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The 14 Best Staking Cryptos to Buy in 2024 | Staking Rewards & More

By Onose Enaholo - Updated 24 June 2024
Fact Checked

In my experience, selecting the best staking crypto isn’t as straightforward as one might believe. Most users are drawn in by the promises of high yields, but never really dive into why you should stake one crypto vs another.

As a result, many people pay into a coin and find themselves disappointed by the realities of staking crypto. Therefore, we have put together this helpful staking coins list to aid you in your search for the best staking crypto to buy and earn staking rewards.

Best Staking Crypto to Buy in 2024

  1. Bitcoin Dogs ($0DOG)Best Bitcoin BRC-20 Token
  2. BitBot ($BitBot) – Best New Crypto Trading Bot
  3. Chancer – The Best Staking Crypto for Predictive Markets
  4. Shiba Memu  – Best Staking Coin Marketing Platform
  5. Metacade – The Best Staking Coins for GameFi
  6. Ethereum – The Best Staking Coins for Smart Contracts
  7. Avalanche – The Best Staking Coins for DeFi
  8. Solana – The Best Staking Coins for NFTs
  9. Rocket Pool – The Best Staking Coins for Liquid Staking
  10. Polkadot – The Best Staking Coins for Multichain
  11. Cosmos – The Best Staking Coins for Interoperability
  12. Hedera – The Best Staking Coins for Fast Payments
  13. Polygon – The Best Staking Coins for Scaling Ethereum
  14. GMX – The Best Staking Coins for Perpetuals

The Best Crypto Staking Coins Compared

Crypto

Staking Reward

TVL Staked

Methods of Staking

How to Buy

Bitcoin Dogs ($0DOG)

Gaming

None yet

BRC-20

Buy $0DOG

BitBot (BITBOT)

Utility

None yet

Ethereum

Buy BITBOT

Chancer

25% of transaction fees

None yet

Dapp

Buy Now

Shiba Memu

N/A

None yet

Dapp

Buy Now

Metacade

40%

$3,475,000

DApp

Buy Now

Ethereum

4.3%

$37,911,436,883

Protocol 

Buy Now

Avalanche

8.58%

$3,344,968,911

Protocol 

Buy Now

Solana

7.52%

$6,598,369,976

Protocol

Buy Now

Rocket Pool

7.61%

$354,911,148

LSD

Buy Now

Polkadot

15.8%

$2,796,195,727

DPoS

Buy Now

Cosmos

22.29%

$2,250,266,740

DPoS

Buy Now

Hedera

6.5%

$1,730,905,669

Protocol

Buy Now

Polygon

5.47%

$2,411,863,281

Protocol

Buy Now

GMX

2.06%

$483,515,109

DApp

Buy Now

Our 14 Best Staking Cryptos Reviewed

Bitcoin DogsBest Bitcoin BRC-20 Token

Bitcoin Dogs’ native token, $0DOG, will launch as the first-ever ICO on the Bitcoin blockchain. Thanks to cutting-edge Bitcoin Ordinal technology, Bitcoin Dogs is pushing the boundary of what is being built on the Bitcoin network.

By combining memecoins, NFTs, and Ordinals, this project aims to go where none has gone before along with all who dare to run ahead of the pack. Given the industry’s love for breaking new milestones, this project will attract the interest of people within and outside the Bitcoin community.

Why invest in Bitcoin Dogs?

Bitcoin Dogs keys into strong crypto narratives like BRC-20 and the Bitcoin halving that could place it in investors’ sights, and allow for innovation and significant upside; several BRC-20 projects that have launched have garnered traction from investors and Bitcoin enthusiasts.

Bitcoin Dogs has gone further than most other projects to build the first Bitcoin-native gaming ecosystem with tokens, a planned NFT collection, and even games further down the line.

Bitcoin on-chain metrics data from Dune Analytics show a significant increase in transaction count on the blockchain that started close to the end of January 2023, when Ordinals was launched.

Higher volumes combined with the Bitcoin halving in April 2024 could catalyze significant growth for the network and its most promising projects, like Bitcoin Dogs.

Risks in Investing in Bitcoin Dogs

Bitcoin Dogs is a new project attempting a feat that has never been done before. As such, there are bound to be obstacles that are novel to this project, and a history of token launches shows that plans are hardly ever without hiccups.

$0DOG will be the native token of the Bitcoin Dog ecosystem. It has a maximum supply of 900 million units, 90% of which is allocated to the presale. This means that investors will get the bulk of tokens, making this as close to a fair launch project as possible.

To join this project early, head over to the Bitcoin Dogs website.

Bitbot (BITBOT) – Best Crypto Trading Bot

bitbot crypto trading bot website homepage

Bitbot is a crypto trading bot that allows you to trade cryptos on-chain using simple text instructions on Telegram. The bot is part of a rising trend of people using bots with instant execution speeds to keep up with institutional traders.

These bots are usually integrated with the Telegram messaging platform, allowing users to control their trading activities using simple commands. Because of their ease, efficiency, and speed, traders can use them to uncover and buy tokens before they launch on major exchanges.

Why invest in Bitbot?

Bitbot offers features that place it ahead of other trading bots. The most pertinent is its emphasis on decentralization. Most Telegram bots hold on to their users’ private keys, creating an attack vector.

We saw this happen with popular bots like Unibot which was hacked in October 2023. The attacker could drain funds from connected wallets because the platform stored its users’ private keys.

Bitbot uses a completely decentralized structure to ensure users are always in charge of their tokens.

Risks in investing in Bitbot

While the bot has utility, the success of its token depends on the company’s ability to attract and retain users, which is usually easier to accomplish during a bull market than a bearish one.

2024 is expected to be bullish thanks to Bitcoin’s halving, however, interest beyond the bull season is yet to be determined.

Bitbot has a total supply of 1 billion tokens, 30% of which will be sold in an upcoming presale event. This presale includes a competition that will reward participants with up to $100,000. To stay current on the presale, visit the Bitbot website.

Chancer (CHANCER) – The Best Staking Crypto for Predictive Markets

The first on our list for the best staking coin is Chancer. As someone who enjoys friendly competition and connecting with like-minded individuals, Chancer is a game changer.

Whether it’s sports events, elections, award ceremonies, or market moves, the platform provides a versatile platform to craft predictive markets for outcomes that can be tracked.

What sets Chancer apart is its user-friendly interface and the passion behind its creation by brothers Adam and Paul Kelbie. They have successfully combined social interaction with the thrill of predictive markets, making it a captivating experience.

Why Invest In Chancer?

From an investment perspective, Chancer shows great promise and the next big crypto as it possesses the potential to upend existing online betting structures. It’s currently in the presale stage, and the upcoming beta stage in Q3 2023 is highly anticipated. The innovative concept, coupled with the potential for profit through accurate predictions, makes it an exciting investment opportunity and top staking coins for crypto investors in the web3 world.

Chancer holders can also earn passive income by staking their crypto holdings. The passive income rewards will be 25% of all transaction fees, which could amount to a significant sum as one of the best staking tokens with increased use around Bitcoin gambling.

Risks In Investing In Chancer

However, like any crypto market investment, there are risks to consider. The volatility and uncertainty associated with predictive markets can lead to unpredictable price movements and potential losses on crypto earnings. Additionally, being in the presale and beta stages, there might be developmental and operational risks to be mindful of.

CHANCER has a total supply of 1.5 billion tokens, 65% of which is available for presale.

To participate in the presale, visit the Chancer website and click on Buy CHANCER.

Shiba Memu (SHMU) – Best Staking Coin Marketing Platform

Shiba Memu is a cryptocurrency token that reportedly combines the capabilities of artificial intelligence with the decentralization and immutability of blockchain technology to create a self-sufficient marketing platform.

Why Invest In Shiba Memu?

Shiba Memu is attempting to achieve what has never been done in crypto before. By leveraging AI-powered computation, the platform aims to create a perpetual marketing software that can generate its own copy, distribute it, analyze it, and strategize based on data.

The combination of a self-sufficient marketing platform with a memecoin makes for the creation of a social community, powered by the SHMU token, that grants investors access to the utility of the marketing platform.

Users will have access to an AI dashboard where they can monitor the platform’s marketing efforts, interact with the AI, and even offer suggestions.

Risks In Investing In Shiba Memu

Shiba Memu is the first project attempting AI-powered marketing on this scale in the crypto space. As with all projects pushing the frontiers of their field, its path is fraught with technological obstacles.

SHMU has a maximum supply of 1 billion tokens, 850 million of which will be up for sale in the presale phase. 500 million tokens will be sold on the Ethereum network while 350 million will be sold on the BSC network.

Not much information about staking this particular crypto is available as the project is still in its infancy.

To participate, visit the Shiba Memu website to Buy Shiba Memu.

 

Metacade (MCADE) – The Best Staking Coins for GameFi

Metacade is the ultimate community hub for Web3 crypto enthusiasts, gamers, and blockchain fanatics. Community lies at the heart of Metacade, and it provides an incredible platform for networking, collaboration, and engagement within the Metaverse.

Metacade has a rich history of bringing together like-minded individuals, including entrepreneurs, game developers, and blockchain enthusiasts.

It serves as a one-stop destination for exploring the latest trends in gaming and the Metaverse, viewing leaderboards, publishing reviews, and gaining access to cutting-edge GameFi projects.

What I particularly love about Metacade is the real-time networking and collaboration it offers. You can connect with talented individuals from various fields, exchange ideas, and share your passions.

Why Invest In Metacade?

Metacade has a lot of potential. It provides a platform that combines the thriving worlds of gaming and blockchain, which are experiencing significant growth. The community-driven nature and emphasis on collaboration create a vibrant ecosystem that can attract investors and innovators alike.

If you consider a TAM analysis of the current gaming industry, Metacade has a lot of room for growth and potential for capital to flow from the traditional gaming industry.

Risks In Investing In Metacade

It’s important to stay abreast of the risks associated with investing in tokens related to Metacade as well. As with any emerging technology, there are uncertainties regarding the adoption and long-term viability of Metacade and the broader Metaverse concept.

MCADE has a total supply of 2 billion tokens, 58% of which is available for presale. To buy MCADE, visit the Metacade website, scroll down and click on Uniswap, BitMart, or MEXC Global. Currently, the staking protocol is exclusive to presale customers, with plans to reopen in the future.

Metacade crypto holdings staking return is at 40% as of writing with the caveat that stakers are put into lock up periods for their tokens for 6 months.

You can Buy Metacade here

Ethereum (ETH) – The Best Staking Coins for Smart Contracts

Ethereum is not just a cryptocurrency, it’s a decentralized blockchain platform that enables the creation and execution of smart contracts and decentralized applications (DApps).

Ethereum has a remarkable history, starting with its launch in 2015 by Vitalik Buterin. It quickly gained traction, becoming the go-to platform for developers seeking to build decentralized applications and innovative blockchain projects.

The platform’s support for smart contracts allows for the creation of self-executing agreements, opening up a world of possibilities in finance, supply chain management, gaming, and beyond. The Ethereum Virtual Machine (EVM) facilitates the seamless execution of these contracts.

Why Invest In Ethereum?

Ethereum’s ability to verify transactions millions of times per day, is the reason that users attribute value to it. It has the second highest market capitalization out of all cryptocurrencies, second only to Bitcoin.

Its established position, robust developer community, and growing adoption make it an attractive long-term investment opportunity. Moreover, as the demand for decentralized applications and blockchain solutions continues to rise, Ethereum’s value proposition strengthens.

Risks In Investing In Ethereum

As great as it is to stake ETH, there are risks associated with investing in Ethereum. The cryptocurrency market is inherently volatile, and Ethereum’s price can experience significant fluctuations. Moreover, as a platform that relies on smart contracts, there are potential security vulnerabilities that can lead to exploits or hacks.

ETH does not have a total supply, but does however have a circulating supply of over 120 million. To buy ETH, visit any decentralized crypto exchanges or a centralized exchange, such as eToro. The best place for staking ETH is directly through the smart contract on Ethereum’s beacon chain.

Read our Ethereum review to learn more about the network and its token.

 

Staking Options

Estimated Rewards

Validator

~4.3%

Delegator

~3.11%

Staking pool

~3.8%

CEX

~3.28%-3.96%

Avalanche (AVAX) – The Best Staking Coins for DeFi

Avalanche is a highly scalable and efficient platform that aims to provide a robust infrastructure for decentralized finance (DeFi).

Avalanche has a fascinating history, founded by Emin Gün Sirer and his team of experienced researchers. After its launch in 2020, it quickly gained recognition for its unique consensus protocol, Avalanche consensus, which enables high throughput, low latency, and strong security.

Avalanche’s speed and scalability differentiate it from other blockchains. The platform’s compatibility with Ethereum Virtual Machine (EVM) allows for seamless migration of existing Ethereum projects, opening up a world of possibilities for developers.

Why Invest In Avalanche?

Avalanche’s rapid growth, vibrant ecosystem, and strong developer community make it an attractive long-term investment. As more projects and users flock to Avalanche, the demand for its native currency, AVAX, is likely to increase.

Risks In Investing In Avalanche

Despite Avalanche’s positives, most developers, dApps, and activities remain on Ethereum and layer 2s like Polygon and Arbitrum.

Additionally, as a relatively new platform, there may be uncertainties surrounding adoption, competition, and regulatory factors that could impact the value of AVAX.

AVAX has a total supply of 720 million and a staking ratio of 59.57%. To buy AVAX, visit any centralized exchange, such as eToro. The best place to stake AVAX is directly with the blockchain, through the Avalanche wallet.

 

Staking Options

Estimated Rewards

Validator

~8.58%

Delegator

2% minimum

CEX

6.57%-9%

Solana (SOL) – The Best Staking Coins for NFTs

Solana is a cutting edge blockchain network that can process a theoretical 65,000 transactions per second, making it the fastest blockchain network in the industry. It achieves this feat with its unique proof of history (PoH) consensus mechanism, high-speed, scalability, and low transaction costs.

Solana’s selling point is its vibrant and rapidly growing ecosystem. The platform has attracted a wide array of innovative projects and the best DeFi apps across various sectors, especially in the NFT space. This diversity fuels Solana’s potential for long-term growth and adoption.

Why Invest In Solana?

Solana’s technological advancements, strong developer community, and growing ecosystem make it an attractive investment choice. As the demand for fast and scalable blockchain solutions continues to rise, Solana’s value use case strengthens.

What makes this one of the top staking coins is that it is home to a robust ecosystem of NFT projects. As a result, Solana has the potential to compete with other NFT hubs, like Ethereum.

Risks In Investing In Solana

Though Solana has generated a lot of hype, there are risks involved with investing in Solana. Most notably, Solana has had a history of network outages. Additionally, due to having a large stake in Solana, the collapse of FTX led to many lost NFTs on Solana and a plummet in the price of SOL.

SOL does not have a max supply, but has a circulating supply of 402.7 million. To buy SOL, visit a centralized exchange, such as eToro. The best place for staking Solana (SOLD) is via the Solflare wallet.

 

Staking options

Estimated rewards

Validator

~7.52%

Delegator

~6.83%

Rocket Pool (RPL) – The Best Staking Coins for Liquid Staking

Rocket Pool aims to address the limitations of centralized and custodial staking solutions by prioritizing decentralization and trustlessness. What sets Rocket Pool apart is its trustless staking model.

Instead of relying on a centralized staking-as-a-service provider, Rocket Pool allows users to stake ETH towards a network of node operators in a decentralized manner. Additionally, it allows the option of earning a higher ROI when you run a Rocket Pool node.

Why Invest In Rocket Pool?

One notable advantage of staking RPL is that the platform lowers the barrier for running a node to 16 ETH from 32 staked ETH, allowing more people to become validators. More people can generate income and earn the 7% validator return as opposed to Lido that is fixed at 4%.

Risks In Investing In Rocket Pool

While Rocket Pool offers exciting investment potential, it’s important to be aware of the risks involved. Like any smart contract-based platform, there are smart contract risks to consider, especially for users who run nodes on the network.

Additionally, there is a risk associated with delegating crypto coins to a validator as malicious behavior is punished by slashing their stake, which affects you.

RPL has a total supply of 19.5 million tokens. To buy RPL, visit a decentralized exchange like Uniswap, or a centralized exchange such as Coinbase.

 

Staking options

Estimated rewards

Validator

~7.61%

Delegator

~3.11%

Polkadot (DOT) – The Best Staking Coins for Multichain

Polkadot’s history dates back to its creation by Dr. Gavin Wood, one of the co-founders of Ethereum. Its vision was to address the limitations of existing blockchains by enabling different blockchains to communicate with one another.

What sets Polkadot apart is its innovative use of parachains and the shared security model. Through parachains, individual blockchains can operate independently while still benefiting from the security and functionality of the Polkadot ecosystem.

Why Invest In Polkadot?

Polkadot is one of the leading projects solving the interoperability problem. With its focus on scalability, security, and interoperability, Polkadot has attracted a vibrant ecosystem of projects and developers.

This growing network of innovative blockchains makes Polkadot a promising long-term investment opportunity.

Risks In Investing In Polkadot

As innovative as Polkadot is, there are some risks involved. While Polkadot has demonstrated its capabilities, competition from other interoperability platforms and potential regulatory challenges can impact its future growth and adoption.

Polkadot has a vibrant developer ecosystem, but has not achieved the level of use or market cap as a Solana (another Ethereum competitor), despite being around for longer.

DOT does not have a max supply, but has a circulating supply of 1.25 billion tokens.

To buy DOT, visit a DEX on Polkadot or a centralized exchange, such as eToro.

 

Staking options

Estimated rewards

Validator

~15.8%

Delegator

~15%-19%

CEX

~9.77%-14.9%

Cosmos (ATOM) – The Best Staking Coins for Interoperability

The history of Cosmos traces back to its founding by Ethan Buchman and Jae Kwon, who envisioned a network of interconnected blockchains that could communicate and exchange data seamlessly.

What sets Cosmos apart is its groundbreaking use of the Inter-Blockchain Communication (IBC) protocol. Through IBC, independent blockchains can interact and share data securely, enabling a new era of cross-chain collaboration.

Why Invest In Cosmos?

With a focus on interoperability, scalability, and modular architecture, Cosmos has attracted a vibrant community of developers and projects. This growing ecosystem signifies a promising investment opportunity, as more applications and users join the network.

Risks In Investing In Cosmos

Cosmos faces formidable opposition on many fronts, a prominent one being Layer Zero. While Ethereum reigns supreme as the leading ecosystem. Polkadot emerges as a direct rival with strong brand recognition.

The introduction of Avalanche subnets and novel bridging initiatives that connect various L1 blockchains also provide additional routes to interoperability, potentially competing for market share.

ATOM does not have a max supply, but does, however, have a circulating supply of 1.19 billion.

To buy ATOM, visit centralized crypto exchanges, such as Coinbase. The best place to stake ATOM is through any staking platform wallet.

 

Staking options

Estimated rewards

Validator

~22.29%

Delegator

~20.65%

CEX

~17.66%

Hedera (HBAR) – The Best Staking Coins for Fast Payments

Hedera’s journey began with the founding team’s vision to create a platform that addresses the limitations of traditional blockchains. Founded in 2018, Hedera Hashgraph emerged as a groundbreaking distributed ledger technology, offering blazing-fast transaction speeds, robust security, and energy efficiency.

Hadera’s most captivating feature is its unique consensus algorithm, called Hashgraph, which combines the benefits of distributed ledger technology with a novel approach to achieving consensus.

The result is a platform that can process thousands of transactions per second, making it ideal for real-world applications requiring speed and scalability.

Why Invest In Hedera?

Hedera’s enterprise-grade features, growing ecosystem, and partnerships with major organizations make it an attractive long-term investment opportunity. Hedera’s native cryptocurrency, HBAR, fuels the network, and is one of the best coins, providing holders with the ability to participate in network governance and potential to earn rewards from staking work.

Risks In Investing In Hedera

Price volatility is a key consideration, and the market value of HBAR can fluctuate significantly. Additionally, regulatory factors and competition within the blockchain industry may impact the adoption and value of the coin. HBAR has a total supply of 50 billion tokens.

To buy HBAR, you can go to centralized crypto exchanges like Coinbase. The best way to stake HBAR is through a Hedera wallet like HashPack.

 

Staking options

Estimated rewards

Validator

~6.5%

Polygon (MATIC) – The Best Staking Coins for Scaling Ethereum

Born out of the vision to solve scalability challenges on Ethereum, Polygon has become a leading layer 2 scaling solution.

What makes Polygon truly unique is its versatility. It offers a wide range of tools, such as the Polygon SDK and the Polygon POS Chain, that empower developers to build and deploy scalable decentralized applications (DApps) with ease.

Why Invest In MATIC?

From an investment perspective, Polygon holds immense promise. Its growing adoption, strong partnerships, and continuous development make it an attractive investment opportunity for staking rewards.

Because of its cheap gas fees, it is ideal for minting NFTs. Reddit utilizes Polygon for its NFTs and creator rewards, giving it real-world utility.

Risks In Investing In Polygon

Price volatility is a significant factor, and the market value of Polygon’s native token, MATIC, can experience fluctuations. Additionally, Polygon has admin keys. Which means that the protocol is centralized, carrying counterparty risk.

MATIC has a total supply of 10 billion tokens. To buy MATIC, you can go to a centralized exchange like Coinbase. The best place to stake MATIC is directly through the Polygon website.

To learn more, read our Polygon review.

 

Staking options

Estimated rewards

Validator

~6.2%

Delegator

~5.77%

CEX

~3.47%

GMX (GMX) – The Best Staking Coins for Perpetuals

GMX is a decentralized perpetual exchange that enables traders to trade cryptos with leverage in a completely decentralized manner. Services like GMX rose to prominence after the fall of FTX, a centralized exchange.

The platform allows users to trade using only their crypto wallets; a plus for privacy. You can swap between tokens or trade perpetuals, a crypto derivative, with up to 50x leverage.

Why Invest In GMX?

GMX runs multi-asset liquidity pools which generate rewards through various channels such as market making, swap fees, leverage trading, and asset rebalancing. It is one of the few DeFi apps that offer real returns that are not in the native token.

These rewards are directed back to liquidity providers, creating an incentive-driven ecosystem that benefits participants.

Risks In Investing In GMX

There are some risks associated with investing in GMX. In mid-September 2022, an exploit of GMX on Avalanche was reported, highlighting the need for caution and careful evaluation of security measures when engaging with the platform.

GMX has a max supply of 13.5 million tokens, 8.6 million of which are in circulation. To purchase GMX, you can go to a centralized exchange like Binance. The best place to stake GMX is directly from the GMX DApp.

 

Staking options

Estimated rewards

Avalanche

~2.06%

Arbitrum

~2.06%

What is Staking Coins in Crypto?

Staking crypto involves holding or a lock up period of a particular cryptocurrency in supported wallets or a platform to support the operations of a blockchain, DApp, or protocol.

Staking rose with the move to proof-of-stake blockchains where validators who had the most stake (i.e. coins) were more likely to be chosen to process transactions and receive rewards.

The more validators that stake coins, the more secure the network, hence the financial incentive to earn rewards.

By staking, individuals actively participate in the network’s sybil protection, validate and verify transactions, and maintain the network’s security. In return for their contribution, stakers receive passive income rewards in the form of additional cryptocurrency tokens.

Staking incentivizes users to hold their crypto assets, sometimes for a specified period, promoting network stability and decentralization. It provides an opportunity for individuals to earn passive income while actively supporting and securing the blockchain network they believe in.

How Does Staking Crypto Work?

Staking cryptocurrency requires keeping a specific amount of digital currency in a wallet, smart contract, or platform for a predetermined amount of time, as determined by the blockchain, DApp, or protocol.

In most cases, token holders support the network’s security by staking their crypto. They receive compensation in return, usually in the form of extra cryptocurrency tokens. However, staking may also give the staker certain rights and privileges on an application.

During the staking period, the staked amount is temporarily unavailable but is withdrawable once the duration is over. The payouts are proportional to the amount staked and the length of the time staked.

How Do You Choose Which Crypto to Stake?

When you choose a cryptocurrency to stake,there are several factors that you should consider.

Assess Project’s Credibility

Several projects offer staking rewards, but not all are worth the time and investment. Before choosing a crypto to stake, assess the project’s credibility, team expertise, and overall vision. Can you see yourself staking this token for an extended period? If not, maybe it’s not the one for you.

Evaluate Staking Rewards and Token Economics

Calculate the rewards and determine whether or not it’s worth the investment. You may need to do this across various staking options and even compare to traditional offerings. The ideal case is to stake cryptos that pay out rewards in stablecoins or other cryptos like ETH. A few projects to earn staking rewards, like GMX, do this.

Also gauge the staking rewards offered, especially for a staking pool that has “boosted rewards”. Most boosted staking rewards are done so using the platform’s native tokens. Platforms with outsized boosted rewards tend to have high inflationary tokens, so the inflation may wipe out the value of the staking returns.

Gauge Price Volatility

Oftentimes, a staking crypto’s price could fall to a level where all staking rewards are wiped out, leaving the investor with an overall loss. A good example is Arbidex whose token price dropped 97% within three months.

Even with a lucrative 200% yearly staking return, a position taken before the price decline would still be net negative. And seeing as the project is not a pillar like Ethereum, there’s a telling if the token’s price will rise to previous levels.

Stay Updated on Code Audits and Industry News

Ensure you are up to date on code changes and upgrades to staking pools and platforms. For example, Lido started allowing ETH stakers to withdraw their crypto after the Ethereum Shapella upgrade.

What Different Types of Staking Crypto are There? 

There are many different ways that you can classify and evaluate staking. The broadest category is how to stake. This includes pure proof-of-stake, delegated proof-of-stake, or nominated proof-of-stake.

Additionally, you can evaluate on what level the staking is facilitated. For instance, staking on the blockchain at the protocol level, on a DApp or at the smart contract level are all associated with unique security assumptions and incentives.

Ethereum allows you to stake at the protocol level, Chainlink allows LINK holders to stake at the smart contract level, and staking on the Curve platform is an example of decentralized application staking.

What are the Risks Associated With Staking Crypto?

Staking crypto comes with several risks.

Market Volatility

Market volatility poses a risk as the value of staked tokens can fluctuate, potentially wiping out gains. The only way to eliminate this risk is to only stake stablecoins, but those pools are usually so saturated that their yields are often below 1% and therefore not worth it unless you stake gargantuan amounts.

Another way around this is to stick to large-cap staking tokens like Ethereum and Chainlink. While there is still volatility, there’s a smaller chance that the tokens lose 90% of their value within a relatively short period.

Smart Contract Risk

The smart contract that holds stakes tokens could be hacked and drained. The annals of crypto hacks are filled with stories of smart contract breaches. While there is no guaranteed way to prevent a hack, you can reduce the risk by only staking with established platforms and protocols.

Malicious Validator

Proof-of-stake systems require validators to act honestly and fulfill certain conditions. If the validators act dishonestly, their stake is slashed as a punishment. If you happen to stake with that validator, it means your stake is also slashed.

Regulatory Action

Shifting regulation can affect your ability to stake crypto. A good example is the current crypto regulatory landscape in the US. The SEC has taken legal action against centralized staking services in the US.

What are the Benefits of Staking Crypto?

Consistent Income

Staking offers consistent income for investors whose main goal is income generation. If you plan to hold the top long-term crypto, you can really take advantage of the income-generating capabilities, especially for sizable sums as many staking yields outpace that of US bonds.

Diversified Investment

Staking is also a means of diversifying your investment, even within your crypto portfolio. While some crypto can be bought for its growth benefits, you can also stake for income to provide a cushion for periods where the market and crypto prices are down.

Compounding Mechanism

Staking can also be a way to compound your investments as several protocols offer auto-compounding features that automatically reinvests returns in your staking position. This goes hand-in-hand with long term investments as you could exponentially increase the size of your investment over time by staking instead of just holding.

Who Should Stake Crypto?

  • Staking cryptocurrency is ideal for people who have a long-term investment outlook. It may be alluring to those looking for passive income who believe in the long-term viability of a specific cryptocurrency project.
  • Staking is also appropriate for people who are familiar with the risks associated with cryptocurrency investments and have a solid grasp of blockchain technology.
  • Investors seeking alternatives to conventional financial instruments and those who are eager to actively contribute to the development and security of blockchain networks might find it appealing.

What is the Difference Between Lending and Staking Crypto?

Lending Crypto

Staking Crypto

Tokens are given to other people to use

Cryptos are committed to the platform, not others people

Return comes from interest rate

Return comes from protocol or platform yield

Risk of users not repaying is mitigated by collateral

Risk of smart contract hacks still exist

Yield is usually at the lower end

Yield can be at the higher end depending on the platform

How to Stake Crypto?

1. Open an Account

Go to Coinbase’s website and click sign up. Input your information, such as: name, email, and password.

2. Verify Your Account

Verify your email address. After this, you will have to verify your account by giving your government issued ID and phone number.

3. Make a Deposit

Make a deposit by first adding a payment method. To add a bank, you will need your bank information, such as account details.

4. Purchase Cryptocurrency

Select a cryptocurrency to buy. Then navigate to the Earn section and look for the available cryptocurrencies to stake, and select Buy then stake.

 

The Latest Staking Crypto News

  • Bemo launches first liquid staking protocol on TON blockchain
  • EX Ankr and Blockdaemon executives launch Liquid Staking Derivatives L1 chain
  • UK Treasury opens consultation on taxation of DeFi lending and staking
  • Solana on-chain staking now on crypto exchange Crypto.com

Final Thoughts on the Best Staking Crypto

If you’re looking for good cryptos to stake, Chancer is our top choice because of the soundness of the underlying tech, its business case, and the fact that new projects tend to offer higher yields than most established ones.

Nonetheless, all the cryptos on our list are good staking options. However, remember that each staking cryptocurrency has a distinct set of features, benefits, and risks. The decision ultimately comes down to personal preferences, risk tolerance, and investment objectives.

Whether it’s the well-known and dependable Ethereum, the promising scalability of Polkadot, or the creative strategy of more recent projects like Avalanche. It’s crucial to conduct thorough research, consider market conditions, and stay updated with the evolving landscape of staking and choosing the best cryptocurrencies to invest in.

If you’re interested in staking but don’t know how to work a crypto wallet, check out our best staking platform page to learn how to use established exchanges to stake.

Methodology - How We Picked the Best Staking Crypto

The projects in this guide underwent extensive research and scrutiny, considering factors like market capitalization, inflation rate, market share, and reputation. The listed tokens represent the top choices in their respective categories.

Cosmos, for instance, stands out as an excellent staking token with high APYs and favorable inflation rates, providing validators with considerable APR to make a profit.

Check out our why trust us and how we test pages for more information on our methodology.

FAQs

What is staking?
Staking cryptocurrency entails storing or "staking" a specific cryptocurrency in a wallet or platform in order to support the operations of a blockchain, DApp, or protocol. Staking is essentially "locking up" collateral in order to gain exclusive rights to activities or privileges.
What cryptos can I stake?
You can stake cryptocurrencies that run on proof-of-stake blockchains. Some examples of these include Ethereum, Polkadot, and Solana.
Is staking risky?
Staking carries inherent risks, including the potential loss of the staked cryptocurrency due to smart contract vulnerabilities and dishonest validators. It's important to assess these risks before engaging in staking activities.
Which crypto gives the highest staking?
There are many different cryptos that generate high staking rewards. Although, the actual return may fluctuate based on the inflation rate. GMX has a very high return on staking when compared to many other cryptocurrencies.
Is crypto staking a good idea?
Crypto staking can be a good idea for those seeking to earn passive income and actively participate in blockchain networks. It offers the potential for rewards and can contribute to network security. However, it's essential to consider the risks, market conditions, and individual investment goals before deciding.