13 Best Crypto Staking Coins to Invest in 2025

By Alexander Reed

Last Updated: Apr 11, 2025

Co-author

By Anthony Clarke

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Disclaimer
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.
Best crypto staking coins
Disclaimer Icon
Disclaimer
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.
In This Article

The best crypto staking coins offer two key characteristics: attractive APYs and the potential for price appreciation. Are you looking to build a portfolio of staking coins for passive rewards? If you’ve missed the opportunity to do this in the past, now’s your chance.

Read on to discover 13 staking coins for your long-term crypto portfolio. I cover a blend of small and large-cap staking projects from multiple niches.

Best Presale-Stage Crypto Staking Projects

  • First EVER Solana Layer 2 Presale
  • Over 500k Raised in 24hrs
  • $SOLX Multi-chain Token on Solana and Ethereum
Launch
December 2024
Meta
Layer 2
Purchase Methods
  • Bank Card
    Bank Card
  • SOL
    SOL
  • ETH
    ETH
  • BNB
    BNB
  • +1 more
  • Rewards Holders with Real BTC
  • BTC-Linked Token Burns
  • Rewards Holders For Each BTC Price Milestone
Launch
February 2025
Meta
Meme
Purchase Methods
  • Bank Card
    Bank Card
  • ETH
    ETH
  • BNB
    BNB
  • USDT
    USDT
  • +1 more
  • Advanced, Sovereign AI Agent Coin Presale
  • Run an Autonomous Twitter Account & Gather Information
  • $MIND Holders Enjoy Exclusive Access to Privileged Information
Launch
January 2025
Meta
AI Agent
Purchase Methods
  • ETH
    ETH
  • BNB
    BNB
  • USDT
    USDT
  • Holding $BEST maximizes your staking yield on the Best Wallet staking platform
  • Get early bird access to some of the most exciting new projects before anyone else
  • Enjoy reduced transaction fees within the Best Wallet ecosystem
Launch
November 2024
Meta
Wallet
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • BNB
    BNB
  • Bank Card
    Bank Card
  • +1 more
  • First AI-Focused Content Creation & Premium Platform
  • 250M+ Combined Following
  • Staking + Creator Benefits
Launch
April 2025
Meta
AI Content Creation
Purchase Methods
  • Bank Card
    Bank Card
  • USDT
    USDT
  • ETH
    ETH
  • BNB
    BNB
  • USDC
    USDC
  • +2 more

The 13 Best Staking Coins to Invest In

Listed below are the 14 best crypto staking coins to buy right now:

  1. Solaxy – Overall best staking token with over 4 billion tokens staked
  2. BTC Bull Token – Trending new meme coin with deflationary burning mechanisms and presale staking.
  3. MIND of Pepe – Unique self-evolving AI-powered meme coin with 278% APY for staking rewards
  4. Best Wallet Token – The next-gen crypto wallet token with high staking rewards
  5. SUBBD – World’s first AI-driven influencer platform with 20% fixed presale staking APY
  6. Harry Hippo – Ethereum-based meme staking token with P2E game and AI-powered insights
  7. Solana – Earn competitive staking rewards on the leading Ethereum Killer, trading 32% below ATHs
  8. Tether – The best option for staking crypto without volatility, earn APYs of over 8% on select platforms
  9. Avalanche – Become a blockchain validator and earn annual staking rewards of 7.6%
  10. Polkadot – Invest in the future of blockchain interoperability, minimum staking requirements of 250 DOT
  11. Toncoin – Trending layer 1 blockchain with exclusive access to over 900 million users
  12. Sei – Proprietary network protocol with high speeds and scalability of 12,500 transactions per second
  13. Chainlink – Earn staking APYs of 4.32% with the world’s leading Oracles network, available at a 64% discount

While you look at crypto staking coins, also check out this video for top 5 altcoins that could deliver strong gains in the coming months:

Analysis of the Best Cryptos For Staking

I’ll now review the 14 top staking coins for 2025. Read on to explore APYs, price potential, market capitalization, and other important factors. This will help you choose the best coins for your staking portfolio.

1. Solaxy – The First-Ever Solana Layer 2 Blockchain Revolutionizing DeFi

At the top of our list for the best staking coins in 2025 is Solaxy ($SOLX). It’s a trending new crypto offering with a 134% dynamic APY. It’s the first Layer 2 (L2) solution for the Solana network, making the blockchain process transactions faster and more reliably.

Solaxy’s native cryptocurrency, $SOLX, powers the L2 and features a multi-chain integration, allowing it to operate in Solana and Ethereum networks. This also enables Solaxy to bridge Ethereum’s DeFi infrastructure with Solana’s fast transaction speeds.

Solaxy Presale

Regarding staking capabilities, $SOLX staking rewards occur at a rate of 4,377.4 tokens per ETH block, with over 4.4 billion $SOLX staked on the platform. 25% of the total Solaxy token supply is allocated for rewards, incentivizing early supporters for their contributions.

The Solaxy token presale offers $SOLX at $0.001694 per token at press time. Users can buy the crypto with ETH, USDT, BNB, or a credit card. According to crypto insiders, the success evidenced during its presale means that $SOLX could very well be on the cusp of huge gains, just like $PEPU.

To learn more, see the Solaxy whitepaper, and subscribe to the Telegram channel for more updates.

ICO Project Ticker Total Supply Chain ICO Payment Methods
Solaxy SOLX 138 Billion Solana & Ethereum (Multi-Chain) ETH, USDT, BNB, Card

What are you waiting for? $SOLX’s early presale success could very well make it the next $PEPU!

Visit Solaxy

2. BTC Bull Token – Meme-based Ethereum Token With Deflationary Burning Mechanisms and Presale Staking

Next on our list is BTC Bull Token ($BTCBULL), a community-driven meme coin that offers real Bitcoin ($BTC) rewards as the most prominent cryptocurrency continues to rally. In the BTC Bull Token crypto presale, users can stake $BTCBULL for 85% annual rewards and can earn additional native tokens over a two-year staking program.

So far, over 146 million $BTCBULL tokens have been staked on the platform, with rewards occurring at a rate of 399.54 $BTCBULL tokens per $ETH block. Of the 21 billion total $BTCBULL tokens, 10% is reserved for staking distribution.

BTCBULL Presale

One key aspect of the Bitcoin Bull Token crypto project is its free Bitcoin airdrop campaigns. As the crypto follows Bitcoin’s price, it will roll out $BTC airdrops to $BTCBULL holders when Bitcoin reaches $150K and $200K.

Deflationary token burns are another core feature of the project where $BTCBULL is permanently removed from circulation when Bitcoin’s prices cross more key milestones, starting from $125,000. Read the project whitepaper to learn more, and join the BTC Bull Telegram community to get the latest news.

ICO Project Ticker Total Supply Chain ICO Payment Methods
BTC Bull Token BTCBULL 21 Billion Ethereum ETH, USDT, BNB, Card

Visit BTC Bull Token

3. Mind of Pepe – Unique Self-Evolving AI-Powered Meme Coin With 278% Staking APY

Another token offering high staking rewards is Mind of Pepe ($MIND). It’s a trending new token powered by a self-evolving AI agent that engages with the wider crypto community. It currently offers one of the highest staking APYs on the market, standing at up to 278%.

You can buy $MIND for just $0.0037215, and immediately stake your tokens in a single transaction during the presale. Token holders will get exclusive access to AI-driven insights that will help them spot emerging trends and opportunities in the market before they go mainstream.

MIND of Pepe Presale

It’s worth noting that $MIND has a total supply cap of around 100 billion tokens. The project has reserved 15% of these tokens to reward its community.

As a staking coin with a unique AI engine and supportive community, MIND of Pepe has outlined a detailed roadmap on its official presale website. To join this incredibly exciting presale opportunity, simply click the button below.

ICO Project Ticker Total Supply Chain ICO Payment Methods
MIND of Pepe MIND 100,000,101,001 Ethereum ETH, USDT, BNB, Card
Visit MIND of Pepe

4. Best Wallet Token – The Next-Gen Crypto Wallet Token With High Staking Rewards

Best Wallet Token ($BEST) is a revolutionary crypto platform currently powering one of crypto’s fastest-growing next-gen wallets. The project is bringing advanced functionality and user experience to the crypto wallet space and targeting a 40% market share by 2026.

Through Best Wallet’s innovative Upcoming Tokens feature, users gain exclusive early access to vetted presales directly in the app. Currently priced at $0.023975, $BEST offers unique benefits, including reduced transaction fees across the ecosystem, priority access to new projects, and high staking rewards. Early buyers can currently get a high rate of over 169%, but it will soon decrease as more investors join the staking pool.

Best Wallet Token Presale

Best Wallet Token presale has already raised over $10.7 million from early investors who recognize its potential to transform the wallet experience. With a total supply of 10 billion tokens, $BEST has allocated 8% to staking rewards and 10% to exchange liquidity to ensure sustainable growth.

The ecosystem includes Best DEX for optimal trading rates and an upcoming Best Card for real-world crypto spending. For more information, read the Best Wallet whitepaper and join their Telegram channel.

ICO Project Ticker Total Supply Chain ICO Payment Methods
Best Wallet Token BEST 10 billion Ethereum ETH, USDT, BNB, Card

Visit Best Wallet

5. SUBBD – The First AI-Driven Creator Crypto Platform Revolutionizing the $85 Billion Industry

The next crypto project with top staking rewards is SUBBD ($SUBBD). It’s a new AI-integrated influencer platform that helps fans and creators through tokenized engagement rewards, innovative content creation tools, and subscription features beyond the limitations of traditional creator platforms.

Currently, SUBBD is in its presale phase, allowing early participants to buy its native token, $SUBBD. During this stage, individuals can stake their $SUBBD tokens, yielding them 20% fixed annual rewards. So far, almost half a million $SUBBD tokens have been staked on the platform, and holders can withdraw their locked tokens 7 days after the official token launch.

SUBBD Presale

$SUBBD token holders receive several benefits, including premium AI-enhanced content, platform discounts, and loyalty bonuses. When the influencer platform goes live, $SUBBD holders who stake their tokens can unlock VIP perks, such as livestream viewing, behind-the-scenes exclusives, and other special content.

SUBBD is backed by a team of influential ambassadors promoting the project during the $SUBBD token presale phase. Additionally, the platform has a 250 million strong social following across its various channels, positioning SUBBD in a great place to gain significant market traction before and after its token launch.

To learn more, check out the SUBBD whitepaper and join the Telegram channel for live updates.

ICO Project Ticker Total Supply Chain ICO Payment Methods
SUBBD SUBBD 1 billion Ethereum ETH, USDT, BNB, Card

Visit SUBBD

6. Harry Hippo – P2E Meme Coin With High Presale Staking APY

Another staking token to check out is Harry Hippo ($HIPO). This new meme coin project just started its presale, which has already raised over $1.2 million in a few weeks. Harry Hippo will release an engaging P2E (Play-to-Earn) game where players compete against each other and earn $HIPO tokens, the in-game currency, and native tokens.

Currently, presale buyers can stake $HIPO tokens in the ongoing presale and earn 601% annual rewards. The project has reserved 10% of the total $HIPO supply for staking rewards, and already over 241 million $HIPO tokens have been staked during the private sale.

MooShot presale

One of Harry Hippo’s main goals is to expand into the metaverse and GameFi spaces, which it will do following the launch of other key features. This includes AI-driven insights for P2E gaming, NFT integration of unique digital collectibles, and future listings on top centralized exchanges.

The Harry Hippo presale currently offers $HIPO for $0.007125 per token. Read the Harry Hippo whitepaper to learn more about this unique staking project, and join the Telegram group for the latest updates.

ICO Project Ticker Total Supply Chain ICO Payment Methods
Harry Hippo HIPO 15 billion Ethereum ETH, USDT, USDC, BNB, Card

Visit Harry Hippo

7. Solana – Earn Competitive Staking Rewards on the Leading Ethereum Killer, Trading 32% Below ATHs

Solana should also be considered when choosing the best cryptocurrency for staking. Considered the leading ‘Ethereum Killer’, Solana offers the perfect combination of scalability, speed, and low fees. Solana states that transactions take just 400 milliseconds at an average fee of $0.00064.

What’s more, the Solana ecosystem continues to grow, with leading projects including dogwifhat, Jupiter, Raydium, and Bonk. That said, Solana often experiences network issues, including failed transactions. So, while Solana potentially offers a greater upside than Ethereum, it’s also a much riskier long-term play.

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Price
Market Cap
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In terms of staking rewards, this depends on the chosen validator. I found the APY averages 6-8%. Solana is currently the sixth largest crypto token in the world – with a market cap of $72.01B. This offers an attractive entry point.

Staking Project Staking Chain Current Staking APY
Solana Solana Averages 6-8%

Buy Solana on eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.

Staking reward is not offered for US, UK/ FCA users.

8. Tether – The Best Option for Staking Crypto Without Volatility, Earn APYs of Over 8% on Select Platforms

Tether is one of the best cryptos for staking without volatility. This means you’ll know exactly how much you’re making, as you won’t need to worry about price fluctuations. After all, Tether is pegged to the US dollar, so it always trades around the $1 level. However, do note that stablecoins aren’t 100% safe; so never assume Tether’s peg is guaranteed.

Nonetheless, Tether is the largest stablecoin by market capitalization. While it doesn’t directly support staking, you can easily earn rewards via third parties. This includes centralized and decentralized exchanges, as you can read in our full guide on how to stake USDT. For example, I found that MEXC is one of the best crypto staking platforms for Tether.

tether usdt price chart 3 months

It offers APYs of up to 8.8% with flexible terms, meaning withdrawals can be made at any time. Margex is also a good choice. While Tether APYs are lower at 5%, the staking funds can be used as collateral. This means traders can open leveraged positions without needing to withdraw their staking coins.

Staking Project Staking Chain Current Staking APY
Tether Ethereum 8.8% at MEXC

Buy and Stake Tether on MEXC

9. Avalanche – Become a Blockchain Validator and Earn Annual Staking Rewards of 7.6%

Avalanche is a popular layer 1 blockchain that simplifies Web 3 integration for developers. It supports decentralized applications in a smooth and cost-effective ecosystem. Moreover, Avalanche is an energy-efficient network; it consumes the same annual energy levels as just 46 US households.

Avalanche leverages the proof-of-stake mechanism, allowing holders to earn passive rewards. Becoming a blockchain validator enables you to stake AVAX directly. Competitive APYs of 7.6% are currently being paid. However, the minimum validator requirement is 2,000 AVAX.

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Alternatively, casual investors can stake AVAX on third-party platforms. Avalanche is also one of the best staking tokens to buy at discounted prices. It currently trades 76% below all-time highs, which were hit during the 2021 bull market. This gives Avalanche a market capitalization of $8.12B. Avalanche has decreased by over -44.79% in the prior year.

Staking Project Staking Chain Current Staking APY
Avalanche Avalanche 7.6%

Buy Avalanche on eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.

Staking reward is not offered for US, UK/ FCA users.

10. Polkadot – Invest in the Future of Blockchain Interoperability, Minimum Staking Requirements of 250 DOT

Polkadot is an established project that specializes in blockchain interoperability. This enables two or more blockchains to connect and share data, regardless of the underlying network standard. For example, connecting Bitcoin data with Ethereum or Cardano with Litecoin.

This increases the use cases for the respective blockchains without needing an intermediary. Polkadot also ensures connected blockchains benefit from fast and cost-effective transactions. Not to mention energy efficiency and scalability. The best way to stake Polkadot is by becoming a validator.

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Minimums are much lower than other staking networks; you can become a Polkadot validator with just 250 DOT. As per current DOT prices, that’s about $1,580. Based on historical staking rewards, APYs average 14.79%. In terms of price potential, Polkadot currently trades 88% below all-time highs. It has a market capitalization of $5.85B.

Staking Project Staking Chain Current Staking APY
Polkadot Polkadot 14.79%

Buy Polkadot on eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.

Staking reward is not offered for US, UK/ FCA users.

Toncoin is a trending layer 1 blockchain that recently became a top-10 coin by market capitalization. It was created by Telegram – a popular messaging app with over 900 million users. However, due to regulatory issues, Telegram no longer runs the project. That said, its native coin, TON, has exclusivity on the Telegram app.

This means creators must accept TON when monetizing their channels. Toncoin’s relationship with Telegram means the upside potential is still huge – even though it’s already worth over Coin data not available. Currently, Toncoin trades almost 38% below all-time highs.

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Toncoin is also one of the best crypto staking coins. The Toncoin website recommends various staking pools; some can be accessed directly on Telegram. This includes the Stakee bot, which has a minimum requirement of 1 TON and APYs of up to 5%. There are also pools aimed at Toncoin ‘whales’, although this requires just 50 TON (about $300).

Staking Project Staking Chain Current Staking APY
Toncoin Toncoin Averages 3-5%

Buy Toncoin on MEXC

12. Sei – Proprietary Network Protocol With High Speeds and Scalability, No Validator Minimums  

Sei is also one of the best staking crypto coins for becoming a validator. Unlike other protocols, Sei doesn’t have any minimum requirements. This means you can stake Sei directly on the network, regardless of your budget. The APY fluctuates based on demand, although this typically averages 4-5%.

Like most staking coins, Sei can also be staked on third-party platforms. Sei is also a good option for long-term investors seeking price appreciation. It’s one of the up-and-coming layer 1 networks with high-performance metrics. For example, Sei transactions require just 380 milliseconds to reach finality.

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The network is highly scalable too; Sei can handle up to 12,500 transactions per second. Sei also has some notable financial backers. This includes Coinbase, Circle, and Delph Digital. Sei has a market capitalization of just $1.4 billion, which is modest for a layer 1 project. Sei trades 68% below all-time highs.

Staking Project Staking Chain Current Staking APY
Sei Sei Averages 4-5%

Buy Sei on eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.

Staking reward is not offered for US, UK/ FCA users.

Last on this list of the best crypto staking coins is Chainlink. Investors are currently earning staking rewards of 4.32%. This is offered directly on the Chainlink platform, meaning counterparty risk can be avoided. In addition to competitive returns, Chainlink’s current price could be heavily undervalued.

It’s the world’s leading supplier of Oracle networks. Oracles provide real-time, accurate, and unbiased data to decentralized applications. Put otherwise, Chainlink bridges the gap between real-world data and the blockchain ecosystem. Data integrity is assured through Chainlink’s incentivization model.

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Those providing reliable data earn LINK tokens. And those needing data pay fees in LINK, ensuring the network is sustainable and self-sufficient. Chainlink is currently valued at almost $8.39B.

Staking Project Staking Chain Current Staking APY
Chainlink Ethereum 4.32%

Buy Chainlink on eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

US customers can only invest in Ethereum, Bitcoin, and Bitcoin Cash.

Staking reward is not offered for US, UK/ FCA users.

What Is Crypto Staking?

Staking enables investors to earn passive rewards on their crypto coins and tokens. The process is similar to earning interest on bank account deposits. For example, consider an investor holding Solana. They can deposit their SOL coins into a staking pool and earn average APYs of 6-8%. The rewards are distributed in the respective coin, so that’s SOL in this example.

Staking is usually only possible if the coin operates on the proof-of-stake mechanism. This is why Bitcoin can’t be staked, as it uses proof-of-work. There are several different ways to stake coins online. One option is to become a ‘validator’. This means you’re directly contributing to the network’s safety.

The coins are locked on the network while they’re being staked. This is essentially a ‘security deposit’ to ensure network integrity. If the validator causes issues (such as downtime), they can lose the deposit. In addition, validator staking often comes with high minimums. For example, you’d need at least 2,000 AVAX to stake on Avalanche, which is about $74,000.

An alternative option is to stake coins on a third-party platform, like centralized and decentralized exchanges. This increases the counterparty risk but can yield higher APYs. That said, some projects support staking directly on their websites. For example, the Solaxy presale is directly offering staking APYs of 134%.

Want to Know the Best Place to Stake Crypto?

There are many platforms that offer crypto staking, but our top pick is Best Wallet. Best Wallet provides users with a way to stake multiple cryptocurrencies across different networks all in one place. The best part is that it is free to use and self-custodial, preventing third party risk and a seamless user experience. Check out our Best Wallet Review to learn more.

Visit Best Wallet

How Does Staking Crypto Tokens Work?

Let’s take a closer look at how crypto staking works in the traditional sense. First, I mentioned that staking is directly offered by proof-of-stake blockchains. Some of the popular examples include Ethereum, Solana, Toncoin, Avalanche, Polkadot, and Sei. Each proof-of-stake blockchain has a native coin. For example, Avalanche and Solana are backed by AVAX and SOL respectively.

Now, to directly earn staking rewards with a proof-of-stake blockchain, you’d need to become a validator. This means that alongside other validators, you’re responsible for keeping the network operational and secure. You do this by having a financial ‘stake’ in the network, as validators typically need to deposit a minimum number of coins to be eligible.

how to become a staking validator

While there are some exceptions, validator minimums are often high. This ensures that validators are reliable and honest. After all, validators lose the coins they stake if network requirements aren’t met. Validators earn additional coins as a reward. The coins are newly issued by the network whenever a block of transactions is confirmed.

Put otherwise, proof-of-stake blockchains are inflationary, which is why they rarely have a maximum supply. All that said, staking has evolved in recent years, meaning you don’t need to become a validator to earn passive income. There are several different options in this regard, such as:

  • Centralized Exchanges: Some of the best crypto staking coins can be staked on centralized exchanges. The benefits of this option include low staking minimums, higher APYs, and more flexible withdrawal terms. The downside is counterparty risk; you’re trusting a centralized platform to keep your staking coins safe.
  • Decentralized Exchanges: It’s also possible to stake crypto coins on decentralized exchanges. You’ll deposit the coins into a staking pool, which operates on decentralized smart contracts. This means the exchange never directly touches the staking coins.
  • Wallets: Many crypto wallets support staking tools. This is a convenient option for long-term investors, as there’s no requirement to transfer coins to another platform. However, wallets often take a cut from the staking rewards generated, so ensure you understand the fee structure before proceeding.
  • Directly With Staking Tokens: Staking ‘tokens’ are different from ‘coins’. They operate on a proof-of-stake network but aren’t proprietary to the ecosystem.

Always research a staking mechanism before proceeding; each comes with benefits and drawbacks. In particular, ensure you understand the risks, withdrawal terms, APYs, and fees.

Is Staking Crypto Worth it?

If you’re a long-term investor then staking is a no-brainer. After all, it’s a choice between earning passive rewards or letting the coins sit idle in a crypto wallet. However, there are also risks to consider. For example, some staking pools come with long lock-up terms. This means you can’t withdraw the coins until the term passes. In addition, staking rewards can fluctuate based on network activity and the total number of stakers, so it’s important to stay informed. Always evaluate the risks and potential rewards before committing to a staking pool.

Let’s take a closer look at the benefits and drawbacks of crypto staking. This will help you determine whether or not staking is worthwhile.

Earn Passive Crypto Rewards

The obvious benefit of staking is that it generates passive rewards. This is the case regardless of the staking mechanism. Whether you become a blockchain validator or use a third-party platform, you’ll organically increase your holdings.

For example:

  • You buy $SOLX and add the tokens to the Solaxy staking pool. This currently offers an APY of 134%.
  • You’re a long-term investor, so you stake Solaxy tokens for 12 months.
  • In doing so, you’ve increased your holdings by 134%.

Importantly, staking APYs are almost always variable. This means they can rise and fall at any time. In most cases, APYs decline as more people stake; and vice versa.

Ideal for Compound Growth Strategies 

The best crypto staking coins offer compound growth opportunities. This is because long-term investors will reinvest their staking coins as soon as they’re received.

Depending on the mechanism, you could receive staking rewards every few days or weeks. The coins can then be deposited in the same staking pool. Those newly deposited coins will also earn interest, which compounds the growth trajectory.

99Bitcoins Token staking

For example:

  • Let’s say you deposit 10,000 coins into a staking pool. To keep things simple, we’ll say you get weekly staking rewards of 1%.
  • After week one, your original deposit has generated staking rewards of 100 coins (1% of 10,000 coins).
  • You then deposit those 100 coins into the same staking pool. This means your staking balance is now 10,100 coins.
  • After week two, you receive another 1%. This means you receive staking rewards of 101 coins (1% of 10,100 coins).
  • Again, you reinvest the rewards. This means your new staking balance is 10,201 coins.

You’ll begin to see rapid growth after several months of repeating this process.

Benefit From Price Appreciation 

The best crypto staking coins are not only ideal for earning passive rewards. On the contrary, investors also make money if the coin increases in value. The returns are amplified when staking, as you’re increasing the number of coins you own.

  • For example, suppose you buy 15 SOL at $130 each. This brings your total investment to $1,950.
  • You then stake that 15 SOL at APYs of 8%.
  • 12 months have passed and you have generated 1.2 SOL (8% of 15 SOL) in staking rewards.
  • In addition, SOL is now trading at $200.
  • So, your original 15 SOL is now worth $3,000 (15 SOL x $200). You’ve also got 1.2 SOL in staking rewards, which is worth $240 (1.2 SOL x $200).
  • Therefore, your Solana portfolio is now worth $3,240. You originally invested $1,950, so your net gain is $1,290.

Crucially, price appreciation is another means to compound your investments. This is because the staking rewards themselves benefit from price increases.

However, never assume that your staking coins will increase in value. The opposite can happen. In this instance, your staking rewards might not cover the losses. This means your portfolio can still lose money even when generating attractive APYs.

High Minimum Requirements and Validator Risks

I’ve established that the main benefits of crypto staking are passive rewards and the ability to compound returns. However, there are also some drawbacks to consider, such as high minimum requirements.

If the validator minimums are too high for your budget, you’ll need to use a third-party platform. This means you won’t be staking coins directly on the network.

Ethereum staking minimum

In addition, the validator deposit is at risk of being confiscated by the network. This will happen if the network deems the validator unreliable.  This can happen for several reasons, such as server downtime, technical issues, incorrect configuration, or security breaches.

Be Aware of Lock-Up Terms

Another drawback of crypto staking is that some pools come with unfavorable lock-up terms. This is the minimum number of days the coins must remain in the pool. During which, they can’t be withdrawn. While this is often fine for long-term investors, staking lock-ups can cause liquidity issues.

For example, suppose you discover some new cryptocurrencies that are worth buying. If the only funds available are locked in a staking pool, you won’t be able to invest. In addition, you might need the staked coins for an emergency. Once again, you won’t have access until the staking term has passed.

How to Pick the Best Coins to Stake

Assessing the pros and cons of staking is just one part of the process. You also need to choose the best crypto staking coins to invest in. There are many considerations to make.

  • On the staking front, you’ll need to evaluate APYs, lock-up terms, minimum requirements, and counterparty risks.
  • In addition, you also need to assess the upside potential. This is because price appreciation can yield much higher returns than staking rewards.

I’ll now take a closer look at how to choose the best cryptocurrencies to buy for staking.

Staking APYs

First, it’s a good idea to short-list staking coins based on the available APY. Just remember that the APY will vary depending on the staking mechanism. For example, staking ETH directly on the Ethereum blockchain currently yields 3.1%. However, staking ETH on MEXC or Margex increases the APY to 4.8% and 4.7% respectively.

Shopping around for the best crypto staking rewards is always advisable.

Note: Staking ‘coins’ are proprietary to the respective network. For example, the staking coins backing Solana and Toncoin are SOL and TON. Staking ‘tokens’ operate on a proof-of-stake network, but they’re not native to the blockchain. For example, tokens on the Solana network (like dogwifhat and Bonk) are known as SPL tokens. While those on Ethereum are ERC-20 tokens.

Staking Terms

It’s also wise to consider the terms when choosing staking coins to buy. For a start, assess whether you need to lock the coins away for a minimum number of days. No withdrawals can be made during this period. Longer lock-up terms usually mean higher APYs. And vice versa when opting for flexible terms.

Also, consider the minimum staking requirement. This will likely be high if you stake coins as a validator. Ensure the minimum aligns with your investment budget and risk tolerance. If you do become a validator, evaluate your responsibilities and whether any financial penalties are enforced if they’re not met.

Distribution Frequency

The best crypto staking coins offer frequent distributions. This is often daily or weekly, which is ideal for compound growth. After all, you can immediately reinvest the staking coins.

This will increase the rate of growth considerably. Frequent distributions also reduce the risk curve. This is because you’ve got regular access to new funds.

Market Capitalization 

Investors should choose staking coins with a suitable upside potential. This should be prioritized over staking APYs. The upside potential is often determined by the market capitalization. Those looking for the highest gains should build a portfolio of small-cap staking coins.

It’s also worth adding some large-cap staking coins to your portfolio. While the upside potential is lower, so are the risks. For example, Solana is an established layer 1 blockchain currently valued at $72.01B. There’s plenty of room for growth, but expect more modest returns when compared to small-caps.

Tokenomics and Staking Sustainability

Experienced investors are right to question the sustainability of crypto staking. After all, staking offers passive rewards simply for holding coins. Understanding how the staking rewards are funded is crucial.

In some cases, the best crypto staking coins have an inflationary supply. New coins enter circulation every time a new block of transactions is confirmed. For example, Solana currently has an inflation rate of 8%. This means the total supply increases by 8% annually. This will be reduced over time.

However, small-cap staking coins don’t have the same luxury. Due to limited liquidity and market awareness, creating new coins through inflation isn’t a smart move. It can damage investor confidence and result in major price declines.

Focus on Long-Term Projects With Utility

Risk-averse investors should focus on staking coins with long-term objectives. These projects often have real-world use cases. This can increase the coin’s demand in the long run. In the meantime, you’ll earn passive rewards as the project is being developed.

For example, Chainlink’s native token, LINK, is needed to request data. The tokens are sent to Oracle network providers, which supply real-world data to decentralized applications. This means over time, demand for LINK will increase, which can help its value appreciate organically. Chainlink currently offers staking rewards of 4.32%.

Solana is another option for long-term investors. It has developed a faster, cheaper, and more scalable alternative to Ethereum. Any projects operating on Solana must settle transaction fees in SOL. This means the demand for SOL will increase as more decentralized applications join the Solana ecosystem.

Best Crypto for Staking: Conclusion

In summary, staking coins are a great addition to long-term crypto portfolios. You can earn passive staking rewards in addition to price appreciation. In my view, Solaxy is the best crypto for staking and upside potential.

Having raised over $30.14 million in a few months, the Solaxy presale has proven popular with growth investors.

Visit Solaxy

See Also:

FAQs

Which coins have the highest staking rewards?

Is crypto staking safe?

Is coin staking profitable?

What does APY mean in crypto?

References

  1. Telegram will ‘probably’ hit one billion users within the year – what is it and why is it so popular? (Sky News)
  2. Proof of Stake: A process used to validate crypto transactions through staking (Business Insider)
  3. Earn rewards while securing Ethereum (Ethereum Foundation)
  4. What investors need to know about ‘staking,’ the passive income opportunity at the center of crypto’s latest regulation scare (CNBC)

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Alexander Reed
Alexander Reed
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Having delved into futures trading in the past, my intrigue in financial, economic, and political affairs eventually led me to a striking realization: the current debt-based fiat system is fundamentally flawed. This revelation prompted me to explore alternative avenues, including... Read More

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