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Crypto staking fosters passive income while contributing to the security and decentralization of blockchain projects. In crypto staking, users temporarily lock their crypto assets to earn rewards. And these rewards are in the form of additional coins or tokens. The staking period, amount, and methodology vary as per the chosen projects and blockchains. Once an asset is staked, it becomes inaccessible for the specified duration.
Staking is gaining popularity due to its promise of passive income with crypto, which contribute to one’s crypto holdings and its growth. Staking is a unique avenue for investors. For example, by staking Ethereum, one may actively support the Proof-of-Stake (PoS) blockchain operations and gain staking rewards in return.
This article focuses on the top coins that provide the highest APY crypto staking for investors and more briefs on various aspects of crypto staking.
Here are the top reasons why our list is more reliable and worthy of your trust:
Diverse Options: Our list includes a diverse range of cryptocurrencies across different blockchain networks. It offers a wide range of options to choose from based on user preferences and risk tolerance levels.
$OSMO:Driving Decentralized Finance Innovations with Community-Led Governance
$BGB:Advancing Blockchain Security via Sustainable Proof-of-Stake Mechanisms
$ATOM:Architecting Interoperable Blockchain Solutions for a Connected Future
$ETH:Pioneering Smart Contract Technology for Decentralized Applications
$MATIC:Providing High Throughput and Low-Cost Transactions for DApps
$BNB:Empowering Global Crypto Finance with a Versatile Utility Token
$SOL:Enhancing DeFi Accessibility through Scalable Staking Solutions
$ADA:Combining Advanced Proof-of-Stake Technology with Scientific Research in Blockchain
$NEAR:Streamlining Decentralized Applications with Efficient Staking Protocols
$EGLD:Integrating Blockchain with Metaverse via High-Capacity Staking
$XTZ:Leading Innovation in Upgradable Blockchain Systems with On-Chain Governance
The prime platforms to leverage for crypto staking involve OKX, Etoro, Stormgain, and Binance. However, there are several platforms to choose from for crypto staking based on their preferences. These top crypto-staking platforms help users seamlessly begin their crypto-staking and investing journey by leveraging the platforms’ unique and essential infrastructure.
Driving Decentralized Finance Innovations with Community-Led Governance
Osmosis is an automated market-making (AMM) protocol built on the Cosmos SDK. It empowers developers to build and deploy custom AMMs. It employs a governance mechanism to allow liquidity providers to participate in their pools’ decision-making. It also offers extreme flexibility to the stakeholders in terms of curves, fees, and other parameters. There are various aspects to staking Osmosis, including lending, custodial providers, using decentralized lending platforms to run validators, and providing liquidity to various exchanges.
Osmosis can be staked on Atomic Wallet, Ledger, Binance, Trust Wallet, and other exchanges and platforms.
Key data for $OSMO APY:
Advancing Blockchain Security via Sustainable Proof-of-Stake Mechanisms
Bitget staking comes with multiple benefits such as bringing together top proof of stake (PoS) networks. It is a renowned name in crypto staking that offers high security. To maximize your staking strategies, quick and adaptable redemption options are offered. Staked assets enable investors to profit without having to manage their own validator node by being directly locked into PoS networks.
If you are interested in staking Bitget, use their platform for much smoother process.
Key data for $BGB APY:
Architecting Interoperable Blockchain Solutions for a Connected Future
Cosmos operates on a proof-of-stake consensus mechanism, rewarding the stakers with its native token – ATOM. This cryptocurrency is significant due to the transaction validation that it offers via staking. It helps open various avenues for users to earn rewards by staking ATOM tokens to support blockchain validation. Cosmos offers one of the highest APY crypto staking, providing diverse staking options, including centralized exchanges, delegating to validators, and running self-validators.
The ATOM token can be staked with Keplr, Leap, Cosmostation, Binance, Kraken, and Coinbase for higher staking rewards.
Key data for $ATOM APY:
Pioneering Smart Contract Technology for Decentralized Applications
Ethereum is the second-largest cryptocurrency. It revolutionized the network via Ethereum 2.0, transitioning from PoW to PoS. Validators stake a minimum of 32 ETH to participate in securing the network. This stake enables the validator software and offers various validator responsibilities like data storage, transaction processing, and contributing new blocks to the blockchain. Staking Ethereum is flexible, as it can be done via exchanges, staking pools, or running nodes.
From Binance to Coinbase, Ledger, and more, various platforms allow you to stake ETH and win rewards from that.
Key data for $ETH APY:
Providing High Throughput and Low-Cost Transactions for DApps
Polygon has positioned itself as a blockchain technology platform that fosters connectivity and scalability among blockchain networks. Its native cryptocurrency, MATIC, powers it. Staking MATIC can be done by staking through a crypto exchange and delegating tokens to a public validator. It also offers liquid staking that allows stakers to earn rewards while maintaining their funds’ access. Furthermore, if the stakers have the necessary resources, they may rent a cloud server and run their validator node.
Polygon MATIC can be staked on Coinbase, Kraken, Atomic Wallet, Binance, etc.
Key data for $MATIC APY:
Empowering Global Crypto Finance with a Versatile Utility Token
The Binance crypto exchange created Binance Coin (BNB). It boasts a market cap of $36 Billion with one of the highest APY in crypto staking. By staking BNB, the staker temporarily permits the exchange to use their tokens to support the Binance blockchain network and make it resilient. Users get to participate in transaction verification and decentralized governance while earning rewards as an incentive for their commitment.
For BNB staking, you may hop on to Binance and Trust Wallet, among other prominent platforms.
Key data for $BNB APY:
Enhancing DeFi Accessibility through Scalable Staking Solutions
Solana is an ecosystem built for decentralized and highly scalable applications. It rewards token holders with one of the highest staking rewards for staking SOL tokens. Through delegating by staking SOL, the stakers increase the validators’ voting weight without losing ownership/ control of their holding. Validators then leverage the stake delegations to help the network achieve consensus through PoS. Staking SOL thus helps enhance the network’s resilience and the staker’s rewards.
Some of the best platforms to stake SOL include Kraken, Phantom, Ledger, Coinbase, Binance, Atomic Wallet, etc.
Key data for $SOL APY:
Combining Advanced Proof-of-Stake Technology with Scientific Research in Blockchain
Cardano is a decentralized blockchain that uses a PoS consensus mechanism. It positions ADA as its native coin and one of the best crypto for staking. It rewards the users for participating in staking pools and performing network validation actions. Cardano assures one of the highest APY crypto staking while emphasizing the blockchain’s efficiency and smart contract capabilities.
The best platforms for staking SOL include Binance, Coinbase, Kraken, etc.
Key data for $ADA APY:
Streamlining Decentralized Applications with Efficient Staking Protocols
NEAR is a blockchain platform focusing primarily on decentralized applications (dApps). It prioritizes scalability, usability, and cost-efficiency. When you stake NEAR tokens, you delegate them to validators on the network. And this is leveraged for contributing to validating transactions and securing the network. With this strategic move, the stakers earn staking rewards while actively engaging in the NEAR ecosystem’s governance and security.
Staking NEAR is enabled on Coinbase, Ledger, Binance, etc.
Key data for $NEAR APY:
Integrating Blockchain with Metaverse via High-Capacity Staking
MultiversX was formerly known as Elrond. It is a blockchain platform that fosters the development of the metaverse side of the Web3 space. It employs a technique called sharding technology to offer simultaneous scalability across states, networks, and transactions. The native token of MutiverseX is EGLD, which plays a multifaceted role in trading, staking, delegating, paying transaction fees, and governance participation. Thus, staking in MultiversX is a strategic move to participate in the growth of the platform.
Ledger, Atomic Wallet, Bitcompare, and Kraken are among the top platforms where you can stake EGLD.
Key data for $EGLD APY:
Leading Innovation in Upgradable Blockchain Systems with On-Chain Governance
Tezos is a decentralized blockchain for smart contracts. It introduces a unique self-amending mechanism that enables the network to self-upgrade without requiring hard forks. Staking the native token, XTZ delegates the tokens to a baker (validator) through supported wallets or delegation services. Delegators then get to participate in the PoS consensus of the Tezos network while earning staking rewards.
The top platforms to stake XTZ include Binance, Kraken, Coinbase, etc.
Key data for $XTZ APY:
APR is also known as annual percentage rate. It is a measure of the interest rate you earn on an investment within a year. It’s often used for simple interest calculations, such as simple interest on loans or savings accounts.
In contrast, APY stands for annual percentage yield. It takes into account the effect of compound interest on your investment over a year. Compound interest is the interest earned on both the initial principal and the accumulated interest from previous periods. APY reflects a more accurate measure of the annualized rate of return on an investment.
As in traditional finances, APY in cryptocurrency refers to the Annual Percentage Yield. It signifies the expected return for any investment choice based on the compound interest formula and not the simple interest rate.
APY is an important factor in the life and journey of a staker/ investor. While calculating APY, we take into account various factors, including:
Moreover, the global economy also has its own impact on APY. And as is the case with all financial assets, APY of cryptocurrencies should also be adjusted in accordance with inflation. By adjusting inflation, one can get to know the exact yield a crypto token has generated in a year.
APY is thus the daily yield over a year for an asset. It is calculated using the formula:
APY = (1 + daily return rate)^(365) – 1.
APY = P(1 + r)^t, where
Tezos is a decentralized blockchain for smart contracts. It introduces a unique self-amending mechanism that enables the network to self-upgrade without requiring hard forks. Staking the native token, XTZ delegates the tokens to a baker (validator) through supported wallets or delegation services. Delegators then get to participate in the PoS consensus of the Tezos network while earning staking rewards.
The top platforms to stake XTZ include Binance, Kraken, Coinbase, etc.
In crypto staking, the stakers deposit their digital assets into a dedicated account or blockchain network to actively participate in transaction validation. This allows them to earn significant rewards in return.
To begin with staking, one needs to hold a specific quantity of the selected cryptocurrency as required by the network and may also have to use the specified dedicated wallet. The staking process varies as per the cryptocurrencies. Still, it is primarily linked to the network’s consensus mechanism, like PoS or DPoS.
As a reward for the contributions, the stakers receive additional tokens. This amount varies based on the specific blockchain and cryptocurrency.
Exchanges have simplified the staking process by crowdsourcing the funds and resources. They are perfect for beginners who do not want to deal with setting up a node and maintaining it as required by most networks.
Here are the key benefits that come with staking cryptocurrencies:
Here are the risks that one must be aware of while starting crypto staking:
Selecting the best crypto for staking is challenging. Low liquidity may lead to volatility waves, making the staking returns meaningless.
Here are the factors to consider while choosing the best coins to stake:
Here are the ways to help you begin with crypto staking:
Cryptocurrency Exchanges: Many exchanges also offer crypto staking services. This enables the users to stake their crypto with the exchange and earn rewards. Popular platforms include Coinbase, Kraken, Binance, Gemini, Crypto.com, etc.
A validator is a node operator who participates in staking by running a validator node. This entity may accept delegations from other users to increase their stake. On the other hand, a delegator is a token holder who wants to participate in staking but chooses to trust an existing validating node through delegation. These people do not run their own node, validators do that on their behalf.
Staking pools are pools of funds where stakers stake and lock their crypto. The pool as a whole then earns rewards by getting leveraged for PoS blockchain validations, and that is distributed among the stakers based on their contributions to the pool.
For staking crypto, there are multiple platforms and exchanges to choose from, including OKX, Etoro, Stormgain, Binance, etc.
Crypto staking comes with certain risks, irrespective of the exchange of platform, rising from liquidity considerations, project’s use case, etc. Thus, it is essential to analyze all the potential risks and safety considerations while choosing any exchange/ platform for crypto staking.
Crypto staking is certainly worth it due to the significant rewards and yields it offers the stakers. However, investment choice plays a key role in whether the investment decision will be profitable or riskier. Thus, it is essential to do thorough research and consider all the options and aspects well while staking.
The answer to this question depends on several factors. The chosen crypto asset, the platform, and the potential determine how profitable it may turn out. However, a regular passive income is fixed for the investors.
DAILY NEWSLETTER
Your daily dose of Crypto news, Prices & other updates..