Whether you are a seasoned crypto enthusiast or a budding crypto investor, there is a ton of money to be made. While buying low and selling high is the standard approach to crypto investing, crypto staking is becoming increasingly popular.
“Staking crypto” involves locking up a certain amount of your holdings within a blockchain network to support its operations. As a reward, the blockchain network pays you more crypto as dividends or interest. Crypto staking is a legitimate way to turn your crypto investments into a passive income stream.
If you master the art of crypto staking, it can be one of the best ways to achieve financial freedom.
For the uninitiated, it is essential to understand that not every crypto coin is made the same. While all crypto staking coins exist on Proof-of-Stake (PoS) consensus blockchain networks, some crypto coins offer better staking rewards than others.
To make the most of crypto staking, you must learn how to leverage those offering the best returns on investment. This article will review the top crypto coins with the highest staking ROIs.
Before identifying the best crypto coin for the highest crypto staking returns, you must know where you can stake them. Due to its popularity, there are several platforms facilitating crypto staking, including the major cryptocurrency exchanges.
Like different crypto coins, each platform comes with its risks and rewards. To stake crypto and get the best bang for your buck, you should do your homework on the best crypto staking platforms. Once you have a handle on the right crypto staking platform, you can use it to take advantage of the crypto coins with the highest staking ROIs.
From ETH to ADA, a growing number of crypto coins offer lucrative staking rewards. To identify the best coins to stake, you must know how to choose one.
Some factors to determine the right coin to stake include:
- Whether the crypto operates on a PoS blockchain network
- The estimated staking rewards
- Understanding limitations like lock-up periods and minimum deposits for staking
- Identifying the right staking platform. Learn about some of the best crypto staking platforms right now.
While there is a ton of crypto coins you can stake, some offer far better returns than others. Some of the best crypto coins for profitable staking include:
|Crypto Coin||Estimated Annual Percentage Yield*||Minimum Staking Deposit|
|Cardano||2.00%||2 ADA (refundable deposit)|
|Polygon||8.70%||More than the balance of the 100th validator|
*Estimated APYs for validators without inflation/deflation adjustments and these rates are subject to change.
After a quick look at the table, many might just pick the crypto with the highest return rate and lowest minimum deposit for staking. However, there is more to it if you want to make it a successful endeavor. Here’s a quick look at each to give you a better idea.
The blockchain network pioneering most of the developments in the industry, Ethereum is also a popular crypto staking coin. Offering great returns, it demands a 32 ETH minimum deposit, which is expensive ($59,416.32 at writing). Fortunately, pooled staking can let you stake as little as 0.01 ETH.
With a market capitalization of $7.69 billion at writing, Tezos has become one of the most popular crypto coins to stake. The minimum staking amount as a validator equals to $5,124.21 at writing. To make it more affordable, you can delegate your XTZ to a validator like a crypto exchange or non-custodial wallet, but remember that each underlying platform also charges for offering the service.
As one of the top 10 cryptos, Cardano is another popular crypto coin for staking. While there’s no minimum deposit requirement, you must make a 2 ADA refundable fee (worth just $0.30 at writing) you get back once you unstake your ADA. Depending on the staking platform, potential returns can increase significantly.
Polkadot is a multi-chain network that has become an excellent choice for crypto staking. Requiring a 120 DOT (worth $625.08 at writing) minimum deposit with your own wallet, you can stake it through several methods. For those with little or no technical expertise, delegating to staking pools offers a hassle-free solution but with fees that vary based on different platforms.
Solana does not have a minimum deposit requirement for staking. Since there is a 0.01 SOL minimum reserve, that’s the lowest amount you can stake (worth just $0.0028 at writing). Due to the technical knowledge required to be a validator, most people stake as delegators. Delegating through non-custodial wallets or centralized exchanges offers more convenience but lower returns.
The two-layer blockchain network scaling Ethereum’s blockchain has faster transaction times with lower fees. Determining the minimum amount isn’t easy. It must be more than the balance of the 100th validator joining the validators, which can change drastically. Fortunately, delegating the crypto to a validator makes the process simpler.
The highly scalable and low-fee blockchain network offers excellent returns. While it is very profitable to stake, it demands decent coding skills and a 2,000 AVAX deposit (worth $26,557.57 at writing). Delegating Avalanche is possible using Avalanche Wallet comes with a 25 AVAX minimum. To make it easier, you can stake AVAX through exchanges offering one-click staking solutions. That said, the rewards will be fewer and you will not retain custody of your holdings.
To make the best pick, you must understand two important factors: The expected ROI and the underlying crypto’s volatility. To get the best bang for your buck, identify a crypto coin with the highest ROI. Next, use technical analysis to determine whether it is a good time to stake it.
As a rule of thumb, try avoiding cryptos undergoing significant price changes or with growing trading volumes. That said, you must never stake more than you can afford to lose. Even with the best crypto coin, the risks are significant.
To avoid heartbreak, carefully consider your risk tolerance before allocating an amount of your top pick to stake on the best crypto staking platforms.