Updated July 14, 2022

Best Coins to Stake

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Ready to earn returns on your crypto investments by staking? Keep reading to find out how to stake and which coins are the best for staking.

Staking crypto gives investors a way to earn interest on their coins.

But unlike mining, you don't need any special equipment. And, you aren't going to run up your energy bill into the stratosphere.

So which coins should you be staking?

In this guide, find out which coins are best to stake, based on availability, interest rate, and coin value.

Is it worth it to stake coins? Generally, yes. Staking is an easy, accessible way to increase your profits from crypto and it's accessible to investors at all levels.

What Is Staking?

Staking is a means of earning returns on your crypto by depositing it with a third party.

The term staking refers to the Proof of Stake or "PoS" system. In this system, coins are used to verify transactions on the blockchain.

This is an alternative to mining, which employs a Proof of Work system in which computers solve cryptographic puzzles to verify transactions.

Cryptocurrency is not reliant on any centralized authority, like banks or payment processors. Instead, transactions are recorded on a public ledger that anyone can view, called the blockchain.

Blocks on the blockchain are comprised of transactions that must be verified by what's known as a consensus mechanism, like mining or staking. Whoever participates in successfully creating a new block is rewarded.

How does staking work?

There are two methods of staking, but one is a lot more involved than the other.

For most users, the easiest path will be to stake through a crypto platform like an exchange. It's as simple as depositing your coins and consenting to stake them.

Popular exchanges such as Binance, Coinbase, and Kraken all offer staking options.

The other option is to set up your own staking node, which requires a fair amount of knowledge and expertise.

If you're staking on your own, you may also run up against staking minimums that are prohibitively expensive. That shouldn't be a problem on a major platform.

What's the best exchange for staking crypto? Overall, the best interest rates are available on Binance; however, they won't be available to U.S. customers. Crypto.com was frequently the runner-up, but they require serious investments of time and money to earn their highest rates. In general, your best platform will be wherever you can find the best rates at an investment amount you can afford.

What Coins Can You Stake?

Note: Not every coin can be staked. Here are just some of the popular cryptocurrencies it's possible to stake:

  • Akash
  • Algorand
  • ApeSwap Finance
  • Avalanche
  • Binance Coin
  • BitDAO
  • Cardano
  • Chronicle
  • Cosmos
  • Dai
  • EOS
  • Ethereum
  • Flow
  • Hydra
  • Kava
  • Kusama
  • PancakeSwap
  • Polkadot
  • Polygon
  • Solana
  • SushiSwap
  • Terra
  • Tezos
  • USD Coin

Can you stake Bitcoin?
No. Because the Bitcoin blockchain is run on a Proof of Work protocol, rather than Proof of Stake, you can mine Bitcoin but you can't stake it. Ethereum started out as a Proof of Work cryptocurrency, but the decision was made to switch to Proof of Stake instead.

Best Platforms to Stake Crypto

Best Coins to Stake

While the list of stake-able coins is always growing, we focused on a few key metrics to help you find the best:

  1. Market cap: The price of one coin multiplied by the number of coins in circulation. By choosing high market cap coins, you have better odds of staking a currency that has a significant amount of interest and momentum

  2. Ease of staking: Is the coin available on a mainstream platform and accessible to everyone, without significant barriers of skill or available money to invest?

  3. Average rate of return

Note: The metrics in this article are reflective of the time of writing. Market caps were collected via CoinMarketCap.

1. Algorand

Market Cap$2,111,847,703
Where You Can Stake ItCoinbase, Crypto.com, Binance, Binance.US
Highest Rate of Return14.47% (Binance)

What is it?
Algorand (ALGO) is a proof-of-stake cryptocurrency that focuses on scalability and security, minimizing cost, and optimizing transaction time on the network.

It can be used for smart contracts, to make Dapps (decentralized applications), mint NFTs (non-fungible tokens). It can also be used for loans and decentralized finance.

2. Avalanche

Market Cap$5,162,248,755
Where You Can Stake ItCrypto.com, Binance
Highest Rate of Return13.47% (Binance)

What is it?
Avalanche (AVAX) is a cryptocurrency designed to be used for creating smart contracts for Dapps, and to pay transaction fees.

It's reportedly the fastest smart contracts platform with the highest number of validators doing proof-of-stake work. It is compatible with Solidity, the programming language used by Ethereum.

3. Binance Coin

Market Cap$37,489,966,774
Where You Can Stake ItCrypto.com, Binance
Highest Rate of Return8.69% (Binance)

What is it?
Binance Coin (BNB) is the cryptocurrency issued by Binance, one of the largest crypto exchanges in the world, and is used to pay fees on the exchange. Binance users can get a discount for paying their fees in Binance Coin.

4. Cardano

Market Cap$14,294,350,248
Where You Can Stake IteToro, Kraken, Crypto.com, Binance
Highest Rate of Return8.38% (Binance)

What is it?
Cardano (ADA) is a cryptocurrency that attempts to improve on the design of Ethereum—focusing on flexibility, sustainability, and scalability.

It can be used to create smart contracts, for DeFi, to create Dapps, and mint new cryptocurrency tokens. Its Ouroboros proof-of-stake mechanism attempts to solve for the energy usage issues involved in mining Bitcoin.

Additionally, Cardano has split its blockchain into two layers. One layer records account balances and transactions, and the other of which is used to run Dapps.

By doing this, it has been able to achieve very high transaction speeds.

5. Ethereum

Market Cap$132,405,810,295
Where You Can Stake ItCoinbase, eToro, Kraken, Crypto.com, Gemini, Binance
Highest Rate of Return8.5% (Crypto.com)

What is it?
Ethereum (ETH) is the second-most valuable cryptocurrency in the world after Bitcoin. It is designed for creating smart contracts, and can be used for DeFi, to create Dapps, games, and more.

It can be used for global payments, NFTs, and minting new tokens. Ethereum originated as a proof-of-work cryptocurrency but is in the process of shifting to a proof-of-stake protocol.[1]

6. Polkadot

Market Cap$6,301,369,959
Where You Can Stake ItKraken, Crypto.com, Binance
Highest Rate of Return16.62% (Binance)

What is it?
Polkadot (DOT) allows for the secure communication between separate blockchains such as Bitcoin and Ethereum.

It employs parallel blockchains, or "parachains," to improve transaction speed. In terms of transaction speed, it is much faster than Bitcoin or Ethereum, and has the potential to become even faster.

7. Polygon

Market Cap$5,035,112,719
Where You Can Stake ItCrypto.com, Gemini, Binance
Highest Rate of Return14.09% (Binance)

What is it?
Polygon (MATIC) is a token on the Ethereum network designed to improve transaction speed and lower costs using "sidechains" that work parallel to the primary Ethereum blockchain.

It allows users to transfer Ethereum tokens onto the Polygon blockchain and back again as needed.

8. Solana

Market Cap$11,765,810,410
Where You Can Stake ItKraken, Crypto.com, Binance
Highest Rate of Return6.5% (Kraken)

What is it?
Solana (SOL) is an Ethereum competitor, designed to do many of the same things Ethereum does, but with higher transaction speeds.

Solana tokens are used to pay transaction fees, but also entitle holders to the right to vote on how the Solana platform is run. It can be used for smart contracts, DeFi, and more.

9. Terra

Market Cap$218,424,009
Where You Can Stake ItCrypto.com, Gemini, Binance
Highest Rate of Return5.54% (Binance)

What is it?
Terra (LUNA) is a DeFi platform that is used to create several decentralized stablecoins. It can be used to create smart contracts, and tokens also entitle holders to take part in governance of the Terra protocol.

10. USDC

Market Cap$55,352,153,444
Where You Can Stake ItCoinbase, Binance
Highest Rate of Return2.79% (Binance)

What is it?
USD Coin (USDC) is a stablecoin, a cryptocurrency whose value is pegged to that of the U.S. dollar in order to provide a less volatile option compared to other cryptocurrencies. It runs on the Ethereum platform and can be used to pay for Ethereum smart contracts.

Bottom Line

Choosing which coins to stake is a lot like choosing which ones to invest in. You can take advice, but ultimately it's your money and you should think carefully before you make a decision.

Metrics like market cap can be good indicators of how much confidence other investors have in a currency, which may give you clues about its potential longevity.

You may find higher rates of return on coins not mentioned on this list, but it's helpful to keep in mind that those coins may have less inherent value or be more volatile.

If you do choose to stake them, be mindful of the risk that the price may drop suddenly. And as always, avoid investing money you can't afford to lose.

References

  1. ^ ethereum.org. The Merge, Retrieved 7/14/2022

Jeremy Harshman is a creative assistant at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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