Cryptocurrency staking has emerged as an excellent method to generate additional income while investing for the future. While staking might not be the ultimate remedy for the prevalent volatility in the crypto market, it is a simple way to earn some extra tokens without much hassle. To ensure staking success, it is crucial to stake tokens that have the potential to retain or increase their value over an extended period.
Before you embark on the staking journey, there are several things you need to know. This article will delve into the essential details, providing you with comprehensive knowledge of crypto staking. You’ll learn about the intricacies of staking and understand why it is a viable option for generating passive income.
Moreover, you’ll gain insights into some of the best cryptocurrencies to stake and why they are likely to maintain their value in the long run. By the end of this article, you’ll have a clear understanding of the crypto staking world, and you’ll be equipped with the necessary tools to start your staking journey.
Staking is a popular idea in the world of cryptocurrencies. It allows users to validate transactions on proof-of-stake (PoS) networks by locking up their tokens. The process is simple. By staking, you play a key role in keeping the network secure, which is why you get staking rewards. Most of the time, these rewards are calculated as an annual percentage rate (APR), which is like the interest you get on a savings account at a bank.
Proof-of-stake (PoS) networks work differently than the traditional proof-of-work (PoW) consensus mechanism used by Bitcoin and Ethereum (before a recent upgrade), and they have several advantages. PoW networks, for one, need expensive, high-tech mining equipment and use a lot of electricity. In fact, the BBC says that in 2021, mining for Bitcoin took as much energy as it takes to power the whole country of Argentina.
PoS networks, on the other hand, use a lot less energy and emit less than 0.01% of what PoW networks do. All you have to do is keep your tokens, which you already were. Depending on the type of token, the rewards for staking can range from 0.2% to 100% or more across PoS networks. In general, the bigger the stake rewards are, the riskier the token is, and vice versa.
When it comes to staking, it’s important to find a balance between choosing tokens with strong fundamentals and those with good staking rewards. Getting a 50% APR on a token that is likely to lose 80% of its value and never come back is not a good investment. So, it’s smart to choose tokens with an APR between 2% and 20% and a good chance of going up in value over time. With this in mind, this list of tokens has been put together to show you the best options for staking.
If you’re looking to stake your cryptocurrency and earn some passive income, there are several platforms available in the market that you can explore. Here’s a detailed overview of some of the best staking platforms that you can try out:
RoboFi is a decentralized finance (DeFi) platform that operates on the blockchain. It offers users a range of staking services for multiple cryptocurrencies. Some of the cryptocurrencies supported by RoboFi for staking include VICS, Ethereum (ETH), and others. By utilizing RoboFi’s staking services, users can earn rewards on their staked assets.
The rewards provided through RoboFi staking can vary based on the specific cryptocurrency being staked and the duration of the staking period. Generally, longer staking periods result in higher rewards, while shorter periods offer more flexibility and liquidity. This allows users to select a staking strategy that aligns with their investment goals and risk tolerance.
In addition to staking rewards, RoboFi offers other DeFi services such as decentralized exchanges and liquidity pools. These services aim to enhance users’ access to cryptocurrency markets and enable them to earn rewards through various methods. Overall, RoboFi is a comprehensive platform that provides a range of DeFi services and opportunities for cryptocurrency holders to generate passive income from their investments.
SnapBots.io is an artificial intelligence (AI) research firm that focuses on the application of AI, decentralization, and robotics in the financial industry. They aim to help users gain yield from their passive cryptocurrency holdings.
Their services seem to be designed to be simple and easy to use, with an emphasis on mitigating risk. They offer features such as a crypto wallet and staking, which allows users to earn rewards by participating in the network of a particular cryptocurrency.
SnapBots also appears to be involved in crowdsourcing and provides educational content on topics like the differences between centralized exchanges (CEX) and decentralized exchanges (DEX), the concept of liquidity pools, the rise of non-fungible tokens (NFTs), and the importance of trading psychology.
When compared to other chains like Ethereum and Binance Smart Chain, Tezos stands out as a unique cryptocurrency project due to its emphasis on blockchain governance. Tezos’ “baking” process is a distinctive feature that allows XTZ holders to have a say in how the platform’s code is updated.
Staking rewards go as high as 5.97% APR for Bakers who lock up 6,000 XTZ (approximately $10,000). However, users with fewer XTZ can still take part in staking by assigning their tokens to a chosen baker. Since delegators can easily switch to a different baker if they suspect malicious behavior, this incentivizes bakers to act in the best interests of the network.
Making money as a delegator is easier than making money as a baker because there is no minimum investment or lockup period. Tezos also has a feature not often seen among PoS coins: frequent reward distribution. Given the reliability of the rewards and the simplicity of the process, it’s no surprise that 73.4% of XTZ holders choose to stake their tokens.
Tezos is an attractive option for those looking to stake their cryptocurrency because of its emphasis on decentralized governance and track record since its launch in 2017. So it’s not surprising that Tezos is the sixth-best cryptocurrency for staking.
Launched in 2020, Polkadot is one of the newer cryptocurrencies out there, but it has quickly gained traction and is now ranked #12 with a market cap of $7.6 billion. Polkadot is a blockchain interoperability solution that facilitates data sharing and transaction settlement between different blockchain networks. As a result, it’s a good idea to think about including it in your portfolio.
DOT is the network’s transaction validation token, and it has exceptional staking rewards as a delegator of 13.99%. You can operate a validator node and earn returns of 14.88% APR if you have 350 DOT (currently valued at about $2,300). The entry requirement for delegation is much lower, at just 80 DOT, or roughly $500. Considering DOT’s annual yield, the fact that the lockup period for both options is only 28 days is a plus.
Polkadot is one of the best interoperability solutions and has some of the highest returns among major PoS cryptocurrencies. It is also expected to perform very well in the coming years. So, it’s a great option and the fourth best cryptocurrency to invest in for staking.
Metacade is a play-to-earn gaming community in the Web3 space that aims to connect gamers, offer the latest GameFi titles, and shape the future of gaming. Whether you’re a seasoned pro or new to play-to-earn, Metacade provides a platform for gamers to connect and earn MCADE tokens by sharing their knowledge about GameFi.
Metacade also offers opportunities to test games, play in tournaments, and earn permanent Web3 jobs via its job board. One of the most exciting features of Metacade is its Metagrant funding, where developers can compete for funding to develop their GameFi project. MCADE holders have the power to vote for their favorite project, and the winning project is funded from Metacade’s treasury.
Metacade’s ultimate goal is to create a community-owned virtual arcade, and the project plans to become a full DAO by the end of 2024. Staking MCADE tokens offers passive rewards and helps support the development of the first community-owned virtual arcade. The stablecoin rewards help reduce inflation and maintain the value of MCADE tokens. Overall, Metacade has great potential to attract both gamers and crypto enthusiasts, and it is our top staking crypto for 2023 due to the rapid growth of GameFi in recent years.
In conclusion, crypto staking is a way for investors to earn passive income from their digital assets that is becoming more and more popular. Investors can choose from projects that offer high rewards, strong security protocols, and a variety of features, such as the ability to work with other projects and be customized. Whether you’re a long-term investor or a short-term trader, staking can be a useful part of your investment strategy. Before putting money into a project, you should always do your research and think about the risks and rewards. But staking can be a powerful way to grow your crypto wealth in 2023 and beyond if you do it right and have some patience.
Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.
I'm Carina, a passionate crypto trader, analyst, and enthusiast. With years of experience in the thrilling world of cryptocurrency, I have dedicated my time to understanding the complexities and trends of this ever-evolving industry.
Through my expertise, I strive to empower individuals with the knowledge and tools they need to navigate the exciting realm of digital assets. Whether you're a seasoned investor or a curious beginner, I'm here to share valuable insights, practical tips, and comprehensive analyses to help you make informed decisions in the crypto space.