Home Cryptocurrency 8 Best Staking Coins to Earn Passive Income with Crypto in 2025

8 Best Staking Coins to Earn Passive Income with Crypto in 2025

Advertisement Disclosure: When you purchase through our sponsored links, we may earn a commission from our partners. By using this website you agree to our T&Cs.

Why you can trust ValueWalk

At ValueWalk, we’re committed to providing accurate, research-backed information. Our in-house editorial team goes above and beyond to ensure our content is trustworthy and transparent. Visit Why Trust Us to learn more about our mission and funding model.

  • Accurate, research-backed info
  • Expert-led, cutting-edge insights
  • Independent, in-house produced content

Finding the best staking coins is crucial for crypto investors seeking to generate passive income. By locking up your crypto holdings, you can earn rewards without engaging in trading activities.

According to our review, the best crypto staking coin in 2025 is Solaxy ($SOLX), offering a remarkable 180% APY, making it highly attractive for those looking to maximize staking rewards. Strong contenders like BTC Bull Token and Mind of Pepe provide competitive alternatives with impressive yields.

With the emergence of platforms providing enticing rewards and competitive annual percentage yield (APY), there’s no time like now to get into crypto staking.

In this article, we’ll delve into the best coins to stake in 2025, showcasing their attributes, potential for growth, and reasons why they appeal to individuals aiming to optimize their profits.

In our latest update, we added Solaxy and BTC Bull Token, and removed a few others.

  • Solana's first-ever Layer 2 solution, fixing congestion & speed issues
  • High dynamic staking rewards mean huge returns possible for early buyers
  • Multi-chain deployment means trading will be seamless
Project Launched
December 2024
Meta
Layer 2 chain
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • Debit
    Debit
  • BNB
    BNB
  • +1 more
  • Holders are entitled to rewards with each $BTC price milestone reached
  • Supporters can buy and stake $BTCBULL and benefit from substantial APYs
  • BTC Bull will burn a percentage of its supply with each $BTC milestone, creating a deflationary environment
Project Launched
February 2025
Meta
Meme coin
Purchase Methods
  • ETH
    ETH
  • BNB
    BNB
  • USDT
    USDT
  • Debit
    Debit
  • +1 more
  • Ground-breaking self-evolving AI agent that can develop ideas and create its own tokens
  • MIND of Pepe can interact on X and other social platforms to brainstorm and generate ideas
  • $MIND holders an get exclusive insights and enjoy huge staking rewards
Project Launched
January 2025
Meta
AI
Purchase Methods
  • USDT
    USDT
  • BNB
    BNB
  • Debit
    Debit
  • ETH
    ETH
  • +1 more
  • Best Wallet Token buyers get early access to trusted presales and new crypto projects.
  • Hold $BEST and maximize your staking returns on the Best Wallet staking aggregator
  • Presale participants can trade with even lower fees on Best Wallet
Project Launched
November 2024
Meta
Crypto wallet
Purchase Methods
  • USDT
    USDT
  • BNB
    BNB
  • ETH
    ETH
  • Debit
    Debit
  • +1 more
  • A new blockchain-based content creating platform, powered by $SUBBD
  • Creators can access 250M+ fan network, earn directly, and automate content with AI tools
  • Users can unlock bonus content, use AI for fan media, and stake $SUBBD for income and added perks
Project Launched
March 2025
Meta
Content creation
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • Debit
    Debit
  • A new layer-2 blockchain network for Bitcoin
  • Bitcoin Hyper is using zero-knowledge (ZK) proofs to ensure transaction validity
  • Full DeFi support such as staking and near-instant finality
Project Launched
May 2026
Meta
Layer 2 chain
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • Debit
    Debit
  • Blockchain-based fantasy football, teams are are managed by AI like ChatGPT and DeepSeek
  • Future partnerships with with real-life football clubs and players
  • Users predict the matches outcomes using $FEPE to earn rewards
Project Launched
2025
Meta
GameFi
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • Debit
    Debit
  • An everyday point-of-sale solution for cryptocurrencies
  • Poised to launch on over 4.5 million devices across 9 countries in 2024
  • Allows merchants to receive KYC'd crypto payments in fiat
  • Supports over 325 crypto wallets
Project Launched
2023
Meta
Payments
Purchase Methods
  • ETH
    ETH
  • USDT
    USDT
  • Debit
    Debit
  • BNB
    BNB
  • MATIC
    MATIC
  • AVAX
    AVAX
  • BASE
    BASE
  • USDC
    USDC
  • +5 more

This list is not financial advice. Our recommendations are informed by extensive research but remain speculative. Learn about our methodology here

Listing 8 of the best crypto coins to stake in 2024

Before we dive into the full reviews, here is a brief overview of our picks for the 8 best crypto coins to stake in 2024.

  1. Solaxy: Top Solana L2 blockchain token that offers high staking APY
  2. BTC Bull Token: Get free Bitcoin airdrops when BTC crosses major price targets
  3. Mind of Pepe: AI-themed meme token offers actionable market insights
  4. Best Wallet Token: Native token of a crypto wallet, get discounts on transaction fees
  5. Meme Index: Offers exposure to multiple meme coins with a single token
  6. THORChain: A decentralized liquidity protocol for swapping cryptocurrencies
  7. Flow: High-speed NFTs and collectibles platform, offering 8.99% yield
  8. Cosmos: Ambitious protocol creating an interoperable ecosystem of blockchains
[/su_note]

Explore the depths of our best staking coins

Staking offers a fantastic way to grow your crypto assets, and we’ve handpicked the best coins for the job.

These projects lead the staking market with strong returns and reliable networks. Learn how you can use your coins to generate consistent rewards.

Let’s look at the coins that make staking a smart investment strategy.

1. Solaxy ($SOLX): Solana L2 token offers fast transaction speeds

Solaxy ($SOLX) is the first Layer 2 (L2) blockchain built on Solana. It aims to solve issues like limited scalability and slow transactions in the Solana network.

Solaxy Token Presale buying widget

Solaxy offers lightning-fast transaction speeds, uninterrupted service, and better scalability, making it a reliable and efficient platform for users. Solaxy has raised more than $22 million in just a few weeks through its presale campaign. At press time, $SOLX is priced at $0.001616 per token.

Why $SOLX is one of our best staking coins

One reason for the strong presale launch is the high staking rewards. All $SOLX token holders can lock their holdings on smart contracts and generate a live annual yield of 257%. Of the entire 138.046 billion token supply, over 4.4 billion tokens are already staked.

However, it is important to note that the staking rewards will reduce as more tokens are locked in the ecosystem. Stay tuned with project updates by going through the Solaxy whitepaper and joining the Telegram channel.

Pros

  • Get a live staking APY of 257%
  • More than 4.4 billion tokens are already staked
  • Access faster transaction speeds on the Solana blockchain

Cons

  • The L2 mechanism is yet to launch
  • Staking rewards will reduce over time

2. BTC Bull Token: Get free Bitcoin airdrops when BTC crosses major price targets

Next on our top staking coins list is the BTC Bull Token ($BTCBULL). It’s a newly launched meme coin designed to capitalize on Bitcoin’s bull run. It runs on Ethereum and offers up to 180% APY on staking $BTCBULL tokens. With a total supply of 21 billion tokens (mirroring Bitcoin’s 21 million supply on a bigger scale), BTC Bull Token has reserved 10% of its supply for staking rewards.

BTC Bull Token presale buying widget

By aligning directly with Bitcoin’s price milestones, $BTCBULL adds another layer of excitement and tangible rewards—mainly BTC airdrops and a token burn mechanism that triggers as Bitcoin surges. During its presale, BTC Bull Token has already raised over $2 million, with $BTCBULL currently selling out for $0.00237.

Why $BTCBULL is one of our best staking coins

Investors can lock their tokens to earn dynamic APY, making it an attractive long-term hold, especially for those bullish on Bitcoin. Hold $BTCBULL in Best Wallet and earn BTC airdrops whenever Bitcoin hits major price targets. Each $25K jump in BTC’s price permanently removes a percentage of $BTCBULL from circulation.

Pros

  • Enjoy BTC airdrops and consistent token burns as Bitcoin rises
  • Get a high staking APY of up to 180%
  • Sound and community-focused tokenomics

Cons

  • Can see rapid price swings, which are common in meme tokens
  • Fewer burns and airdrops if Bitcoin’s price stagnates

3. Mind of Pepe ($MIND): Decentralized AI-powered meme coin offers huge staking benefits

Mind of Pepe is an innovative AI-driven project that combines decentralized applications, blockchain networks, and social platforms to deliver unparalleled value to its users. 

$MIND presale

The platform seamlessly integrates with dApps, social platforms, and blockchain networks, utilizing Hive-Mind Analysis to process extensive data and deliver exclusive insights to $MIND holders. It autonomously engages in discussions, influences trends, identifies high-value opportunities and enhances the ecosystem through self-generated token deployment.

Having already raised over $6 million within weeks of the presale launch, Mind of Pepe is garnering significant attention from early investors eager to be part of this rapidly growing ecosystem. With a focus on providing tangible value and unique features, Mind of Pepe positions itself as a revolutionary player in decentralized AI.

Why $MIND is one of our best staking coins

$MIND offers an impressive annual staking reward of 350%, making it one of the most rewarding tokens in the market. With 990 million tokens already staked, the project demonstrates strong community trust and engagement. Learn more about this meme coin by going through the Mind of Pepe whitepaper and joining the Telegram channel.

Pros

  • Provides $MIND holders with real-time market insights and early-stage opportunities
  • Offers an impressive 350% staking APY, incentivizing long-term participation
  • Operates on Ethereum blockchain, ensuring transparency and security

Cons

  • Reliance on AI predictions could lead to inaccuracies in rapidly fluctuating and unpredictable crypto market conditions
  • The high staking APY may not sustain during the long-term, as the yield reduces as more coins are staked

4. Best Wallet Token ($BEST): Native token of a non-custodial crypto wallet

The next token on our list is Best Wallet Token ($BEST) – the native currency of Best Wallet’s ecosystem. This new ERC-20 token provides several benefits to existing Best Wallet users – such as higher staking APY aggregators, discounts on transaction fees, and a high staking yield.

$BEST presale widget

On Best Wallet, $BEST token holders can secure discounts on their transaction fees. Notably, the ongoing $BEST token presale will be available exclusively to existing wallet users for a limited time.

Token holders also get priority access to new projects and the presale. So far, the Best Wallet Token has raised more than $10 million within a month of the presale. At the time of writing, $BEST is priced at just $0.024025 per token.

Why $BEST is one of our best staking coins

By holding $BEST tokens in your portfolio, Best Wallet users will gain higher APY staking opportunities on the Best Wallet aggregator. Moreover, the $BEST token can directly be staked on the ecosystem to generate an APY of 160%.

To learn more about this project, go through the Best Wallet Token whitepaper and join the Telegram channel

Pros

  • $BEST token holders recieve higher APY on the Best Wallet staking aggregator
  • Directly stake $BEST tokens and get an APY of up to 160%
  • The successful presale has raised more than $10 million in a few months

Cons

  • Newly launched crypto tokens can be highly volatile investments
  • The early stages of the presale are accessible only if you are a Best Wallet user

5. Meme Index ($MEMEX): Offers exposure to multiple meme coins with a single token

Another popular staking coin to consider is Meme Index. Early buyers can earn a high staking APY of over 600% at press time. However, it’s worth noting that this rate will decrease as more buyers start staking $MEMEX.

The project lets you access four meme coin baskets: Titan, Moonshot, MidCap, and Frenzy. Each basket has its volatility range, so you can choose a lower or higher-risk option.

$MEMEX presale

It’s worth noting that the price of $MEMEX will gradually rise in each presale stage. So the current presale price of $0.0162933 won’t be available for long.

Why $MEMEX is one of our best staking coins

A key reason behind its traction is the index-based design. Instead of betting on a single meme coin, $MEMEX holders can tap into multiple coins under one umbrella. Alongside staking, holders also get to vote on which meme coins appear in each basket, making the ecosystem more community-driven.

You can follow Meme Index on X and join its Telegram group for the latest updates.

Pros

  • Access four meme coin baskets (Titan, Moonshot, MidCap, Frenzy)
  • Staking option available during presale for potentially high APYs
  • Governance features let holders submit proposals and vote on new meme coin additions

Cons

  • Meme coin market can be risky, with price swings happening quickly
  • APY rates and token prices may vary over time

6. THORChain ($RUNE): Permissionless swaps and cross-chain staking

THORChain is a decentralized liquidity protocol that facilitates smooth asset exchanges between blockchains such as Bitcoin and Ethereum, eliminating the need for exchanges. This decentralized setup empowers users to retain control over their assets during the swapping process. The protocol’s token, RUNE, holds significance in governance and network security and serves as a settlement currency within liquidity pools.

This blockchain technology offers advantages for providers by implementing slip-based fees and Streaming Swaps. These features help mitigate loss by splitting large swaps into transactions to minimize expenses. Additionally, the platform’s Savers option permits single-asset liquidity support, reducing risk while still providing benefits to investors.

Why $RUNE is one of the best staking coins

THORChain is notable for its ability to work across different blockchains and its unique liquidity features, which position it as a leading platform for staking. It allows users to effortlessly exchange assets between blockchains while minimizing risks such as impermanent loss, making it a compelling choice for crypto investors looking for a hold.

Pros

  • Facilitates secure, permissionless swaps across multiple blockchains
  • Reduces impermanent loss with unique liquidity solutions
  • Native asset settlements enable true value exchange across different networks

Cons:

  • The protocol’s technology is still evolving, which may pose risks for early adopters
  • Complex features like Streaming Swaps may be difficult for some users to understand

7. Flow ($FLOW): High-speed blockchain for NFTs and digital collectibles

Flow continues to be a platform for decentralized applications (dApps) in the realm of entertainment centered around blockchain technology. Its expertise lies in NFTs and digital collectibles. Developed by Dapper Labs, known for creating CryptoKitties, Flow has established collaborations with renowned brands such as Warner Music, UFC, NFL, and LaLiga.

a screenshot of the flow homepage

Flow’s design guarantees transaction processing by spreading out responsibilities among different node types while upholding security and effectiveness. This makes it appealing for creators constructing NFT platforms. Additionally, Flow’s launch of FUSD, a stablecoin pegged to the U.S. dollar, streamlines the process of integrating fiat currency.

Why $FLOW is one of the best staking coins

Flow’s capacity to expand and specialize in NFT use cases, coupled with its notable collaborations, positions it as a platform for staking. The platform’s developer-friendly atmosphere and collaborations with organizations such as the UFC and Warner Music further bolster its standing.

Pros

  • High transaction throughput without compromising security, thanks to Flow’s unique architecture
  • CThe introduction of FUSD improves accessibility for mainstream users by simplifying fiat on-ramping
  • Strong developer tools, including the Cadence language, streamline NFT and dApp creation

Cons:

  • The platform’s multi-role architecture departs from traditional blockchains, raising concerns about long-term decentralization
  • Flow’s success largely depends on its ability to attract more developers and users to its ecosystem

8. Cosmos ($ATOM): Building an ecosystem of interoperable blockchains

Cosmos is a groundbreaking initiative aimed, at establishing a web of blockchains referred to as the “Blockchain Internet.” This platform promotes cooperation and smooth data sharing between different zones. The Cosmos Hub serves as a connection point between these blockchains allowing interaction through the Inter Blockchain Communication Protocol (IBC).

Cosmos has successfully raised more than $17 million through its Initial Coin Offering (ICO). The ecosystem is growing by incorporating various blockchains, such as BNB Chain, Cronos, and THORChain. ATOM token holders have the opportunity to stake their tokens to validate transactions, ensure network security, and earn rewards for staking. This aspect adds to Cosmos’s allure for crypto enthusiasts interested in participating in staking ventures.

Why $ATOM is one of the best staking coins

Cosmos is revolutionizing the blockchain landscape by enabling communication between various interoperable blockchains and creating a decentralized ecosystem. With its staking feature, investors have the opportunity to help secure this vast network while enjoying rewards.

Pros

  • Facilitates the interoperability of blockchains, connecting different blockchain networks
  • Independent blockchains maintain their sovereignty while being part of the Cosmos ecosystem
  • Staking on Cosmos helps secure the network and offers attractive staking returns of up to 16%

Cons:

  • Tokens must be staked for at least three weeks, limiting liquidity
  • The complex structure of the platform may be difficult for new users to understand

Best crypto coins to stake compared

ProjectTokenTotal SupplyChainMin. Lockup PeriodMax. APR/APY
Solaxy$SOLX138.046BSolanaN/A180%
BTC Bull Token$BTCBULL21BEthereumN/A180%
Mind of Pepe$MIND100BEthereumN/A350%
Best Wallet Token$BEST10BEthereumN/A160%
Meme Index$MEMEXEthereumN/A600%
THORChain$RUNE500MTHORChainN/A27.89% (Dual APR)
Flow$FLOW1.47BFlow7 days8.99%
Cosmos$ATOMDynamic SupplyCosmos21 days16%

Staking process: how does cryptocurrency staking work?

Cryptocurrency staking involves holding crypto coins in a wallet to support a blockchain network. In return, crypto investors earn staking rewards, much like earning interest in a traditional bank account.

These rewards, often in the form of additional tokens, are distributed based on the number of staked tokens and can vary depending on the staking platform and the coin being staked.

The staking process locks up tokens for a certain period, which helps maintain network security. The more tokens you stake, the higher your chances of earning generous staking rewards.

Different platforms offer various annual percentage yields (APY), ranging from modest rates to highly attractive returns, depending on the coin.


How to pick which crypto to stake?

When selecting a cryptocurrency to stake, consider these key factors:

  • Staking rewards (APY or APR): Take a look at the rewards offered in terms of annual percentage yields (APY). While higher returns may seem appealing, make sure they match your comfort level with risk.
  • Blockchain security: Opt for platforms that prioritize blockchain security. This helps safeguard your staked tokens against potential threats such as hacks or vulnerabilities.
  • Lockup period: Understand the lock-up periods required by the staking process. Some crypto staking platforms lock your tokens for weeks or months, so ensure you’re comfortable with the timeframe.
  • Network fees: Watch out for network fees, which can reduce your returns. Choose staking platforms with low fees to maximize your staking rewards.
  • Volatility: High APYs often come with high volatility. Balance your portfolio based on your risk tolerance, especially when dealing with more volatile crypto coins.

Why stake cryptocurrencies?

Staking cryptocurrencies has emerged as a compelling way to earn returns, similar to dividend investing in the traditional market.

Validators who contribute to the network’s security by staking their coins earn interest on their holdings. This symbiotic relationship strengthens the overall integrity of the blockchain.

For long-term crypto holders, staking presents a low-risk approach to generating passive income. Unlike active trading, which has inherent volatility, staking provides a steady stream of earnings without constant market monitoring.

Consider Bitcoin (BTC), known for its slow and steady growth. Staking allows investors to accumulate interest while patiently waiting for market upswings. It acts as a financial buffer during periods when the value of cryptocurrencies might not experience immediate spikes.

The beauty of staking is that it doesn’t require advanced technical knowledge. Many exchanges now offer automatic staking for supported currencies, making it accessible even for those new to crypto.

Balancing risk and potential

While staking offers attractive returns, it’s essential to understand the inherent risks. Staking rewards, often called Annual Percentage Yields (APYs), can vary significantly.

Stablecoins typically offer around 5%, while some low-cap cryptos can boast APYs as high as 1000%. Finding promising low-cap cryptos with reasonable APYs of 30% to 70% is also possible. However, the higher the reward, the greater the risk.

Is staking crypto coins risk-free?

Tempting as it may seem, crypto staking isn’t a risk-free ride. Here’s a breakdown of the key challenges:

  • Locked-in holdings: Staking often restricts access to your crypto for a fixed period. This means you can’t sell it on a whim, potentially missing out on potential profits if the market surges.
  • Market volatility: Even if staking rewards are attractive, the value of your staked crypto can still fluctuate. If the market dips, you could have less than initially invested, even with staking rewards.
  • Platform and slashing risks: Not all staking platforms are created equal. Research their reputation and security measures. Additionally, some blockchains penalize validators for misconduct, potentially leading to a loss of staked assets.

By understanding these potential drawbacks, you can make informed decisions about incorporating staking into your crypto strategy.

How is crypto staking taxed?

Staking rewards are usually considered taxable income. When you receive these rewards, their worth is determined by the market value of the tokens at that moment. Typically, they are taxed as income, and you must report them upon receipt. 

If you decide to sell or trade your staked tokens later on, you might face taxes on any increase in value since you first got the rewards. This means that taxation applies both to the reward itself and any profits made from the sale afterward.

Tax regulations vary based on your location. It’s essential to understand the rules that pertain to your region. Moreover, staying updated on your cryptocurrency staking activities is vital. This includes recording the worth of rewards received and any associated transactions.

The pros and cons of staking crypto

Pros

  • You can earn passive income without actively trading, making staking ideal for long-term holders looking to grow their crypto assets steadily.
  • Staking helps secure the blockchain network, supporting decentralization and contributing to the security of systems based on Proof of Stake.
  • Some crypto staking platforms offer high APYs, providing the potential for generous staking rewards, especially for early adopters of new coins.
  • The staking process requires minimal effort, as once tokens are staked, you can lock them in and earn rewards with little ongoing involvement.

Cons:

  • Your staked assets may be locked for a set period, restricting liquidity and limiting your ability to sell during market fluctuations or sudden price spikes.
  • Even with high staking rewards, the value of your crypto coins may decline due to market volatility, potentially negating any gains from staking.
  • Some platforms impose slashing penalties for validator misconduct, which could result in a loss of staked tokens if network errors occur.

Methodology: How we chose the best crypto-staking coins

To determine the top crypto staking coins, we conducted an assessment process that guaranteed their promising staking rewards and future development.

The following are the criteria we took into account:

  • Staking rewards (APY or APR): We were drawn to cryptocurrencies that provide attractive rates of interest (APY) or annual percentage rates (APR). We sought out options that offer returns and substantial staking benefits.
  • Security measures: Ensuring the security of each staking platform was a top priority. We checked for strong encryption, protection protocols, and any history of security breaches to safeguard staked tokens.
  • Liquidity and lockup periods: Coins with shorter or more flexible lock-up periods were favored, providing investors easier access to their funds when needed without compromising staking rewards.
  • Market potential and trading volume: We analyzed each coin’s market capitalization and liquidity to ensure ease of buying and selling and evaluate its long-term growth potential.
  • Community and project development: Strong community engagement and active development teams were key considerations. Projects with robust support and continuous updates are more likely to sustain growth.
  • Blockchain interoperability: Coins that could operate across multiple blockchain networks were prioritized, offering more flexibility for crypto investors.

FAQs

Which crypto has the best staking rewards?

There’s no single “best” reward crypto. It depends on your goals. High-yield options like BTC Bull Token ($BTCBULL) offer impressive returns but often come with greater risk. Established coins like Cardano (ADA) provide steadier rewards with lower risk.

Which crypto gives the highest return?

Just because a coin offers a high return doesn’t necessarily mean it’s the best option for you. It’s important to consider both the coin’s interest rate and its price history.
While a lesser-known coin might offer a flashy APY, its price could suddenly crash, reducing your overall gains. On the other hand, staking well-established cryptos might offer lower yields, but their value tends to be more stable, potentially leading to better overall returns.

Is crypto staking still profitable?

Yes, crypto staking can be a profitable way to earn passive income on your holdings. Interest rates vary depending on the chosen crypto, but staking can grow your crypto assets without actively trading. However, the crypto market is inherently volatile, and risks are always involved.

Can you lose money when staking?

Yes, staking crypto carries risks. While you earn interest, the value of your cryptocurrency can fall. This can happen due to overall market downturns or a specific drop in the coin you staked. Some staking penalties exist for validator misconduct, reducing your staked amount.

Do you need a wallet for staking?

Yes, in most cases, you will need a cryptocurrency wallet to store your staked coins. While some exchanges offer the option to stake directly on their platform, keeping your coins in a wallet provides greater control and security. Platforms like Coinbase, or OKX come with built-in wallets.

What is a lockup period in staking?

A lockup period is a time commitment when staking crypto. You agree to hold your coins for a set period to earn rewards. This helps ensure network stability. Lockup periods vary by project, so understand them before staking.

Where does the interest come from?

Staking rewards come from transaction fees on the blockchain network. When you stake, your coins are essentially used to validate transactions. A portion of the fees paid for those transactions is distributed as rewards to stakers.

What’s the difference between APR and APY?

The key difference between annual percentage rate (APR) and annual percentage yield (APY) is how they account for compound interest.

APR represents the yearly interest rate without factoring in compound interest, while APY includes it, giving a more accurate picture of total returns.

In the crypto world, APY is more commonly used for staking as it reflects the compounding effect, leading to more rewards over time.

What is the cheapest coin to stake?

The expenses associated with staking coins can vary depending on market conditions. However, coins like AVAX and DOT often offer prospects.

These coins employ Proof of Stake mechanisms that impose low entry barriers. This feature appeals to investors looking to diversify their cryptocurrency holdings without incurring costs.

It’s crucial to conduct thorough research to find the option that best suits your budget and investment goals.

What are the easiest cryptos to stake?

Staking cryptocurrencies can be a process, especially for newcomers.

Coins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) stand out as the options. Their user-friendly interfaces offer straightforward staking procedures and brief lockup durations.

Moreover, beginners can easily stake these coins without delving into node management or smart contract capabilities.

How do taxes impact crypto staking rewards?

Staking rewards are generally seen as taxable income when you receive them based on the token’s market price.

If you decide to sell your staked tokens later, any increase in value from the time you received the rewards could be subject to capital gains taxes.

Tax laws differ across regions, so it’s important to maintain records and check local regulations to ensure you’re following the rules.

References

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Sal Miah
Crypto & Fintech Writer

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.