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Crypto Staking Calculator

Calculate your potential crypto staking rewards with our beginner friendly Crypto Staking Calculator!

At the end of the compounding process you will earn 0.0000 more tokens.

As a savvy investor in the world of cryptocurrencies, you’ll know that staking is one of the most effective ways to generate passive income from your idle digital assets. To help you make the most of this opportunity, our user-friendly calculator provides a clear insight into the rewards you can expect from staking.

Simply input the amount of tokens you wish to stake, along with the desired lock-up period, and our Crypto Staking Calculator will do the rest. This essential tool empowers you to make well-informed decisions and maximize your return on investment. To ensure the best possible outcome, it’s advisable to have a solid understanding of crypto staking prior to using the calculator. With this knowledge in hand, you can confidently embark on your staking journey and fully capitalize on the benefits it offers.

What is Crypto Staking?

On the blockchain, transactions are verified and validated in different ways. For Bitcoin, for example, transactions are verified using the proof-of-work consensus mechanism. Network participants give proof of their work by solving complex equations to confirm the transactions happening on the blockchain. Although proof-of-work is becoming obsolete and popular blockchains like Ethereum are moving to Proof-of-Stake blockchains. 

Proof-of-Stake blockchains use the stake of network participants to validate transactions on the blockchain. With crypto staking, network participants stake/lock their cryptocurrency on the blockchain to provide proof that these transactions are legit. Crypto staking is the process of locking your cryptocurrency on a specific blockchain like Ethereum, Polkadot or Solana to validate transactions on the network. For staking your cryptocurrencies which will be used to validate transactions on the blockchain, you get the right to earn rewards when new blocks are generated. You also frequently get the ability to vote on governance and other decisions on these blockchains.

The term cryptocurrency staking also refers to any other situation where you hold your cryptocurrency in a set wallet or account in exchange for profits. A standard option now is to use a crypto savings account to earn interest. The benefit of these accounts is that you can find options for cryptocurrencies that do not use Proof of Stake. This makes it possible to stake Bitcoin, Ethereum, USDT, or other cryptos you could not otherwise stake.

Algorithm Types For Staking

Proof of Stake (PoS)

In contrast to Bitcoin’s Proof-of-Work (PoW) method, the Proof of Stake (PoS) mechanism selects the next block validator based on the number of coins they hold and random combinations. To earn rewards, all you need to do is hold (HODL) coins in your wallet. User rewards come from transaction fees.

Proof-of-Work (PoW)

This algorithm involves complex calculations that can be easily verified by all network participants. For instance, in the Bitcoin blockchain, transactions are grouped in a memory pool while a new block is created every 10 minutes.

Delegated Proof-of-Stake (DPoS)

Designed to address Bitcoin’s scalability issues, the DPoS consensus mechanism operates similarly to a democratic system. Approximately twenty full nodes are chosen for mining blocks, and users who voted for them receive a percentage of the block reward.

Leased Proof-of-Stake (LPoS)

This mechanism enables users with a small balance (number of coins) to “lease” (account leasing) their coins to full nodes with a stable connection. Users can earn rewards for block creation and actively participate in the network’s functioning.

Masternodes (MPoS)

A full node can become a masternode if it invests a substantial number of coins. Masternodes are considered more reliable than full nodes and typically work in combination with PoS or PoW mechanisms.

Bonded Proof-of-Stake (BPoS)

In this system, any number of users set aside a portion of their stake to generate new blocks. They lock up part of their stake as a security deposit for a specific period. Then, they gain the opportunity to select the next block, proportional to their staking amount.

What you Need to Know Before Staking Crypto

While staking your Ethereum or Cardano is straightforward, you should keep a few essential things in mind before starting.

 

1. Reputable Platform

You can stake your crypto directly from your crypto wallet or on a centralized exchange like Binance or OKX. You should always make sure you choose a staking platform with a good reputation. This will protect your funds and help guarantee you get your advertised staking rewards.

To evaluate the platform’s reputation, check out reviews on the Internet. You can also check reviews for most platforms under the Reviews tab. Look at the platform’s history, the team’s experience and if they are reliable.

This is also ideal to see how the platform earns crypto to pay you interest. The platform should have a reliable, proven effective, and relatively safe method.

 

2. Lock-Up Period

Every staking system works differently. Some will require you to lock up your cryptocurrency for a set amount of time, which means that you cannot withdraw your cryptocurrency during that period. Most cryptos have the option of flexible staking, where you can withdraw your crypto at any time.

Pro Tip: If you choose to stake your crypto on an exchange or directly from your crypto wallet, in most cases, you will find that the best returns are earned when you lock your crypto.

Before choosing your lockup period, consider how long you can be without cryptocurrency. Think about plans for the future and whether you want to use this crypto to trade or buy something. You can lock your crypto for extended periods if you are hodling crypto and do not have any immediate plans. Please also note that once locked, you will not be able to withdraw your tokens even if the price of your cryptocurrency drops.

 

3. Interest Rate

You will also want to consider the interest rate for your chosen platform, as this directly affects the results of your staking rewards calculator. A higher interest rate yields larger rewards. You should also pay attention to how frequently that interest rate is compounded. Ideally, you want an account with daily compounding interest.

 

4. What Earnings to Expect

The best platforms will offer a higher interest rate if you lock up your cryptocurrency for longer. This means that you should play around with a crypto staking calculator to find the right balance between a high-interest rate and a lockup period you can handle.

Crypto Staking Options

Ethereum Staking

With the Ethereum Merge being completed, the Ethereum network has moved from a proof-of-work consensus mechanism to proof-of-stake. With this change, token holders can stake their Ethereum tokens and earn passive income rewards in return for validating the Ethereum blockchain. Ethereum offers a 4-5% average reward for crypto staking and is the most secure blockchain after Bitcoin.

For more information on staking Ethereum, check out our beginner’s guide to staking ETH tokens.

Solana Staking

Created in 2017 by Anatoly Yakovenko, Solana focuses on speed and scalability for decentralized applications on the blockchain. Solana can process 710,000 transactions per second without using any scaling solutions. Solana has the largest network after Ethereum and Bitcoin and offers an average interest rate of 5-7%. 

For more information on staking Solana check out our beginner’s guide to staking SOL tokens.

Cardano Staking

Cardano was also started in 2017 by Charles Hoskinson and Jeremy Wood, who had previously worked together on the Ethereum project. Cardano aims to be a flexible, sustainable, and scalable blockchain with a noble vision of improving the world.

For more information on staking Cardano, check out our beginner’s guide to staking ADA tokens.

Polkadot Staking

Founded by Ethereum cofounder Gavin Wood in 2016, Polkadot is a blockchain for the future. Polkadot aims to create a network of multiple blockchains (called parachains) working in parallel. Using various chains, Polkadot achieves decentralization, security, and scalability on its blockchain. In our opinion, Polkadot currently has the best safety-reward ratio out of all top blockchains.

For more information on staking Polkadot, check out our beginner’s guide to staking DOT tokens.

Polygon Staking

Polygon is a scaling solution for Ethereum and was created to solve Ethereum’s scalability problem. By using Polygon, participants can enjoy fast and low-cost transactions while staying in the Ethereum ecosystem. Currently, Polygon MATIC is being used by big companies like JP Morgan, Meta, and Reddit.

For more information on staking Polygon, check out our beginner’s guide to staking MATIC tokens.

Avalanche Staking

Founded and led by Ava Labs in New York, Avalanche is lightning fast, low-cost, and eco-friendly. Avalanche boasts a huge DeFi ecosystem with over $11 billion locked in dApps like Aave and SushiSwap.

For more information on staking Avalanche, check out our beginner’s guide to staking AVAX tokens.

Cosmos Staking

Regarded as the Internet of Blockchains, Cosmos was created with the aim of interoperability among existing blockchains. Currently, the Cardano blockchain cannot communicate with Solana or Polkadot. Cosmos is a next-generation blockchain that will allow these blockchains to communicate with each other using the Inter-Blockchain Communication Protocol.

Although it might be a little risky, ATOM offers a great return on crypto-staking rewards.

For more information on staking Cosmos, check out our beginner’s guide to staking ATOM tokens.

Axie Infinity Staking

Inspired by Pokemon, Axie Infinity is a Play-to-Earn NFT game. With Axie Infinity, you can battle your cute-looking Axies with other players worldwide and potentially earn life-changing money in the process. Axie Infinity is developed by Sky Mavis and is run on Ronin, a side-chain of Ethereum.

For more information on staking Axie Infinity, check out our beginner’s guide to staking AXS tokens.

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