Staking has become a hugely popular feature offered by a variety of different crypto platforms. Given the benefits, it’s really no surprise.
Earning rewards while making blockchains more secure can be a win-win for both the user and the platform. But you cannot stake every coin, and some offer better staking rewards than others.
So, what are the best coins for staking?
1. Ethereum (ETH)
You’ve probably already heard of Ethereum. It’s the most valuable altcoin and the second most valuable cryptocurrency after Bitcoin. You can buy and sell Ethereum on a wide range of exchanges, and you can also stake it.
However, unlike many other cryptos, staking Ethereum independently isn’t for market novices. You need to be able to stake, and therefore own, 32 ETH to become an independent validator. Currently, this amounts to almost $130,000, which is no small amount. This is the 32 ETH rule, but you can work around it.
If you don’t have 32 ETH, you can join a staking pool, where many users can collaborate and each stake a smaller amount of their own ETH. Several exchanges offer staking pools as an option, so this is worth considering if you want to stake ETH without putting up a large amount.
So, why is ETH so great for staking? Firstly, a wide range of popular exchanges offers Ethereum staking. This includes Coinbase, Kraken, Binance, and Bitfinex. It’s always worth staking on a more reputable platform, as these are usually more secure and can offer higher rewards.
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Additionally, staking Ethereum on certain exchanges can bring in some healthy income. While this is often subject to change, you can find rewards ranging between 4% and 10% annually, depending on your chosen platform.
2. Polkadot (DOT) via Slot Auctions
The process of earning rewards via your DOT differs a little from the other cryptos on this list, as you do so via slot auctions. Slot auctions involve lending your DOT to projects in the Polkadot network so that they can become parachains by bidding in an auction. Parachains are independent chains that run in parallel with the Polkadot blockchain. If your chosen project wins, they usually reward you with their native token.
Several exchanges allow you to take part in DOT slot auctions, including Binance, Huobi, and Kraken. The great thing about these auctions is that you can earn rewards by supporting other projects and giving them a chance to become a parachain. And, if your chosen project loses, you’ll still get back all the funds you lent.
3. Tezos (XTZ)
Tezos is another popular cryptocurrency that you can stake on a wide range of reputable exchanges, such as Binance and Kraken. You can also stake it using various software and hardware wallets, like Ledger and Exodus.
So, why Tezos for staking? Aside from its variety of available staking platforms, you don’t usually need a lot of Tezos to stake. Most platforms ask for a minimum of around one XTZ or less, making Tezos staking accessible to almost anyone. On top of this, there are some nice rewards on offer for staking Tezos.
Rewards are subject to fluctuations, but you can usually earn between 4% and 8.5% depending on the platform you’re using and how long you stake your XTZ for.
4. Cardano (ADA)
Cardano may not be a hugely valuable coin right now, but it certainly is popular, with a 24-hour trading volume of almost $1.5 billion. You can stake ADA on platforms such as Bitfinex, Yoroi, and Kraken. So, why stake ADA?
Firstly, you usually don’t need a lot of ADA for staking. ADA is very affordable to buy, with a current value of around $1.30. Most platforms set low minimum requirements which makes Cardano staking an open door for almost anyone. On top of this, the rewards aren’t too bad, either. Currently, the biggest platforms offer annual rewards of between 3% and 6%. However, this can differ on certain exchanges, like Binance, if you stake your ADA for longer periods.
5. Algorand (ALGO)
Like Cardano, Algorand is a very affordable cryptocurrency that you can stake on a variety of exchanges and wallets. These include Coinbase, Exodus, and Trust Wallet. You’ll have a decent selection of platforms to choose from if you wish to stake your ALGO.
The number of ALGO you need to begin staking differs depending on the platform you choose. Even higher minimum requirements, such as that stated by Binance, won’t cost you more than a few hundred dollars. So, if you’re in the market for this kind of purchase, or you already have a considerable amount of ALGO, staking shouldn’t be a problem.
Most reputable platforms offer decent reward rates that usually range between 3% and 10%, though these can change.
6. Polygon (MATIC)
Polygon is another great option for staking. There are several platforms on which you can stake your MATIC, including Gemini, KuCoin, and FTX. Polygon is currently very affordable to buy, so you won’t need to splash the cash to stake a decent amount of it.
Additionally, many exchanges and wallets offer some healthy annual rewards for staking MATIC. For example, you can earn 10% APY by staking your MATIC on KuCoin, a popular crypto exchange platform. However, such rates change depending on the state of the market and your chosen platform.
7. Cosmos (ATOM)
You can stake Cosmos in a few different ways: via an exchange, a software wallet, or a hardware wallet. Though ATOM is a little pricier than some of the coins on this list, it is by no means unaffordable. Most people can stake it.
You can earn rewards of between 5% and 10% by staking Cosmos, and you’ll usually only need a very small amount of ATOM to get started with the staking process. It’s a great option for staking and can earn you a nice bit of side income.
Staking Is a Great Way to Earn Passively
If you have a pot of crypto lying around, or you’re interested in investing long-term, staking is a great way to earn rewards or to earn some extra income without having to sell a single coin. So, if this interests you, consider staking one of the coins above, on a reliable platform, for some nice rewards.
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About The Author
Katie Rees (135 Articles Published)
Katie is a Staff Writer at MUO with experience in content writing in travel and mental health. She as a specific interest in Samsung, and so has chosen to focus on Android in her position at MUO. She has written pieces for IMNOTABARISTA, Tourmeric and Vocal in the past, including one of her favourite pieces on remaining positive and strong through trying times, which can be found at the link above. Outside of her working life, Katie loves growing plants, cooking, and practicing yoga.