10 Best Crypto Staking Coins for Maximum Passive Income in 2024

There are many factors to take into account while there is interest in investing in cryptocurrency. You can engage in staking when you invest in coins based on a Proof of Stake (PoS) blockchain network. PoS helps networks operate more securely and efficiently. The only requirement of staking is that you keep coins in your cryptocurrency wallet for a certain period, which will give you staking rewards. Staked coins are similar to interest-bearing savings accounts, with both options allowing you to earn interest on your initial investment. Staking PoS coin allows you to earn passive income by holding and verifying transactions on the crypto network. In addition to PoS coins, this guide lists other top coins with high interest rates, including stablecoins like USDT and USDC. Learn about some of the best staking coins you can invest in if you want to make passive income while taking advantage of high yields.

What Is Crypto Staking?

Crypto staking is the process of holding funds in a digital wallet and making deposits to support valid transactions on the PoS blockchain. Participants earn additional cryptocurrency by participating in transaction validation.

Key benefits associated with crypto staking include the following:

1.      Unlike crypto mining, crypto staking requires no additional equipment.

2.      You can earn a certain amount of interest on your crypto holdings.

3.      Staking is less harmful to the environment than mining.

4.      Staking directly increases the efficiency and security of the PoS blockchain.

There are some significant differences between mining and staking. In general, even though mining only happens with Proof of Work (PoW) systems, you are able to get returns on both PoW and PoS coins on the staking platform.

Both PoW and PoS are capable of confirming blockchain transactions without the need for a third party as a consensus process, such as a bank or other financial institution. The main difference between the two processes is their energy consumption. To start staking, first collect PoS coins. Next you decide how much coins to stock. This process can also be done on any major cryptocurrency exchange.

Remember that additional income can also be earned through yield farming. Although slightly more complicated than staking, yield farming allows you to earn coins by lending your current crypto assets to various decentralized finance (DeFi) platforms. With yield farming, you can contribute to the acquisition of crypto assets on any exchange from a few days to a few months. Higher lending always leads to higher rewards.

Risks of Staking

Despite the benefits of crypto staking for passive income, there are several risks to be aware of. The caveats are as follows:

Crypto prices are relatively volatile, which means they can depreciate quickly. If your assets drop by a sizable amount, you may not earn enough interest to outweigh your losses.

Although it is possible to "unstake" your crypto earnings, it may take at least seven days to do so for certain platforms.

If you want to use some of the top staking coins, it’s important to understand that these coins will remain locked for a short period. This means that nothing else can be done with these assets in the interim.

What Are the Best Coins to Stake?

Below is a detailed description of 10 best staking coins from where you can buy coins to get staking rewards. The token symbol is also included with the name of each crypto platform.

1. Tether (USDT)

If you're looking for the highest Annual Percentage Yield (APY) crypto staking token that won't go down in value, Tether (USDT) is one of them. As the world's leading stablecoin, it ranks third among cryptocurrencies after Bitcoin (BTC) and Ethereum (ETH). USDT has a market cap of $114.34 billion as of July 23, 2024. Since 2014, USDT has provided crypto users with a respite against cryptocurrency market volatility

Instead of holding fiat currencies in traditional financial systems, especially in these uncertain economic times, you can stake in USDT, which will provide you with an attractive passive income and help hedge against inflation.

USDT reserves are backed 100% directly by U,S, dollars. On the plus side, USDT has a huge trading volume and deep liquidity, allowing you to easily swap tokens for digital assets.

2. Bitcoin (BTC)

Bitcoin still remains the top crypto by market capitalization. 2024 has been a good year for BTC so far. The Bitcoin Spot ETF hit a new all-time high of $73,737 on March 14, 2024 after approval in January. Additionally, the completion of the Bitcoin halving process in April made BTC mining more difficult, reducing the amount of coins in circulation. Based on these factors, holding and stocking Bitcoin is profitable, as its price will continue to rise over time.

Since 2011, the network has undergone many developments designed to increase its value, resulting in Bitcoin still reigning as one of the best crypto staking coins.

3. Ethereum (ETH)

Known as "digital silver", Ethereum is second only to Bitcoin in the cryptocurrency world. Blockchain has improved Ethereum network through various successful upgrades, and increased its functionality.

The Ethereum ecosystem is the busiest network in the crypto space with people using its security and smart contract capabilities to build DApps. Several well-performing Layer 2 blockchains such as Optimism (OP) and Arbitram (ARB) have also helped Ethereum scale by providing low-cost and high-speed transactions.

Also, liquid staking became popular after the upgrade to ETH 2.0.  It gives you the form of Liquid Staking Derivative (LSD) tokens to access your staked ETH and use it for DeFi activities, such as lending and providing liquidity.

4. BNB Coin (BNB)

BNB is one of the best crypto staking coins. Binance is one of the largest cryptocurrency exchanges in the world due to its important role in the cryptocurrency space. The versatility of the coin, combined with the important role of BNB Smart Chain (BSC) and solid tokenomics make it one of the best cryptocurrencies. BNB is used for paying fees to BSC on Binance Exchange, paying traders and staking to get passive rewards.

You can earn daily staking rewards by becoming a validator and contributing to BSC's security by staking your BNB. Alternatively, you can contribute as a proxy by staking your BNB to validators via BNB Chain Wallet, Trust Wallet and MathWallet.

BNB is a top staking coin that can be held liquid on various platforms so you can hold You can earn LSD tokens to use for other DeFi activities while continuously generating your BNB yield.

5. USD Coin (USDC)

Another top crypto without fear of a price drop is USDC. USDC is developed by fintech giant Circle and has strong partnerships with the Circle Alliance Group, including notable names such as VisaCard, MasterCard and BlackRock. USDC has become an in-demand crypto, especially for those looking for a stablecoin stake.

USDC is designed to facilitate the fastest and cheapest cross-border payments and provide crypto users with a transparent and secure cryptocurrency for transactions. Circle has increasingly expanded its reach around the world, pushing USDC to the top of the crypto rankings as the second-most popular stablecoin after USDT.

6. Toncoin (TON)

The Open Network (TON) was created in 2018 to provide scalable and affordable cross-chain interoperability for Telegram. Toncoin (TON), a native token of the project, was pumping in 2024. On June 14, 2024, its price reached its all-time high of $8.01.

TON was sparked by Telegram's announcement in April 2024 that channel owners could now pay for in-platform advertising for their channels using tokens. TON also attracted major partners like Pantera Capita.

You can use TON tokens to secure the TON blockchain and become a validator, where you can earn an APR of 2.99%. Along with the popularity of Telegram-related projects like NotCoin, HamsterCombat and TapSwap, TON has enriched the blockchain. Hence, TON Holding and staking can be a good investment decision.

7. Solana (SOL)

During the bear market in 2024, Solana Blockchain is making a comeback after a catastrophic phase, especially the collapse of FTX. Especially due to the use of Solana-based meme coins, there is a growing demand for SOL, which is performing remarkably well.

We saw increased liquidity in Solana, and the SOL token moved into the top five in the crypto rankings. Solana's activity growth is expected to continue during a full-blown bull market. So investing in SOL can be a good move.

8. USDe

USDe is a creation of Athena Labs. Provides crypto users with an efficient and scalable stablecoin, creating an environment to explore and invest in the crypto space without worrying about volatility. In addition to trading USDe as a spot pair, the combination of USDe on Bybit allows you to use it as collateral to trade perpetual contracts.

Staking USDe on Bybit Savings you can earn passive income by earning a high interest of 30% for either a flexible or fixed term a rate that makes USDe one of the highest APY crypto staking tokens on the platform.

9. Cosmos (ATOM)

Known as the "Internet of Blockchains", Cosmos is a Layer 0 blockchain that enables the creation of customizable application-specific chains via the Cosmos SDK. These independent blockchains can effectively communicate with each other through Cosmos' Inter-Blockchain Communication (IBC) protocol. Its native ATOM token empowers Cosmos' PoS consensus system by encouraging token holders to hold tokens with a validator and helps secure the network.

By staking ATOM tokens on Cosmos you can earn a reward rate of 17.18% making ATOM one of the highest APY crypto staking coins. You can flexibly lock your ATOM tokens in Bybit Savings, where you get 1% passive returns.

10. Polkadot (DOT)

Polkadot is one of the best staking coins to hold due to its utility and the governance and security benefits of the blockchain. The native token of this ecosystem is DOT, created by Ethereum co-founder Gavin Wood, Polkadot is a popular multichain network. It is designed to improve interoperability and communication across different chains.

Polkadot uses DOT for bonding, staking and governance. There are two ways to invest in Polkadot: by holding at least 566.802 DOT to become an active nominee, or by holding a minimum of 1 DOT in the nomination pool. Rewards are paid out at a rate of 11.4% every 24 hours, making it one of the highest APY crypto staking tokens in the DeFi space.

The Bottom Line

Crypto staking offers a compelling opportunity for investors to generate passive income while supporting the security and integrity of Proof-of-Stake(PoS) blockchain networks. By learning about different staking methods, popular cryptocurrencies for staking, and potential risks and rewards, you can make the right decision and grow your crypto portfolio with confidence. Whether you choose from independent staking, joining a staking pool or staking on an exchange, crypto staking can be a rewarding and fulfilling way to participate in the world of blockchain technology.