If you are interested in crypto investments, there might be a myriad of questions and factors that you will need to consider.
Cryptocurrency staking in this context is a great way to make some passive income. Dealing with cryptocurrencies grounded in the Proof of Stake (PoS) blockchain network enables you to take part in staking, which, in its turn, helps Proof of Stake networks work in a safer and more effective way. This type of protocol is proven more efficient than Bitcoin’s Proof of Work, so most advanced crypto coins use PoS, and the interest in it is quickly growing.
Staking requires a participant to keep cryptocurrency in the wallet for a considerable period of time to earn rewards. The so-called ‘staked coins’ resemble interest-bearing savings accounts.
What else is special about staking?
In fact, unlike PoW, it doesn’t need you to have a lot of computational power. This is a game-changer for both the environment and the simplicity of the process. Next, staking offers more safety guarantees since a network with PoS doesn’t give fraudsters a chance to perform a fraudulent transaction and takes away the right to form blocks and a part of the staked reward. And finally, staking is less risky. Users don’t trade coins or form price forecasts to act based on them: instead, they just keep the initial investment in the wallet and receive bonuses!
Keep on reading this article if you want to see which of the popular cryptocurrencies are a go for staking.
Crypto Coins Worthy of Staking in 2022 and Further
To get real profit and make staking work out for you well, it makes sense to find out which digital coins can offer the most attractive staking possibilities. This is the widely accepted top, have a look at it.
1. Ethereum 2.0.
Ethereum, the second most valuable crypto coin, is designed for building smart contracts and Decentralized Applications (DApps). Recently, it underwent a major upgrade, the Ethereum 2.0, transitioning to a faster and more efficient Proof-of-Stake (PoS) consensus mechanism. This upgrade significantly enhances Ethereum’s scalability and lays the groundwork for further development. Additionally, the Ethereum ecosystem is witnessing the emergence of liquid stake derivatives, offering users new opportunities to earn rewards and optimize their holdings.
2. Solana (SOL).
Solana (SOL), one of Ethereum’s greatest competitors, does everything that ETH can do but with a higher transaction speed. Besides being a popular choice for traders who seek to convert ETH to SOL, Solana’s blockchain native cryptocurrency SOL is also a stakable token and requires users to be delegated stakers or validators.
3. Terra (LUNA).
The LUNA coin functioning on Terra blockchain opens up the door for users to build their own stablecoins tied in value with several fiat currencies. Like with Solana, you should be a delegator or validator to take part in staking and receive rewards, but staking as a delegator is relatively simpler, though less lucrative earning for you, only 3 % of APY against the validator’s 10 %.
4. Tezos (XTZ).
XTZ is a native cryptocurrency for the Tezos blockchain — the platform designed to create Dapps and launch new assets. Tezos holders can easily win rewards if they are a part of the ‘baking’ process and validate blocks. If you stake just 8,000 tokens, you will also gain a voting right for this project’s on-chain governance.
The profitability of baking can be different, and this depends on whether you’re a solo user or are the one who delegates rewards. Solo bakers are known to get 16 XTZ coins per block (8 % APY).
5. Polkadot (DOT).
Thanks to its protocol, Polkadot blockchain connects chains into one network. Its nominating PoS algorithm enables earning coins as a nominator or validator and diligently following the rules of the system. Nominators have less headaches and fewer requirements: no special hardware or node running is needed. Still, since the network can only contain 22,5 thousand nominators, one must have a minimum of 120 DOT to start nominating. The APY, in this case, can reach 13,5 %.
So, these are the top coins to stake right now. In case you want to check the peculiarities of each coin or find a place to exchange Solana to USD, surf through LetsExchange.io to get more info.
Hi there! I’m Sethu, your go-to guy for all things tech, travel, internet, movies, and business tips. I love sharing insights and stories that make life more interesting. Let’s explore the world together, one article at a time!
