DAILY NEWSLETTER Your daily dose of Crypto news, Prices & other updates..Crypto staking fosters passive income while contributing to the security and decentralization of blockchain projects.In crypto staking, users temporarily lock their crypto assets to earn rewards.And these rewards are in the form of additional coins or tokens.
The staking period, amount, and methodology vary as per the chosen projects and blockchains.Once an asset is staked, it becomes inaccessible for the specified duration.
Crypto staking is gaining popularity due to its promise of passive rewards, which contributes to one’s crypto holdings and its growth.Staking is a unique avenue for investors.
For example, by staking Ethereum, one may actively support the Proof-of-Stake (PoS) blockchain operations and gain staking rewards in return.This article focuses on the top coins that provide the highest APY crypto staking for investors and more briefs on various aspects of crypto staking.The prime platforms to leverage for crypto staking involve OKX, Etoro, Stormgain, and Binance.However, there are several [platforms to choose from for crypto staking](https://coingape.com/crypto-staking-platforms/) based on their preferences.These top crypto-staking platforms help users seamlessly begin their crypto-staking and investing journey by leveraging the platforms’ unique and essential infrastructure.As in traditional finances, APY in cryptocurrency refers to the Annual Percentage Yield.It signifies the expected return for any investment choice based on the compound interest formula and not the simple interest rate.APY is an important factor in the life and journey of a staker/ investor.
While calculating APY, we take into account various factors, including: Moreover, the global economy also has its own impact on APY.And as is the case with all financial assets, APY of cryptocurrencies should also be adjusted in accordance with inflation.By adjusting inflation, one can get to know the exact yield a crypto token has generated in a year.APY is thus the daily yield over a year for an asset.
It is calculated using the formula: APY = (1 + daily return rate)^(365) – 1.APY = P(1 + r)^t, where Osmosis is an automated market-making (AMM) protocol built on the Cosmos SDK.It empowers developers to build and deploy custom AMMs.It employs a governance mechanism to allow liquidity providers to participate in their pools’ decision-making.It also offers extreme flexibility to the stakeholders in terms of curves, fees, and other parameters.
There are various aspects to staking Osmosis, including lending, custodial providers, using decentralized lending platforms to run validators, and providing liquidity to various exchanges.Osmosis can be staked on [Atomic Wallet](https://atomicwallet.io/osmosis-staking), [Ledger](https://www.ledger.com/staking/staking-osmosis), [Binance](https://www.binance.com/en-IN/price/osmosis), [Trust Wallet](https://community.trustwallet.com/t/how-to-stake-osmo-tokens-on-trust-wallet/374334), and other exchanges and platforms.Cosmos operates on a proof-of-stake consensus mechanism, rewarding the stakers with its native token – ATOM.This cryptocurrency is significant due to the transaction validation that it offers via staking.It helps open various avenues for users to earn rewards by staking ATOM tokens to support blockchain validation.
Cosmos offers one of the highest APY crypto staking, providing diverse staking options, including centralized exchanges, delegating to validators, and running self-validators.The ATOM token can be staked with [Keplr](https://www.keplr.app/), [Leap](https://www.leapwallet.io/), [Cosmostation](https://wallet.cosmostation.io/), [Binance](https://www.binance.com/en-IN/price/cosmos), [Kraken](https://www.kraken.com/prices/cosmos), and [Coinbase ](https://www.coinbase.com/en-gb/price/cosmos)for higher staking rewards.
Ethereum is the second-largest cryptocurrency.It revolutionized the network via Ethereum 2.0, transitioning from PoW to PoS.Validators stake a minimum of 32 ETH to participate in securing the network.
This stake enables the validator software and offers various validator responsibilities like data storage, transaction processing, and contributing new blocks to the blockchain.
Staking Ethereum is flexible, as it can be done via exchanges, staking pools, or running nodes.From Binance to [Coinbase](https://www.coinbase.com/en-gb/), [Ledger](https://www.ledger.com/), and more, various platforms allow you to stake ETH and win rewards from that.Polygon has positioned itself as a blockchain technology platform that fosters connectivity and scalability among blockchain networks.Its native cryptocurrency, MATIC, powers it.Staking MATIC can be done by staking through a crypto exchange and delegating tokens to a public validator.It also offers liquid staking that allows stakers to earn rewards while maintaining their funds’ access.
Furthermore, if the stakers have the necessary resources, they may rent a cloud server and run their validator node.Polygon MATIC can be staked on [Coinbase](https://www.coinbase.com/learn/wallet/how-to-earn-rewards-staking-with-matic), [Kraken](https://www.kraken.com/features/staking-coins/polygon), [Atomic Wallet](https://atomicwallet.io/polygon-matic-staking), [Binance](https://www.binance.com/en-IN/research/projects/matic-network), etc.The Binance crypto exchange created Binance Coin (BNB).It boasts a market cap of $36 Billion with one of the highest APY in crypto staking.By staking BNB, the staker temporarily permits the exchange to use their tokens to support the Binance blockchain network and make it resilient.Users get to participate in transaction verification and decentralized governance while earning rewards as an incentive for their commitment.For BNB staking, you may hop on to [Binance](https://www.binance.com/en-IN/feed/post/1085908#:~:text=Binance%20offers%20flexible%20staking%2C%20which,a%20longer%20period%20of%20time.) and [Trust Wallet](https://trustwallet.com/blog/how-to-stake-bnb-and-earn-yield-using-trust-wallet), among other prominent platforms.
Solana is an ecosystem built for decentralized and highly scalable applications.It rewards token holders with one of the highest staking rewards for staking SOL tokens.Through delegating by staking SOL, the stakers increase the validators’ voting weight without losing ownership/ control of their holding.Validators then leverage the stake delegations to help the network achieve consensus through PoS.Staking SOL thus helps enhance the network’s resilience and the staker’s rewards.Some of the best platforms to stake SOL include [Kraken](https://www.kraken.com/features/staking-coins/solana), [Phantom](https://help.phantom.app/hc/en-us/articles/4406374138771–Staking-Solana), [Ledger](https://www.ledger.com/staking/ledger-node/solana), [Coinbase](https://www.coinbase.com/earn/staking/solana#:~:text=Solana%20staking%20is%20on%20the,rate%20for%20Solana%20was%203.08%25.), [Binance](https://www.binance.com/en/support/announcement/binance-staking-launches-sol-staking-with-up-to-43-79-apy-a5c507485f7843d8b3a3800fee3c1f84), Atomic Wallet, etc.Cardano is a decentralized blockchain that uses a PoS consensus mechanism.
It positions ADA as its native coin and one of the best crypto for staking.It rewards the users for participating in staking pools and performing network validation actions.Cardano assures one of the highest APY crypto staking while emphasizing the blockchain’s efficiency and smart contract capabilities.The best platforms for staking SOL include [Binance](https://www.binance.com/en-IN/price/cardano#:~:text=Step%201%3A%20Create%20a%20Binance,%2C%20typically%2030%2D90%20days.), [Coinbase](https://www.coinbase.com/earn/staking/cardano), [Kraken](https://www.kraken.com/features/staking-coins/cardano), etc.
NEAR is a blockchain platform focusing primarily on decentralized applications (dApps).It prioritizes scalability, usability, and cost-efficiency.When you stake NEAR tokens, you delegate them to validators on the network.And this is leveraged for contributing to validating transactions and securing the network.
With this strategic move, the stakers earn staking rewards while actively engaging in the NEAR ecosystem’s governance and security.MultiversX was formerly known as Elrond.It is a blockchain platform that fosters the development of the metaverse side of the Web3 space.It employs a technique called sharding technology to offer simultaneous scalability across states, networks, and transactions.The native token of MutiverseX is EGLD, which plays a multifaceted role in trading, staking, delegating, paying transaction fees, and governance participation.Thus, staking in MultiversX is a strategic move to participate in the growth of the platform.[Ledger](https://www.ledger.com/staking/staking-egld), [ Atomic Wallet](https://atomicwallet.io/multiversx-egld-staking), [Bitcompare](https://bitcompare.net/coins/multiversx/how-to-stake), and [Kraken](https://www.kraken.com/features/staking-coins/multiversx) are among the top platforms where you can stake EGLD.Tezos is a decentralized blockchain for smart contracts.
It introduces a unique self-amending mechanism that enables the network to self-upgrade without requiring hard forks.Staking the native token, XTZ delegates the tokens to a baker (validator) through supported wallets or delegation services.Delegators then get to participate in the PoS consensus of the Tezos network while earning staking rewards.The top platforms to stake XTZ include [Binance](https://support.binance.us/hc/en-us/articles/11273235576087-Binance-US-Adds-Tezos-XTZ-Staking-With-7-APY-in-Rewards), [Kraken](https://www.kraken.com/features/staking-coins/tezos), [Coinbase](https://www.coinbase.com/en-gb/earn/staking/tezos), etc.In crypto staking, the stakers deposit their digital assets into a dedicated account or blockchain network to actively participate in transaction validation.This allows them to earn significant rewards in return.To begin with staking, one needs to hold a specific quantity of the selected cryptocurrency as required by the network and may also have to use the specified dedicated wallet.The staking process varies as per the cryptocurrencies.
Still, it is primarily linked to the network’s consensus mechanism, like PoS or DPoS.As a reward for the contributions, the stakers receive additional tokens.This amount varies based on the specific blockchain and cryptocurrency.Exchanges have simplified the staking process by crowdsourcing the funds and resources.They are perfect for beginners who do not want to deal with setting up a node and maintaining it as required by most networks.
Selecting the best crypto for staking is challenging.Low liquidity may lead to volatility waves, making the staking returns meaningless.Here are the factors to consider while choosing the best coins to stake: Staking pools are pools of funds where stakers stake and lock their crypto.The pool as a whole then earns rewards by getting leveraged for PoS blockchain validations, and that is distributed among the stakers based on their contributions to the pool.For staking crypto, there are multiple [platforms and exchanges to choose from](https://coingape.com/crypto-staking-platforms/), including OKX, Etoro, Stormgain, Binance, etc.
Crypto staking comes with certain risks, irrespective of the exchange of platform, rising from liquidity considerations, project’s use case, etc.Thus, it is essential to analyze all the potential risks and safety considerations while choosing any exchange/ platform for crypto staking.Crypto staking is certainly worth it due to the significant rewards and yields it offers the stakers.However, investment choice plays a key role in whether the investment decision will be profitable or riskier.Thus, it is essential to do thorough research and consider all the options and aspects well while staking.
The answer to this question depends on several factors.
The chosen crypto asset, the platform, and the potential determine how profitable it may turn out.However, a regular passive income is fixed for the investors.CoinGape prepared a [review methodology](/crypto-review-methodology/) to rate crypto exchanges, tools, and apps.We curated a list of metrics to evaluate crypto platforms based on their services, user experience, security and customer support, payment gateways and charges, pricing and promotions.Visit our Review Methodology page to learn more about how we review each crypto platform.This content is purely for educational purposes and should not be considered as financial advice.Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.DAILY NEWSLETTER Your daily dose of Crypto news, Prices & other updates…
