See More

9 Cryptocurrencies Offering the Highest Staking Yields (APY) in 2024

13 mins
Updated by Ryan Glenn
Join our Trading Community on Telegram

A significant amount of financial activity is characterized by individuals and institutions searching for the highest yield — and crypto is no different. This guide covers how staking yields are calculated and the cryptos that offer the most lucrative yield potential. Here is a list of the highest APYs offered from crypto staking.

How staking yields are calculated

Calculating crypto staking yields involves a few key steps, and understanding them can help you estimate the potential returns from staking your crypto.

You need to know the annual percentage yield (APY) offered by the staking program, the amount and time frame you plan to stake, and any potential fees or penalties you may incur for inactivity, slashing, or early withdrawals.

Finally, it’s essential to consider the volatility of the cryptocurrency market. The value of your staked assets can fluctuate, which means the actual value of your yield in fiat currency terms (like USD) could be different at the end of the staking period.

Additionally, in a high-inflation environment, the fiat value of the crypto rewards from staking might decrease. This is because as inflation rises, the purchasing power of the currency falls. If you are earning staking rewards in a cryptocurrency, and that cryptocurrency’s value against fiat currencies decreases due to inflation, then the real-world value of your staking rewards would be lower.

highest staking apy crypto ethereum inflation
Ethereum real staking returns: messari.io

Cryptocurrencies offering the highest staking yields

CryptocurrencyRewards rateDescription
Injective Protocol (INJ)20%Interoperable smart contract platform
Polkadot (DOT)14%Layer-0 protocol that acts as a hub for other blockchains
Kusama (KSM)12.8%Canary chain for the Polkadot blockchain
Zilliqa (ZIL)12.6%One of the first blockchains to implement sharding
Casper Network (CSPR)9.4%Blockchain that focuses on enterprise grade solutions
Avalanche (AVAX)8.7%Blockchain that allows for the creation of subnets
Canto (CANTO)5.9%Generalized blockchain that comes with DeFi primitives
Tezos (XTZ)5.8%Know for its use of liquid proof of stake
Polygon (MATIC)4.8%A sidechain and layer-2 to Ethereum blockchain

Injective Protocol (INJ)

Reward rate
19.5%
Inflation rate
12.43%
Real reward rate
6.28%
Reward rate
11.43%
Inflation rate
8.83%
Real reward rate
2.38%
Rewards rate
11.81%
Inflation rate
7.8%
Real reward rate
3.75%
Rewards rate
12.6%
Inflation rate
9.5%
Real reward rate
7.8%

Casper Network (CSPR)

Reward rate
12.65%
Inflation rate
8%
Real reward rate
4.31%
Reward rate
7.97%
Inflation rate
5.22%
Real reward rate
2.62%

Canto (CANTO)

Reward rate
5.69%
Inflation rate
2.04%
Real reward rate
3.58%
Reward rate
5.8%
Inflation rate
3.96%
Real reward rate
1.8%
Reward rate
6.04%
Inflation rate
2.31%
Real reward rate
3.65%

Staking strategies for maximizing APY

To maximize your staking returns, you will need to devise and implement a solid strategy. Not all strategies will apply to all protocols, but there are a few that may work across the board.

1. Choose the right asset

First and foremost, a good staking strategy starts with choosing the right top staking coins. Ideally, this means choosing a profitable coin or token with a simple staking process or minimal staking requirements and upkeep and a high annual percentage yield (APR).

As stated previously, some cryptocurrencies have a reward rate that is offset by the inflation rate and price performance. For example, if you receive a 5% annual reward rate on your crypto, but the price of your crypto diminishes, then the real reward rate on your crypto diminishes.

It is also important to remember the staking ratio of any particular protocol. This will tell you the usage of how many people are staking.

Take this into account with a coin or token that has a high inflation rate, and you could be looking at a recipe for disaster.

2. Learn the staking mechanism

You will also need to understand the protocol and the staking mechanism of the cryptocurrency. Some cryptocurrencies stake at the blockchain level (coins), while others stake at the DApp level (tokens). Some blockchain protocols also have slashing mechanisms or are pure proof-of-stake, nominated proof-of-stake, delegated proof-of-stake, and so on and so forth.

The key takeaway is that some staking mechanisms have risks or are more complex and require a lot more technical ability. For instance, Ethereum staking requires technical ability and industry knowledge. Typically, stakers require order flow auctions to compete or are block producers with integrated relays to capture MEV.

3. Compound your rewards

Once you receive staking rewards, you can simply reinvest them to compound your earnings.

On the other hand, you could also stake on liquid staking derivatives (LSD) platforms and take the LSD to another platform or DApp to stake as a type of yield farming strategy. This significantly increases the staking benefits of holding a coin or token.

However, the yield farming is a more risky decentralized finance (DeFi) strategy. Imagine a scenario where the node that operates your portion of a stake goes offline, the protocol slashes them, and burns a portion of the stake, kicking them off of the network. That LSD token that you hold is now undercollateralized.

4. Join a staking pool

If direct staking has high minimum requirements or technical barriers, consider joining a staking pool. Staking pools aggregate the resources of multiple stakeholders, making it easier to participate and sometimes offering better rates.

Staking requires lock ins & some degree of expertise when participating in consensus So it is not exactly suitable for everyday use or everyday users.

Justin Bons, blockchain investor: X

Some staking platforms, including centralized exchanges, offer services that allow you to pool your resources. There are also DApps that allow you to stake in pools. Keep in mind that these pools may have a minimal staking period. This is to maintain platform security and liquidity.

5. Diversify your portfolio

As the saying goes, never put all your eggs in one basket. Diversification can help manage risk. Instead of staking all your funds in a single cryptocurrency, consider spreading your investment across different assets and staking pools.

Regularly monitor the performance of your staked assets. Be prepared to rebalance your staking portfolio in response to changes in reward rates, network conditions, or the broader crypto market. You can also choose different staking platforms if you are not very technical.

The best bang for your buck

The best part about staking is that you can earn rewards on your idle assets. Choosing the highest APY crypto staking allows you to own assets that pay you to own them — giving you the best bang for your buck. Always remember to have a clear strategy in place and ensure you understand the risk involved. As always, never invest more than you can comfortably afford to lose.

Frequently asked questions

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Ryan1.png
Ryan Glenn
Ryan Glenn is a journalist, writer, and author. Ryan is motivated to educate as many people as possible on the benefits of web3 and cryptocurrency. He has authored “The Best Book for Learning Cryptocurrency,” and runs an educational platform, web3school.us, dedicated to demystifying the crypto space. Ryan built the platform to transition tech-savvy and non-tech individuals into crypto and give everyone a baseline understanding of the different fields in the cryptosphere. Ryan is also an...
READ FULL BIO
Sponsored
Sponsored