Step into the world of crypto, and it’s hard to miss the chaos. Coins moon, scams detonate, and first-time investors get played like tourists at a blackjack table.
But there’s one corner of the market that isn’t fueled by hype or headline-grabbing moonshots: staking. It won’t make you a millionaire by next week. It might, however, keep your portfolio working while you sleep.
Think of it as the slow burn of crypto, locking coins into a network so it runs securely and you earn modest rewards in return. Less roulette wheel, more interest-bearing account. And for investors trying to avoid scams and noise, wallets like Best Wallet now act as a one-stop app to compare opportunities, manage lock-ups, and keep custody of your assets without handing them to some anonymous platform promising the world.
At its core, staking means putting your coins to work to help secure a blockchain. In return, the network pays you.
“Crypto staking is like earning interest on your digital coins,” said Haim Wortman, founder of Impartoo.com, a site that curates expert-backed Top 10 lists for stocks, ETFs and crypto. “You lock them up to help run the blockchain network and, in return, receive rewards.”
No bank manager, no middleman. The protocol itself handles payouts, sending rewards directly to your wallet when you play by the rules.
- Download a trusted exchange app — Start by choosing a licensed crypto exchange. We recommend starting with the Best Wallet app, available in both the iOS and Android app stores.
- Create and verify your account — Sign up using your email, Google, or Apple ID. To complete registration, you’ll need to verify your identity with a government-issued ID and enable two-factor authentication (2FA) for added security.
- Fund your account — Deposit money into your account by linking a bank account or credit card or even using gift cards. Choose an option that best fits your lifestyle for convenience or anonymity.
- Buy your first cryptocurrency — Use the app’s marketplace or swap tool to purchase crypto by entering the ticker symbol — like BTC for Bitcoin or ETH for Ethereum — and follow the prompts to complete the transaction.
- Choose how to store your crypto — Decide whether you’ll keep your crypto in the exchange, move it to a digital wallet (hot wallet), or store it offline (cold wallet) for extra protection.
Size matters.
“Ethereum dominates because it’s the largest proof-of-stake network with deep liquidity and strong demand,” said Ben Kurland, CEO at crypto research platform DYOR. “But ‘best’ depends on risk tolerance and reward goals.”
Nic Puckrin, founder at Coin Bureau, agreed: “Investors need to weigh potential rewards, lock-up periods, and the risk of the underlying asset’s volatility. It’s ultimately a trade-off between risk and reward.”
Translation: There’s no silver bullet when staking. Ethereum, Solana, Avalanche; they all offer staking, but they move differently. While ETH’s size makes it stable, smaller chains dangle higher APYs that can vanish just as quickly.
Best Wallet helps cut through the noise by listing hundreds of validators across 60+ chains — with real-time info on lock-up terms, uptime, fees, and APY — so you can avoid fly-by-night operators and pick the risk level that fits your comfort zone.
Ignore the billboards promising 20% APY. That’s marketing spin you’re too smart to fall for if you’re reading this.
“To assess how profitable it is to stake, we need to measure the real staking yield, which is the nominal staking yield minus the token inflation rate,” said Victor Li, co-founder and Research Advisor at Firinne Capital.
BNB Chain leads the pack on profitability, with Avalanche not far behind, Li noted.
However, Maximilian Pace, CTO of BlockTrust IRA, cautions: “Some coins advertise very high staking rewards, but those are often canceled out by token inflation (new coins constantly being created). True profitability depends not just on the reward rate, but also on whether the token itself gains value over time.”
Best Wallet’s dashboard lets users see inflation-adjusted yields across networks, making it much harder for projects to sucker you with inflated numbers.
One big rookie mistake? Thinking Bitcoin can be staked.
“Cryptocurrencies work based on two primary mechanisms to validate transactions,” said Quinn Shearer, managing director at GA Group. “Proof of Work (PoW) networks, like Bitcoin, rely on mining. Proof of Stake (PoS) networks, like Ethereum, rely on validators.”
In other words, Bitcoin is mining only.
Offers labeled “Bitcoin staking” are really lending schemes or wrapped tokens.
“Much like stock dividends, wealth in crypto typically comes from the token’s price itself, rather than the staking rewards,” said Temujin Louie, CEO of Wanchain.
This is where newbies can really get burned. Staking carries risks, some obvious, others buried in the fine print.
Unstaking delays mean your funds can be locked for weeks or months. Best Wallet helps by showing validators with different lock-up periods, from as short as one week up to three months, so you know exactly how long you’re tied down.
Then there’s volatility. If the token’s price tanks, your rewards won’t matter. Best Wallet includes stablecoin staking options (USDT, USDC) for lower-risk investments.
Validator failure is another killer. If the validator you choose gets penalized (called “slashing”), you lose. It’s that simple. Best Wallet lets you filter by validator uptime, fees and track record, aiming to steer you toward reliable operators.
And don’t forget platform risk. Centralized platforms can and do blow up. “Crypto staking is safe from a security point of view once you maintain control of your coins using a non-custodial method such as a secure hardware wallet,” said Charles Guillemet, CTO at Ledger.
Best Wallet doubles down here: It’s self-custody and no-KYC, so your keys stay with you, not with some faceless exchange. Add biometric logins, two-factor authentication, and suspicious token alerts, and it’s built to keep your assets in your hands, which means out of anyone else’s.
Is staking legal? Technically, yes.
“Yes, crypto staking is legal,” said Ben Michael, attorney at M&A Criminal Defense Attorneys. “But, there can be different regulations that you have to follow.”
In the U.S., regulators zero in on platforms that pool customer funds. “The biggest issue regulators have is when platforms pool customer funds, promise returns and are not clear about what is really happening,” said Marlon Williams of Atlanta Blockchain Center.
Kraken learned the hard way. In 2023, the SEC accused it of running an unregistered staking program. The company paid penalties and shuttered its U.S. staking service.
Self-staking through wallets like Best Wallet remains untouched by those cases, yet another reason retail investors lean toward self-custody.
“If you already hold something like Ethereum and plan to keep it long term, then staking can give you a steady extra return,” said Dawid Siuda, finance expert at Omni Calculator. “But it’s not a quick way to get rich.”
“Staking carries risks, but they’re well understood and manageable,” said Vitaliy Shtyrkin, Chief Product Officer at B2BINPAY. “Market swings can affect returns, and technical issues like validator downtime can occur, though they’re minimized when using verified providers.”
Veteran investor Maksym Sakharov, co-founder of WeFi, summed it up: “I’d say it is safer than trading, especially if it is on established networks like Ethereum and Solana. But it’s not risk-free.”
For investors who see crypto as a long-term bet, staking is more like dividends than day-trading.
With Best Wallet bundling staking, validator research, stablecoin options and even a launchpad for presale tokens running on PoS blockchains like Ethereum or Solana, it’s increasingly the app of choice for investors who want to cut through the hype and keep their keys where they belong — in their own hands.
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Best Wallet
The Best Wallet app puts security first with biometric logins, two-factor authentication, and full non-custodial control — so you hold your keys, not just your coins. With support for thousands of altcoins across 60+ blockchains, it pairs top-tier security with powerful, user-friendly tools — making it the safest, most innovative way to HODL, swap, and manage your crypto.
Coinbase
Coinbase is building a more inclusive financial future for over a billion people, enabling them to trade, stake, spend, and transfer crypto on a secure and trusted platform. It powers the on-chain economy with essential infrastructure, global access, and a commitment to fair, responsible innovation.
Kraken
Kraken takes crypto security seriously, with FIDO2-compliant Passkey logins, encrypted communications, and customizable API permissions that keep your account firmly in your control. With no phone-based recovery, time-locked global settings, and real-time threat monitoring, it’s built to protect your assets at every layer.
Robinhood
Robinhood Crypto offers a user-friendly platform for trading and transferring digital assets, including the ability to securely and easily send and receive crypto to and from external wallets. With its self-custody Robinhood Wallet, it manages crypto holdings across multiple blockchains, including Ethereum, Bitcoin, and Solana.
Ledger
Ledger is a leading provider of secure hardware wallets, offering devices like the Ledger Nano X and Ledger Stax that protect private keys offline using industry-leading Secure Element chips and a proprietary operating system. Paired with the Ledger Live app, manage over 5,500 digital assets, including cryptocurrencies and NFTs.
Crypto.com
Crypto.com lets you buy, sell and trade over 400 cryptocurrencies, including Bitcoin and Ethereum, with zero-fee USD deposits, wire, and Apple/Google Pay. With a user base exceeding 140 million, the platform gives advanced trading options, a self-custodial wallet through Crypto.com Onchain, and industry-leading security certifications.
Uphold
Uphold is a multi-asset trading platform that enables users to buy, sell, and swap over 360 cryptocurrencies, 27 fiat currencies, and four precious metals, all in a single step. With features like assisted self-custody via the Uphold Vault, staking rewards up to 16.8%, and real-time reserve transparency, it offers a secure and versatile experience for both beginners and seasoned investors.