Top 6 Crypto by Staking Rewards

Crypto staking is a great example of how you can make your money work for you by earning rewards on your digital assets without having to cash out. To put it another way, you can put your idle cryptocurrencies to work and produce a passive income stream while still owning your coins.

However, since you’ve landed on this page, chances are that you already have crypto or at least heard about cryptocurrencies and you’re looking for ways to create a passive income stream of revenue that doesn’t involve you being somewhere doing something for extended periods of time.

What is Staking?

Crypto staking is a process that is used to verify cryptocurrency transactions on a blockchain that utilizes a consensus mechanism called the Proof of Stake (PoS).

PoS involves committing some of your crypto holdings to support that blockchain network and confirm the transactions and as a reward, the participants will earn passive income on the holdings that they risked or put at stake to ensure the safety of the network. Blockchains like Solana, Polkadot, Ether, and Cardano use PoS. It is somewhat similar to earning interest from a regular bank account.

While some people profit from market volatility by actively trading cryptocurrency, many others are simply seeking a hands-off approach to developing their wealth. Among the options available, staking assets is regarded as one of the best ways for crypto holders to make passive income.

Top 6 Crypto by Staking Rewards

1. Solana

Average APY: 5.57%

Solana (SOL) is a blockchain-based smart contracts platform intended primarily for the deployment of decentralized applications (dapps). Solana’s native cryptocurrency, SOL, is a tradable token used to facilitate on-chain transactions and pay network fees.

The Solana Foundation has recently created a Stake Pool initiative to reward SOL holders while also strengthening network security. This pool lets you to pool your SOL tokens with other SOL dealers and earn SOL tokens without having to manage your stakes. As the stake pool manager gets the profits from staking all of the SOL users have put into the pool, the number of SOL in the pool climbs over time. This raises the value of the tokens itself.

2. Polkadot 

Average APY: 14%

Polkadot is a next-generation Web3 platform that introduces a new era in scalability by connecting blockchains and enabling cross-blockchain “parachains” interoperability. Polka has a fast-growing user buzz making it one of the most anticipated projects in the industry. DOT is now the undisputed champion of the altcoin arena as it has been in a bull run this year paving its way to the top crypto chart. 

The total DOT required to become a validator varies and requires about 350 DOT to get going. Polkadot employs a nominated proof-of-stake (NPoS) consensus method, which allows users to earn staking rewards by acting as a validator or a nominator. Validators validate transactions on the Polkadot network, whereas nominators verify that validators behave appropriately.

According to Hodlpolkadot, the average APY for a top 256 nominator is roughly 14%. Assuming you stake the required 120 DOT, you will earn approximately 16.2 DOT over the next year. Based on DOT’s 52-week high of $55, that would imply staking $6,600 for a yearly profit of $891.

3. Cardano

APY: 11.23%

The perks of using Cardano, which was founded on peer-reviewed research and developed through evidence-based methods, is not just its speed, but also it’s staking reward.

Staking rewards on Cardano can be earned by delegating stakes and operating a stake pool. Stake delegation allows ADA holders to delegate their ADA into staking pools without requiring network involvement or any required gear. ADA holders who want to stake their tokens can do so through IOG’s Daedalus wallet or Emurgo’s Yoroi wallet.

Cardano’s website has a staking reward calculator that estimates how much staking rewards users can expect for delegating or operating a staking pool. Staking Cardano might result in annual returns of up to 11.23%. The amount of passive income you can generate varies depending on the crypto exchange and lockup time.

4. Ethereum 2.0 (ETH)

APY: 5%

Ethereum 2.0 is the long-awaited upgrade to the Ethereum protocol that saw the switch from PoW to PoS for Ethereum’s consensus process. Among other advantages of the network upgrade, like as faster transaction speeds, Ethereum 2.0 will enable ETH holders to stake it.

To begin Ethereum staking, a validator must deposit at least 32 ETH into the official deposit contract address. While Ethereum staking pools exist to allow you to stake without requiring 32 ETH, Ethereum 2.0 does not allow delegation. In addition to the minimum ETH requirement, Ethereum staking needs you to run specific software known as a node client to access the network and validate transactions on the blockchain.
The current annual percentage rate (APR) for Ethereum 2.0 staking is 5%. If you held the required 32 ETH to run a validator, you would receive 1.6 ETH at the end of the year. At ether’s 52-week high, that would yield in a notional gain of $7,826.72.

5. Tezos 

APY: 5.34%

Tezos’ native cryptocurrency is XTZ, which is an open-source smart contract platform used to develop dapps and issue new digital assets. XTZ powers the Tezos platform and allows holders to vote on Tezos protocol proposals.

Tezos employs XTZ to provide a highly sustainable cryptocurrency platform, requiring less energy to function than Ethereum and Bitcoin. Delegators can currently earn an APR of 5.34% by staking XTZ. The platform also boasts a high staking ratio of 74%, which means that approximately three out of every four XTZ tokens have been staked.

6. Binance BNB

APY: 6-9%

Binance is the world’s most popular crypto trading site, and BNB is one of the top staking coins because to the way it’s delegated. There is no minimum stake for delegating the BNB coin to validators at the moment, and the “unstaking” process takes only seven days.

The BNB coin has an annual return of 6-9% on average. However, it is feasible to make returns of up to 30%. Because of transaction expenses, the rate of return can be quite erratic. This coin may be staked directly on the Binance platform, which provides a level of ease not available with the majority of the top staking coins on this list.