Discover why every crypto trader should own stocks in 2025 — diversify risk, boost stability, and tap into the tech fueling blockchain’s growth.

The origins of the crypto market date back to 2010, when the first cryptocurrency exchange, BitcoinMarket, began operating. Since then, the market has matured significantly. It has entered the financial world’s mainstream with an extended web of centralized and decentralized exchanges, 

 (ETF) products offered by traditional finance (TradFi) providers. Liquidity levels have also risen significantly, with daily crypto trading volumes measured in tens or hundreds of billions.

Despite its ongoing maturation and substantial liquidity levels, the crypto market remains highly volatile. While it might offer high potential returns, there are associated risks. In this environment of elevated volatility, it’s crucial for investors to diversify their holdings by adding other, more stable asset classes to their portfolios. In this respect, the stock market offers some of the best diversification opportunities for cryptocurrency traders. It is established, more relatively stable and less volatile, and it has an abundance of assets with low correlations to crypto.

Any financial market has its own share of risks, but they are particularly noticeable in highly volatile markets, including the cryptocurrency market. Even the most stable and actively traded crypto assets, such as 

 than most equities. This volatility creates opportunities for outsized returns, but it also heightens the trading risk. Investors are using several strategies to reduce risk, among which 

 is one of the most popular and frequently employed.

The theory of portfolio diversification was first introduced in 1952 when economist Harry Markowitz noted that holding different assets with low or negative correlations to each other could act as a powerful hedge against market risks. This is how the modern portfolio theory (MPT) was born. Since then, it has been used successfully in various markets and has been established as a key tool to reduce investment risks.

Based on the principles of MPT, investors can diversify a cryptocurrency-focused portfolio by adding stocks to it. In general, while the crypto and stock markets have had periods of low and high correlations with each other, these asset classes are considered sufficiently dissimilar and driven by somewhat different forces, making them an ideal match in a well-diversified portfolio.

, which now offers stock trading through contract for differences (CFDs) for 78 major stocks.

Besides reducing risk through diversification, crypto investors gain other significant benefits when they extend their reach to the equities market. Among these is access to stable and well-regulated assets linked to the growth of the crypto and blockchain industries. For instance, a subset of the stock market is represented by companies that facilitate crypto investment via regulated channels.

Some institutional investors offer products like 

 based on BTC and ETH. Notable examples include BlackRock (BLK), Robinhood (HOOD) and Charles Schwab (SCHW). Crypto investors may diversify into the stock market by holding ETFs offered by these funds and investing in their equities directly.

Another group of companies includes infrastructure providers or technological enablers of crypto and blockchain tech. Notable stocks in this area are Alphabet (GOOG), Coinbase (COIN) and Block (XYZ).

By choosing the stocks of these companies, investors can gain indirect exposure to the long-term growth potential of the crypto or blockchain sectors.

Technology companies like Apple (AAPL) and NVIDIA (NVDA) play a key role in driving growth in many of the niches that are also important for the development of the cryptosphere. These include areas like 

 (AI), cloud computing, fintech, augmented reality (AR) and virtual reality (VR), the Internet of Things (IoT) and big data. Investing in stocks of companies in these segments may also provide exposure to technologies underpinning the growth of crypto.

The crypto environment is known for featuring high-growth and high-risk opportunities. Growth rates in the stock market are typically considered to be on a lower scale, but for a long-term-focused investment, stocks may provide better risk-adjusted returns. And, as noted earlier, combining crypto and stocks in a well-diversified portfolio may be the optimal strategy — crypto for big gains in the short term, stocks for long-term stability and peace of mind!

This strategy can be particularly useful during crypto bear markets, when BTC and other key cryptocurrencies lose ground, while many stocks may continue on their slow but steady upward course.

Purchasing stocks can also give crypto investors access to a higher-liquidity, more regulated, credible market. While the crypto market’s liquidity levels have risen to respectable levels, they are far lower than the liquidity offered on the stock exchanges. Typical daily trading volumes in stocks are at least half a trillion USD, often more, which is about three to four times as high as in the crypto market. Stocks also offer better protection to investors because they are regulated.

Top stocks for crypto traders to consider

Having been recently added to the S&P 500 (on May 13, 2025), COIN is by far the most high-profile and highest-capped stock directly linked to the crypto industry. As the operator of one of the world’s largest cryptocurrency exchanges, Coinbase acts as the flagman of crypto representation on the stock market. Many analysts believe that COIN is so intertwined with the crypto industry that its stock is likely to correlate with major cryptos, particularly Bitcoin, too strongly for a well-diversified portfolio.

However, the data doesn’t support this seemingly intuitive assumption. As of the time of writing on May 28, 2025, COIN stock’s one-year correlation with BTC stands at 

. This reveals that their price changes are not closely related, making it a surprisingly weak proxy for direct BTC exposure despite being a major crypto exchange. However, it is imperative to note that this correlation fluctuates over time depending on factors like market conditions and Coinbase’s development.

NVDA is among the stock market’s star performers of the last few years. The world’s dominant producer of graphics processing units (GPUs), NVIDIA’s growth has partly been driven by the strong demand from the blockchain industry. The company’s products are used extensively in crypto mining machines, metaverse and web3 gaming applications, decentralized computing platforms, web3-linked AI solutions and more.

As the blockchain and crypto sectors develop, NVIDIA is expected to continue playing a key role in supporting these industries.

Mark Zuckerberg’s Meta Platforms has never hidden its ambitions in relation to the 

, AI, payment infrastructure solutions and other niches highly intertwined with crypto-related technologies. 

The company has the highest potential consumer base on file, with around 3.6 billion users (close to 80% of the entire internet population) across all Meta-owned platforms. As crypto makes further inroads into the mainstream consumer’s world, Meta will undoubtedly leverage its enormous user community to benefit from this growth. 

Owning META stock opens up unparalleled opportunities to benefit from the company’s expected leadership on the consumer side of crypto applications.

Owning a non-tech stock may also be a great idea for a well-diversified portfolio. While tech companies might be affected by the same technology cycles that influence the blockchain industry, stocks in areas like banking provide exposure to a different market segment. And among banking stocks, few can rival the stability, credibility and long-term potential of JPMorgan Chase & Co., the leading banking company in terms of 

. If there’s a beacon of stability among blue chips in the market, it would be JPM. 

The corporation has also recently embraced a more pro-crypto stance by allowing customers to buy crypto through the bank, albeit without providing custody services. It has even released a 

 Bank of America, Citigroup and Wells Fargo.

JPM’s unique blend of TradFi services with emerging crypto asset alignment makes investing in its stock a strategic move for those seeking resilience and relevance in the digital asset era.

Combining crypto and stocks is one of the best hedges against market turbulence and bear markets. As a crypto investor, owning equities in your portfolio ensures a long list of benefits, including but not limited to diversification, access to institutional growth, exposure to technology driving the crypto and blockchain revolutions, more stable returns over the long term, regulatory protections, credibility and access to a more liquid market.

Beginner

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Why every crypto trader should have a stock portfolio in 2025

Master stablecoin spread arbitrage on Bybit using USDe & USDtb. Learn how to earn over 10% yield via low-risk leveraged crypto trading strategies.

 have been an essential part of the cryptosphere for more than a decade. Backed by collateral or 

 mechanisms and pegged to an established traditional finance asset, often the US dollar, they offer rate stability in the turbulent world of cryptocurrency. Traditional stablecoins, however, don’t generate yields. Their real value erodes over time due to inflation. 

 have entered the market in recent years to combat this issue.

Yield-bearing stablecoins feature an operational mechanism that allows them to stay pegged to a traditional asset and generate returns on the principal amount. This enables crypto investors to enjoy low-risk returns on their investments.

The yield-bearing nature of these assets also opens up a way to optimize their returns via spread arbitrage, particularly the leveraged version.

In its most basic form, leveraged spread arbitrage allows you to profit from the difference in borrowing and earning interest rates. Bybit offers a great way to earn higher stablecoin yields using this technique. You can borrow funds at lower interest through the margin trading option in your account by using your 

 principal and invest the borrowed amounts for interest in USDe or USDtb, two yield-bearing stablecoins offered by one of the leading 

What are USDe and USDtb, and why do they offer high yields?

The Ethena protocol is among the leading providers of yield-bearing stablecoins in the crypto market. The project’s first and best-known stablecoin, 

, is an algorithmic crypto pegged to USD that uses 

 contracts, to generate yield. ENA calls USDe a synthetic dollar. Thanks to its yield-bearing properties, USDe has been a tremendous market success. As of late May 2025, it ranks fourth among all stablecoins by 

Following the success of USDe, ENA launched 

, another dollar-pegged yield-bearing stablecoin. Unlike USDe, USDtb isn’t based on algorithmic trading strategies. Instead, it is indirectly backed by high-grade, low-risk traditional assets. USDtb is directly based on 

 (BUIDL), which invests in US treasury bills, repurchase agreements and other cash equivalents. As BUIDL generates yield from these assets, it flows over to USDtb, delivering low-risk, institutional-grade returns for the stablecoin’s holders.

While USDe and USDtb feature different models for generating returns — the former via active decentralized trading strategies and the latter via the backing of traditional assets — they are both known as yield-bearing assets. Their typical annual yields range from around 4% to 15%, depending on market conditions.

Spread arbitrage opportunity through interest rate gaps

Spread arbitrage is a trading technique that allows you to earn returns using the difference between borrowing and investing interest rates.

Using spread arbitrage at the most basic level involves borrowing funds at X% APR and investing them in a financial product that generates Y% APR. You earn a profit when Y is larger than X.

USDe and USDtb offer healthy yield opportunities and, under favorable market conditions, can generate yields that may exceed borrowing rates for assets like USDT and USDC. This creates opportunities for spread arbitrage using a combination of these stablecoins.

For instance, you may borrow USDT/USDC for 

 (UTA). You can then buy USDe/USDtb with your borrowed funds to enjoy a potential rate difference between their yields and the interest you pay on your borrowed USDT/USDC. Bybit regularly offers campaigns based on zero fees for swaps between key stablecoin pairs, potentially making your entire spread arbitrage process even more cost-efficient.

An example of a simple version of spread arbitrage involves swapping your USDT/USDC funds to USDe and earning stable returns. This scenario assumes no leverage and, therefore, no borrowing interest to pay. While this is a great way to earn low-risk returns from USDe, it doesn’t maximize the spread arbitrage strategy’s potential.

A more advanced version that delivers potentially higher returns is via the use of leverage. This involves borrowing funds in USDT, or preferably in USDC, which usually features lower borrowing interest, and investing the borrowed funds along with your own principal in USDe to boost the total yield from the stablecoin. For instance, if the USDC borrow rate is 4% and USDe’s APR is 5%, the difference in the rates, 1%, represents your profit.

Let’s review a typical example of how you can benefit from leveraged spread arbitrage, assuming your initial capital is 1,000 USDT and the leverage ratio is 6x.

You start with 1,000 USDT of your own crypto funds.

You then borrow 5,000 USDT, using your 1,000 USDT as collateral. This gives you 6,000 USDT of total capital to use for your spread arbitrage trading.

You take the 6,000 USDT and convert it to USDe. For example, let’s assume that you can earn a USDe yield of 5% annually from the stablecoin — a relatively conservative estimate. 

 USDe on ENA may deliver much higher returns depending on market conditions and the protocol’s performance (USDe’s yield rate as of late May 2025 is 6.2%). Let’s also assume that your borrowed USDT has an interest rate of 3.73%.

With the assumed yield from USDe of 5%, you earn:

Assuming the 4% interest rate on USDT, you must pay:

Performing spread arbitrage using USDe/USDtb on Bybit gives you multiple benefits:

1. Open a UTA account (if you don’t already have one) and enable margin trading for USDe/USDtb, USDT and USDC.

Set USDe/USDtb, USDT and USDC as collateral.

For the website version, here are the relevant screenshots.

If you use the Bybit mobile app, refer to the screenshots below.

, set 10x leverage, execute a trade to sell 4,000 USDT, or whatever amount you prefer to allocate to spread arbitrage, and borrow 4,000 USDC.

Use the borrowed USDC to buy USDe. Since Bybit offers you a way to earn interest on USDe on the platform, simply hold the borrowed funds in your UTA account to start earning yield.

Track your yields and repayments to see how your spread arbitrage is performing.

If you decide to stop using spread arbitrage, simply sell USDe and repay USDC.

Naturally, just like any other trading strategy, spread arbitrage using stablecoins involves certain risks.

One is the depegging risk. If USDe falls below $1, you may incur magnified losses. For example, with a 5x leverage, a 1% drop in the stablecoin’s rate will result in a 5% total loss.

 is the second type of risk. If yields from USDe drop below the borrowing costs, the entire spread arbitrage strategy will result in a net loss.

Leveraged spread arbitrage using stablecoins is a great way to earn returns with manageable risk. It may be suitable for users comfortable and familiar with the use of margin; traders looking for alternatives to earning yield from staking, 

 and similar DeFi strategies; and those who prefer more passive ways to generate yield from their funds.

However, this strategy is not particularly suitable for beginners, users not comfortable with leverage trading or those skeptical of synthetic stablecoins.

The spread arbitrage strategy described above, along with the examples, does not constitute financial advice. Before applying this strategy in any form, 

Intermediate

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How to unlock over 10% yield using USDe/USDtb Spread Arbitrage strategy on Bybit

This is a thought leadership article written by Mazurka Zeng, Head of Fiat at Bybit.

This post is written by Mazurka Zeng. Mazurka is the Head of Fiat at Bybit.

Stablecoins have become a cornerstone of the digital asset ecosystem, providing a crucial bridge between fiat currencies and the crypto world. 

As Head of Fiat at Bybit, I've seen firsthand how user needs are diversifying, pushing innovation beyond traditional fiat-pegged stablecoins.

Exponential growth in the stablecoin sector

The stablecoin sector is maturing, driven by increasing adoption and regulatory progress, like the 

 the US House Financial Services Committee, with the GENIUS Act 

 to final passage by the US Senate on May 20.

In my role overseeing Bybit's fiat operations, we've integrated stablecoins deeply into our ecosystem. They enable seamless transactions on the 

 platform. Further, they provide yield in 

 and facilitate seamless spending via the 

. This expanding utility fuels the need for a broader range of stable assets.

This growth is undeniable. The market capitalization of fiat-backed stablecoins surged to an all-time high market cap of $248 billion by May 22, 

 with a $151.9 billion market cap, even as it is facing MiCA compliance hurdles in Europe. This dominance, however, prompts a vital question: 

What's next for stablecoins beyond the established fiat-backed giants?

One compelling alternative that is gaining traction is 

. Unlike fiat-backed stablecoins, XAUT is pegged 1:1 to one fine troy ounce of physical gold, securely stored in Swiss vaults and meeting the LBMA Good Delivery standard. This offers users direct digital ownership of gold, combining its historical stability with blockchain efficiency.

Gold has long been valued as an inflation hedge. In 2025, amid ongoing economic uncertainty and geopolitical tensions, XAUT saw significant interest, reflected in its 25% year-to-date price surge. Furthermore, XAUT solves the traditional challenges of physical gold ownership — storage costs and accessibility issues. It allows for fractional ownership (down to 0.000001 troy ounce) and easy, borderless transfers, 24/7.

 markets. The strong user interest confirms a clear appetite for stablecoins backed by tangible, non-fiat reserves, especially during times of market volatility.

Another exciting development is the rise of regionally focused, MiCA-compliant stablecoins. In March 2025, Bybit.NL 

, issued by Quantoz Payments and StablR Limited, respectively. Both are fully backed by fiat reserves (USD) and designed explicitly to meet the EU's rigorous MiCA regulations, offering enhanced transparency and user protection within the European Economic Area (EEA).

, based in Malta, have both secured investment from Tether. Significantly, both issuers leverage Tether's new 

, designed to streamline the issuance and management of regulated digital assets. This backing signals strong confidence in these newcomers and their potential to foster compliant stablecoin adoption in Europe.

The stablecoin market is clearly diversifying. Gold-backed options like XAUT could increasingly appeal to those seeking stores of value outside the traditional USD-dominated financial system. Their stability profile offers a different kind of hedge compared to fiat-pegged tokens.

Simultaneously, MiCA-compliant, locally issued stablecoins like USDQ and USDR are poised to bridge traditional finance and crypto within Europe more effectively. Their regulatory clarity may foster greater trust among users and institutions, facilitating seamless digital euro and dollar transactions across the region.

At Bybit, our focus remains on empowering users. We're committed to providing a wide array of stablecoin options — from established leaders to innovative newcomers like XAUT, USDQ and USDR. By offering diverse assets and supporting regional compliance efforts, we aim to provide the tools users need to navigate the evolving digital economy confidently.

In a world where trust and flexibility are key, stablecoins must do more than just hold value — they must create value. At Bybit, we’re proud to be shaping that future.

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Stablecoins beyond USDT: Exploring the potential of XAUT and newcomers USDQ & USDR

Elon Musk confirmed that X Money, a peer-to-peer payments feature for the X platform, will launch soon in a limited beta.

The S&P 500 rebounded in futures trading after Trump delayed a 50% EU tariff to July 9, easing trade tensions. Gold rose 0.08% to $3,317 per ounce on Tuesday, supported by a 0.20% drop in the US dollar and concerns over the growing US fiscal deficit. Gains were capped by weak domestic demand. The Coindesk Indices, which tracks the broader crypto market, fell 1.13%, with Bitcoin up 1.28% and Ether down 0.51%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is KAITO, up 7.2% after Huma Finance launched the $HUMA airdrop and staking program for Kaito ecosystem participants.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Huma Finance has 

 the $HUMA claim for top Kaito AI yappers and active ecosystem users, distributing 10bps of supply to each group. Eligibility requires past engagement and specific holdings, like 100+ sKAITO or YT KAITO. Staking is also live, offering rewards, feathers, and Vanguard status for long-term holders, with no lockup. Season 1 and 2 will distribute additional rewards over the next 3–6 months.

Check out the latest prices, charts, and data of 

, a peer-to-peer payments feature for the X platform, will launch soon in a limited beta. While it will allow debit card-linked transactions via Visa, there’s still no mention of crypto support—disappointing Dogecoin fans. Musk emphasized caution due to the involvement of users' savings.

With markets closed for Memorial Day on May 26, Bitcoin spot ETFs recorded no activity. 

, allocating 10bps to the top ~500 Kaito yappers and 10bps to active users in the Kaito ecosystem. Eligibility requires holding 100+ sKAITO or YT KAITO and a linked SOL wallet. Two more drops are planned in Seasons 1 and 2, with rewards increasing to 12.5bps for yappers and 2.5bps for the ecosystem, plus extra for those staking $HUMA and $KAITO.

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Elon Musk confirms X Money beta launch

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Part 1: The Basics of Earning Crypto Interest

Cryptocurrency markets are well-known for their inherent volatility. While this poses nontrivial risks, it also opens up unique opportunities to earn yields and returns that the traditional stock market investor may not even dream of.

These substantial yield opportunities have grown larger and more accessible with the development of the 

 (DeFi) industry. The real game changer has come about with the boom of crypto 

(DEXs), both striving to give customers a diversity of financial products.

In this article, we’ll show you how to earn interest on crypto and, more importantly, how to choose investment opportunities that will optimize your yields.

Jargon to Know to Help You Earn Interest on Crypto

Before diving into the best opportunities to earn interest on crypto, let’s cover some of the most important terms used in the crypto finance industry.

 (APY) is yearly interest that accrues to your investment, taking into account the effect of compounding.

 is the measure of a crypto’s market value, which is derived by multiplying its current market price by its circulating supply.

 (TVL) refers to the total market value of all the crypto funds currently locked in a DeFi platform’s 

 refers to a substantial and usually prolonged market decline. Bear markets are characterized by the dominance of selling rather than buying among market players.

 is a decentralized digital network that stores transactions in chains of blocks. Transactional activity on a blockchain is controlled collectively by all of the network’s participants/users. Most of the activity on a blockchain network — exchange of funds between users, confirmation of transactions, and business operations — involves the use of crypto coins.

 (PoS) is a consensus mechanism used on some blockchain networks for validating block transactions. In PoS blockchains, network users lock a certain amount of their crypto assets on the platform for the right to validate transactions and receive staking rewards.

 refers to locking crypto funds, both on centralized and decentralized platforms, in order to generate income.

 is a process whereby you deposit your crypto assets in a DEX’s 

in order to receive rewards in tokens and fees.

 occurs when the price of a deposited asset in a liquidity pool decreases from the time when you deposited it.

The primary methods through which you can earn interest on crypto are staking and lending. Staking involves locking your funds on a blockchain to help validate transactions, in return for which you earn crypto rewards from the platform. Additionally, some centralized platforms — such as CEXs and 

Staking, however, has moved beyond its original intent and now often refers to a plethora of investment products on CEXs and DEXs, in which funds aren’t specifically used for blockchain validation.

 refers to depositing your funds to lending pools (and sometimes to other types of pools as well) with DeFi lending and borrowing protocols, as well as with centralized crypto lending platforms.

When considering lending and staking crypto, of key interest to investors are the security and investment risks involved.

Staking is often viewed as a safer option than lending. After all, staking is a fundamental process on a blockchain network, and is thus well-protected by the overall blockchain security model. If staking fails on a blockchain, the entire blockchain fails, along with all of its 

 (DApps). Due to this critical importance of staking, its safety is secured against all but the most severe hacks.

DeFi lending also takes place on DApps residing on top of the underlying blockchain, which introduces an additional layer of vulnerability. Furthermore, DeFi lending presents some very specific security risks, such as 

Therefore, staking generally poses comparatively fewer security threats to your funds as compared to lending. 

The risk-vs.-return between staking and lending, however, may not be as clear-cut. In general, established lending protocols such as 

 offer lower interest rates for large-cap, popular cryptocurrencies, as compared to standard staking interest rates. However, some smaller lending platforms might offer extremely high-interest rates, usually for highly volatile, small-cap coins.

As with everything in the world of finance, the higher the rate offered, the more risk the investment carries. The downside risks of investing in very new, “dark horse” cryptos available on some lending platforms might be extremely high. Furthermore, when you use DeFi lending protocols, you’ll also face the potential for impermanent loss, due to the volatility of crypto assets. Nevertheless, protocols usually assist with mitigating the losses by distributing a portion of the trading fees to liquidity providers.

Another important factor in the staking vs. lending comparison is collateralization. On lending and borrowing platforms, borrowers are first required to lend funds to the protocol as collateral for their borrowed amounts. Staking, on the other hand, involves no collateral.

Staking on Exchanges vs. Staking on Blockchains

If you decide to stake your crypto funds, your two main options will be via CEXs, and/or participation on a blockchain platform, which can be done directly by running a validator node or by joining a staking pool.

Running a blockchain validator node lets you earn staking rewards directly. However, the technical setup and minimum investment requirements are often significant. For example, to run a validator node 

 you’ll need to download the entire blockchain, be online at all times to avoid “slashing” penalties and run all the requisite software.

Financial requirements for validator nodes are also far from trivial. 

For instance, Ethereum validators must stake at least 32 ETH (around $89,787 as of Feb 4, 2025).

As an alternative to direct staking, you may join a staking pool such as 

 for ETH staking. These staking pool solutions allow users to stake with significantly lower technical and financial commitments. Many ETH staking pools also offer stakers a 

 that represents the staked ETH and its associated rewards, which can be used for various DeFi purposes. However, unlike direct blockchain staking, participating in a staking pool makes you dependent on that pool’s operator.

Instead of staking on a blockchain, whether individually or via a pool, you might consider staking via a CEX. For many crypto investors and users, the CEX route is more affordable, less risky and less technically complicated.

This is largely due to two key factors — the security of your funds, and customer support. Major CEXs are the largest crypto trading platforms in the industry. Their security setups and customer support provide key advantages over blockchains and DApps.

Any potential hacker attacks on a blockchain could lead to potential loss of funds. At the same time, you may use a custodial wallet on a major CEX so that your funds are at lower risk of being hacked. Naturally, CEXs aren’t immune to hacker attacks. However, the larger ones feature cybersecurity as a critical part of their business model. Following the insolvency of one of the world’s leading exchanges, 

, many major CEXs such as Bybit also include 

 (PoR) to make their holdings entirely transparent to the public. Thus, custodial wallets on these CEXs are relatively more secure as compared to noncustodial blockchain wallets.

Staking on a CEX may also help you access investment products with more stable and predictable rates and terms. For novice investors, it could also be a less complicated way to enter the world of crypto staking.

Additionally, staking on CEXs allows you to use coins that are normally not “stakeable” via a blockchain platform. Blockchain staking only works with cryptocurrencies based on PoS networks. For instance, the world’s largest crypto, 

 (BTC), isn’t based on a PoS network, so it can’t be staked on a blockchain.

Best Crypto Staking Coins for Highest Interest

The volatility of the crypto market means that there’s dynamic change when it comes to the best coins for earning interest. Regardless, the best interest rates in the staking game are normally available via CEX staking. Since CEXs offer a wide array of coins and products, there are often great deals available.

CEXs also offer staking for popular stablecoins — such as USDT, USDC, DAI and more — that can’t normally be staked on a blockchain. In addition, some of these coins have great rates on offer. 

For example, Bybit’s current interest rate for USDT staking is 555%, one of the highest rates in general for staking.

The table below shows the top five coins available for staking on Bybit.

Coins are listed in descending order by interest rates. Interest rate and market cap data are valid as of  Feb 4, 2025. (Data source — Bybit.com; Market cap data source — Coingecko.com)

Given the volatility of the crypto industry, the key to earning the best crypto interest rates is to keep an eye on the market and source the best deals as they arise. 

One way to deal with the inherent volatility of crypto markets is to invest using stablecoins. The leading stablecoins — USDT, USDC and DAI — are readily available for staking on exchanges, though not directly on a blockchain.

Some crypto investors, in chasing the best possible rates, move their funds in and out of centralized and decentralized staking and lending opportunities. However, this strategy might backfire, especially with smaller investment amounts, due to the fees involved in withdrawing and depositing your funds on some platforms.

Thus, to earn a higher interest rate in the long term, it’s best to choose a trusted platform in which to stake and hold your crypto, instead of moving your assets around.

Another important consideration for maximizing your returns is the type of interest rate applicable to a staking or lending product. Some of these pay interest based on APY, while others use the APR calculation method.

The key difference is that APR is a simple interest rate calculation that doesn’t take compounding into account. On the other hand, APY is based on compounding interest. All other things being equal, an 

 with the exact same numeric interest rate.

Interest rates on crypto investments do change over time. These changes can be abrupt, and quite substantial. This is particularly true for DeFi lending investments on platforms like Compound, which has algorithmic interest rates that can change within a single day. On the other hand, staking interest rates are comparatively less volatile.

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