The Complete Guide to Crypto Staking Rewards
By Arshi Khan, Founder of Just4Marketing · Last reviewed October 2026
Staking pays you rewards in coins for locking them up to help secure a proof-of-stake network or for lending them through a platform. Platforms quote rewards as APR or APY, and the difference matters over time. This guide explains both, how restaking compounds your rewards, and the risks the headline rate leaves out.
How staking rewards are calculated
With an APY, final coins = staked × (1 + APY)^years. With an APR that is restaked n times a year, final coins = staked × (1 + APR ÷ n)^(n × years). If rewards are withdrawn instead of restaked, they grow simply: staked × (1 + APR × years).
Why restaking matters over time
| 1,000 coins at 5% APR | Rewards withdrawn | Restaked monthly | Restaked daily |
|---|---|---|---|
| After 1 year | 1,050.00 | 1,051.16 | 1,051.27 |
| After 5 years | 1,250.00 | 1,283.36 | 1,284.00 |
| After 10 years | 1,500.00 | 1,647.01 | 1,648.66 |
Risks the rate doesn't show
Price risk
A 5% yield doesn't help much if the coin falls 30% in value.
Platform risk
Centralized platforms can freeze withdrawals or fail. Your coins are only as safe as the platform holding them.
Slashing
On some networks, validators that misbehave or go offline lose part of their stake, and delegators can share that loss.
Variable rates
Most staking rates change over time with network conditions, so treat projections as estimates.
Frequently asked questions
What's the difference between APR and APY?
APR is the simple yearly rate without compounding. APY includes the effect of restaking rewards, so it's higher than APR whenever rewards compound. A 5% APR restaked daily is about a 5.13% APY.
Are staking rewards paid in coins or dollars?
In coins. The calculator shows rewards in coins first; if you enter a price, it also shows their dollar value at that price. If the coin's price falls, the dollar value of your stake and rewards falls too.
Can I unstake at any time?
It depends on the network and platform. Some have unbonding periods of days or weeks during which you earn nothing and can't sell. Check the lock-up terms before staking.
Are staking rewards taxed?
In many countries, staking rewards are treated as income when you receive them and may be taxed again when you sell. Rules vary widely, so check local guidance.