Best Cryptos to Stake in 2024

Table of content

• Key Takeaways
• Best Cryptos To Stake for Highest Staking Rewards in 2024
• The Pros and Cons of Staking Crypto
• How to Pick the Best Cryptos to Stake?
• APY vs APR
• Where To Stake Crypto?
• Final Thoughts 
• FAQs About Best Cryptos To Stake

You can stake crypto on both centralized and decentralized exchanges. Staking on centralized exchanges, like Binance, tends to be simpler but may offer lower APYs compared to decentralized exchanges.

When you stake Ethereum, you can earn rewards while helping to secure and maintain the network. ETH staking rewards range from 4-7% APY, but it's costly for many users to get started.

Ethereum is transitioning to Proof-of-Stake (PoS) but isn't fully there yet. Staking options are currently limited, often requiring big investment to participate through services like Lido Finance or Rocket Pool.

Rewards vary depending on the service provider but generally range between 4% and 7% APY (Annual Percentage Yield).

Solana challenges Ethereum with its speed and scalability, ideal for DeFi and Web3 apps, accessible through wallets or exchanges with minimal requirements.

You can stake SOL through its validator network, directly through wallets or exchanges with a minimum amount (around 0.01 SOL).

Staking rewards on Solana can be attractive, ranging from 5-10% APY depending on the chosen validator.

Cosmos focuses on blockchain interoperability, allowing different networks to communicate seamlessly. You can stake Cosmos easily through various wallets or exchanges.

Cosmos offers native staking, allowing you to stake ATOM directly through wallets or exchanges. There's no minimum amount required.

ATOM staking rewards can vary based on the validator, typically falling between 5-10% APY.

Algorand focuses on fast, efficient transactions and practical applications. ALGO staking options are readily available through various wallets and exchanges.

Algorand offers native staking with a very low minimum amount (around 0.01 ALGO) through wallets or exchanges.

ALGO staking rewards are generally on the lower side, ranging from 3-6% APY.

Avalanche competes with Ethereum in smart contracts and DeFi, offering fast transactions and low fees, with flexible staking options for different roles.

Avalanche offers native staking with various options through delegators or validators. Minimum staking amounts can vary depending on the chosen method.

Rewards on Avalanche can be higher, with some validators offering up to 12% APY, but this can be more volatile.

Cardano is known for its research-driven approach to security and scalability in smart contracts and DeFi applications. It offers a user-friendly experience with no minimum staking requirement.

Cardano offers native staking through delegation in various staking pools. There's no minimum amount required.

Cardano staking rewards are generally stable, averaging around 4-6% APY.

Polygon serves as a sidechain solution for Ethereum, designed to alleviate congestion and reduce transaction fees on the main network.

Polygon offers native staking through its validator network. Minimum staking amounts can vary depending on the chosen validator.

MATIC staking rewards, with some validators, offer up to 13% APY, but this can be more volatile.

Polkadot focuses on blockchain interoperability, allowing different chains to connect and work together.

Polkadot offers native staking through its validator network (nominators). There's a minimum amount required to become a nominator, but staking through exchanges often eliminates this barrier.

Depending on the chosen validator, DOT staking rewards can be good, ranging from 5-12% APY.

Tezos provides security and energy efficiency for smart contracts and DeFi, offering features like “baking” for network participation.

Tezos allows native staking through baking. No minimum amount is required, but baking requires more technical knowledge than delegation.

Tezos staking rewards can be good, with some bakers offering up to 6-8% APY.

This innovative blockchain platform focuses on scalability, aiming to overcome the limitations of earlier blockchains like Ethereum. NEAR boasts features like sharding (splitting the network into smaller segments) for faster transaction processing and lower fees.

Staking can be done through NEAR wallets, staking services, or directly on the NEAR Protocol website.

Current estimates suggest rewards can fall within the range of 9-12% APY (Annual Percentage Yield). However, make your own research due to potential fluctuations.

• Staking crypto allows you to earn rewards by locking up your assets for a set period, growing your capital with minimal involvement.
• By staking, you help validate transactions and improve network security.
• Staking often offers higher APYs than traditional investments, potentially exceeding 120% annually.
• Staking rewards are distributed without centralized control, increasing security and privacy.
• It deepens your involvement with the blockchain, improves your understanding of its operations.
• Staking can help diversify your portfolio, spreading risk and potentially giving returns.
• More exchanges and wallets now have user-friendly staking options, and make it easier to participate.
• Staking is generally secure through reputable platforms, but you have to do your own research to avoid risks.

• Fluctuations in the price of staked crypto and rewards can impact your investment’s value.
• Increased competition can lower staking rewards as more participants join.
• Vulnerabilities in staking platforms can risk the loss of your assets.
• Penalties for rule violations on some blockchains can result in the loss of staked assets.
• The lock-up period can make it difficult to quickly sell staked assets.
• Your governance impact may be minor compared to that of other stakeholders.
• Price fluctuations in the crypto market can affect the value of your staked assets.

When deciding which cryptocurrency to stake, consider these factors:

Network and Technology

Choose cryptocurrencies built on innovative blockchain technologies. Look for projects that effectively address scalability, security, and usability issues.

Staking Mechanism

Understand the staking process and requirements for each cryptocurrency. Some may require a minimum stake, while others allow flexible participation. Consider whether you prefer direct staking or delegating to others.

Project Viability and Use Case

Evaluate the cryptocurrency's use case and relevance. Projects solving real-world problems or supporting decentralized applications (dApps) tend to have stronger long-term prospects.

Economic Model and Rewards

Analyze the tokenomics and potential rewards for staking. Look for cryptocurrencies with fair reward distributions and sustainable economic models.

Security and Reputation

Prioritize cryptocurrencies with strong security measures and a reputable track record. Avoid cryptocurrencies with a history of vulnerabilities or security breaches.

APY (Annual Percentage Yield) and APR (Annual Percentage Rate) are important metrics used to describe the interest or returns on financial products, including staking in cryptocurrencies or traditional investments. 

• APR represents the yearly interest rate for a financial product, such as a loan, without considering compounding.
• It is a simple annualized representation of the interest rate or returns earned.
• APR is typically used for products where interest is not compounded, meaning interest is not added to the principal and thus does not earn interest itself.

• APY also represents the yearly interest rate or returns on a financial product, but it does consider the effect of compounding.
• APY considers the interest earned on the initial principal as well as on the interest that has been added to the principal over time.
• APY is often higher than APR for products that compound interest, reflecting the true return rate that includes the compounding effect.

Below, find some places where you can do that.

Bitfinex offers limited staking options like EOS, EOSDT, TRON (TRX), and USD Coin (USDC). Staking can be fixed or flexible with varying rewards and minimum staking amounts. Staked tokens may have lock-up periods and Bitfinex is a centralized exchange, meaning less control over your crypto.

Bybit provides a broader range of staking options, including ETH, SOL, ADA, DOT, and more. They offer fixed or flexible staking pools, DeFi options, and launchpools for new projects. Bybit's platform is user-friendly with competitive APY, but it's also centralized, posing risks especially with DeFi and launchpools.

Crypto.com's platform has extensive staking options for tokens like ETH, BTC, and its native token, CRO. It provides flexible and fixed-term staking with varying rewards and additional benefits for staking CRO. Crypto.com is centralized, with potential lock-up periods for staked tokens, but it offers a user-friendly platform with competitive APY.

Nexo focuses on high-yield interest rather than traditional staking. You can earn interest on various cryptocurrencies and stablecoins with rates up to 17% APY, depending on loyalty tier and holdings of their native token NEXO. Nexo has no minimum staking amounts and is user-friendly, but it's centralized and high-yield products come with inherent risks, requiring NEXO for higher returns.

In 2024, staking cryptocurrencies can be a great way to earn passive income. Leading options like Ethereum, Solana, and Polygon offer a range of rewards, from low to high, depending on your investment and risk tolerance. 

Understanding terms like APY and APR, picking reliable platforms, and considering your need for liquidity will help you choose the best staking opportunities. Research thoroughly to find the best crypto for staking that suits your financial goals.