In the world of cryptocurrencies, there are many opportunities to earn income, including passive earnings from existing assets. Staking and farming hold key positions in this regard. However, since some investors prefer stability and predictable income, while others are willing to take more risks for higher profits, the choice between these tools depends on various factors: preferred strategy, goals, risk tolerance, and market conditions.
In this article, we will examine each of these tools individually, compare their differences, analyze the potential returns, and explore the best platforms for staking and crypto farming in 2025.
What is Staking?
Staking is the process of holding a certain amount of cryptocurrency in a wallet to support the operation of a blockchain network, especially in Proof-of-Stake (PoS) systems. This helps validate transactions and secure the network, for which you receive rewards in the form of additional coins.
Simply put, staking is similar to earning interest on a bank deposit. You keep cryptocurrency in your wallet, and the platform credits you with a daily percentage of profit, which is predetermined. In most cases, you can withdraw your staked cryptocurrency at any time.
All conditions, including the annual percentage yield (APY), are specified when opening the deposit. For example, the average APY for staking Ethereum is around 3-4% per year. For other cryptocurrencies, such as Solana, the APY can reach 6-9% annually.
Types of Staking
Staking can be classified based on different operational algorithms, but profitability varies in each case. It directly depends on the amount a user is willing to lock in their account—the more funds are staked, the higher the potential earnings. The main types of staking include fixed, flexible, and DeFi staking. Let’s take a closer look at each:
Fixed Staking
Flexible Staking
DeFi-стейкинг
How It Works
- You hold cryptocurrency in a staking wallet, such as for Ethereum.
- The network selects stakers to validate new blocks based on their staked amount.
- You receive rewards for validation, typically as a share of transaction fees or newly minted coins.
Advantages and Risks of Staking
| Advantages: | Risks: |
| Passive income | Lock-up periods for funds |
| Supports network security | Minimum staking requirements |
| Lower risk compared to farming | Cryptocurrency price volatility |
Top 10 Cryptocurrencies for Staking and Earning
When choosing a platform and network for staking, the key criterion is APY (Annual Percentage Yield), which reflects profitability, including reinvestment of rewards. However, factors like network stability, project reliability, and asset price fluctuations are equally important.
Below is a list of ten high-cap market cryptocurrencies best suited for staking, based on up-to-date data from Staking Rewards at the time of writing.
| Currency | Description |
| Ethereum (ETH) | Ethereum leads PoS blockchains with $132.4B staked and an APY of 3.48%. Its popularity is driven by a robust ecosystem, including LRT and LSD solutions. |
| Solana (SOL) | Known for high throughput and low fees, Solana has $91.2B staked and 9.65% APY. It also supports liquid staking and restaking. |
| Sui (SUI) | A next-gen blockchain gaining traction, Sui has $33B staked with a 2.81% APY, attracting users with innovative architecture and a growing community. |
| Cardano (ADA) | A well-established PoS network, Cardano has $26B in staking and an APY of 2.67%, focusing on dApp development and long-term stability. |
| Binance Coin (BNB) | As the native token of Binance Smart Chain, BNB holds $21.5B in staking with 7.22% APY, making it a versatile investment. |
| Tron (TRX) | One of the early adopters of staking, Tron has $13B in smart contracts and 4.65% APY, widely used for stablecoin transactions. |
| Aptos (APT) | Competing with Sui, Aptos has $12.5B in staking and a 7.00% APY, attracting developers with low fees and high-speed transactions. |
| Avalanche (AVAX) | Combining EVM compatibility and high performance, Avalanche has $12.41B in staking and 7.79% APY, playing a major role in DeFi and gaming. |
| Polkadot (DOT) | With a parachain architecture, Polkadot holds $8.65B in staking and offers 11.96% APY, focusing on Web3 and cross-chain interactions. |
| Celestia (TIA) | A modular blockchain launched in 2023, Celestia has $6.12B in staking and 10.69% APY, designed for scalability and developer convenience. |
Each of these cryptocurrencies offers unique earning opportunities through staking due to their diverse characteristics and yield levels. 
Leading Staking Platforms
The choice of a provider depends on the supported networks, security level, and user needs. Below is a list of the largest staking services with descriptions of their features, total value locked (TVL), and number of participants.
Bybit
Binance
OKX
MEXC
MEXC offers perpetual and fixed-term crypto staking (1-30 days) with yields ranging from 1% to 15%+. It’s suitable for beginners, featuring a simple interface and no mandatory verification for basic operations. The selection of coins is moderate, focusing on popular assets like ETH and USDT.
BingX
Lido
Marinade
Other Staking Platforms
Let’s take a look at some slightly less popular options:
- Ether.fi – A decentralized Ethereum staking platform focused on liquidity and security. Users retain full control over their funds.
- Kiln – An enterprise-grade staking solution for PoS assets, including Ethereum. Suitable for institutions and developers due to easy integration.
- P2P.org – A professional service supporting staking on networks like Solana, Ethereum, and other blockchains.
- Allnodes – A platform for node management and staking with an emphasis on convenience and reliability. Supports multiple networks.
- Consensys Staking – A staking product by Consensys for Ethereum with high-security standards and ecosystem integration.
- Stakin – A staking service for Solana, Celestia, Ethereum, and other networks with a professional approach.
- Staking Facilities – A German provider for PoS networks focused on institutional clients and high-security standards.
These platforms offer a variety of staking tools, allowing both large investors and individual users to find the optimal solution by balancing profitability and security. 
How to Stake Funds: Step-by-Step Guide Using Bybit
- Create an Account and Deposit Funds Ensure you have a Bybit account. If not, sign up on the website. Then, deposit USDT into your Funding Account using supported methods such as bank transfer, credit card, P2P exchange, or wallet transfer.
- Navigate to the “Earn” Section Go to the Bybit website menu and select the “Earn”
- Select Savings and USDT In the “Earn” section, choose “Savings.” Find USDT or another cryptocurrency you want to stake from the available assets list.
- Choose a Staking Plan Decide between a flexible plan (withdraw anytime) or a fixed-term plan (locked for a set period). Review the conditions, including the annual percentage rate (APR).
- Confirm Your Staking Enter the amount of USDT or another asset you want to stake and confirm the transaction. Your funds will then be staked, and you will start earning rewards.
Interesting! Bybit offers both flexible and fixed plans, providing greater flexibility depending on your financial goals.
How to Choose the Right Cryptocurrency for Staking
With numerous tokens available for staking, selecting the right one can be challenging. Here are the key aspects to consider:
- Type of Cryptocurrency. Ensure that the chosen currency supports the Proof of Stake (PoS) algorithm. Without it, staking will not be possible.
- Interest Rate. Staking yields vary depending on the token. Review the annual percentage rate (APR) of each asset to select the most profitable option.
- Number of Coins and Inflation. Prefer tokens with a limited supply. This helps maintain the value of your assets in the long run.
- Staking Flexibility. Some platforms lock your tokens for a set period, while others allow them to remain liquid. Choose more flexible conditions if you want access to your funds at any time.
Tips to Maximize Staking Profitability
Now that you know the basics, here are a few strategies to help increase your earnings and make the staking process more efficient:
- Choose a Reliable Platform. Use only trusted platforms with strong security measures, including two-factor authentication.
- Stake different tokens to reduce risks and increase potential profits.
- Prefer platforms that automatically reinvest your rewards to boost returns.
- Monitor Activity. Regularly check your account for suspicious actions. If you notice unusual activity, contact support immediately.
- Keep Software Updated. Ensure your software is always up to date to take advantage of the latest security and functionality improvements.
- Use Staking Calculators. These tools help estimate potential earnings and select the platform that best fits your goals.
What is Yield Farming?
Yield farming involves providing liquidity to decentralized finance (DeFi) platforms, such as liquidity pools on DEXs like Uniswap or Curve. You deposit your crypto assets and, in return, earn a share of transaction fees or additional tokens. 
Concentrated Liquidity and Price Range Selection
On platforms with concentrated liquidity, such as Uniswap v3, you can specify a price range in which your liquidity will be active. For example, if you expect ETH/USDT to stay between $1,000 and $1,200, you can provide liquidity only within that range. This allows you to earn fees exclusively from trades within your selected range, potentially increasing your returns if the price remains stable.
However, if the price moves outside your chosen range, your liquidity becomes inactive, and you stop earning fees until the price returns. This requires strategic range selection based on price expectations and potentially active position management.
What is Impermanent Loss in Farming?
Impermanent Loss occurs when the prices of assets in a liquidity pool change after you’ve deposited them. Imagine you add USDT and ETH to a pool in equal proportions, but then ETH’s price surges. The pool automatically rebalances, reducing your ETH share while increasing your USDT share to maintain balance. If you had simply held ETH instead, your returns would have been higher than those from the pool.
These losses are called “impermanent” because they only materialize when you withdraw your assets. If the price returns to its original level, the losses disappear. However, this is one of the main risks in yield farming that investors should consider.Example with USDT and ETH
Let’s say you want to provide liquidity for the USDT-ETH pair. You deposit $1,000 in USDT and an equivalent amount in ETH at the current market price. On Uniswap v3, you can select a price range for your liquidity. If the market price remains within this range, you’ll earn fees from all trades occurring within it, proportional to your share of liquidity.
Trading fees are usually a percentage of the transaction amount, and Uniswap v3 offers different fee tiers: 0.01%, 0.05%, 0.3%, and 1%. Choosing a higher fee tier can increase your earnings but may also discourage traders if the fee is too high.
If ETH’s price moves outside your selected range, your position becomes inactive, and you stop earning fees until the price reenters the range. In this case, you may need to manually adjust your range to reactivate your liquidity, but this could involve additional gas fees, especially on Ethereum.
Automation Tools
Advantages and Risks
Concentrated liquidity can lead to higher earnings if the price remains within your chosen range. However, it also comes with risks. If the price moves outside your range, you lose the ability to earn fees until you adjust the range. This may require additional management costs, including gas fees on Ethereum. 
How It Works
- You deposit cryptocurrency into a liquidity pool, such as Uniswap.
- The platform uses your assets for trading, lending, or other operations, and you receive rewards in the form of fees or tokens.
- Earnings are often measured in APY (Annual Percentage Yield), which can range from a few percent to over 100%, depending on the platform and market conditions.
Advantages and Risks of Yield Farming
| Advantages | Risks |
| High potential returns | High risk, including hacker attacks |
| Diversification opportunities | Impermanent loss |
| Active management for optimization | Complexity in investment management |
Top 10 Cryptocurrencies for Yield Farming
Cryptocurrencies for farming are selected based on their usage in popular DeFi protocols, where they provide liquidity or staking opportunities. Research indicates that assets with high Total Value Locked (TVL), such as stablecoins and major crypto assets, are most commonly used for farming due to their liquidity and stable returns.
| Rank | Cryptocurrency | Notes |
| 1 | Tether (USDT) | Highest TVL, popular in lending and liquidity pools.. |
| 2 | USD Coin (USDC) | Widely used in platforms like Aave due to its stability. |
| 3 | DAI | Stablecoin frequently used in pools like Curve. |
| 4 | Wrapped Bitcoin (WBTC) | Represents BTC in DeFi, used in liquidity pools. |
| 5 | Ethereum (ETH) | Core asset for many protocols, including Uniswap and Aave. |
| 6 | BUSD | Used in BNB Chain, popular on PancakeSwap. |
| 7 | Polygon (MATIC) | Popular in the Polygon ecosystem, used in farming on Balancer. |
| 8 | Solana (SOL) | Growing in DeFi, utilized in Solana protocols like Orca. |
| 9 | Avalanche (AVAX) | Actively used in the Avalanche ecosystem, e.g., Aave. |
| 10 | Chainlink (LINK) | Often involved in pools like Aave due to its role in oracles. |
This list reflects assets with the highest TVL, indicating their popularity among DeFi users. However, yields may vary, and selection depends on current market conditions, including APY rates and risks such as impermanent loss in AMM protocols. 
Leading Farming Platforms
The top farming platforms were selected based on the following criteria: TVL, reputation, user base, and support for various assets. The list of leading platforms includes:
Uniswap
- Operates on Ethereum but also supports Layer 2 networks (Polygon, Optimism, Arbitrum), reducing transaction fees.
- In Uniswap V3, users can select price ranges for providing liquidity, making farming more flexible and potentially more profitable.
- Governed through the UNI token, which is used for DAO voting.
Relevance in 2025: Uniswap remains a leader among DEXs due to its strong reputation and continuous improvements.
Trader Joe
- Users can add tokens to liquidity pools and receive JOE tokens as rewards.
- Low fees and high transaction speed thanks to Avalanche.
- Additional features such as lending and JOE staking.
Relevance in 2025: Trader Joe continues to strengthen its position within the Avalanche ecosystem, especially for those seeking alternatives to Ethereum.
Aave
PancakeSwap
- Farming in liquidity pools with rewards in CAKE tokens.
- “Syrup Pools” for staking CAKE and earning other tokens.
- Support for Initial Farm Offerings (IFO) for new projects.
Relevance in 2025: PancakeSwap remains a popular choice for beginners and those looking to minimize costs.
Curve Finance
- High-efficiency stablecoin swaps (USDT, USDC, DAI, etc.).
- Rewards in CRV tokens for providing liquidity.
- Governance through DAO.
Relevance in 2025: Curve remains a key player for those who prioritize stability.
SushiSwap
- Rewards in SUSHI tokens for providing liquidity.
- Supports multiple blockchains (Ethereum, BSC, Polygon, etc.).
- Integration with BentoBox for additional earning opportunities.
Relevance in 2025: SushiSwap continues to attract users with its diverse features.
Other Farming Platforms
Let’s explore some slightly less popular platforms:
- Compound – Decentralized lending with dynamic rates, supporting assets like DAI and WBTC.
- Convex – Built on Curve, optimizing yields for liquidity providers.
- Yearn Finance – Automates farming by finding the best opportunities for assets like ETH and USDC.
- Balancer – AMM with flexible pools, supporting multi-asset pools, including MATIC and AVAX.
- BadgerDAO – Focuses on BTC-related assets like WBTC.
Staking vs. Farming Comparison
To choose between staking and farming, consider these factors:
- Risk Tolerance – Staking suits low-risk investors, offering stable returns (3-15% APY). Farming is riskier but can yield up to 100% APY.
- Time Commitment – Staking requires minimal involvement, whereas farming may need active management, such as reallocating funds between pools for optimal returns.
- Investment Size – Some staking options have minimum requirements (e.g., 32 ETH for an Ethereum validator), while farming is more accessible for smaller amounts.
- Market Conditions – In bull markets, farming can generate high returns due to increased activity, while in bear markets, staking offers more stability.
Examples & Case Studies
- Ethereum Staking: The average APY is around 3-4%. For instance, if you stake 10 ETH at a price of $3,000, the potential annual return would be approximately 0.4 ETH or $1,200. However, this depends on ETH price volatility.
- Farming on Uniswap: APY can range from 14% to 27% for major pools, but there is a risk of impermanent loss, especially if asset prices in the pool fluctuate significantly.
Trends in Staking & Farming
Both strategies remain popular. The increasing adoption of PoS blockchains, such as Ethereum after its transition to PoS, has made staking more accessible. Farming continues to grow with the expansion of DeFi, but with heightened awareness of risks like smart contract vulnerabilities. Regulatory aspects also play a crucial role, as tax implications for staking and farming earnings vary across jurisdictions.
Recommendations:
- If you prefer stability and long-term investments, staking is a solid choice, especially for major cryptocurrencies like Ethereum or Cardano.
- For short-term high-yield strategies, farming is a viable option, but be prepared for potential losses and active portfolio management.
- Diversification is recommended—combining both strategies can help balance risks and returns.
FAQ
What is staking and farming in simple terms?
How is staking different from mining?
Which wallets support staking?
Which earns more money?
Which is safer?
How much time does it take?
- Staking requires minimal effort – you deposit your coins and earn passive income. Some platforms have an unfreezing period (a few days to a month) before withdrawals.
- Farming requires active monitoring – you must check liquidity pools, adjust investments, and respond to market changes. Returns can fluctuate daily.
What is easier for beginners?
- Staking is beginner-friendly. You choose a well-known cryptocurrency (e.g., Ethereum or Cardano), stake it on a platform like Binance or Bybit, and start earning.
- Farming is complex. It requires knowledge of DeFi, liquidity pools, and risks like impermanent loss. New users may struggle with unfamiliar terms and potential losses.
Can I lose money?
- In staking, losses occur mainly due to price drops. For example, if you staked Ethereum at $3,000 and it fell to $1,500, your holdings lost value, though you still have the same number of coins.
- In farming, risks are higher. For example, in “rug pulls” (fraudulent projects where developers disappear with funds), investors can lose everything. Also, impermanent loss means that drastic price changes in provided assets may leave you with fewer profits than expected.
How much money do I need to start?
- Staking can start with as little as $10–20 on platforms like Binance or Coinbase. However, running your own Ethereum validator requires 32 ETH (~$96,000 at $3,000 per ETH).
- Farming can start with $10–50, but high transaction fees (especially on Ethereum) make small investments less profitable. A good starting point is $100–200.
What should I choose if I prefer low risk?
Where is it safest to stake or farm?
- For staking: Use reputable platforms like Binance, OKX, or Bybit, or a hardware wallet like Ledger for better control.
- For farming: Choose well-established DeFi protocols like Uniswap (Ethereum) or PancakeSwap (Binance Smart Chain). Always check audits and reviews before investing.
Which is better for long-term holding?
- Staking is ideal for long-term investing. You can hold assets like Solana, earn rewards, and benefit from potential price growth over years.
- Farming is better for short-term high-yield opportunities. Yields fluctuate, so farming strategies require active management. A liquidity pool may be profitable one month but decline the next.
Conclusion
Choosing between staking and farming depends on your risk tolerance, time commitment, and investment goals. Both strategies have their advantages and risks, so it’s crucial to conduct your own research based on the latest market trends. For example, staking may be better suited for long-term investors, while farming is ideal for those willing to actively manage their assets and accept higher risks.
The crypto market is constantly evolving, offering new opportunities for those interested in DeFi, staking, and farming on a regular basis. Modern platforms now leverage artificial intelligence (AI) to simplify asset management—analyzing market trends, recommending optimal strategies, automatically adjusting positions, and finding the most profitable earning methods. This is particularly useful for those who don’t have time for deep market research but still want to generate stable passive income. To learn more about the emerging DeFAI trend and how AI is transforming DeFi investments, check out our dedicated article.
Key Takeaways
- Research shows that staking typically offers more stable but lower returns, while yield farming can generate higher profits but comes with greater risk.
- Your choice depends on your risk tolerance, time commitment, and investment goals.
- Surprising fact: Yield farming can lead to impermanent loss, which may become permanent when withdrawing funds.
