The Best Ways to Stake Crypto in 2024
If you’re looking for a secure way to earn passive income on your crypto holdings then look no further than staking. Staking is the process of taking your crypto assets and using them to help secure the blockchain network. This can be done as a validator yourself or by delegating your stake to a stake pool operator (SPO). Validators run nodes and process transactions, which requires time and effort, while delegators allow validators to use their stake to help secure the network and vote on changes to it.
Staking requires a proof of stake consensus mechanism. In proof of stake systems, users are rewarded an amount of the crypto they are staking in proportion to the amount held by the user. This is in exchange for helping secure and validate transactions on the blockchain network. Users can choose between being a stake pool operator, meaning they run a node and receive other other people’s crypto, or they can be a delegator, meaning they turn their voting power over to someone else but still own their crypto.
Delegating your stake to a validator allows you to receive rewards for your contribution without the necessity of knowing how to run a pool and the technical things that would require. It’s often the best choice for crypto holders. It’s a great alternative to a proof of work system because users can earn rewards without having to spend money on electricity and processing power. The only risk is having your rewards slashed or withheld due to your validator being offline, or performing some other bad action, so do due diligence before delegating your crypto to a validator.
How to Get Started in Crypto Staking
Getting started with staking cryptocurrency is easy, but the first step is owning an asset that can be staked such as Ethereum (ETH), Cardano (ADA), Solana (SOL), or Polygon (MATIC) among others. We’ve assembled a variety of guides that can help you get started with staking your crypto assets, check them out below:
Methods of Staking
There is more than one way to stake cryptocurrency assets. You can stake yourself through a blockchain network, use the services of a centralized exchange, or do liquid staking through platforms such as Lido. Staking can be done as a delegator or validator. Each method of staking has a differing level of risk and reward as well. Check out our guides below:
What Are the Best Coins for Staking?
There are a variety of crypto coins and tokens you can stake with. In terms of a secure and predictable return, some of the best coins for staking are:
- Cosmos (ATOM)
- Cardano (ADA)
- Ethereum (ETH)
- Solana (SOL)
- Polygon (MATIC)
- Polkadot (DOT)
- Avalanche (AVAX)
- Binance Coin (BNB)
- Cronos (CRO)
- Tezos (XTZ)
- Internet Computer (ICP)
- Fantom (FTM)
- Stellar (XLM)
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History of Crypto Staking
Staking cryptocurrency has only been an option since the development of proof of stake consensus mechanisms which began with assets such as EOS and Tezos.
Since the development of early proof of stake blockchain networks, it has become the fashionable and desirable type of consensus mechanism to use due to the lack of environmental impact and inclusionary nature of the staking system. It has become commonplace for centralized exchanges to offer staking services for users who aren’t comfortable doing the process themselves, but this has led to issues regarding how these are classified in the eyes of regulatory bodies.
For more information on the history of crypto staking check out these articles:
