10 Best Staking Coins for Maximum Passive Income

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Contributor, Benzinga
March 14, 2024

Benzinga’s picks for the best staking coins are Ethereum and Cosmos. Earn high rewards by staking crypto with Binance, Coinbase or Kraken.

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Like a gift that keeps on giving, crypto staking rewards you for holding your assets. When you stake cryptocurrencies, you help keep the network safe and running smoothly. In exchange, you get more coins, similar to interest on your savings. It’s a win-win — you support the blockchain ecosystem and earn passive income. 

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.

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. Algorand (ALGO)

Algorand network is designed to achieve high-speed transactions, security and decentralization. It makes staking simple through its Governance Portal, using non-custodial wallets like Pera or MyAlgo. Depending on the staking platform, rewards can range from 1% to 14.47% APR. Staking directly avoids centralized exchanges, ensuring control over your ALGO. Rewards are decided before each active voting period of three months and paid out at the end of each period. Algorand's simple and accessible staking setup positions it as a top choice for passive income in 2024.

2. Avalanche (AVAX)

Avalanche is hailed as a top crypto for staking in 2024, with its high scalability, low fees and smart contract capabilities. Staking AVAX offers validators an estimated 7.65% APR. However, running an Avalanche node requires a substantial 2000 AVAX investment. Reward rates may change, so it's crucial to factor in inflation and deflation effects. Staking on Avalanche is simple, either through the Avalanche Wallet or centralized exchanges, though the latter may offer fewer rewards and loss of custody of your assets. 

3. Bitcoin Minetrix (BTCMTX)

Bitcoin Minetrix revolutionizes Bitcoin mining by introducing a user-friendly cloud mining platform based on proof of stake. It tackles environmental concerns with eco-friendly mining, offering about 57% APY for stakers. The ongoing presale of BTCMTX tokens provides an opportunity for discounted investment with potential price appreciation. This innovative approach allows users to stake tokens, earn credits and use them for Bitcoin mining, making it an attractive opportunity for investors in 2024.

4. Ethereum (ETH)

The most staked option, Ethereum (ETH), remains a top choice for staking in 2024 given its widespread adoption and market position. It is routinely number 2 of the top 10 cryptocurrencies. 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 7.09%, 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, Ethereum's stability and potential for consistent rewards make it a reliable option.

5. Cardano (ADA)

With a strong market presence and passive income opportunities, Cardano is one of the best cryptocurrencies for staking. Staking options include direct staking through non-custodial wallets like Daedalus or Yoroi or via centralized platforms. The estimated APR for staking ADA ranges from 2% to 6%. Staking ADA is accessible with no minimum deposit required, though a small transaction fee applies. Cardano's user-friendly approach, combined with its potential for high rewards, makes it an appealing choice for investors of all levels. Remember, actual reward rates may vary based on market conditions.

6. Polygon (MATIC)

Polygon is renowned for its Layer 2 solutions for scaling Ethereum. It boosts Ethereum's efficiency with faster transactions and reduced fees. Investors can stake MATIC by running a node or delegating to validators. Expected staking APR is up to 6%. Platforms like Lido offer liquid staking, providing stMATIC tokens for staked MATIC, enhancing liquidity. These features make Polygon attractive for passive income seekers. However, remember that reward rates are estimations and subject to change.

7. Polkadot (DOT)

Polkadot, a top 20 cryptocurrency, is praised for its multi-chain network design and pioneering blockchain technology that addresses Ethereum's scalability issues. Staking options include running a validator, joining nomination pools, or using exchanges. Estimated APR is 15.31% for validators, 14.34% for delegates and 7% to 14% on exchanges. Validator setup demands technical knowledge and a dynamic minimum DOT stake.

8. Cosmos (ATOM)

Cosmos’s focus is on creating an interoperable network of crypto ecosystems. With an estimated APR of 25.2% for validators and 23.3% for delegators, it offers some of the highest reward rates. Validators need to hold more than the balance of the 175th active validator to earn rewards. Delegation options are available for those not running a node, allowing them to stake ATOM through non-custodial wallets. These factors, along with the high reward rates, make Cosmos one of the best choices for staking in 2024.

9. Tezos (XTZ)

Tezos is an open-source platform that addresses the main barriers to blockchain adoption faced by assets and applications. Thanks to its robust ecosystem, accessibility and attractive reward rates, Tezos’s utility coin XTZ is an excellent option for staking in 2024. With a market cap exceeding $1 billion, Tezos enjoys a prominent position in the crypto market. You can stake Tezos by delegating your tokens or running a node (also known as baking), using non-custodial wallets like Ledger and Exodus. Baking requires a minimum of 6,000 XTZ (known as a roll) and a technical setup using Kiln. Bakers can expect an estimated APR of 5.89%, while delegates may receive around 5.31%. Centralized exchanges offer rates ranging from 3% to 7%. 

10. Near Protocol (NEAR)

NEAR Protocol, an operating system for the open web, is used to create and distribute decentralized apps on any blockchain with a blockchain operating system. It addresses crypto ecosystem issues like low transaction speed and poor interoperability with its layer-one blockchain. Stakers participate in the project's direction through NEAR Protocol's DAO and enjoy lucrative APYs, like a 10.04% APR on Coinbase. With governance involvement and high rewards, NEAR Protocol makes the list as one of the best staking coins for maximum passive income in 2024. 

What is Crypto Staking?

Cryptocurrency staking involves locking digital assets to support blockchain operations. It's a critical process for blockchains operating on the proof-of-stake consensus mechanism. Through staking, individuals can become network validators, earning rewards for their service. This mechanism allows for generating passive income from idle cryptocurrencies while maintaining ownership. Rewards are received in the form of interest accrued from staking the coins. Staking presents an opportunity to participate in network maintenance while earning returns on invested assets, offering an alternative to traditional banking interest.

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.

Where to Stake Crypto

You can stake your coins through various methods and platforms depending on your investment strategy and comfort level.

Directly on blockchains: Some cryptocurrencies allow direct staking through their native wallets. Examples include Ethereum, Tezos, Cosmos, Solana and Cardano.

Staking pools: If you don't have enough holdings to stake independently or prefer not to manage a validator node, joining a staking pool could be a simpler option.

Cryptocurrency exchanges: Many exchanges offer staking services, making it easy to stake your crypto with a broker and earn rewards. Some popular ones include Coinbase, Kraken, Binance, Gemini and Crypto.com.

  • Binance US
    Best For:
    Altcoin Trading
    securely through Binance US's website
  • Coinbase
    Best For:
    Active Crypto Traders
    securely through Coinbase's website

    Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

  • Kraken
    Best For:
    Crypto futures traders
    securely through Kraken's website
  • KuCoin
    Best For:
    Experimenting Investors
    securely through KuCoin's website

Is Crypto Staking Worth It?

Crypto staking can be a worthwhile way to earn passive income on your holdings. It often offers higher returns while you hold your position and secure the network. However, risks include market volatility and potential loss of staked assets from penalties or technical failures. So, you must thoroughly understand the specific staking process and associated risks before committing your crypto assets.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

Q

What is the most profitable staking crypto?

A

The most profitable staking crypto in 2024 is reported to be Bitcoin Minetrix with a reward rate of 57%.

Q

Is staking good for passive income?

A

Staking is considered a viable method for earning passive income, as it allows crypto holders to earn rewards on their staked assets.

Q

Which coin is best for passive income?

A

Ethereum, after its transition to proof-of-stake, along with Tezos (XTZ), Polkadot (DOT), Solana (SOL) and Cardano (ADA), is mentioned among the top coins for passive income through staking.

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About Anna Yen

Anna Yen, CFA is an expert crypto writer with over two decades of professional finance and writing experience in roles within JPMorgan and UBS derivatives, asset management, crypto, and Family Money Map. She specializes in writing about alternative investment topics ranging from derivatives to cryptocurrencies. Her work has been published on sites like the crypto exchange Bybit. After six years of personal experience investing in crypto, she prefers BTC, ETH, and SOL.