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CRYPTO STAKING PLATFORMS MARCH 2024

A guide to staking crypto to earn rewards and passive income, including where
and how to do it.
Published: November 1, 2023   |   Last Updated: February 29, 2024
Written By:

Eric Huffman
Staff Writer
Edited By:

Shannon Ullman
Managing Editor



KEY TAKEAWAYS

 * Crypto staking is a method to ensure that blockchain transactions are
   accurate. In return for staking crypto, stakers receive crypto rewards from
   network transaction fees.
 * Crypto staking is a great way for people to earn passive income on crypto
   they’re holding for price appreciation.
 * The main risks in staking crypto center on working with misbehaving
   “validators” that could be penalized by “slashing,” which reduces the value
   of your stake.


WHAT IS CRYPTO STAKING, EXACTLY?

OK, so the term “staking” really gives off strong Buffy Summers vibes. We get
it—but there’s nary a vampire nor a Hellmouth to speak of.

The term staking suggests that there’s something at stake. And there is (your
crypto). But there are also crypto staking rewards you can earn.

Imagine you’re having a spirited debate with your buddy over how many career
home runs Barry Bonds had. You know, a typical Friday night. You bet the next
round of drinks on this crucial matter, stating that the correct answer is 762.
Your buddy insists that it’s only 726. Then, you ask the others at the bar, who
all shout, “762!”

In the end, that mistake will cost your buddy the next round. You earned a
little something for proposing the idea–and for being right. In crypto, staking
creates a financial incentive to get the numbers right in each blockchain block.
Wrong answers can be costly.

Proof-of-stake blockchains work on consensus, a group agreement, like asking
everyone in the bar how many home runs Barry Bonds had. But instead of home
runs, the debate is over the transactions in each block.

Crypto staking lets token holders pledge their crypto to verify the right
answer. In return, stakers are rewarded with a portion of the network’s
transaction fees, called “staking rewards.”

Many popular blockchains like Ethereum and Solana use proof-of-stake consensus
mechanisms. (What the heck is that, you rightly ask? Scroll to “What is
Proof-of-Stake?” for a full definition, but the short answer is: a way to verify
new transactions on the blockchain and prevent double-spending.)

Staking can yield anywhere between 3% to 10% annually on your original holdings.
Cool.

By the way: If you want to learn about all the ways to earn passive income on
your crypto, check out our complete guide to how to earn interest on crypto.

Some of the most popular blockchains pay staking rewards in their native
cryptocurrency to encourage users to stake their crypto. It’s like a weird,
crypto version of an employer matching your retirement savings with company
stock.

Where do these crypto rewards come from? Proof of stake networks pay rewards
from network transaction fees, in many cases, but also through token inflation
rates. Basically, the network mints more tokens. We don’t want to get too far
into the weeds here, but it’s worth a mention.


TOKEN INFLATION RATES EXPLAINED

Token inflation works much like inflation in fiat currencies. In a nutshell, the
more units there are, the less each one is worth as part of the total market.



But token inflation plays a unique role in proof-of-stake networks: It
incentivizes the validation on the network by providing tokens as staking
rewards.



Again, it’s all about encouraging staking, which these chains require to
continue functioning. Check out the table below for some examples.



EthereumSolanaCardanoProtocol Staking APY6.16%7.79%5.24%Inflation
Rate0.52%6.63%1.90%Adjusted Yearly Staking Reward5.64%1.16%3.34%



Thanks to this inflationary process, if you’re staking, you’re earning more
value/tokens over time—and if you’re not staking, the value of your tokens is
actually going down. (See? We weren’t kidding about the word incentive. So get
spending or staking, fam.)



And just like companies issuing new shares in the stock market, token inflation
undercuts your staking returns. Same pie, with more pieces. So if you expect to
make a 6.16% yield on your Ethereum tokens, which carry an annual inflation rate
of 0.52%, you’re really expecting gains of 5.64%.



Okay, so you might understand staking a bit better now. But if you’re still
curious about how to calculate your staking earnings, here’s how the math works.




HOW TO CALCULATE CRYPTO STAKING REWARDS

Say you stake 10 Ethereum tokens worth each $2,000—for a total of
$20,000—through the Coinbase platform. Let’s assume a 4.25% annual yield (APY)
on ETH. At the end of the first year, you will have earned $900 on your
investment, so your grand total is now $20,900. Leave it staked for another year
at the same APY, and your balance will become $21,840.50. And so on.

But let’s say Ethereum loses 4.25% of its value during year one. (It often
fluctuates more than that.) That means you’ve merely broken even.

So, how profitable is crypto staking? In most cases, you won’t need a
crypto-staking calculator with scientific functions to do the math. Comparing
the yield to the expected change in price points you in the right direction.

The lesson? Pay attention to the relationship between a platform’s APY and a
token’s volatility.

To channel the legendary Rob Base and DJ E-Z Rock: “It takes two to make a thing
go right / It takes two to make it outta sight.”

Hit it!


HOW DOES STAKING WORK?

There are a number of different ways to stake, from the basic (using a
centralized exchange) to the very advanced (running your own validator). We’ll
go into that in more detail in “What Types of Staking Are There?” but for now,
keep reading.

Ultimately, all staked crypto ends up in the same place—helping to validate the
blockchain through a validator node, a computer that verifies the transactions
in each block.

But most staked crypto does not come from individuals running their own
validator nodes—which can get complicated. (To paraphrase Boromir: “One does not
simply run their own validator node.”) Most staked crypto comes from people with
little technical knowledge who delegate their crypto to those who know how to
run nodes.

Those two parties come together thanks to various entities, such as exchanges
and crypto staking pools. String it all together, and you’ve got a staking
process. And good news for crypto newbies: In many cases, staking is as simple
as choosing how much crypto you’d like to stake and clicking a button.

Like any good financial process, fees are added along the way to make each
party’s contribution worth the trouble. But these are well worth it for most
people. Someone else does the setup work.

You can bypass the fees by running your own validator. Possible, but akin to
working on your own classic Porsche 928s, the kind with the 82-inch timing belt.
Sometimes, it’s cheaper to find a pro.

And just a reminder: Staking is only available for proof-of-stake blockchains,
so proof-of-work blockchains like Bitcoin won’t support it. Bitcoin staking
isn’t a thing. Bitcoin is validated by mining instead, and that’s a whole other
topic.


WHAT IS PROOF-OF-STAKE?

Proof-of-stake is a consensus (agreement) mechanism used to run the blockchain.
This means it uses distributed computers (called “nodes”) to agree on the state
of the blockchain.

What really happened, and when? That’s what validators collectively determine.

It’s not the only consensus mechanism in crypto. The original is called
proof-of-work and is the mechanism that Bitcoin uses. What’s the difference?

 * Proof-of-work uses computational work to validate a block. The process makes
   it prohibitively expensive to change an existing block.
 * Proof-of-stake uses crypto staked to validators that reach a consensus, with
   some blockchains slashing (removing a percentage) the stakes for misbehaving
   validators.

You can see proof-of-stake in action with Ethereum or Solana.


PROS AND CONS OF STAKING CRYPTO


PROS

 * Earn passive income with compounding
 * Offset natural token inflation
 * Help secure the network


CONS

 * Conventional staking often requires token lock-up, meaning you can’t access
   your tokens for a certain period of time
 * “Slashing,” while rare, can reduce the value of your holdings
 * You may need to change validators if yields change or the pool becomes
   saturated, meaning there are too many stakers on one stake pool, making the
   network less decentralized


BENEFITS OF STAKING CRYPTOCURRENCIES

If you’re the buy-and-hold type or a long-term investor, staking offers a
consistent way to earn additional money on funds that you don’t plan to move in
the short term. We wouldn’t call it free money, but we wouldn’t not call it
that, either.

Plus, the secret engine of wealth creation is at work: compound interest.
Because your crypto staking rewards are paid in the same token you invested—and
because those crypto rewards are usually added to your staked position
automatically—you’ll earn compound interest that can supercharge your returns
over time.

And if you’re the kind of person who’s alarmed by the considerable energy
consumption of proof-of-work networks like Bitcoin, you can rest easy knowing
that their proof-of-stake brethren are comparatively lightweight. For example,
Bitcoin proof of work uses up to 50,000 times more energy compared to Ethereum
proof of stake. Great Scott!

One more thing: As we’ve said before, staking helps ensure the network’s
security, which in turn helps your investment. After all, a robust network is
better for long-term appreciation of the coins or tokens you’re holding.


RISKS OF STAKING CRYPTOCURRENCIES

Staking is generally a low-risk way to earn a yield in crypto. But there are a
few possibilities to consider that could make your milk curdle.

The first: platform risk. Staking is most easily done through a centralized
exchange like Coinbase. When you stake your crypto through these services, your
funds leave your wallet and become the custody of the crypto staking platform.
You can see where this goes. Platform hack? A risk. Platform insolvency? A risk.
And these things aren’t as impossibly rare in the wild world of crypto as you’d
hope. (Delegating to a validator or a staking pool—or running your own
validator, you brainiac!—somewhat mitigates these risks.)

The second: liquidity as it pertains to market volatility. There’s often a
cooldown period after you “unstake,” during which some or all of your crypto
can’t be traded. And, of course, you can’t trade crypto that’s staked. All bad
news if you’re the kind of person who prefers to react to the market quickly.
(But HODL, right? …right?)

The third: Yields aren’t guaranteed. An inefficient or slow validator may be
passed over for voting and rewards. A misbehaved validator—such as one that
approves invalid transactions—may be penalized, leading to “slashing.” Also, and
more commonly, yields can vary based on staked supply and network demand. So,
they vary.

And, of course, there are also the risks common to all cryptocurrencies: you
misplace the keys to your crypto wallet, or the wallet itself is breached. Fun
times.


WHO SHOULD STAKE CRYPTO?

Staking isn’t for everyone, but it can work well for some.

 * People who want to earn passive income. Staking earnings accumulate from
   crypto rewards, no additional action necessary.
 * People who invest over the long term. The staking process isn’t made for
   hopping in and out of the pool. The greatest rewards go to people who HODL.
 * People who don’t mind some illiquidity. Your tokens are usually locked when
   staking (with Cardano as a notable exception). If you need to make a quick
   change, you might not be as nimble as you’d like. Unstaking often takes a few
   days.


HOW TO STAKE CRYPTO IN 5 STEPS

You can stake crypto in many ways, including exchange staking, staking to a
validator, or running your own validator. We’ll cover all the options in more
detail later, but here’s a quick getting-started guide.

Let’s explore how to make money crypto staking, shall we?


STEP 1: PURCHASE A PROOF-OF-STAKE CRYPTOCURRENCY.

If you have a favorite exchange, go there first. If you’re not sure, use our
guides below. Choose an exchange by scrolling to “Where to Stake Crypto” and
choose a cryptocurrency by reading “Which Crypto Can You Stake?”


STEP 2: CHOOSE A WALLET.

Your wallet must support staking—and specifically, staking for your preferred
cryptocurrency. MetaMask (Ethereum and ETH-compatible) and Atomic Wallet
(multiple blockchains) are both popular choices, as is the browser-based Phantom
Wallet (Solana and Ethereum only). You can also use a hardware wallet, like
Ledger.


STEP 3: TRANSFER YOUR CRYPTO TO YOUR WALLET.

Using your own wallet, rather than an exchange, offers an additional layer of
safety.


STEP 4: JOIN A STAKING POOL OR STAKE DIRECTLY TO A VALIDATOR.

Review fees and yields and choose the best pool or validator for you. (Not sure?
Read on to “Where to Stake Crypto.”)


STEP 5: EARN REWARDS AND PROFIT!

The crypto staking rewards you earn on many popular blockchains are
automatically added to your staked amount, compounding your earnings.

Awesome. And there you have it. Crypto staking explained, no Ph.D. required.


WHICH CRYPTO CAN YOU STAKE?

Popular token choices for crypto staking include Ethereum, Solana, Matic,
Binance Coin, Avalanche, Polkadot, and Cardano.

But the number of cryptocurrencies that support staking continues to grow, and
there are hundreds of proof-of-stake coins or tokens in the wild today.

The number of viable staking options, though? That figure is quite a bit
smaller. (Some coins or tokens trade so infrequently, or are altogether not
viable in the long term, that they prove to be poor choices.)

So if your risk profile is even a little bit conservative, focus on established
crypto assets and those that show a promising future.

We’ll break down a few popular options in the table below. But first, a quick
note:

We haven’t yet mentioned the term “epoch,” which you probably last used in
seventh-grade social studies class. To fully understand the table, you’ll want
to know what an epoch means. Check the dropdown below for a full rundown.

Not sure which crypto to stake? Check out our guide to crypto research tools,
which could help you decide.


EPOCH EXPLAINED

In the world of crypto, “epoch” means a predetermined period of time that
contains multiple blocks of a blockchain. You can think of them like chapters in
a book—and the book is the blockchain.

Blockchains are, as the name implies, a set of blocks chained together. A new
block is like a new link in a chain. Epochs are agreed-upon time measurements
for blockchains. (“Synchronize your watches!”) But not all blockchains are the
same—each blockchain has a different epoch length. Some epochs last just
minutes, such as those on Ethereum. Others last upwards of two days, such as the
epochs on Solana.



Epochs exist to make it easier to determine milestones in the staking
process—for example, when newly-staked tokens start earning rewards, when those
rewards are paid out, or when requests for un-staking are processed. Each of
these functions is measured in one or multiple epochs.



For what it’s worth, epochs are also used for the actual validation process on
the blockchain. Validators are selected to build the next block from the pool of
staking validators during an epoch; as epochs turn over and the process repeats,
some validators may exit while others may enter.



 


POPULAR CRYPTOS FOR STAKING

TokenStaking RewardMethods of Staking AvailableEpoch TimesStaking Lockup
PeriodInflation RatePopular Wallet w/Staking
FunctionalityEthereum6.16%Centralized exchange, Custodial & liquid staking
pools, Running your own validator~6.4 minutesIndefinite (pending upcoming
upgrade)0.52%MetaMaskMaticup to 20%Exchange, delegating, liquid staking, running
a validator~3 hoursVaries by platform~5%MetaMask (as a delegator or
validator)Binance Coinvaries by platform and lockup lengthLockup on an exchange,
liquid staking via third partydaily calculations; monthly payoutsvaries;
generally in 30 day increments (i.e. 30, 60, 90, 120 days)~2.35%Trust
WalletSolana7.79%Centralized exchange, Delegating to validators, Custodial &
liquid staking pools, Running your own validator~2 days and 6 hoursNo
lockup6.63%PhantomCardano5.24%Centralized exchange, Custodial & liquid staking
pools, Running your own validator5 daysNo lockup1.90%Yoroi

Often the best staking crypto, especially for beginners, is one that has a large
market (so you can exit your position easily) and lots of ways to get started.

Want to learn more about staking specific coins? Check below for more
information.


ETHEREUM STAKING

Since Ethereum (ETH) moved to proof-of-stake in 2022, a budding industry of
staking solutions has emerged. There are several ways to stake ETH, including:

 * Staking through a centralized exchange
 * Custodial staking pools
 * Liquid staking pools
 * Running your own validator

We’ll cover all these in more detail later. Oh, there is a caveat for that last
one, too: Running your own validator node requires you to have 32 ETH.

ETHEREUM STAKING REWARDS

An average of 4.08%


MATIC STAKING

Though Polygon is its own layer 2 blockchain, staking Polygon tokens needs to be
done on the Ethereum network. You can avoid some gas fees by staking on a
centralized exchange such as Binance or Kraken, instead, but those options
generally require locking your tokens up for a specified time. However, for
those willing to get a little more technical, anyone can run a validator node
for the Polygon network, using as little as 1 MATIC!

MATIC STAKING REWARDS

Up to 20%


BINANCE COIN STAKING

Binance Coin, or BNB, is the utility token for the Binance ecosystem. This
includes the Binance exchange, where holding BNB provides discounts on fees, and
the BNB tokens can be used to pay the trading frees, as well as the Binance
Chain, where BNB tokens function as the underlying token for the chain and are
used to pay any gas fees.

And though the Binance exchange is the primary home to BNB staking, there are a
growing number of third party services which offer staking options as well. For
those who don’t want to lockup their tokens, some crypto staking services, such
as Stader Labs, offer users the option of liquid staking their BNB tokens,
allowing withdrawals at any time.

BINANCE COIN STAKING REWARDS

Varies based on lockup period. Up to 12.99% for a 120-day lockup.


SOLANA STAKING

Solana (SOL) uses both proof-of-stake and yet another consensus mechanism we
haven’t already mentioned—proof-of-history—to validate transactions on the
network. The mix affords Solana a rewards system similar to other
cryptocurrencies (that’s the PoS at work) and a speed and capacity advantage
(that’s the PoH piece).

You can stake Solana by joining a pool or by running your own validator. You can
also delegate directly to a specific validator without using a pool. Since
running your own validator node requires a significant investment and technical
knowledge, most SOL investors choose to stake with a pool.

SOLANA STAKING REWARDS

An average of 6.65%


AVALANCHE STAKING

If you’re looking for a higher return through staking rewards, Avalanche (AVAX)
deserves a closer look. The reward APY can be up to 50% higher than with other
crypto assets. However, the bar for entry is high: you’ll need at least 25 AVAX
to delegate for staking—or 2,000 AVAX to run a validator node.

AVALANCHE STAKING REWARDS

An average of 8.94%.


CARDANO STAKING

Cardano (ADA) is similar to Solana in that its staking ecosystem revolves around
pools. With more than 1,000 pools for staking as well as options to stake
through Coinbase and other platforms, investors have plenty of ways to get
started.

Here’s what’s different: Unlike ETH and SOL, you can sell your ADA, send it to
someone else, or use it as collateral while it’s staked. The Cardano blockchain
supports liquid staking natively. Cool. More on liquid staking in a bit.

CARDANO STAKING REWARDS

An average of 3.26%


BEST CRYPTO STAKING PLATFORMS 2024

PlatformStandout FeatureAPY RangeMinimum Staking AmountLock-in PeriodSecurity
FeaturesPayout FrequencyCoinbaseNewbie-friendly platform with support for ETH,
SOL, ADA, and more2% to 6.12%, depending on the assetETH: $0 SOL: $1 ADA:
$1NoneIndustry-leading encryption and multifaceted risk managementDaily to
quarterly, depending on the assetNexoETH Smart Staking with daily payouts4% to
12%$10None (swap NETH for ETH)1% to 21%, depending on the assetDailyKrakenNo
waiting period; start earning right awayNo waiting period; start earning right
awayNoneNoneISO/IEC 27001:2013 certification, Cold storage walletsOnce or twice
a week, depending on the assetCrypto.comBoost staking rewards with CRO,
Crypto.com’s native tokenVaries by asset and lock-in durationETH: 0.02 SOL: 0.1
ADA: 25Flexible holding term1-month fixed term3-month fixed term100% of user
funds are held in cold storage walletsWeeklyStader LabsEasy staking and
unstaking; integrated defi3.5% to 15% depending on the assetNoneNone (liquid
staking)Third party audits; on-chain monitoring; hefty bug bountiesLiquid tokens
accrue value until cash-outLidoUser friendly; liquid staking; connect with
popular crypto walletsUp to 20% depending on assetNoneNone (though withdrawals
may take a few days)Third party auditsDailyOriginOrigin Dollar – a yield
generating stablecoin; OETH, yield generating ETH token5.75%NoneNoneThird party
audits; hefty bug bounties; guaranteed 48 hour withdrawal period before any new
code implementationsConstant; auto-compoundingJitoLiquid staking for SOL
token;~7%NoneNoneJitoSOL token gains value over timeRocketpoolLiquid staking on
any amount; no lockup periods; validator poolsVaries – currently 2.89%0.01
ETHNoneSmart contracts audited and open-sourceUsers give rETH tokens which gain
value over time


COINBASE

Best For Beginners
Open an Account
On Coinbase’s site
Review
4.6
Coinbase Review
Tokens Available
ETH, SOL, ADA, XTZ + more
Rewards
2% to 6.12%
Liquid Staking
Yes. lsETH
Supported Blockchains
Ethereum, Cardano, Solana + More
Min. Staking Amount
$0 – $1
Lock In Period
None
Payout Frequency
Daily to Quarterly
Availability
Worldwide


OVERVIEW

Coinbase is one of the most popular exchanges for staking and much more. 
Coinbase is the first stop for many first-time crypto buyers and gives users
room to grow with an exchange, a wallet, a rewards card, an NFT marketplace, and
more.


PROS & CONS


PROS

 * Easy to use, start earning in seconds
 * Earning displayed immediately upon login
 * Start staking with as little as $1


CONS

 * Limited selection of cryptos for staking
 * Lower APYs compared to other exchanges


WHY WE LIKE COINBASE FOR STAKING

In a nutshell, it’s easy. Coinbase offers fewer staking options (just six)
compared to many other exchanges. But if you’re a Coinbase user already, you’ll
appreciate the way Coinbase displays your earnings in your account dashboard,
never leaving you guessing. Staking on Coinbase is as easy as you’d expect,
taking just a few newbie-friendly clicks. Options include top cryptos like
Ethereum, Cardano, and Solana.


NEXO

Best For Daily Payments
Open an Account
On Nexo’s site
Review
4
Nexo Review
Tokens Available
ETH
Rewards
4% to 12%
Liquid Staking
Yes. NETH
Supported Blockchains
Ethereum
Fees
0.03% – 0.20%
Min. Staking Amount
$10
Lock In Period
None
Payout Frequency
Daily
Availability
Europe


OVERVIEW

Nexo is a Swiss-based crypto platform featuring staking (ETH only), lending, and
a crypto exchange. Nexo’s Smart Staking lets users stake ETH with daily rewards.
Swap your ETH for NETH (Nexo Staked Ethereum) in one click to start earning.
When you’re ready to unstake, use the Nexo platform to swap your NETH back to
ETH. Nexo Smart Staking is not available in the US.


PROS & CONS


PROS

 * Stake ETH in low amounts
 * Keep liquidity when staking ETH
 * Unstake anytime, with a guaranteed 1:1 exchange rate
 * Borrow against your NETH tokens


CONS

 * Staking not available in the US


WHY WE LIKE NEXO FOR STAKING

With Nexo, you can stake anything you want as long as it’s ETH. But while a bit
short on selection, Nexo has a great way to stake ETH to earn a yield while
staying liquid. Just deposit your ETH on Nexo’s easy-to-use platform and get an
equivalent token called NETH (Nexo Staked Ethereum). You can borrow against your
NETH or swap it back for ETH at any time while earning a staking yield on your
remaining NETH balance. Nexo calls this Smart Staking, and you can get started
with as little as $10.


KRAKEN


Open an Account
On Kraken’s site
Review
4.7
Kraken Review
Tokens Available
BTC, ETH, USDT+More
Rewards
1% to 21%
Supported Blockchains
ETH, SOL, ADA +More
Fees
1% to 21%
Min. Staking Amount
None
Lock In Period
None
Payout Frequency
1-2X a week
Availability
Worldwide


OVERVIEW

Kraken offers staking for several leading cryptocurrencies (for non-US
residents). The time-tested exchange is one of the oldest cryptocurrency trading
platforms and now supports more than 185 cryptocurrencies. Kraken was among the
first exchanges to provide proof of reserves, a way to verify that the exchange
is solvent.


PROS & CONS


PROS

 * High yields if you commit to longer staking durations
 * Top staking options, like ETH, ADA, and SOL
 * No waiting period to withdraw with flexible staking options


CONS

 * Staking not available in the US
 * Limited number of cryptos supported for staking


WHY WE LIKE KRAKEN FOR STAKING

Kraken doesn’t offer the biggest selection for crypto staking we’ve ever seen,
but the platform offers some intriguing perks. If you’re willing to commit to a
longer bonding (lockup) period, you can make some seriously big yields. For
example, Kraken is currently paying 18%-22% APY on Cosmos (ATOM) staking if you
commit to a 21-day lockup. Yowsers. Cryptos eligible for “flexible staking” can
be unstaked at any time.


CRYPTO.COM

Best For Security
Open an Account
On Crypto.com’s site
Review
4.5
Crypto.com Review
Tokens Available
ETH, SOL
Rewards
0.2% – 3%
Supported Blockchains
Ethereum, Solana
Fees
0.04%–0.4%
Min. Staking Amount
0.02 ETH, 0.1 SOL, 25 ADA
Lock In Period
1-3 months
Payout Frequency
Weekly
Availability
Worldwide


OVERVIEW

Crypto.com is a fully-featured crypto ecosystem offering several features (and,
yes, staking). Crypto.com’s staking yields start lower than other platforms and
depend on how much of the exchange’s native CRO token you have staked.


PROS & CONS


PROS

 * Higher yield if you stake CRO in addition to other cryptos
 * APYs up to 7%
 * Earn a yield on BTC


CONS

 * Complicated tier-based rewards system
 * Some assets are being loaned rather than staked
 * Three-month lockup required for the highest rates


WHY WE LIKE CRYPTO.COM FOR STAKING

Crypto.com offers a yield on 21 cryptocurrencies. To be clear, some of these
options (like Bitcoin and USDC) can’t be staked–which means it’s really lending
rather than staking in some cases. If you’re fine with that, you’ll find some
yield options that aren’t available on other exchanges. Crypto.com uses its
native CRO token to sweeten the deal. Staking CRO can increase yields on other
cryptos by up to 3.5 times if you hit the max level.


MARINADE


Open an Account
On Marinade’s site
Review
4.6
Marinade Review
Tokens Available
SOL
Rewards
6% of all staking rewards
Liquid Staking
Yes. mSOL
Supported Blockchains
Solana
Fees
6% of all staking rewards
Availability
Worldwide, USA



STADER

Best For Multi-Asset Staking
Open an Account
On Stader’s site
Review
4.3
Tokens Available
ETH, MATIC, HBAR, BNB, NEAR, FTM, LUNA
Rewards
3.5% to 15+%
Liquid Staking
Yes
Supported Blockchains
Ethereum, Polygon, BNB, Fantom, Terra, & More
Fees
10%
Min. Staking Amount
None
Payout Frequency
Varies by asset
Availability
Worldwide


PROS & CONS

Pros

 * Committed to decentralized staking
 * MATIC staking on Polygon
 * 40+ Protocol integrations to enhance yields

Cons

 * Limited liquidity for Stader liquid tokens
 * Primary liquidity pools pair liquid tokens with Stader SD token


FEATURES

 * Support for MATIC staking on Polygon: Staking MATIC must be done on the
   Ethereum network, which can be costly. Stader Labs introduces the ability to
   stake MATIC on the Polygon network, opening a yield opportunity for smaller
   positions.
 * DeFi integrations: Put your staked assets to work in other DeFi protocols to
   boost your yield. Options vary by chain and include liquidy pools, lending
   platforms, and yield optimizers.
 * Newbie-friendly UI: If you know the basics of working with a DeFi wallet like
   MetaMask, Stader makes it a breeze to stake assets like MATIC and ETH with a
   liquid token.


WHY WE LIKE IT

DeFi can be intimidating if you’re new to the space, but Stader’s user interface
and flow for basic liquid staking help both newcomers and seasoned pros put
their crypto to work in a jiffy. Smart contract audits from Halborn and Certik
help ensure the code is solid, reducing the risk of exploits.


LIDO

Best for Beginners
Open an Account
On Lido’s site
Review
4.8
Tokens Available
SOL, ETH, MATIC
Rewards
4.4% – 6.7% APY
Liquid Staking
Yes. stETH, stMATIC, stSOL
Supported Blockchains
Ethereum, Polygon, Solana
Fees
10%
Min. Staking Amount
None
Lock In Period
One year
Payout Frequency
Daily


OVERVIEW

Lido is by far the most popular staking platform. The platform is responsible
for over $10 billion in total value locked (TVL) across its Ethereum, Polygon,
and Solana liquid staking tokens.


PROS & CONS

PROS

 * Staking returns that are very close to what you would get running your own
   node
 * Tokens such as stETH and stSOL are well-adopted and can be used as collateral
   for lending or in other DeFi applications

CONS

 * A large portion of all the staked ETH comes from Lido stETH, which makes
   validators very concentrated and contrary to the decentralized vision of
   Ethereum
 * You can sometimes get larger APYs using other staking services


FEATURES

 * Largest liquid staking platform
 * Three supported chains: Ethereum, Polygon, Solana
 * Lido charges a 10% flat fee on all staked tokens


WHY WE LIKE IT

Since liquid staking tokens are specific to the platforms that generate them
(for example, staked ETH through Lido is stETH, while staked ETH through Rocket
Pool is rETH), it’s important to pick a platform with a strong future.

Lido has been around for a while and is well-positioned to succeed in the
future, so we like it because it seems like a good bet when it comes to liquid
staking.


JITO

Best for Liquid SOL staking
Open an Account
On Jito’s site
Tokens Available
SOL
Rewards
~7%
Liquid Staking
Yes. JitoSOL
Supported Blockchains
Solana
Fees
4%
Min. Staking Amount
None
Lock In Period
none
Payout Frequency
Ongoing
Availability
Worldwide


OVERVIEW

Jito is one of the largest liquid staking platforms available on Solana.
Offering a 7% annual return and allowing stakers to use their JitoSOL tokens for
other defi activities, Jito is an attractive prospect for anyone looking to earn
a little income from those SOL tokens sitting in their wallet!


PROS & CONS

PROS

 * Liquid staking. No lockup period. Unstake at any time
 * 7% annual returns on staking plus the opportunity to earn with your JitoSOL
   tokens as well

CONS

 * Only available for SOL tokens


FEATURES

 * Supports liquid staking of SOL tokens
 * No lockup period. Unstake your tokens at any time
 * Use your JitoSOL tokens for other defi activities


WHY WE LIKE IT

Liquid staking offers a large amount of flexibility compared to lockup staking.
And with very competitive interest rates, plus the ability to utilize your
liquidity tokens, Jito is a great way to earn some passive income.

Jito is the second largest liquid SOL staking protocol, and has been around
since 2021, proving their resilience through a bear market cycle.


ROCKET POOL

Best for Communities
Open an Account
On Rocket Pool’s site
Review
4.6
Tokens Available
ETH
Rewards
3.93%
Liquid Staking
Yes. rETH
Supported Blockchains
Ethereum
Fees
5% – 20%
Availability
Worldwide


OVERVIEW

Rocket Pool is a large liquid staking protocol that’s best known for its
community-forward approach. The protocol is entirely community owned and has a
large presence on platforms like Reddit. One of Rocket Pool’s standout features
is that it allows you to stake as little as 0.01 ETH to start earning rewards or
stake just 16 ETH to run your own validator node.


PROS & CONS

PROS

 * One of the most popular liquid staking platforms
 * Can be used by individuals and businesses to set up staking pools with custom
   fees and rules
 * When staking, users get the “RPL” token as a reward, which is the governance
   token of the Rocket Pool DAO

CONS

 * While other platforms allow immediate un-staking, Rocket Pool requires
   lock-ins for between 3 and 12 months for validators
 * Fees can be as high as 20% on rewards from certain staking pools


FEATURES

 * Run by the community through a decentralized autonomous organization (DAO)
 * You can run an Ethereum node by staking just 16 ETH (it normally costs 32
   ETH)
 * The protocol does not charge a flat commission fee on rewards, instead, you
   can pick from fees between 5% and 20% depending on how you decide to stake


WHY WE LIKE IT

When it comes to community-owned and managed liquid staking platforms, Rocket
Pool is definitely at the top. While many other liquid staking providers are
opaque private companies, Rocket Pool is governed by a DAO where users can vote
on proposals and decide the future of the protocol together.


ORIGIN PROTOCOL

Best for Yields
Open an Account
On Origin Protocol’s site
Tokens Available
ETH
Rewards
5.75% apy
Liquid Staking
Yes. OETH
Supported Blockchains
Ethereum
Fees
??
Min. Staking Amount
None
Lock In Period
None
Payout Frequency
Ongoing
Availability
Worldwide


OVERVIEW

Origin Protocol is a selection of products built to take advantage of what
blockchain has to offer. Their ETH liquid staking program provides users with
OETH tokens, and provides auto-compounding yields from across several other defi
protocols. They also offer Origin Dollar, a yield-generating stablecoin, and
Origin Story, an NFT platform that lets users create their own marketplaces!


PROS & CONS

PROS

 * Optimized earnings between different protocols
 * Liquid staking

CONS

 * Not as well known as many other protocols


FEATURES

 * Liquid staking with OETH tokens
 * Optimized earnings between different protocols
 * Also offers Origin Dollar, a yield generating stablecoin
 * OGV governance token can also be staked for earnings


WHY WE LIKE IT

Origin offers liquid staking for ETH holders while utilizing several other defi
protocols to maximize yields for their users. With a small, minimum deposit,
Origin Protocol provides liquid ETH staking for all sizes of ETH holders.

With a growing ecosystem including their own stablecoin and an NFT marketplace
platform, Origin Protocol is building a blockchain hub that will only continue
to grow from here.




WHAT TYPES OF CRYPTO STAKING ARE THERE?

There are several types of crypto staking—with varying degrees of difficulty.
Below, we outline the most common staking methods.

Just remember: No matter how you stake, you’ll receive crypto rewards for doing
so from the blockchain to which you are staking.

 * Use a centralized exchange (very easy): Many major crypto trading platforms
   also support staking of popular crypto assets. (See “Where to Stake Crypto”
   above.) These exchanges “custody” your tokens and fulfill the staking process
   automatically. You can use their services at the push of a button.
 * Delegate to a validator (easy): Many proof-of-stake blockchains allow you to
   delegate your tokens directly to an individual validator. This validator may
   be a single person or a corporation that runs a validator node. This method
   allows you to earn staking rewards while keeping your tokens inside your
   wallet and not giving up custody.
 * Use a custodial staking pool (intermediate): Pool your crypto tokens together
   with others and stake to the blockchain as a single entity. This process
   allows you to engage in minimal intermediaries while also avoiding the
   complexities of running your own validator node. This method will require you
   to hand over custody of your tokens to the pool.
 * Use a liquid staking pool (intermediate): Liquid staking pools provide a
   “liquid” token that can be traded in place of your crypto while it’s staked.
   This is a popular staking method and offers some of the highest staking
   yields since you can lend out your liquid token to earn additional rewards.
 * Run your own validator (hard): The most complex yet direct way to stake is to
   run your own validator node. This requires substantial technical know-how.
   But once you set it up, you can start recruiting stakers (called delegators)
   who send you tokens to stake on their behalf and collect fees from their
   staking rewards.

Centralized ExchangeDelegating To A ValidatorCustodial Staking PoolLiquid
Staking PoolRunning A ValidatorSetup DifficultyVery
EasyEasyIntermediateIntermediateHardAPYMediumLowMediumHighHighCustody Of
AssetsHeld by the central exchangeCoins stay in your walletHeld by the staking
poolCustodied by the staking poolCoins stay in your walletEase Of Tax
ReportingReceive prepared documents showing your transactions and balancesHave
to keep your own records or pull the data from the blockchainHave to keep your
own records or pull the data from the blockchainHave to keep your own records or
pull the data from the blockchainHave to keep your own records or pull the data
from the blockchainProsEasy to implementGet to keep custody of your tokensStake
low amountsGet a liquid token that can be used in place of your staked
cryptoMost direct method, no fees involvedConsPlatform risk as they hold your
tokensValidator fees can really eat into staking APYsExposed to potential
protocol penaltiesExtra taxable event when you swap for the liquid
tokenTechnically challenging


HOW TO STAKE ON A CENTRALIZED EXCHANGE [VERY EASY]

WHAT TO CONSIDER

 * How much you’ll earn. Different platforms offer different yield rewards, or
   APY, even for the same cryptocurrency. Look out for promotions that sweeten
   the pot with reduced fees.
 * The platform’s reputation. It’s important to pick a well-established and
   secure platform when staking because some platforms, in hindsight, have
   turned out to be bad eggs. (Looking at you, FTX.)
 * Which crypto you can stake. Not all platforms have staking support for all
   cryptocurrencies, so make sure your platform of choice does everything you
   need.



PROS

 * Beginner-friendly staking process
 * Simplified tax reporting, since earnings are tracked and displayed in one
   place
 * Thanks to promotions, earnings can be higher than other staking methods

CONS

 * A third party takes custody, and therefore control, of your crypto
 * If you’re diehard about decentralization, this runs against that concept
   because only a few companies control a lot of staked crypto



STEP-BY-STEP GUIDE



In the below example, we will be staking Ethereum using Uphold.com.



Note: Uphold no longer supports staking for US customers.



Step 1: You will first need to create an Uphold account, which includes going
through some identity verification checks. After you’ve created an account, you
can navigate to Uphold’s staking page and click “Start Staking.”





Step 2: Uphold will take you to your wallet page. Next, click “Go to Staking.”





Step 3: Once you’ve looked over the instructions, click “Next.”





Step 4: The next page will show you a list of cryptocurrencies that you can
stake through Uphold. For this example, we will be staking ETH.





Step 5 (ETH-specific): As of November, 2022, when staking Ethereum, you will not
be able to withdraw your ETH until the Ethereum blockchain undergoes a planned
upgrade. Acknowledge this notice to proceed.





Step 6: Click “Start staking ETH.”





Step 7: Here is where you enter the amount that you would like to stake. When
you’re done, click “Preview staking.”





Step 8: Review the final details, including your staked amount and the terms of
your rewards. When you’re ready to finalize, click “Confirm Staking” to stake
your ETH.






HOW TO STAKE BY DELEGATING TO A VALIDATOR [EASY]

WHAT TO CONSIDER



 *   
   
   * The validator’s reputation: Validators range from individuals managing
     small sums to companies staking millions of dollars of tokens. It’s
     critical to do your research on the validator you have selected to make
     sure they are reliable. You can research validator stats to help you
     compare.



 * * The validator’s fees: Most validators take a cut before passing staking
     rewards on to you. Validators justify this fee because they’re providing
     you a service—running the validator itself (hard) and staking on your
     behalf. How much? Compare.





PROS & CONS

PROS

 * Your tokens stay in a wallet that you control
 * You can evaluate many validators before choosing one you trust
 * You help to decentralize the network

CONS

 * It’s not as easy as staking through to a centralized exchange
 * You have to keep track of your earnings for tax-reporting purposes
 * Possibly lower APYs than many centralized platforms

Step-By-Step-Guide

The below example shows how to delegate SOL to a Solana validator through the
popular wallet Phantom.

Step 1: Use the Phantom website to install the wallet and fund it with some
initial SOL.

Step 2: After you’ve created and funded your wallet, click on your Solana
balance in the wallet interface.



Step 3: The next step will prompt you to stake your Solana. Click the “Start
earning SOL” gold star.



Step 4: You will then see all of the available validators that you can delegate
your Solana to, along with their fee rates. Find a validator that you would like
to delegate your funds to and click on their name.



Step 5: Enter the amount of SOL you would like to delegate and click the “Stake”
button.



Step 6: Your Solana is now staked directly with your validator of choice.





 


HOW TO USE A CUSTODIAL STAKING POOL [INTERMEDIATE]

A staking pool is a group of token holders coming together to pool their tokens
and stake directly to the blockchain. The pool must set up a validator, and the
main organizers of the pool do the heavy lifting. This allows token holders to
maximize staking rewards without needing to run a validator node themselves.
Staking pools often charge a fee for facilitating the technical aspect of
staking. This fee is taken out of staking rewards paid each epoch.



WHAT TO CONSIDER



 *   
   
   * The staking pool’s reputation: If the staking pool does not uphold its
     responsibilities as a node validator, you may be in danger of losing some
     or all of your funds due to protocol penalties (slashing).



 * * Whether the staking pool has a minimum: Some staking pools have a minimum
     staked amount that must be met in order to stake your tokens with them.
     Depending on the token balance you are looking to stake, these minimums may
     be a factor in your decision.



 * * How much the pool fees run. Like delegated staking or liquid pools (covered
     next), staking pools charge a fee that might make them a great deal–or not
     so great.





PROS

 * Get as close to running your own validator as possible without having to own
   equipment and doing the setup/maintenance work
 * Possibly stake low amounts that may not be supported by other staking methods
   due to minimums

CONS

 * Exposes you to penalties if the validator misbehaves or goes offline
 * Is a less popular method of staking, so you may need to do extra research to
   find a good platform for it
 * You’ll have to pay a fee, which is taken out of your staking rewards



STEP-BY-STEP-GUIDE



(It’s so similar to “delegating to a validator” that it’s helpful to read that
step-by-step guide.)



 


HOW TO STAKE USING A LIQUID STAKING POOL [INTERMEDIATE]

Liquid staking pools are similar to regular staking pools in that you
collectively put your tokens together, validate, and earn money. However, liquid
pools provide a “liquid token” that represents the type of crypto you have
staked.



You can think of a liquid token kind of like a stunt double—it looks and acts
like your staked crypto token, but it isn’t. Liquid staking allows you to earn
rewards on your staked crypto without locking up your crypto. You can have your
cake and eat it, too.



This liquid token normally tracks the value of the underlying crypto. For
example, a common liquid token for Ethereum, stETH, closely follows the price of
ETH but includes a staking yield through a method called rebasing. When you
stake ETH to the liquid staking provider Lido, you receive stETH back that can
be traded on the open market and used like any other cryptocurrency. Boom!



Note: If you want to liquid-stake ETH, you can just swap ETH or another token
for stETH on a decentralized exchange like Uniswap. With a few clicks, you’re
staking ETH like a liquid-staking pro and earning stETH rewards. You might even
save a few bucks by doing it the easy way.



WHAT TO CONSIDER



 *   
   
   * The value of the platform’s liquid tokens: Liquid staking tokens are
     platform-specific, meaning each liquid staking pool generates its own
     liquid tokens for cryptos like ETH and SOL. It’s important that these
     liquid tokens have large enough market value and enough liquidity to trade
     easily. Staking with smaller liquid staking pools may leave you holding
     tokens that are hard to trade.



 * * The platform’s fees: Since liquid staking pools are providing a service,
     they naturally also charge fees. For example, Lido charges a 10% fee, which
     is deducted from your staking rewards. Translation: you’ll get 10% less in
     rewards (but you can stake small amounts and sell anytime).



 * * The platform’s risk: Because each liquid staking platform has its own
     liquid tokens, and their value is tied to the platforms’ viability, these
     tokens rise and fall with their platform. In other words: If the platform
     goes boom, so does the platform’s liquid token. And your investment.
     (Oops.)





PROS

 * Get a tradable token while your actual crypto is locked up
 * Easier than some other methods because you don’t have to do as much research
 * Boost your returns by lending out your liquid token or providing liquidity on
   a decentralized exchange
 * Stake small amounts

CONS

 * Liquid staking usually represents a taxable event (it does in the U.S.)
   because you are swapping one asset for another
 * Expose yourself to platform risk by holding a platform-specific crypto
 * Liquid tokens are generally not as well supported across exchanges as large
   cryptos



STEP-BY-STEP GUIDE



Below is an example of how to stake Ethereum using the popular liquid staking
pool platform Lido.



Step 1: Navigate to the Lido’s ETH Staking page and click “Stake Ethereum.”





Step 2: Use the “Connect wallet” button to connect your wallet.





Step 3: Enter the amount of ETH that you would like to stake and click “Submit.”





Step 4: Use the blue “Confirm” button to confirm the transaction. Do this
through your wallet interface.





Step 5: You will receive a confirmation through the Lido website, and your stETH
(Lido’s liquid ETH token) will now be available inside your wallet.






HOW TO RUN YOUR OWN VALIDATOR [HARD]

All tokens that are staked — regardless of the method — eventually end up staked
directly to the blockchain. This means that, if you really wanted to, you could
skip the staking platforms and manage the staking process yourself by running
your own validator.



Running a validator definitely takes some tech know-how. The process is complex
and requires upfront investment in an advanced computer to run the process.
You’ll also need a solid understanding of the roles and responsibilities of
validators—those responsible for validating and sometimes building each
subsequent block in the blockchain.



If you’re ready for the challenge, running your own validator provides you with
staking rewards without platform fees. An added perk is that you can provide
staking services to other token holders who may want to delegate their tokens to
you. Score!



WHAT TO CONSIDER



 *   
   
   * The expensive upfront cost: You’ll need a computer capable of running the
     staking software. Expect to invest two thousand dollars or more for a
     machine, although hardware requirements vary by network.



 * * Whether or not your internet connection is good enough: You’ll need a fast
     and uninterrupted internet connection. When the network comes calling, you
     need to be ready to answer the call. Missed blocks can result in lost
     earnings or slashing penalties. Most protocols require a high-speed
     business-class internet connection.



 * * Whether or not you have the knowledge or are willing to learn: The process
     is complicated. You either have to know what you’re doing or be committed
     to learning how to set up and run your validator node



 * * If you have enough crypto to get started. In order to run an ETH validator
     node, you will need to put up 32 ETH (or about $53,000 as of February
     2023). By comparison, AVAX requires 2,000 AVAX, or about $41,000. SOL, on
     the other hand, does not set a minimum stake amount. But you’ll likely need
     5,000 (about $133,000) or more SOL to attract stakers, and breakeven could
     be as high as 50,000 SOL staked to your validator.





PROS

 * You’ll get all of your earnings as there is no platform to take a cut.
 * On many networks, like Solana and Cardano, you can recruit people and earn
   money by charging a fee from the rewards on their delegated tokens

CONS

 * Relatively complicated (and expensive!) to set up, depending on the token you
   stake.
 * You must follow the protocol rules and carry out your responsibilities as a
   validator. Otherwise, you risk losing your staked funds to slashing
 * Often not worth it unless you have a lot of token holders delegating to you





STEP-BY-STEP-GUIDE



Step 1: Get the minimum amount of tokens you’ll need: For blockchains like
Ethereum and Avalanche, running your own validator requires a minimum number of
tokens.



Step 2: Get the computer and software you’ll need: You can’t be a validator
without the proper gear. You’ll need a specialized computer, specific software,
and a solid internet connection, as the computer will be running 24/7.



Step 3: Generate and store your security keys: A validator key works like an ID
on the network, certifying your validator to participate in consensus and earn
rewards. Follow the instructions for your chosen network.



Step 4: Follow protocol. Be sure you understand the responsibilities of a
validator. Largely, these focus on following the consensus rules for each
blockchain and making sure your node is always online. Crypto never sleeps, and
it’s your crypto at stake.



The instructions and requirements for setting up a validator vary by blockchain.
Here are the guides for some of the big ones:



 *   
   
   * Ethereum



 * * Solana



 * * Cardano






WHAT’S THE DIFFERENCE BETWEEN STAKING AND LENDING?

When lending crypto, you make money (interest) off the money you lend to the
borrower. As you might imagine, lending comes with risks, like a borrower
defaulting on the loan.

When staking crypto, you allocate your crypto tokens to a computer (validator)
on the blockchain. Usually, the more tokens a validator has staked, the better
chance they have to build a new block, for which they earn rewards.

Basically, a validator needs your cash to attract earnings and then pays the
majority of those earnings back to stakers (like you) after taking their cut.

Crypto LendingCrypto StakingRewardsRewards are really just interest paid by
borrowers.Rewards come from newly issued tokens and network transaction
fees.Leveraged ReturnsNope. You lent your tokens and now someone else has them
(so you can’t use them).Liquid staking lets you use your tokens in DeFi apps to
earn more yield while still earning rewards.Minimums To Get StartedUsually
lowOften low, but can be high with some methods.RisksThe platform could run into
money troubles, preventing withdrawals.If the validator you choose misbehaves or
goes offline, you could lose some of your crypto or miss out on earnings.


WHAT IS DEFI STAKING?

DeFi staking refers to staking tokens on a decentralized application (dApp) to
earn rewards. This differs from staking to help validate transactions on the
network.

Instead, you commit tokens to a specific platform or dApp to earn a yield. These
yields are sometimes paid from platform earnings (real yield) and, in other
cases, paid through token inflation — or sometimes both.



The good news: DeFi staking is usually pretty easy, and it’s where you’ll
usually find the highest APY crypto staking. The bad news: Well, there are some
sketchy protocols out there, so you’ll want to do your research first. If it
seems too good to be true…



Here are some popular examples of DeFi crypto staking platforms.



 *   
   
   * Aave: Best known as a lending and borrowing platform, Aave also has a
     staking feature where you can stake AAVE tokens to earn a yield. In this
     case, your tokens act as insurance against sudden losses on the platform —
     so, yes, there’s a risk. But there’s also a reward. You’ll earn a yield for
     helping to backstop the Aave protocol.



 * * LooksRare: Users can stake LOOKS tokens on LooksRare, a popular NFT
     marketplace, to earn a share of platform revenue. It’s like owning part of
     the protocol without the business management overhead.



 * * GMX: The GMX decentralized exchange, popular amongst leverage traders on
     the Arbitrum and Avalanche networks, offers two methods of DeFi staking.
     You can buy GLP, which provides liquidity for the platform. GLP earns 70%
     of the platform revenue because GLP holders bear the risk of losses when
     traders beat the house. You can also stake GMX, the official token. GMX
     stakers earn 30% of the platform revenue.
   * Stader Labs – Stader Labs offers one of the largest selection of staking
     options, with support for a half dozen different blockchains. Their user
     friendly interface and easy integration with popular wallets make this an
     excellent choice for those wishing to stake multiple assets.
   * Lido – Lido provides staking services across several different blockchains
     – Ethereum, Polygon, and Solana. As one of the largest liquid staking
     platforms around, their liquid staking tokens are often accepted on other
     platforms.
   * Origin – Origin Protocol is a rapidly growing blockchain platform that
     offers defi services including ETH staking. By spreading their investments
     across several other staking platforms, Origin is able to offer the best
     interest rates that are currently available.
   * Jito – Jito is one of the largest platforms for liquid SOL staking. Users
     can passively earn by staking their SOL tokens, and also use their JitoSOL
     tokens in other defi activities.
   * Rocket Pool – Rocket Pool offers defi staking for ETH holders, letting them
     earn some of the fees associated with transactions on the blockchain. In
     addition, those with enough ETH can run their own Node through Rocket Pool.





DeFi often offers the highest staking rewards, but study the platforms you’re
considering carefully before buying or staking tokens.



Some protocols are best described as well-dressed token factories with no real
earnings. This brings a risk that the yield paid through token inflation could
become worthless over time. Ouch.



If you want to earn a yield without needing to monitor the platform 24/7, it
makes sense to do your crypto research to find the best staking platform and the
best crypto to stake.


TO SUM IT UP

Staking offers passive income–or not so passive if you’re running a validator.
But for most of us, it’s easy money with minimal effort and reasonable safety.

Staking rewards also help offset token inflation common to many proof-of-stake
blockchains.

You have to choose your staking provider carefully, though. Validator downtime
and other missteps can cost you money, so it’s important to do your research
before you start clicking buttons.


FREQUENTLY ASKED QUESTIONS


CAN YOU LOSE CRYPTO BY STAKING?

Yes, but there’s really only one way that can happen: through “slashing.” That’s
when the validator to which you have delegated your staked crypto—or maybe your
validator if you set up your own—engages in activity, often malicious, that
doesn’t follow the protocol and ultimately undermines the security of the
blockchain. This may result in the loss of your staked funds. Other than
slashing, the only other way to lose your staked crypto is if the platform
you’re working with gets hacked or goes belly up.


WHAT IS THE BEST CRYPTO TO STAKE?

We’re not here to recommend a specific crypto to stake because everyone’s goals
are different. So, consider the big picture. A healthy yield is a consideration,
but it’s only part of the equation—what if the coin or token price is making a
beeline toward zero? In general, look for well-established cryptocurrencies with
a strong network and a history of consistent yields.


WHICH CRYPTO USES PROOF OF STAKE?

Or put another way: which cryptocurrencies can you stake? Currently, nearly 300
cryptocurrencies use proof-of-stake.

Some popular staking choices include:

 * Ethereum
 * Solana
 * Cardano
 * Avalanche
 * Polkadot
 * Polygon
 * Binance Chain

Read “Which Crypto Can You Stake?” for more.


HOW MUCH CAN EARN BY STAKING CRYPTO?

There are three factors that affect your potential earnings from staking crypto.

 * First, the annual percentage yield for your chosen crypto type.
 * Second, the yield for your chosen platform or pool (after fees).
 * And third, the supply and demand relationship presents in that moment: if the
   network needs more crypto for validations, yields climb. If it doesn’t,
   yields fall.

You can expect many popular staked cryptocurrencies to pay between 3% and 10%
APY. And remember, much like savings account interest at a bank, staking rewards
compound automatically in most cases.


HOW DO I EARN PASSIVE INCOME THROUGH CRYPTO STAKING?

Simple: Stake some crypto—then stick it out for a while. Earn rewards at the end
of each epoch and let compound interest boost that amount naturally. Some
blockchains, like Cardano, might require moving your stake occasionally, but
generally, staking doesn’t require additional attention.


ARE STAKING REWARDS TAXABLE?

Yes. It’s important to educate yourself about tax on cryptocurrency in the US.
Staking rewards are taxed as income by the federal government and very likely by
your state, too.

Income tax is calculated according to the fair market value of your crypto at
the time of receipt. So if you receive 0.1 ETH in staking rewards on a day when
Ethereum is trading at $2,000, in the eyes of the IRS, you have received $200 in
income, and you will be taxed on that amount regardless of future ETH price
fluctuations.

Crypto appreciation is also a taxable event. If your 0.1 ETH in staking rewards
appreciates from $200 to $250 and you sell it, you are liable for paying a
capital gains tax on the $50 of appreciation.

Check out our tax page for information, or talk to your accountant for the most
up-to-date information about crypto taxes.


WHAT IS STAKING CRYPTO?

Staking crypto can mean two things, with the most common being using your crypto
to help validate transactions on a proof-of-stake crypto network.

For example, Ethereum uses proof of stake to ensure all transactions are valid.
People who stake Ethereum (ETH) earn a yield (paid in ETH) for helping to secure
the network. The easiest way to start staking Ethereum is to use an exchange
like Coinbase that supports ETH staking. We cover other types of crypto staking
in the article above.

Crypto staking is also built into some decentralized apps. For instance, on GMX,
a popular trading app, you can stake GMX tokens to earn a percentage of the fees
paid on the platform.


IS STAKING CRYPTO WORTH IT?

Staking crypto makes the most sense when you’re planning to hold the crypto
anyway. Here’s the primary reason: Often, crypto staking comes with lock-up
requirements or cool-down periods, which means you might not be able to exit
your position quickly.

But if you’re in for the long haul, staking crypto can be a relatively safe way
earn passive income on crypto assets you were planning to hold anyway.

Staking crypto on proof-of-stake networks like Ethereum, Solana, Cardano, or
Polkadot can give you yields of 3% and higher. It’s like being paid to wait. But
be sure to read the article above to understand the pros and cons first.

Eric Huffman
Staff Writer
Eric Huffman is a staff writer for MilkRoad.com. In addition to crypto and
blockchain topics, Eric also writes extensively on insurance and personal
finance matters that affect everyday households.

Read More
Shannon Ullman
Managing Editor
Managing editor working to make crypto easier to understand. Pairing editorial
integrity with crypto curiosity for content that makes readers feel like they
finally “get it.”

Read More



The Milk Road Promise

We’re committed to helping you get smart about crypto. Some articles feature
products from partners who compensate us, but opinions are always our own.


SKIP AHEAD

 * Key Takeaways
 * What Is Crypto Staking, Exactly?
 * How To Calculate Crypto Staking Rewards
 * How Does Staking Work?
 * What Is Proof-Of-Stake?
 * Pros And Cons Of Staking Crypto
 * Who Should Stake Crypto?
 * How To Stake Crypto In 5 Steps
 * Which Crypto Can You Stake?
 * Best Crypto Staking Platforms 2024
 * Coinbase
 * Nexo
 * Kraken
 * Crypto.com
 * Marinade
 * Stader
 * Lido
 * Jito
 * Rocket Pool
 * Origin Protocol
 * What Types of Crypto Staking Are There?
 * What’s The Difference Between Staking And Lending?
 * What Is DeFi Staking?
 * To Sum It Up
 * Frequently Asked Questions





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