Benzinga’s picks for the best staking coins are Ethereum and Cosmos. Earn high rewards by staking crypto with Binance, Coinbase or Kraken.
Best Staking Coins In 2024
With Bitcoin breaking all-time highs in 2024 and the success of the Bitcoin halving, cryptocurrency investing is back in the limelight. For long-term crypto investors, staking coins is a solid option to compound their initial capital. Whereas holding cryptocurrencies can make returns from price volatility, staking can provide investors with a way to compound their returns on a unit basis.
When you stake cryptocurrencies, you lock your tokens in exchange for passive income. Depending on the coin you stake, there may be no minimum lockup time. Since cryptocurrency prices can be volatile, it’s important to know how liquid your position will be before deciding if staking your coins aligns with your investment goals.
Now may be the right time to let your crypto assets work for you. Here are 10 of the best staking coins for maximum passive income.
Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.
How to Choose the Best Crypto to Stake
Choosing the best cryptocurrency to stake can make a significant difference in your investment outcomes. Key factors to consider include:
- Project team: Look into the experience and track record of the team behind the cryptocurrency. A strong team is often a good sign of the project’s success.
- Technology and roadmap: Take a close look at the technology the cryptocurrency is built on and its future plans. Evaluating its roadmap can give you an idea of its potential for growth and sustainability.
- Community support: Check the level of engagement and support from the cryptocurrency community. A vibrant community can contribute to the network’s strength and resilience.
- Historical price performance: Analyze the past price performance of the cryptocurrency to gauge its stability and potential for growth.
- Market trends: Stay updated on broader market trends that could affect the cryptocurrency you’re considering.
- Security and regulatory compliance: To protect your investment, ensure that the platform you choose for staking prioritizes security and follows regulatory standards.
Top 10 Best Crypto Coins to Stake in 2024
In 2024, staking coins in the cryptocurrency market presents lucrative opportunities. Below are the top picks to maximize your returns.
1. Ethereum (ETH)
Ethereum (ETH) remains a top choice for staking in 2024 given its widespread adoption and market position. With over 25% of ETH staked, billions of dollars are locked in Ethereum staking through independent nodes and LSTs like Lido Staked ETH and Rocket Pool ETH.
Ethereum is routinely number 2 of the top 10 cryptocurrencies, which means ether’s price is often less volatile than other altcoin investments. Many investors own ETH for its potential price appreciation. Staking methods vary, including solo validation, delegation, pooling and centralized options. Expected APR ranges from 2.25% to 5%, depending on the method chosen.
However, staking Ethereum requires a minimum deposit of 32 ETH for solo staking and ample technical know-how for running a node. Despite these requirements, users can opt to use a liquid staking token to get around the high capital requirements of solo staking.
2. Solana (SOL)
Solana is a high-performance blockchain network known for its speed and efficiency. It’s designed to improve upon Ethereum with a hybrid consensus model including Proof-of-History (PoH) and Delegated Proof-of-Stake (DPoS), allowing for fast and scalable decentralized applications. The reward rate for staking SOL is around 7%. This competitive staking reward and Solana’s innovative approach to blockchain…