, representing the annual return you can earn by staking your crypto. It’s important to note that APY can fluctuate based on network conditions and staking participation rates.
• Lock-up Periods. Some staking platforms or coins require you to lock up your assets for a certain period (days, weeks, or months). During this time, you won’t be able to withdraw or trade your staked tokens, so you should understand the commitment.
• Minimum Staking Requirements. Certain cryptocurrencies have a minimum staking amount; it varies significantly depending on the token. Make sure to check these requirements before getting started.

What Are the Best Coins to Stake?

Here are the 10 best staking crypto assets you can buy now to begin earning staking rewards.

Ethereum (ETH)

Ethereum, one of the largest cryptocurrencies by market capitalization, transitioned to a proof-of-stake (PoS) mechanism in 2022. ETH staking is attractive for investors looking to earn passive income while supporting the Ethereum network. Token holders can stake with as little as 32 ETH individually or through staking pools with lower amounts. Current staking rewards are around 3.8–4.3% APY, depending on the platform. With fast transactions, decentralized network security, and flexibility after the Shanghai upgrade, Ethereum is a solid choice for staking​.

Learn more about ETH staking.

Solana (SOL)

Solana is known for its ultra-fast blockchain that processes thousands of transactions per second. Staking SOL provides 6–8% APY and appeals to investors seeking competitive staking rewards with minimal staking fees. Its decentralized network and low transaction costs make Solana a strong choice for staking​.

Polkadot (DOT)

Polkadot is known for its innovative cross-chain technology, which enables faster transactions and secure data exchange across blockchains. DOT staking offers competitive staking rewards of around 14–16% APY, making it one of the best staking coins in terms of returns. Polkadot’s native tokens can be staked with minimal staking fees, and its decentralized network adds to its appeal for investors looking to generate passive income​.

Binance Coin (BNB)

Binance Coin is the native token of the Binance ecosystem, the world’s largest cryptocurrency exchange. Staking BNB offers relatively modest returns, usually around 5–7% APY, but Binance’s strong market presence and low staking fees make it a reliable option. BNB is ideal for investors looking for stable rewards with access to a wide range of staking pools​.

Polygon (MATIC)

Polygon (formerly Matic) focuses on scalability and enhancing Ethereum’s ecosystem. Its staking rewards range from 4–6% APY. MATIC is an excellent choice for investors due to its lower staking fees and high throughput for faster transactions. Polygon’s decentralized network and robust infrastructure make it a popular staking option, especially for those seeking to earn staking rewards with lower gas fees.

Tether (USDT)

Tether (USDT) is a stablecoin pegged to the U.S. dollar. While it offers lower staking rewards (around 1–3% APY), its stability is appealing for risk-averse investors who want to avoid volatility. Tether is a choice for investors looking for stability without sacrificing liquidity, making it an attractive option for those wanting to earn passive income while mitigating market risk.

Osmosis (OSMO)

Osmosis is part of the Cosmos network. It specializes in decentralized finance (DeFi) and offers impressive staking rewards of 14–20% APY, which makes it one of the best staking coins for high yields. Known for its decentralized network, Osmosis provides a user-friendly experience for staking native tokens with minimal staking fees​.

Toncoin (TON)

Toncoin is designed for high-speed transactions and scalability. Staking TON offers rewards of 7–12% APY, making it a competitive choice for investors. With its efficient network and faster transactions, TON is ideal for those looking to earn staking rewards while supporting a decentralized blockchain​.

Cosmos (ATOM)

Cosmos focuses on creating an ecosystem of interconnected blockchains, and staking ATOM offers rewards of around 20% APY, one of the highest in the market. Its decentralized network and robust staking platform make Cosmos a popular choice for investors looking to earn substantial passive income through staking​.

Avalanche (AVAX)

Avalanche is a scalable blockchain platform offering 8–12% APY for staking AVAX tokens. Known for faster transactions and lower fees, it is a great option for token holders seeking to maximize returns. Avalanche’s decentralized network and strong market presence make it a top choice for staking​.

Staking Benefits: Why Stake Crypto?

• Earn Passive Income. By staking your crypto, you can earn rewards over time. The annual rate (APY) varies but can be competitive, often ranging from 5% to over 20%, depending on the token and platform.
• Choice of Flexibility. With liquid staking platforms, you can stake your assets while still maintaining liquidity. You get derivative tokens that you can trade or use without waiting for a vesting period.
• Support PoS Networks. Staking helps secure the network and validate transactions in proof-of-stake (PoS) blockchains. Token holders directly contribute to the network’s stability.
• Growth of Assets. Over time, the staking rewards you receive compound, potentially increasing your cryptocurrency holdings if prices appreciate.
• Lower Risk Compared to Trading. Unlike active trading, staking is a more stable investment strategy. Trading requires constant market monitoring and involves high risk due to price volatility. Staking, on the other hand, offers consistent rewards, even if the market fluctuates.
• Cost Efficiency. Compared to mining, staking doesn’t require expensive equipment or high electricity costs, making it a more accessible way to earn rewards, especially for retail investors.
• Less Price Impact. By staking tokens, investors avoid contributing to the daily price volatility often seen in crypto trading. Staking allows you to hold your assets while benefiting from their long-term potential without the need to sell.

Common Risks of Crypto Staking

• Price Volatility. The value of your staked coins can drop sharply due to market volatility, even if you’re earning rewards. This can outweigh any gains made from staking.
• Lock-up or Vesting Period. Some platforms require a lock-up period during which you can’t access your staked funds. If the market crashes, you might not be able to sell or move your coins in time.
• Slashing Risk. In some PoS networks, poor validator performance or malicious actions can lead to “slashing,” where a portion of your staked tokens is lost. This is a significant risk to consider, especially if you’re using an unreliable staking pool.
• Liquidity Issues. While liquid staking platforms allow for more flexibility, they can introduce additional risks like losing the derivative token or facing higher transaction fees.
• Security Concerns. Staking through less reputable platforms or keeping your tokens in an unsecured cryptocurrency wallet may expose you to hacks. A hardware wallet can mitigate this risk, but it requires careful management.
• Complex Taxation. The rewards you earn through staking might be subject to taxation, which varies by country. It’s important to be aware of the tax implications and stay compliant with local regulations.

How to Start Staking Cryptocurrency

Starting your journey into cryptocurrency staking can be an exciting way to earn passive income while participating in the blockchain ecosystem. Here’s a structured approach to get you going:

1. Verify Staking Support and Get a Cryptocurrency Wallet

Ensure the cryptocurrency you’d like to stake is eligible for such activities. Transfer your holdings to a compatible wallet that supports staking.

2. Acquire Crypto

If you’re starting from scratch and need to acquire stakable cryptocurrencies, we at Changelly offer a wide selection of over 500 crypto coins, promising competitive rates—check it out!

3. Initiate the Staking Process

Once you have your cryptocurrency in a compatible wallet, it’s time to start staking. Head to one of the trusted crypto staking platforms that supports your chosen coin. For example, if you’re interested in staking DOT (Polkadot), you can use a platform like Binance or even a dedicated staking pool for the highest staking rewards.

Simply select the coin you wish to stake, choose the amount, and confirm your choice. Depending on the platform, you might need to lock up your tokens for a certain period. After this, your crypto is officially staked, and you’ll begin generating passive income through rewards distributed at regular intervals.

3.5. If You’re New, Start Small

For beginners, it’s advisable to begin with cryptocurrencies that have a significant market capitalization and to use established staking platforms. This approach minimizes risks as higher market cap coins tend to have more stability. Pursuing the highest APY offerings without proper research can lead to complications, underscoring the importance of safety and thorough vetting in the crypto space.

4. Commit to Constant Learning

Crypto staking requires ongoing attention and learning. The crypto market evolves rapidly, necessitating that you stay informed about the latest developments.

The details provided here are current as of this writing, but the dynamic nature of cryptocurrency staking means conditions can and will change. Protocols update their staking rules, and reward rates may fluctuate.

With the right knowledge and understanding of the processes involved in staking cryptocurrencies, you can become an active member of any blockchain network while earning passive income along the way!

Crypto Platforms with High Staking Rewards

These platforms provide some of the best crypto staking options with varying risks and rewards to suit different investment goals.

Binance

Binance offers a wide range of coins and adjusted rewards for different staking options. This user-friendly platform supports high-yield coins like Polkadot and Solana, giving users more rewards for their staked assets. They don’t call it one of the best crypto staking platforms for nothing, after all!

Kraken

Known for its transparency and low fees, Kraken is great for both beginners and experienced users. It processes transactions efficiently, and users can stake multiple assets with competitive returns; however, they shouldn’t brush off the risks.

Lido

Lido offers liquid staking, allowing users to earn rewards without locking up their assets. It’s a decentralized solution for staking Ethereum and other PoS coins, giving users flexibility and more rewards for their investments.

Coinbase

Coinbase is a popular platform that simplifies staking for beginners. It supports a variety of coins and offers adjusted rewards based on the staked amount and staking period. It’s a good choice for those prioritizing ease of use and secure staking.

Rocketpool

Rocketpool is a decentralized staking pool that allows users to stake ETH with minimal risk. It’s an excellent option for earning more rewards without the technical know-how required to run your own node.

FAQ

What coin is staked the most?

The most popular crypto assets for staking are ETH, SOL, BNB, AVAX, and ADA.

Which coin is best for staking?

Based on the research, forecasts, and trends, staking Ethereum yields some of the best long-term returns.

Although Ethereum requires users to lock their funds while staked, they will receive rewards—in Ether—once a successful stake is completed. This can also be an easy form of passive income that doesn’t require non-stop price monitoring. Ethereum has strong network security and, besides, due to its popularity in both mainstream and cryptocurrency circles, is less likely to experience devaluation than some other coins on the market. All these factors make Ethereum a great choice for staking your funds with confidence.

Can I stake my BTC?

No, you cannot stake Bitcoin as it operates on a proof-of-work mechanism. This system involves mining rather than staking, the latter being a distinctive feature of networks operating on proof of stake.

Some websites suggest Bitcoin staking because of protocols that enable indirect staking activities, using projects like Wrapped Bitcoin (WBTC) and Stacks. These projects allow Bitcoin to participate in staking-like operations on other blockchains, such as Ethereum’s DeFi ecosystem.

Essentially, while Bitcoin itself does not support direct staking due to its proof-of-work nature, there are alternative methods for Bitcoin holders to earn rewards.

Which crypto wallet is the best for staking?

Choosing the best crypto wallet for staking depends on the specific cryptocurrencies you wish to stake.

For instance, Exodus is a user-friendly and secure option for staking Solana. However, if you’re interested in staking Avalanche (AVAX), the Core wallet is your go-to, as it supports direct staking while keeping your AVAX secure in your wallet.

When dealing with multiple cryptocurrencies, you might need different wallets to optimize each coin’s staking potential. Remember, keeping your digital assets in separate wallets (like separate baskets for your eggs) enhances security.

Can I lose my coins when staking?

The risk of losing coins during staking varies depending on whether the staking is custodial or non-custodial.

In non-custodial staking, like with Cardano, Algorand, or Tezos, you retain full control over your cryptocurrencies, and the risk of losing them is minimal.

However, in custodial or delegated staking, such as with Ethereum, DOT, or AVAX, your coins are held in the validator’s wallet, which introduces a degree of risk, primarily from potential validator misconduct or breaches.

It’s essential to understand these differences and choose your staking platforms wisely to minimize risks.

Is staking better than holding?

Both staking and holding (or “HODLing“) are strategies aimed at long-term investment growth. Staking offers the additional benefit of earning rewards, akin to dividends, for participating in the network.

However, it requires a more active engagement and understanding of the market risks, such as smart contract vulnerabilities and liquidity constraints. Holding is more passive and doesn’t bind your assets, allowing you to sell whenever the market is favorable.

Ultimately, a better choice depends on your financial goals, risk tolerance, and involvement in the crypto ecosystem.

What is the easiest crypto to stake?

For newcomers to crypto staking, starting with Cardano (ADA), SushiSwap (SUSHI), Ethereum (ETH), and Cosmos (ATOM) can be a smart move. These cryptocurrencies stand out not only for their varied reward systems and liquidity options but also for offering beginners a straightforward gateway into crypto staking’s benefits.

However, it’s essential to grasp that the staking protocol—the set of rules governing the staking process—differs from one coin to another. These protocols can stipulate holding a minimum amount of the cryptocurrency, locking up your coins for a certain duration, or operating specific nodes. Familiarizing yourself and being comfortable with your chosen coin’s staking protocol is crucial for a successful staking experience.

Is staking crypto worth it?

Yes, staking cryptos can be a highly profitable form of earning passive income. This way of making money has a lot of advantages over traditional investments and is definitely worth exploring further.

How much can you earn from staking?

Depending on the coin and the amount you are staking, your earnings can vary greatly. Generally speaking, staking can produce an annual percentage yield of anywhere between 4% and 10%.

Can you make a living off crypto staking?

It may be difficult to make a living solely off of crypto staking rewards. That said, experienced traders who already have a working knowledge of the crypto market can potentially increase their profits with crypto staking.

Is there a downside to staking crypto?

Yes, there is. Staking tokens involves locking up your assets for a period of time, meaning if prices rise during this time, then you won’t be able to capitalize on it until you sell your stake back into the market.

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Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.