15 Best Crypto Staking Coins to Invest in 2025

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 15 staking coins for your long-term crypto portfolio. I cover a blend of small and large-cap staking projects from multiple niches.

The 15 Best Staking Coins to Invest In

Listed below are the 15 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 328% APY for staking rewards
4. Best Wallet Token – The next-gen crypto wallet token with high staking rewards
5. Meme Index – The world’s first decentralized meme coin index revolutionizing the $100B market
6. Catslap – Viral meme coin that could slap away the competition, offers high staking APY
7. MooShot – Ethereum-based meme staking token with P2E game and AI-powered insights
8. Real Estate Metaverse – Real estate fractional ownership for passive income and staking rewards
9. Solana – Earn competitive staking rewards on the leading Ethereum Killer, trading 32% below ATHs
10. Tether – The best option for staking crypto without volatility, earn APYs of over 8% on select platforms
11. Avalanche – Become a blockchain validator and earn annual staking rewards of 7.6%
12. Polkadot – Invest in the future of blockchain interoperability, minimum staking requirements of 250 DOT
13. Toncoin – Trending layer 1 blockchain with exclusive access to over 900 million users
14. Sei – Proprietary network protocol with high speeds and scalability of 12,500 transactions per second
15. 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 15 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 171% 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.

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 $0.001648 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.

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 149% 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.

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.

Visit BTC Bull Token

3. Mind of Pepe – Unique Self-Evolving AI-Powered Meme Coin With 328% 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 328%.

You can buy $MIND for just $0.0034128, 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.

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.

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 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.

Visit Best Wallet Token

5. Meme Index – The World’s First Decentralized Meme Coin Index Revolutionizing the $100B Market

Popular crypto project Meme Index ($MEMEX) is next on our list of top staking coins. It allows users to diversify their holdings across four unique baskets: Titan, Moonshot, MidCap, and Frenzy.

Each basket caters to different risk appetites—from stable favorites like DOGE and SHIB to brand-new meme coins with huge upside potential. Since Meme Index is built on Ethereum, holders benefit from deep liquidity while the platform’s governance model ensures every $MEMEX holder has a say in which tokens make the cut. The differentiation of coins is a plus point for holders, since the risk of volatility will be spread over more than one investment. This is a good tactic to follow, especially in the current crypto climate.

25% of the total Meme Index token supply is allocated as rewards, enabling $MEMEX stakers to earn high APYs even during the presale. These dynamic indexes are continually updated, so investors can capture emerging trends and mitigate some of the extreme volatility seen with single-token bets. Early buyers got a high APY of over 588%, whereas staking rewards now stand at 581%.

The Meme Index Presale offers $MEMEX at $0.0166218 per token. With meme coins surpassing $120 billion in market value, industry experts anticipated Meme Index to be a game-changer. This, indeed, very much proved to be the case – by uniting multiple top meme coins under one roof, the coin has amassed gains of over $3.9 million during its presale. As it nears the $4 million mark, investors are clamoring to leverage its presale, which is available till the 31st March.

Don’t delay – get your $MEMEX coins while the presale is still running, till the 31st March! 

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

Visit Meme Index

6. Catslap – Viral Meme Coin That Could Slap Away the Competition, Offers High Staking APY

With its unique slapping game, Catslap ($SLAP) is making waves in the meme coin market and aims to overthrow meme heavyweights like the frogs and dogs that have dominated so far. Catslap creates a unique niche in the meme coin ecosystem with a staking mechanism and exciting gameplay elements.

The platform’s “Slapometer” offers an engaging game where users can compete by slapping to earn the highest scores and climb global leaderboards. The game creates community engagement by allowing participants to increase their country’s ranking. For meme lovers, Catslap offers an opportunity to stake $SLAP tokens and earn rewards, making it one of the exciting new meme coins with real utility.

Staking $SLAP tokens will allow holders to earn a 30% APY. It’s worth noting that 20% of the total supply has been reserved specifically for staking. The last 24-hour trading volume stood at over $4 million, while the latest market cap has crossed $40 million. The current token price is around $0.00118689, witnessing an over 2,000% increase since its launch.

Users can purchase $SLAP using crypto or cards directly through the Best Wallet app by navigating to the “Upcoming Tokens” section. For more information, read the Catslap one-pager and join the Catslap Telegram channel.

Visit Catslap

7. MooShot – P2E Meme Coin With High Presale Staking APY

Another staking token to check out is MooShot ($HIPO). This new meme coin project just started its presale, which has already raised over $1.2 million in a few weeks. MooShot 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.

One of MooShot’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 MooShot presale is currently offering $HIPO for $0.005375 per token. Read the MooShot whitepaper to learn more about this unique staking project, and join the Telegram group for the latest updates.

Visit MooShot

8. Real Estate Metaverse – Fractionalized Real Estate Ownership for Passive Income

The Real Estate Metaverse ($REM) is one of the best projects for passive income and staking as it uses two ways to reward holders: through staking the REM token and through rental income from the fractionalized real estate assets.

This project is transforming the real estate investment landscape by leveraging blockchain technology to make property ownership more accessible and transparent. With the ERC3643 token standard, REM enables fractional ownership of real-world properties through REM-X tokens, allowing investors to participate in high-value real estate markets with as little as $100.

Those who wish to stake the REM token can also earn more REM tokens in the process. The staking pool is designed to help with liquidity and sustainability.

What sets REM apart is its global reach and user-friendly platform. By tokenizing real estate assets, REM breaks geographic restrictions, allowing investors to access a curated selection of properties worldwide and benefit from diverse market trends.

Moreover, investors can see the real estate properties via VR, ensuring they are fully familiar with their investments.

To learn more, check out the Real Estate Metaverse whitepaper and follow Real Estate Metaverse on X.

Visit Real Estate Metaverse

9. 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.

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 $72.84B. This offers an attractive entry point.

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.

10. 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. For example, I found that MEXC is one of the best crypto staking platforms for Tether.

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.

Buy and Stake Tether on MEXC

11. 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.

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 $8.58B. Avalanche has decreased by over -51.52% in the prior year.

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.

12. 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.

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 $7.16B.

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.

13. Toncoin – Trending Layer 1 Blockchain With Exclusive Access to Over 900 Million 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.

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).

Buy Toncoin on MEXC

14. 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.

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.

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.

15. Chainlink – Earn Staking APYs of 4.32% With the World’s Leading Oracle Network   

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.

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 $10.89B.

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 171%.

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.

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 171%.
• You’re a long-term investor, so you stake Solaxy tokens for 12 months.
• In doing so, you’ve increased your holdings by 171%.

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.

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.

• For example, you need 32 ETH to become an Ethereum validator. That’s about $96,000.
• I also mentioned that Avalanche requires 2,000 AVAX or about $74,000.

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.

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 $72.84B. 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 $24.8 million in a few months, the Solaxy presale has proven popular with growth investors.

Visit Solaxy

See Also:

• What is Liquid Staking & How Does it Work?
• Bitcoin Staking: How to Earn Rewards by Staking Crypto?
• Cardano Staking: How to Earn Rewards By Staking ADA

FAQs

Which coins have the highest staking rewards?

Small-cap coins offer the highest staking rewards, although expect increased volatility and risk of loss. For example, the Solaxy and BTC Bull Token crypto presales are currently offering staking rewards of 171% and 149% , respectively.

Is crypto staking safe?

Crypto staking presents several risks, such as the coins declining in value, a sudden drop in APYs, and unfavorable lock-up terms. Also consider the risks of staking coins on a third-party platform, such as crypto exchanges.

Is coin staking profitable?

Crypto staking can be profitable – especially if the value of the coins increases. However, the opposite can also happen, meaning staking can yield losses even if you earn more rewards, but the price of the staked coins and rewards go lower than when you initially staked them.

What does APY mean in crypto?

The APY in crypto stands for annual percentage yield. It’s used to express the annualized interest rates when staking crypto. Compared to APR (annual percentage rate) it is usually considered that APY will be higher due to restaking your already earned yield for more yield rewards.

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)