Crypto staking has become increasingly popular as both stakers and blockchain platforms benefit from it. Many crypto platforms offer staking to support their operations on a specific proof-of-stake blockchain system and simultaneously reward their stakers. In this article, you will learn the best 2023 cryptocurrencies you can stake, the platforms to stake them, and the rewards you can get from staking each coin to help you unlock an extra revenue stream.

What is Staking?

Staking is a crypto trading option that allows crypto investors to earn passive income by locking up their digital assets on an exchange platform for a fixed period to earn a reward called APY (Annual Percentage Yield). Only cryptos supporting the proof-of-stake consensus protocol can be locked up.

Staking has many benefits for investors and blockchain platforms besides rewards. For example, investors can validate transactions and mint coins based on the number of cryptos staked rather than mining which is energy-consuming. On the other hand, blockchain platforms also use locked up coins to stabilize and secure their network. Finally, staking reward is the same as the interest from a bank deposit, and the reason behind the reward is to incentivize the investors.

Best crypto coins to stake in 2023 and rewards

The table below summarizes the rewards of the crypto assets with the best value in 2023.

Cardano (ADA)

Cardano is a third gen blockchain project. Its staking is common among crypto investors due to the significant amount of rewards it offers. Currently, it has a staking ratio (71.04%) and reward of up to (9%), depending on the crypto platform used for the staking and lockup period. ADA can be staked using crypto exchange platforms and crypto wallets. The following gives the best to use.

Crypto exchanges: Binance, Cex.io, Crypto.com, and Kraken are some of the best.

Crypto wallets: Daedalus, Exodus, and Yoroi wallets. 

Cosmos (ATOM)

Cosmos project is also one of the best options to stake in 2023 if you want a passive income with a high APY. It offers rewards of up to (20%) of your staked ATOM. It allows stakers to delegate to one or more validators for safety and increase income. Stakers can also use Authz and REStake for auto compound staking to increase their APY. The following are platforms to stake your ATOM:

Centralized exchanges: Binance, Coinbase, and Kraken.

Wallets: Cosmos staking gives a wide range of wallet options to trade. It is supported by 33 wallets, from Keplr to Ledger.

Ethereum (ETH)

Ethereum staking is a way of earning percentages of Ethereum for yourself as a reward. It is one of the most durable staking options widely accepted globally. You can earn rewards of up to (7%), which can change based on supply and demand. Finally, Ethereum can be staked through three methods. Listed below are the methods:

Centralized exchange: Ethereum can be staked in centralized exchanges such as Binance, Coinbase, eToro, Gemini, Huobi, and Kraken. This method takes just a few clicks to get started.

Staking pool: Unlike the centralized exchange, this process has more steps and gives liquid tokens.

Individual nodes: This method requires staking 32 ETH and actively working machines connected to the internet 24/7. This can be challenging as 32 ETH is worth around $52,901.44 today.

Furthermore, it’s essential to know that the individual node and centralized methods differ from the staking pool method, as stakers cannot have the opportunity to withdraw their earnings until the Ethereum network upgrade is completed in the middle or late 2023.

Polkadot (DOT)

Polkadot project started in 2020 and has gained popularity among crypto investors, making it the fourth largest Proof-of-stake most staked coin in USD value. Staking DOT exposes you to a greater reward of up to (17.9%), depending on different criteria. You can start staking DOT on the native platform for as low as 1DOT, equivalent to $7.09 today, and on other platforms for as low as 10DOT ($70.9). DOT can be staked through an exchange or wallet. Locking up DOT on an exchange is an easy staking method, as investors don’t have to go through long, complicated processes and requirements. With just a few clicks, you are done staking. Below are the exchanges and wallets you can use for DOT staking.

Exchanges: Binance, Crypto.com, and Kraken.

Wallet: imToken, Ledger Nano or X, and Polkadot JS (native wallet).

Polygon (MATIC)

You can stake your MATIC to be rewarded by running your own validator, lending your token to custodial providers, or delegating them to your preferred validators. Polygon generates rewards for stakers through transaction fees and inflation on the Polygon network. MATIC investors can earn a reward of up to (10.9%) APY. The following are the four ways you can lock up your MATIC.

Centralized exchanges: Rewards vary from one centralized exchange to the other. Examples of exchanges to stake your MATIC are Binance, ByBit, and Crypto.com.

Run own validator node: This process requires powerful resources, such as constantly available cloud servers to validate transactions, and situations of unstable cloud servers might lead to reduced rewards.

Liquid staking: This process allows you to stake your MATIC tokens and free them from lockup whenever you want. 

Delegating directly: You can delegate your coins to a public validator to stake on your behalf for a shared reward.