Boost your finances with the emerging trend of staking cryptocurrencies. Discover the best coins for staking, including Cardano, Polkadot, and Ethereum, and start earning passive income today.
Staking coins on DeFi platforms is one of many ways people earn in the cryptocurrency space.
In This Article
- What Is Cryptocurrency Staking?
- Do You Get More Coins For Staking?
- How Are Rewards For Staking Calculated?
- Which Type Of Coins Are Best For Staking?
- Best Staking Coins 2023.
- Best Crypto Staking Platforms In 2023.
- Is Staking Crypto Really Worth?
Notwithstanding, it is important to know the best coins for staking in the cryptocurrency space as well as the factors that need to be considered before staking your cryptocurrency on a platform
Here are important things you need to know about staking coins for rewards.
What Is Cryptocurrency Staking?
Cryptocurrency staking basically involves holding or locking up your coins for interests and rewards in a DeFi protocol or a staking platform.
Do You Get More Coins For Staking?
When you stake your coins on a Proof of Stake protocol as a validator, you earn more of the coin you stake as a reward.
Same applies to Staking-as-a-service platforms for providing your coins as funds for Crypto loans, you earn more crypto as interest for staking.
How Are Rewards For Staking Calculated?
The Interest that investors earn on their stake on Staking-as-a-service platforms, is calculated using Annual percentage yield (APY).
This is to determine the return on investment of the stake after a year, while taking Compound interest into account.
How much cryptocurrency you stake determines your rewards in Proof-of-Stake protocols, the more you stake as a validator the more cryptocurrencies you earn as a reward.
Which Type Of Coins Are Best For Staking?
When people consider staking rewards they think about the APY, but a 10000% APY doesn't always mean you'll make 10000% profit when you unstake your coins.
To illustrate, Investor X might stake 1000 MND tokens worth $5,000 at $5 per MND token with an expected interest of 5000 MND tokens at the end of a year.
At the end of the year when Investor X unstakes, 1 MND is worth $0.08. he gets 6000 MND tokens but in reality he gets $480 which amounts to a loss of $4,520 on his investment.
What this implies is that factors such as utility and volatility of the cryptocurrency an investor wants to stake should be considered before investing.
In short, Stablecoins and coins with strong use cases are the best for staking.
Best Staking Coins In 2023
The best coins for staking in cryptocurrency don't necessarily come with huge return on investment, they're less risky compared to others due to their value in the Cryptocurrency space.
Here are the best coins for staking in 2023.
1. COSMOS (ATOM)
ATOM is the governance token of the Cosmos blockchain, a Layer 0 Proof of Stake blockchain that acts as a hub for Independent blockchains.
For staking ATOM, investors earn transaction fees and staking rewards for securing the Cosmos ecosystem with their assets.
ATOM Stakers also receive various Airdrops which can be worth Thousands of dollars for staking their ATOM tokens.
Cryptocurrency Investors can stake their ATOM tokens on major Cryptocurrency exchanges and wallets and earn rewards of between 10% to 15% annually.
2. Terra (LUNA)
LUNA is the native currency of the Terra blockchain, an independent Proof of Stake blockchain built on Cosmos.
Terra blockchain allows the creation of Fiat-pegged Stablecoins and LUNA token holders can stake their tokens so they can validate or delegate others to validate transactions in exchange for rewards.
The Terra blockchain ($20B) recently surpassed Binance ($11.9B) to become second largest in the Cryptocurrency space in terms of Total value locked (TVL).
Staking rewards are based on transaction volume inside the Terra blockchain but can range from 8% to 19%.
3. ALGORAND (ALGO)
ALGO is the governance token of the Algorand blockchain, a permissionless Proof of Stake blockchain designed to make the use of blockchain faster, more secure, more efficient and affordable.
Any wallet holding at least 1 ALGO is entitled to rewards.
However, Staking rewards can range from 5% to 25% depending on the staking platform.
4. Ethereum 2.0
Ethereum 2.0 is the Ethereum network's big upgrade from a Proof of Work blockchain to a Proof of Stake blockchain along with upgrades on the Ethereum network's security and scalability.
With over 10 million Ethereum tokens currently locked on Ethereum 2.0 staking protocol, Ethereum 2.0 is a popular choice and a good option when it comes to the best coins for staking in 2023.
Staking rewards for Ethereum 2.0 can range from 5% to 20%.
5. Synthetix (SNX)
Synthetix is a DeFi protocol that allows users to trade Synthetic assets (Synths). These Synths represent both crypto and non-crypto assets such as Fiat and stocks. Synths are pegged to an ERC-20 token and provide returns on the underlying asset without requiring one to directly hold the non-crypto asset.
Over 80% of SNX tokens are currently staked and Investors who stake Synthetix can enjoy an APY of 14% to as high as 50%.
To enjoy the highest rewards it's advisable to stake on the Synthetix network's platform or the Synthetix decentralized exchange.
6. Secret (SCRT)
SCRT is the native token of Secret network, a Privacy-oriented Proof of Stake blockchain built on Cosmos.
Secret blockchain allows users to stake SCRT, so they can participate in the governance of the protocol, act as validators and earn staking rewards in the process.
SCRT staking rewards can range between 21% to 30%.
7. BINANCE (BNB)
BNB token is the currency of Binance exchange, the world's biggest cryptocurrency exchange. In addition it is also used for Binance's networks including Binance Chain and Binance Smart Chain.
The Binance network is currently one of the biggest projects in the cryptocurrency space and BNB is currently the 4th biggest cryptocurrency by Market Capitalization.
Investors can stake BNB in Trust Wallet with an APY of 30%.
8. ELROND (EGLD)
EGLD is the native token of Elrond blockchain, a Proof of Stake blockchain that describes itself as a technology ecosystem for the new internet, the Elrond blockchain is fast, scalable, capable of executing 15000 transactions per-second and cheap transaction fees. EGLD is used for staking and rewarding the Network's validators.
EGLD staking reward can go as high as a 55% APY.
9. Polygon (MATIC)
Polygon (MATIC) is the governance token of the Polygon blockchain, a Layer 2 scaling protocol for the Ethereum blockchain.
Validators stake their MATIC tokens to ensure the security of the Polygon blockchain and receive MATIC tokens in return for their work.
Staking rewards on the Polygon network is around 12% however, investors can earn as high as 14% APY if they Stake on Exchanges such as Binance.
10. Avalanche (AVAX)
AVAX is the governance currency of Avalanche blockchain, the Independent Proof of Stake blockchain relies on AVAX as a token used to reward validators who secure the Avalanche blockchain by staking their tokens.
An investor staking AVAX can earn from 11% to 15% APY on Exchanges.
Best Crypto Staking Platforms In 2023
- Binance: Best platform for high staking rewards, Binance offers the highest APY for a coin most times.
- Coinbase: Best platform in terms of security of funds.
- Crypto.com: Best platform in terms of additional benefits for staking and flexible withdrawals.
- Stake.fish: A Staking-as-a-service platform that offers investors full control of their assets at all times.
- eToro: Hassle-free and beginner-friendly staking with staking rewards automatically paid out to investors every month without them having to do anything on their part.
Is Staking Crypto Really Worth?
The main downside of Staking in cryptocurrency is the volatility of cryptocurrency assets.
However, as long as the coin you stake maintains it's value, you will earn money for staking your coins.
This is why it is very important to make sure that the cryptocurrency you're staking isn't just offering you a ridiculously high APY but also as a good project backing the coin.