By Nerly Shammah Feb 10, 2024
Looking for crypto yields? You've come to the right place. It is no news that idle money loses value overtime. Why have that when you can invest in crypto and stake for mouth-watering interest rates?
In this article, we'd explore the best crypto tokens with the highest staking yields taking projects track record and reputation into account. No meme projects are listed here.
● The market capitalization of yield bearing crypto tokens is over $506 billion according to coinranking.com.
● Staking crypto is the process of locking away a select amount of crypto tokens in exchange for yields(rewards) and governance influence.
● Crypto investors can earn up to 25.01% APR on their crypto investments and up to 19-20% APR on their stablecoin reserves.
● The best crypto with highest staking rewards is Hive, followed by HBD and INJ.
Crypto staking is a practice that involves locking up a select amount of crypto tokens over a duration in return for staking rewards oftentimes called “yields” and/or for governance influence.
DeFi, which is the more common name for this, leads the industries with vast investment opportunities with differing designs for value accrual.
Crypto projects offer staking services for several reasons but more commonly to increase market liquidity, and to incentivize participation in governance. Proof of stake(POS) blockchains are popular for being core pioneers of building economies based on “stake-weighted” governance. Through the process of locking up a select amount of crypto tokens, POS chains offer participants a validator's role in their network to verify transactions, add new blocks to the chain and receive block rewards and transaction fees paid by users of the network.
Similarly, in DeFi pools, stakers - sometimes referred to as liquidity providers receive transaction fees accrued by the pools staked to and also hold governance influence over the direction of the project for all applicable ecosystems.
By doing this, crypto projects majorly hope to foster growth, increase security via decentralization incentivized by this protocol and increase project engagement. Crypto staking yields vary by ecosystem for so many reasons including: projects development roadmap which includes core designs that affect inflation, funding and development targets. Attained value streams and growth trends may also influence yield rates offered by various crypto projects.
Without further ado, here are the 8 best crypto with the highest staking yields in 2024:
Hive is commonly described as a “text-chain”, which as the name implies, allows users to post various texts to the network at zero-cost. Whilst that definition may not sound so exciting, Hive's tech hosts numerous Web3 SocialFi projects and one of the most played and highly valued blockchain games - Splinterlands.
Hive's base yield is 3.01% APR for simply staking Hive on your personal account. Hive yields more rewards when used for curation, however, facilitated by INLEO, a web3 Social Dapp built on Hive Blockchain, “an everything app” in development offers up to 22% APR on Hive staked and delegated to their community account.
HBD yields a 20% interest when moved into a 3-days locked-in savings account. HBD is an algorithmic stablecoin of the Hive Blockchain representing Hive's debts owed to depositors.
Typically, HBD is created when users burn Hive and is destroyed when Hive is redeemed. Unlike centralized stablecoins, HBD maintains its peg via bot arbitrage trading designed to buy and sell HBD in the open markets to maintain its peg to $1 worth of hive tokens.
HBD’s supply and marketcap is designed to stay below 30% of Hive's marketcap, this is called the “haircut rule”. In an event where this threshold is reached, the protocol stops creating HBD, and rather, prints more HIVE tokens to offset the growing supply of HBD.
This effectively ensures that the chain does not suffer a conversion attack similar to that witnessed with LUNA’s UST in the past.
Currently, HBD’S marketcap is only 7% of Hive's marketcap, creating an interesting opportunity for investors to create HBD and earn a stable 20% yield.
To start earning yield on HBD, you need a Hive account and a Hive wallet. We recommend visiting inleo.io to create a free Hive account, then visit Hive Keychain to download the most convenient Hive wallet. Once done, simply import your wallet in the Hive keychain app or extension, depending on what device you're using.
Within the keychain app, you can deposit Hive(buy Hive on Binance or MEXC and send to your Hive account - your username is your Hive address), swap for HBD and move that into savings to earn a stable 20% yield. It's important to safely store your keys upon the creation of your Hive account using inleo.
Afterwhich, you can go back to inleo.io to stay updated on developments in the Hive ecosystem.
With an average transaction cost of $0.01, Injective saves $239 Million+ in fees. Being a proof of stake powered blockchain network built using Cosmos SDK, Injective offers staking incentives to validators to secure the chain.
Investors can conveniently buy and stake INJ using Kucoin, which offers flexible investment tools to maximize crypto returns.
Atom is the native currency of the Cosmos interchain, otherwise known as “internet of blockchains”.
Cosmos tech stack is designed to foster interoperability between blockchain networks. With Cosmos SDK, developers can build scalable, highly customizable and sovereign appchains.
As a proof of staked powered hub, Cosmos offers staking incentives for validators to secure the chain - currently over 180 validators - and for regular investors to get involved via stake and delegation.
Kucoin offers an industry competitive staking APR of 12% for in-platform stakers.
TIA is the governance token of the first modular blockchain network - Celestia.
Celestia is a design specific blockchain tech popular for its data availability network that securely scales with the number of users, making it easy for anyone to launch their own blockchain.
Celestia boasts of making the building of highly customizable blockchain networks as easy as deploying smart contracts. As most modern blockchains, Celestia functions similarly, on a proof of stake consensus mechanisms, incentivizing validators to secure the chain and individuals to stake to reputable and honest validators.
ZIL is the native token of the Zilliqa Blockchain, the world's first shared blockchain.
As most blockchains launched post-Ethereum, Zilliqa aims to scale the use of blockchain for developers and product users.
Zilliqa’s sharded blockchain tech allows it to scale linearly as the network grows. Governed by a network of 2,400 across 4 shards of 600 nodes each. All transactions passed onto the network are verified by a shard of 600 nodes before finality.
Zilliqa’s offered green staking solution presents investors with sustainable yields for contributing to the security of Zilliqa's blockchain.
DOT is the economic token of the Polkadot Blockchain, a scalable and secure network protocol for the next web as self-addressed.
Polkadot is simply a data facilitation network, enabling actual multichain transfer of any kind of data, not just tokens as most blockchain interoperability protocols.
Polkadot is designed to unite a network of heterogeneous blockchains called parachains and parathreads. Said chains connect to and are secured by the Polkadot Relay Chain. They can also connect with external networks via bridges, all enabled and secured by Polkadot.
DOT, the blockchain's native token brings about proper incentivization for validators to verify transactions and secure Polkadot’s Relay Chain.
Near blockchain ushers in a more open, low cost, developer owned, and scalable online experiences through its chain abstraction technology, empowering builders or business developers to create applications that scale to billions of users flexibly even across all blockchains.
The Near blockchain is powered by the NEAR token, enabling its carbon-neutral blockchain reportedly built from the ground up to be performant, secure and infinitely scalable to reach consensus and add authentic and verifiable data to it's network.
Staking NEAR as an investor and believer in the project’s future yields 6% annually and can be accessed similarly to others listed above, via Kucoin.
● Research Before Staking:
As with anything partaining to investment of money, it is also wise to invest time alongside to understand the specific cryptocurrency you plan to stake, its network, and the design of it's staking/rewards mechanism.
The best places to start would be the projects websites, specifically its whitepaper and community forums for additional insights.
● Choose Reliable Platforms:
We've curated what we consider the best crypto with high yields, it's up to you to choose what's more suitable to your needs as an investor. Selecting reputable projects, staking platforms or wallets with a proven track record will save you the headache of security flaws and scams.
● Diversify Stakes:
When available, diversification of stakes is a good way to reduce investment rights and potentially maximize returns. Avoid putting all your coins into a single staking pool or validator. Diversifying your stakes across multiple platforms or validators helps mitigate risks associated with one-point failures.
● Stay Informed:
Keep yourself updated on the cryptocurrency's developments, upgrades, and any changes in staking parameters. Regularly check for updates from the project's official channels to stay in the loop and ensure you don't miss out on opportunities to grow your income or exit for better staking platforms, projects or pools.
● Security Measures:
Implement strong security practices such as using hardware wallets, enabling two-factor authentication, and keeping private keys offline. Security is crucial to safeguard your staked assets.
Where applicable, safeguard your exchange accounts details, your wallet mnemonic phrases or account private keys to avoid being hacked or exploited by bad actors looking for vulnerable crypto investors.
● Understand Unstaking Periods:
Be aware of unstaking periods and withdrawal conditions. Some cryptocurrencies have lock-in periods during which your assets cannot be accessed or otherwise known to not be liquid.
These lock periods are common practises across blockchain ecosystem, set in place to protect these chains from governance attacks and also to reduce volatility of their native assets
● Monitor Rewards and Fees:
Keep track of your staking rewards and any fees associated with staking. Understand the fee structure of the platform and how it may impact your overall returns.
As though interest rates can fluctuate overtime, monitoring your staking accounts enables you track the profitability of your venture over the period of commitment.
● Regularly Reassess:
Periodically reassess your staking strategy based on market conditions, changes in the project's fundamentals, and your financial goals.
This is crucial to put you on the map in actively maintaining and growing a healthy crypto portfolio. Active assessment is vital to catch opportunities, the absence however may lead to grievous lost opportunities.
You can use Coinstats portfolio tracker to enable you easily keep taps on all your crypto investments for a small monthly/yearly fee depending on your preference.
● Consider Long-Term Perspective:
Staking is often more rewarding over the long term. Patience can be key in realizing the full benefits of staking, including potential price appreciation overtime.
It is also more recommended to venture into staking crypto assets or tokens that one believes in its potentials to scale high, this ensures that one sees the staking practice as an added practice to earn passive income as opposed to simply leaving his/her investments staying idle in a wallet.
● Community Engagement:
Participating in the community discussions related to the cryptocurrency you are staking is vital to build more knowledge around your investment and potential earn tricks from fellow investors on how to maximize returns. It also provides valuable insights and help you stay informed about potential changes or issues.
Always remember that staking involves risks, and it's essential to be diligent and informed to make sound decisions. All rates presented in this article are not set on stone, thus, are subject to change at any given time for numerous reasons.
To maximize crypto returns, it's always crucial to act on opportunities when found to be genuine.
Sponsored Crypto & Blockchain
Business & Technology Picks
© ICPF All Rights Reserved