best coins to stake

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In this guide a detailed view of the best coins to stake in 2021. Also, some reliable platforms to stake cryptocurrency on will be analyzed.

If you know Bitcoin already and maybe some other cryptocurrencies as well, then you must know that this new asset class has a lot of potentials. On the contrary, there are also some serious downsize risks involved scaring a lot of potential investors from entering the markets.

Besides, risks involved because of being young and volatile, there are also questions about the high energy consumption of Bitcoin miners. Moreover, if you might be wondering ‘can you stake Bitcoin?’, then I have to disappoint you and the answer is no. Particularly, because of the technology this coin is using(PoW). Meaning, staking Bitcoin and earning rewards is not an option, however, as explained above, Bitcoin can be mined by using a lot of energy consumption.

One of the answers to reducing risk and earning passive income in the crypto markets is called staking. In general, this is a very simple activity that almost anyone can do without getting too technical or geecky.

With this guide, I will provide you all info needed for starting to stake cryptocurrency. First, the options you have as a beginner, also the possibilities for intermediate cryptocurrency enthusiasts. Finally, some options you have in finding the best coins to stake and what platforms or wallets you can use.

What is cryptocurrency staking?

Cryptocurrency staking is an activity that allows users and crypto investors to participate in a decentralized blockchain and receive rewards for it. The blockchains that allow for crypto staking follow a consensus algorithm called Proof-of-Stake (PoS).

As explained earlier, Bitcoin (BTC), is powered by the Proof-of-Work (PoW) consensus algorithm. That means that an extensive network of miners is providing processing power(electricity) to confirm the transactions that take place in the Bitcoin blockchain and get rewarded for their effort.

Comparatively, Proof-of-Stake works in a different way. Rather than providing large amounts of computing power, PoS networks only require participants to stake their coins to get rewarded.

Proof-of-Stake vs Proof-of-Work rewards
Proof-of-Stake versus Proof-of-Work reward model

Additionally, since the beginning of 2020, crypto staking is growing in popularity among cryptocurrency investors. Besides being a zero-risk activity it also has some benefits compared with PoW mining:

  • Environment friendly
  • Low entry barrier. Anyone who owns coins can participate
  • Staking gives you the opportunity to earn compound interest on cryptocurrency

What Crypto Can You Stake?

At the time of writing, there are more than 7000 different coins and tokens available for trading and investing purposes. That is a lot of possibilities! So how to decide what crypto you can stake?

To stake cryptocurrency from a wallet, the network should at least support Proof-of-Stake consensus mechanism. To find out if a particular coin supports staking there are several ways to find out.

  • Go to Coinmarketcap website and check the specifics of the coin
  • Another very informative website is Stakingrewards.com, which lists very detailed info for all staking coins available
  • Finally, you can visit the website of the coin you own and look for further details or contact the team behind it

In general, most coins or tokens that live on the Ethereum blockchain(ERC20 tokens) have this option available, but I still recommend you to do your own research first.

Best Coins To Stake(in 2021): Comparison

What’s the best crypto to stake based upon rewards and trustworthiness? Below, I have listed the best proof of stake coins based upon rewards, security, and overall rating.

CoinBlockchain networkPossible rewardRating
ETHEthereum 2.05 – 10%5.0 / 5
DOTPolkadot5 – 12.00%4.7 / 5
XTZTezos5.5 – 6%4.5 / 5
ADACardano3 – 6%4.4 / 5
ATOMCosmos7 – 8%4.7 / 5
SNXEthereum48.00%4.3 / 5
ALGOAlgorand5 – 8%4.1 / 5
WAVESWaves6 – 7%4.5 / 5
DCRDecred8.00%4.2 / 5
ICXIcon6 – 17%4.2 / 5

* Staking rewards are not fixed and depend upon the number of stakers, validators, and inflation/deflation rate

How to Stake Coins in Cryptocurrency?

Simply put, the general process for staking cryptocurrency is quite simple and users have different options to choose from nowadays. Correspondingly, staking is nothing more than leaving your coins in a wallet for a specific period of time and start earning rewards right?

However, there are some things to take into consideration before locking up your coins on an external node or wallet. For example, how reliable is the platform or node you are leaving your coins on? Also, how much control do you have over your funds, and can you withdraw immediately in case you need some extra liquidity? Therefore, it’s important to know what options you have and if you want to remain in full control over your funds.

To clarify the staking process, I’ll give you two reliable options that you need to take into consideration. Especially, before you start acquiring the best coins to stake for high rewards 😁

Option 1: Staking coins from a Wallet or Node

Although staking cryptocurrency is a relatively young activity it all started with the introduction of Proof-of-Stake coins like EOS or Waves. This way, users could earn rewards by just keeping the coins locked in their own wallets.

For instance, users could just download the software to install a wallet and run a node(24/7) on their laptop or computer. Additionally, for locking up coins and participating in the network users get rewarded with additional cryptocurrency.

This staking concept was revolutionary in crypto. Mostly because you don’t need to invest a lot of money in hardware or suffering from high electricity bills that Bitcoin mining requests. Instead, users can participate by just installing software and buying some additional coins.

How does staking from a wallet or node work? Below the steps to take into consideration:

  • Download and install the software wallet of the coin you are interested in
  • Market buy the coin at a cryptocurrency exchange, like or Kucoin
  • Deposit the coin in your local wallet
  • Staking will start immediately
  • Optional: Find a validator node from your wallet
  • Optional: Deposit coins to the validator node
  • Staking will start immediately

Besides installing and running a wallet on your laptop or computer, there are also easier solutions available. For instance, users can install software wallets that support the storage of multi cryptocurrencies at once on mobile or desktop. Good examples of these wallets are Exodus or Atomic Wallet.

Also, it’s possible to start staking from hardware wallets like Ledger Nano where you can keep the private keys offline 😆

Ledger Nano X

Option 2: Staking Coins on Cryptocurrency Exchanges

Another option you have in this journey to find the best coins to stake is cryptocurrency exchanges. This way, the process of staking is becoming even more simple where you can use their custodial wallets for staking.

At first glance, this way of staking cryptocurrency looks very attractive because of its simplicity. However, there are some points you have to take into consideration before committing to a certain platform:

  • No control over your private keys means not really your crypto
  • The rewards can differ from the original project(Not enough coins at stake, or set to a fixed rate)
  • Some platforms ask fees for staking

To sum up, in my opinion, the most reliable platforms for staking cryptocurrencies and earn rewards are Binance, Coinbase, and Kraken. So if you are looking for an easy way to earn additional cryptos on your bags just take a look at these platforms for staking cryptocurrency.

For more information on cryptocurrency exchanges and staking, read the article I wrote about the best places to stake cryptocurrency and earn dividends.

Best Coins to Stake Crypto in 2021

Before starting to explain the best crypto coins to stake I will quickly rewind the staking process once again. Basically, there are three concepts involved when staking cryptocurrency coins:

  • Collateral amount or the amount of coins to store in a wallet
  • Locking period(e.g. 30 days)
  • Rewards(paid out daily, weekly)

Next, the best coins to stake and earn rewards based upon decentralization, network potential, staking ratio, and ease of staking.

Ethereum

Best coins to stake crypto: Ethereum

Although Ethereum hasn’t upgraded to ETH2.0 yet, thus still being a Proof-of-Work chain it is impossible to ignore them. First of all, they are THE market leader in this space with the largest community and developers operating on it.

In other words, at the time of writing, you can’t stake on Ethereum 2.0 but this is just a question of time. In fact, it’s already possible to deposit 32 ETH into the deposit contract here. This deposit contract will launch once a total of 16384 validators are active.

All in all, it’s wise to have this blockchain project on your watch-list which will introduce Sharding with Proof-of-Stake in full glory. As stated above, staking on Ethereum needs at minimum 32 ETH for running your own node. Additionally, if you don’t have this amount available you can also join several staking pools.

Polkadot

Polkadot

Another cryptocurrency that is on the list of top coins to stake is Polkadot. In particular, Polkadot was launched with a mission to transform the internet into a better one called: Web3. In addition, Web3 represents a fully decentralized web and censorship-resistant. Polkadot will be the center of the future internet – digital world, internet of things, and web decentralization.

In general, the Polkadot network is much more than just a single cryptocurrency. Additionally, it’s a network that uses a smart contract protocol just like Ethereum. Staking the DOT token can be done on the Layer-1 blockchain where you can deposit your DOT on several node validators.

Polkadot staking details

Token nameDOT
Price per token$45.33(0.00%)
Total supply938,132,684 DOT
Total staked tokens64%
Estimated Annual yield5 – 12%
Exchanges for stakingor Kraken

Cardano

Cardano

Cardano can also be compared with Ethereum, although this platform doesn’t use smart contracts instead it allows for complex programmable transfers of value. Moreover, this concept was founded by Charles Hoskinson who was also one of the early founders of Ethereum back in 2015.

In particular, this decentralized blockchain network uses smart programmable algorithms that are very secure and have very advanced features(compared with Ethereum). Cardano uses a peer-reviewed blockchain protocol called Ouroboros in combination with its Proof-of-Stake consensus mechanism. Staking Cardano(ADA) can be done in two ways: running your own node validator or delegated staking from a wallet.

Cardano staking details

Token nameADA
Price per token$2.18(17.33%)
Total supply31,948,309,441 ADA
Total staked tokens73%
Estimated annual yield3 – 6%
Exchanges for staking

Tezos

Next on the list of best coins to stake is Tezos(XTZ). Tezos is a blockchain platform that was launched to the market a few years ago. In addition to that, it allows companies and developers to run decentralized applications (dApps). Moreover, users can also run their own smart contracts in a similar way they can do with other blockchain platforms in the market.

One of the main characteristics of the Tezos network is related to the way in which it is governed. Blockchain networks are generally decentralized in the crypto market, however, it is not easy to create an effective governance system.

Tezos works with an on-chain governance solution that allows the network to progress and its participants to decide which are the main features they want to add, change, or delete from the Tezos ecosystem.

It also implements a unique delegated Proof of Stake consensus called Liquid Proof of Stake (LPoS).The Tezos blockchain is powered by the cryptocurrency XTZ, which is created through a process known as ‘baking’. This is simply a different name for staking and the bakers are rewarded for staking their XTZ to help validate new blocks.

Tezos staking details

Token nameXTZ
Price per token$6.08(-3.29%)
Total supply876,072,816 XTZ
Total staked tokens78%
Estimated annual yield5 – 6%
Exchanges for stakingor Kraken

Cosmos

The Cosmos network uses the concept of ‘parallel blockchains’ or zones. Moreover, each of these zones is powered by classical Byzantine fault-tolerant(BFT) consensus protocols. In general, this decentralized network with zones has a strong familiarity with the Bitcoin sidechains concept, using classic BFT and Proof-of-Stake algorithms, instead of Proof-of-Work. Besides, these ‘zones’ within the network functions as hubs that are all connected and allowing them to interoperate.

You can stake any amount of ATOM tokens from a wallet by choosing/delegating to a validator. This validator node decides what portion of the rewards he will keep before paying out the rest of the rewards. Also, it is important to know when staking from a wallet that you have to claim the rewards manually.

Cosmos staking details

Token nameATOM
Price per token$27.56(13.12%)
Total supply210,767,263 ATOM
Total staked tokens71%
Estimated annual yield7 – 8%
Exchanges for staking or Kraken

Synthetix

Another very promising option in the list of best coins to stake is Synthetix or SNX token. In addition, Synthetix (SNX) is an Ethereum based project built for the creation of synthetic assets linked to the value of some other asset.

These synthetic assets can be based on physical commodities, fiat currencies, stocks, bonds, other cryptocurrencies, or basically anything with value. Each synthetic asset created is an ERC-20 construct and is backed by the Synthetix Network Token (SNX).

If you are interested in staking on the Synthetix network then you must know that you are rewarded in Synths tokens. This is a local token on this blockchain network which can be traded on their exchange.

Minting new Synths is a straight-forward process, and is accomplished by locking SNX tokens in a smart contract as collateral. Any time the collateralization ratio falls below 750% the user is unable to collect fees generated by Synth transactions, thus incentivizing users to maintain a minimum 750% collateralization ratio.

The rewards come from transaction fees and must be claimed by users through the Mintr dApp, which is also used to mint Synths. Staking rewards can be claimed for up to two weeks in arrears, but if not claimed by then the reward is returned to the reward pool.

Synthetix staking details

Token nameSNX
Price per token$21.22(4.88%)
Total supply114,841,533 SNX
Total staked tokens52%
Estimated annual yield48.00%
Exchanges for staking

Algorand

Algorand logo

This Algorand project has made its roots in finance and cryptography. As a result of this, a very fast blockchain has been built without the need for other technologies like sharding or delegation of nodes.

In detail, Algorand will use the Pure Proof of Stake consensus protocol that handles the transaction verification process. Also, any user of the network is able to launch a node, stake a certain amount of ALGO tokens, and yield the rewards from partaking in the consensus. To do so users don’t need to invest in excessively-priced bespoke hardware to do the work, but a fairly powerful node with a stable Internet connection will be required.

Altogether, staking Algorand is very easy even if you want to do it from your own wallet. Staking this way(non-custodial wallet), will give you rewards after roughly 20 minutes or each time a new block is created.

Algorand staking details

Token nameALGO
Price per token$1.41(1.40%)
Total supply3,038,782,477 ALGO
Total staked tokens52%
Estimated annual yield5 – 8%
Exchanges for staking

Waves

Waves Logo

The Waves platform describes itself as an open network for Web 3.0 applications and custom decentralized solutions. Furthermore, the infrastructure is built to add new functionality in a very easy way with the help of custom-designed tools.

Launched in 2016, Waves has since released several blockchain-based solutions. Moreover, Waves’ technology is designed to address the needs of developers and companies that want to leverage the properties of blockchain systems – including their security, verifiability and the trustless execution of transactions and business logic.

In detail, the protocol layer consists of a consensus protocol called Leased Proof-of-Stake (LPoS), an optimization protocol called Waves-NG, a features activation protocol and a slew of cryptographic and validations rules and transaction models.

Staking WAVES tokens can be done by running a supernode where you have to lock up a minimum of 1000 WAVES tokens. Besides running your own node it’s also possible to stake WAVES on the Waves.Exchange platform.

Waves staking details

Token nameWAVES
Price per token$32.93(1.17%)
Total supply105,108,376 WAVES
Total staked tokens52%
Estimated annual yield6 – 7%
Exchanges for staking

Decred

Decred logo

Another promising project in the list of best coins to stake is Decred. Additionally, Decred uses a hybrid proof-of-work and proof-of-ownership system to ensure that a small group cannot dominate the transaction flow or make changes to Decred without community involvement.

Furthermore, the unit of currency is called Decred(DCR). To ensure the integrity of the currency and discourage people to commit fraudulent transactions or create their own coins, Decred stores transactions in a decentralized way.

In other words, this blockchain project still uses miners with hardware to validate and create blocks on the network. Because of this Proof-of-Work model this network has some issues with scaling or handling lot’s of transactions at the same time.

Staking DCR tokens can be done in two ways: by running a ‘Voting Service Provider’ or from a wallet service which is called ‘Solo Voter’.

Decred staking details

Token nameDCR
Price per token$192.80(-5.06%)
Total supply12,927,700 DCR
Total staked tokens52%
Estimated annual yield8.00%
Exchanges for staking

ICON

ICON ICX logo

Last but certainly not least in the list of top coins to stake is ICON. Moreover, ICON is a decentralized blockchain network focused on interoperability. Particularly, with the help of ICON’s “blockchain transmission protocol”, independent blockchains like Bitcoin and Ethereum can connect and transact with each other. As a result, cross-chain communication is possible and this opens the gate for a lot of new use cases that didn’t exist in the blockchain space before.

In detail, the ICON Network describes itself as a general-purpose blockchain protocol based on the native cryptocurrency ICX. Meaning it can run smart contracts, adopt the BFT-DPoS (Delegated Proof-of-Stake) consensus protocol, and use an economic-governance protocol called DPoC (Delegated Proof-of-Contribution).

The Icon staking reward model will reward stakers with anywhere from 6% to 17% annually, depending on the total amount of ICX being staked in the network. Any number of ICX can be staked, but it does have to be held in the Icon wallet, which is available as a mobile version for iOS and Android, or as a Chrome extension.

ICON staking details

Token nameICX
Price per token$2.04(-6.38%)
Total supply622,846,900 ICX
Total staked tokens52%
Estimated annual yield6 – 17%
Exchanges for staking

Conclusion: Best Proof Of Stake Coins

The list of best coins to stake created in this article is partially based upon my personal opinion, the total value the project has in terms of price and the rewards stakers can get out of it. Remember that this is certainly not a definite list especially in the crypto markets where things pass by very fast.

Therefore, don’t be offended or start panic selling if your favorite cryptocurrency project isn’t listed above. If your favorite blockchain project is offering real value and also has a large following or community, big chance you can make money on them too. Happy investing or holding!

The following articles might also be a good read for you:

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Jelmer Steenhuis
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Jelmer Steenhuis

Online entrepreneur at uDigitize
Crypto believer and 'Hodler' of Bitcoin since the early days. Spreading the word about this exciting new technology..
Jelmer Steenhuis
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