Staking Crypto: How to Stake Coins and Grow Your Income

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A new wave of investors has made their entry into the Crypto industry, all searching for the best returns from their assets and another way to grow their income with Cryptocurrencies.

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Now, with the emergence of Proof of Stake projects and DeFi (Decentralized Finance) platforms, there’s more opportunity than ever to grow your income through staking coins.

In this guide, we’re going to look at the best staking coins and platforms, how they work and the best alternative staking options available.

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This Guide Contains:

Before we move on to our guide for the best staking coins, let’s cover how staking coins work and how they can help you grow your income —

What Does Staking Coins Mean?

Staking coins are coins that can be staked on a Proof of Stake (PoS) Blockchain. PoS is the consensus mechanism behind a Blockchain that ensures that the Blockchain functions properly.

Staking coins gives holders decision power on the network, allowing the holder to vote on governance decisions and generate an income from their assets.

How Does Staking Coins Work?

Staking coins work by staking a coin on a PoS network by either holding coins in a native wallet or locking them in a smart contract to operate nodes.

The coins are used to help validate transactions, operate nodes and maintain Blockchain health.

Rewards are then earned based on the number of coins you contribute to the staking platform.

What Coins Can You Stake?

The most popular Proof of Stake coins includes Synthetix, Algorand, Cardano, Polkadot, Avalanche, Cosmos, and Tezos.

More PoS projects are now starting to appear, providing more choice alongside many alternative platforms that offer staking on various altcoins.

Is Staking Coins Profitable?

Whilst many alternative staking platforms are now available, staking coins through a Proof of Stake blockchain is one of the best ways to grow your income passively.

Staking your coins helps the network grow and function properly, whilst also earning you rewards and yields ranging from 2-15%, all of which are provided in the native coin and deposited in your staking wallet.

For long-term holders and “Whales”, staking your coins can prove to be highly profitable and offers far greater incentive than holding your coins on a wallet or exchange.

How Do I Find The Best Staking Platforms?

As staking grows in popularity and integrates itself as an essential part of the industry, it pays to do your research and find the best staking platform for you.

This guide aims to help you with the basics, but if you want to more technical information and run the numbers yourself, using a comparison tool like Stakingrewards can help you make the best decision.

The Best Staking Coins

Many staking coins now offer generous rewards for participation in a staking network, with the most popular proving themselves in the recent surge of interest in PoS coins and projects.

The best staking coins at the moment include —

Algorand

Source: Algorand

Staking on Algorand is easy to configure and offers generous rewards for holders. Users can get started by first downloading the Algorand Wallet and then transferring their Algorand to the wallet.

Once your Algorand has been transferred, rewards of up to 6% are earned automatically, with reward distribution taking place approximately every 9 minutes.

Although you can stake on alternative platforms such as exchanges and staking providers, staking on the official Algorand wallet offers the highest percentage returns on your assets, as no commission on earned rewards is taken through the official wallet.

Cardano

Source: Cardano

Staking your ADA on the Cardano network means your assets represent a stake in the network, with the size of the stake equal to the amount of ADA staked.

Rewards can be earned in two different ways, either by delegating their stake to a pool run by someone else or by operating their own stake pool.

Staking ADA can earn rewards of close to 7%, with delegating your ADA to a high-earning pool the most popular option.

This process is easy to configure for all users and has proven itself to be the best method for ADA holders, with over 70% of ADA in circulation currently being staked across all pools.

Polkadot

Source: Polkadot

Polkadot has recently emerged as a real contender to Ethereum in the race for Blockchain superiority.

Stakers can earn up to 16% in rewards by becoming a “Nominator” in the Polkadot blockchain network.

It should be noted that to become a nominator, you will need to hold a minimum amount of DOT required by the network to participate, which differs based on network usage.

The set-up through the official wallet extension can also be long and tedious to configure.

Now, alternative platforms are starting to offer rewards of 10% on Polkadot, which can be earned simply through holding Polkadot on their platform.

These platforms also have no minimum required amounts to stake.

Tezos

Source: Tezos

Staking on Tezos is most commonly known as “Baking”, and much like Cardano, holders can choose whether to delegate their assets rather than operate a node.

This allows all users to participate in the staking process, with rewards of up to 6% being distributed by the node operator to delegators.

Configuring the delegation process is simple and can be completed through supported wallets that have implemented a delegation interface.

Like Algorand and Cardano, Tezos can be staked on other platforms.

However, these platforms only stake the address, meaning you may incur extra fees and earn less than staking through supported delegation wallets.

Alternative Ways To Earn Staking Rewards

Recently, many alternative platforms such as major exchanges, Crypto Savings accounts and DeFi platforms have emerged for those looking to stake their assets and grow their income.

These platforms provide staking that is simpler to configure, requires minimal maintenance and provides relatively equal rewards for staking coins

With the introduction of these new platforms, coin holders now have many great options to choose from.

They provide very generous rewards and incentives for staking, whilst removing the technical knowledge required.

Exchanges

Major exchanges are now starting to offer staking for various assets, with rewards varying based on the asset chosen and the amount of time your asset is staked.

Exchanges that provide staking include:

Binance currently offers the greatest coverage for staking coins, with over 20 crypto assets available for staking and annual yields offered ranging from 1% to 16%.

Exchanges take a small percentage from your staking rewards, so it pays to shop around as staking fees and the coins offered differ from each exchange.

Staking on exchanges is easy to configure and set up, and due to many Cryptocurrency investors wishing to hold their coins on exchanges, native staking platforms like these have proven to be very popular for the more novice investor.

Crypto Savings Accounts

Crypto savings accounts are another safe option for investors that can return 1-20% staking rewards on your assets.

Whilst not technically “staking”, you can hold your coins on the platform and earn rewards due to your assets providing liquidity for trading and lending services to other institutional players.

On the most popular platforms, staking can return rewards of between 2-6% on market-leading coins like Bitcoin, Ethereum and Chainlink alongside many other altcoins that offer native staking.

The most popular options available are BlockFi, Celsius and YouHodler, all of which provide a simpler way to “stake” your coins and grow your income through your assets.

DeFi Platforms

DeFi platforms have recently grown in popularity due to their simplicity and high earnings potential.

These platforms secure your assets via a liquidity pool or smart contract, meaning you become a liquidity provider for the platform.

Rewards are then generated from fees and interest earned on the platform. The yields that you earn range from 20-100% APY, and are based on the liquidity pool or platform that you choose.

The most popular DeFi platforms like Uniswap and PancakeSwap offer staking through providing liquidity to the platform.

This can be done by staking two coins into a liquidity pool or using single-sided staking, which means staking the native governance token for staking rewards.

Both options are relatively risk-free and can earn ample rewards based on the type of coin and amount of time staked.

DeFi is now flourishing across multiple networks and is proving itself to be a front-runner for those looking to earn income from their assets.

Staking Providers

Many newly-launched “All-in-one” staking providers offer comprehensive platforms where users can choose the coin they wish to stake and start staking on their platform with minimal set-up involved.

These providers are similar to staking coins on exchanges with the added advantage of larger staking pools and more native support for various staking coins.

They usually take a cut for their services, but can remove the sometimes complicated initial set-up, technical knowledge and maintenance involved with operating your own node or being a delegator on a staking network.

The most popular staking providers include MyCointainer, Stake.Capital, EverStake, Staked and stakefish.

These providers provide similar services but can vary in the rewards offered due to a higher number of participants in the staking pools.

Conclusion

Whether it’s staking using an official wallet or on a platform, staking your coins is a fabulous opportunity to grow your income and earn passively on your assets

As an added bonus, you now also know more about staking coins and how to grow your income using Cryptocurrencies.

We’re sure our guide will help you choose the perfect staking solution for you. Remember, the sooner you get started, the more you’ll earn.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk. At Learn, our priority is to provide high quality information. We take our time to identify, research and create educative content that is useful to our readers. To maintain this standard and to continue creating awesome content, our partners might reward us with a commission for placements in our articles. However, these commissions don't affect our processes for creating unbiased, honest and helpful content.
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Invested in the industry since 2017, Sean Dickens focuses on educational and informative content that simplifies the intricate world of Cryptocurrencies. He studied Journalism and Media at Birkbeck University and now writes for various Cryptocurrency publications. He enjoys trading, studying and writing about Crypto, and contributes heavily to our educational content by creating articles via our Learn section.

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