What is crypto staking and how does it earn returns?

Staking means locking up a Proof of Stake coin to help secure the network; in return you earn rewards (APY). The yield comes from newly issued coins and transaction fees that the network distributes to stakers. Unlike a bank deposit, the APY is neither guaranteed nor insured — it fluctuates with network participation and inflation.

Which is the best staking platform in 2026?

For simplicity, Bybit Earn and Binance Earn (flexible staking with no minimum, one click). For liquid staking, Lido (ETH → stETH, which you can keep using in DeFi). For maximum control, your own node or Ledger Live. Staking on an exchange is the most convenient, but it adds counterparty risk.

Which coin offers the best staking APY?

Approximate APYs in 2026: Ethereum (ETH) ~3–4%, Cardano (ADA) ~3–5%, Solana (SOL) ~7%, Avalanche (AVAX) ~7–9%, Polkadot (DOT) ~12%, Cosmos (ATOM) higher. Stablecoin lending 2–10%. A higher APY usually means higher inflation or risk — look at the real, not the nominal, yield.

Is staking income taxable in Estonia?

Yes. Staking rewards are subject to 22% income tax based on the market value at the moment you receive them. When you later sell, the gain is taxed additionally (FIFO). This is double taxation: at receipt + at sale. Declare it in e-MTA, deadline 30 April.

What is liquid staking (stETH)?

Liquid staking gives you a liquid token in return (e.g. Lido stETH, Marinade mSOL) that represents the staked coin and earns rewards, while you can also use or sell it in DeFi at the same time. Risk: the token can lose its peg under market stress (trade below the value of the underlying asset), as happened in 2022.

Is there a lockup period for staking?

It depends on the coin and the platform. Flexible staking (exchange Earn) usually lets you withdraw at any time. Ethereum has an unstaking queue (days), Cardano has no lockup, Polkadot has a ~28-day unbonding. Locked staking offers a higher APY in exchange for less flexibility.

Crypto staking

Earn passive income from Proof of Stake coins: APY comparison by coin, the best staking platforms, liquid staking and risks. Plus the 2026 tax nuances in Estonia.

What is crypto staking?

Staking is locking up a Proof of Stake (PoS) coin to help secure the network. Your stake helps validate transactions, and in return you earn rewards (APY). It is an energy-efficient alternative to mining — it needs no hardware or electricity.

Unlike a bank deposit, the APY is neither guaranteed nor insured. The yield fluctuates with the network's staking participation and the coin's inflation, and the coin's euro value can fall by more than the APY income. Calculate the real yield with our APY calculator.

APY comparison by coin 2026

Coin	Approximate APY	Lockup	Note
Ethereum (ETH)	~3–4%	Unstaking queue	Largest, liquid staking (stETH) popular
Cardano (ADA)	~3–5%	None	Delegation, the coin stays yours
Solana (SOL)	~7%	~2–3 days	High yield among large coins
Avalanche (AVAX)	~7–9%	2 weeks+	Locked staking
Polkadot (DOT)	~12%	~28 days	High APY, long unbonding
Stablecoins (USDC)	~2–10%	Flexible	Lending, not staking; no volatility

APYs are approximate and change constantly. Be cautious with APYs above 20% — that usually signals high risk or an inflationary reward token.

Best staking platforms

Bybit Earn — easiest for beginners

Recommended

Flexible staking for 100+ coins with no minimum, one click. Low fees, MiCA-licensed. A good fit if you just want to start without fiddling with wallets and nodes.

Start on Bybit Earn

Binance Earn — the widest choice

200+ coins

Flexible and locked staking, DeFi staking, dual investment. The widest selection of coins and products. AMF MiCA license.

Open Binance Earn

Lido — liquid staking (DeFi)

stETH

Stake ETH and get stETH in return, which you can keep using in DeFi (lending, liquidity). Non-custodial, but it carries smart contract and peg risk. Suited to advanced users.

Ledger Live — staking from a cold wallet

Secure

Stake ETH, SOL, DOT, ATOM directly from a hardware wallet — the key never leaves the device. Lowest counterparty risk, but you have to manage it yourself.

Buy Ledger

Liquid staking vs locked staking

Liquid staking

You get a liquid token (stETH, mSOL) that earns rewards and is usable in DeFi at the same time. Flexible, but it adds smart contract and peg risk — the token can trade below the underlying asset under market stress.

Locked / flexible staking

Exchange Earn: flexible (withdraw any time, lower APY) or locked (higher APY, fixed period). The simplest option, but you keep your assets on the exchange — counterparty risk.

Risks and taxation

• Price risk — the coin's euro value can fall by more than the APY income.
• Lockup — unstaking can take days to weeks; you cannot exit quickly during a price drop.
• Slashing — in case of a validator error or fraud, part of the stake can be burned (mainly solo staking).
• Counterparty risk — staking on an exchange depends on the platform's solvency (cf. the 2022 collapses).
• Peg risk — liquid staking tokens can lose their peg.
• Tax — staking income is taxed in Estonia at 22% at receipt + the gain at sale (FIFO). See the taxation guide.

How to start staking

1 Choose a coin and a goal — stable yield (ETH/ADA) or higher APY with higher risk (SOL/DOT)

2 Choose a platform — Bybit/Binance Earn (simple), Lido (liquid), Ledger Live (secure)

3 Buy the coin on a MiCA-licensed exchange and move it to the staking product

4 Activate staking — flexible or a locked period

5 Track your rewards and keep a tax record (market value at receipt)

Start staking on Bybit Earn

Flexible staking for 100+ coins, with no minimum. MiCA-licensed, low fees.

Open Bybit Earn

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