What is crypto staking?

Staking locks up your Proof-of-Stake tokens to help validate transactions. In return you earn rewards in the same token, similar to interest. Rewards come from new token issuance and transaction fees. Major PoS networks: Ethereum (~3% APY), Solana (~6%), Cardano (~3%), Polkadot (~10–14%), Cosmos (~14–18%), Avalanche (~7%).

What's the difference between APR and APY?

APR (Annual Percentage Rate) is the simple yield without compounding. APY (Annual Percentage Yield) reflects compounding rewards back into your stake. ETH at 3% APR auto-compounded daily ≈ 3.04% APY. Networks where rewards auto-compound (Cosmos, Solana via re-delegation) effectively give APY; networks where you manually claim and re-stake (Ethereum, Cardano without auto-compound) give APR.

Are staking rewards taxable?

Yes. UK: rewards are taxable as income at fair-market value when received, then enter the s.104 pool for future CGT. US: ordinary income at receipt FMV, then capital gain/loss when sold. Use our Crypto Tax Calculator to estimate the bill. The Jarrett v. US case (2022) suggested staking might not be income until sold, but the IRS issued Rev. Rul. 2023-14 confirming income-at-receipt treatment.

What are the risks of staking?

Slashing — losing part of your stake if your validator misbehaves (Ethereum: up to 1 ETH for inactivity, 16 ETH+ for malicious acts). Lockup periods — most chains have unbonding periods (ETH ~1–7 days, DOT 28 days, ADA none). Smart-contract risk on liquid staking (Lido, Rocket Pool). Price risk — your token can fall faster than rewards accrue. Validator centralisation risk.

Should I solo-stake or use a liquid staking protocol?

Solo staking ETH requires 32 ETH and a node, gives the highest pure rewards and best decentralisation. Liquid staking (Lido stETH, Rocket Pool rETH, Coinbase cbETH) accepts any amount, returns a tradable receipt token, but takes ~10% of rewards and adds smart-contract risk. CEX staking (Coinbase, Kraken, Binance) is easiest but takes the largest cut and adds custodial risk.

🔗 Crypto Staking Rewards Calculator

Project token rewards, fiat value and compounding for ETH, SOL, ADA, DOT and other Proof-of-Stake coins.

Asset

Stake Amount (tokens)

Token Price (USD)

Annual Reward Rate (APY %)

Validator / Pool Fee (%)10% typical for liquid staking, 0% for solo.

Staking Period (years)

Token Price Change (annual %)0 = constant. Negative = bear case. Use cautiously.

⚠️ Illustrative only. APYs change frequently with network participation. Slashing, lockups, smart-contract bugs and price volatility are real risks. Staking rewards are taxable income — see our Crypto Tax Calculator. Not investment advice.

How Staking Works

In Proof-of-Stake networks, validators lock ("stake") tokens as collateral and process transactions. Honest validation earns new-token rewards; misbehaviour gets slashed. As a token holder you can run your own validator (technical, capital-intensive) or delegate to someone else's validator and share rewards minus a fee.

Current Major PoS Networks (May 2026)

Ethereum (ETH): ~3.0–3.5% APY, 32 ETH for solo, liquid via Lido/Rocket Pool
Solana (SOL): ~6–7% APY, no minimum, instant unbonding
Cardano (ADA): ~3% APY, no slashing, no lockup, instant withdrawals
Polkadot (DOT): ~10–14% APY, 28-day unbonding
Cosmos (ATOM): ~14–18% APY, 21-day unbonding, IBC ecosystem
Avalanche (AVAX): ~7% APY, 14-day to 1-year lockup

APY = Real Yield + Inflation

Headline APY can be deceptive. If a network issues 5% new tokens per year and you earn 5%, your real yield is roughly 0% — your token count grows but each token's share of network supply stays flat. The "real" staking yield is usually closer to 0–2% for most major chains. Ethereum is unusual: its issuance is often offset by EIP-1559 fee burns, sometimes resulting in a negative issuance rate, making ETH staking real-yield positive.

Solo vs Liquid vs CEX Staking

Solo (run a validator): Highest yield, full custody, technical setup, hardware costs, slashing exposure
Liquid (Lido stETH, Rocket Pool rETH, Coinbase cbETH): Any amount, tradable receipt token, ~10% fee, smart-contract risk
Centralised exchange (Coinbase, Kraken, Binance): Easiest, custodial risk, often 25–35% fee, may not be available in all jurisdictions (SEC scrutiny)

Risks to Model

Slashing: ~0.1% of validators get slashed each year on Ethereum; risk minimised by reputable operators
Lockup: if you can't tolerate 28 days illiquid, Ethereum (1–7 days) or Cardano (instant) are better
Smart contract: liquid staking has a small but real risk of total protocol loss
Price: a 30% token price drop can wipe out years of staking yield
Tax: rewards trigger income tax at receipt (UK & US)

⚠️

Important Note: Staking yields are not guaranteed. Validators can be slashed, smart contracts can be exploited, and token prices can fall faster than rewards accrue. Staking is a regulated activity in some jurisdictions (the SEC has pursued enforcement against certain CEX staking products). Consult a qualified financial adviser and tax professional.

Related Calculators

Crypto Tax Calculator — UK CGT 2026/27 + US capital gains on crypto trades, plus staking and mining income.
SIP / Mutual Fund Calculator — Project SIP, lump sum and step-up returns. Future value, gains, total invested.
Investment Return Calculator — ROI, CAGR and portfolio growth projections.