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:
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.
RoboFi is a blockchain-based DeFi platform that provides a number of staking services for various cryptocurrencies. Those who take advantage of RoboFi’s staking services stand to profit from the returns generated by their staked funds.
Staking rewards on RoboFi vary by cryptocurrency and time period staked. While shorter staking periods provide greater liquidity and adaptability, longer staking periods typically yield greater rewards. With this option, users can select a staking method that is suitable for their investment aims and comfort level.
RoboFi offers more DeFi services than just staking rewards. These include decentralized exchanges and liquidity pools. Users can increase their exposure to the cryptocurrency markets and their potential for reward through the use of these services.
RoboFi is an all-encompassing platform that provides cryptocurrency holders with access to various DeFi services and opportunities to generate passive income from their holdings. RoboFi is a great option for those looking for a one-stop-shop for their cryptocurrency investment needs due to its wide variety of staking options and additional DeFi services.
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.
Ethereum’s PoW (proof of work) consensus has been replaced by staking ETH tokens in the latest “Ethereum 2.0” upgrade. Many people hold onto their Ethereum for the long haul, and staking can be a useful way to increase one’s supply of this cryptocurrency. While Ethereum staking is still in its early stages, staking rewards cannot be withdrawn until the Shanghai upgrade is complete, which is expected to happen in the middle to late 2023. Long-term ETH holders, however, shouldn’t be too concerned.
If you have 32 ETH, or about $50,000 at the time of writing, you can become a validator node or use validator-as-a-service and earn 4% to 4.6% annualized return on your investment. Even if your ETH holdings are small, you still have choices. You can get a good return by staking Ethereum on cryptocurrency exchanges or in staking pools. Staking pools can provide a return of 4.59% per year on staked ETH, and exchanges like Binance offer returns of up to 5.2% per year on staked ETH.
Given Ethereum’s bright future, holding onto ETH for a minimum of six months is a minor inconvenience. Ethereum is a top pick for staking due to its attractive rewards and long-term potential.
Binance Coin (BNB)
Binance Coin (BNB) is the native coin of Binance, the most well-known cryptocurrency exchange in the world. BNB is used to run the BNB Chain, which is a platform for smart contracts that houses many decentralized apps (dApps). CoinGecko says that BNB is the fourth most valuable cryptocurrency in the world right now, with a market cap of $53 billion. It is also one of the projects that has been staked the most. As of November 2022 (Staking Rewards), 85.8% of the project has been staked.
Part of the reason BNB is becoming more popular is that it has a deflationary token economy. Every quarter, Binance burns BNB to reduce the amount of BNB in circulation, while demand keeps going up. Since 2017, Binance has burned more than 42 million BNB, which is worth about $13.6 billion at the current price, according to the website bnbburn.info. This makes BNB a great choice to hold for a long time, especially since staking rewards are worth about 4.1% APR.
If you don’t have 10,000 BNB, you can’t run a validator node. But even if you only have one BNB, which is about $325 today, you can become a delegator and earn 4.1% APR with a minimum lockup period of seven days. The fact that BNB has a high staking ratio shows that people trust it, making it the second-best staking cryptocurrency to invest in.
Sanitatis Staking simplifies the process of earning passive income through staking digital assets. This investment approach allows individuals to benefit from the growth of their portfolios without the need for active trading or monitoring.
One of the standout features of Sanitatis Staking is its unwavering commitment to security. The platform implements rigorous security measures that allow investors to safely store their digital assets while earning income. This helps to safeguard against potential hacks or breaches, a crucial consideration in the often-volatile cryptocurrency world.
The platform’s investment strategy is built around low-risk trading tactics such as arbitrage, which takes advantage of price differences across various exchanges. This approach provides investors with consistent returns while minimizing risks.
Moreover, Sanitatis Staking offers a user-friendly interface that simplifies the process of accessing rewards. Investors can easily track their staked assets, monitor earnings, and withdraw rewards with a simple click. Overall, Sanitatis Staking is an excellent option for anyone looking to earn crypto income without actively trading or monitoring the market.
Cosmos, like Polkadot, offers a means for dissimilar blockchains to talk to one another without sacrificing their individuality or performance. It allows users to create their own blockchains that are secure like the Cosmos network and can use the ATOM protocol for transactions.
With an annual percentage rate of 19.14% and a minimum lockup period of just 21 days and no minimum stake amount, ATOM is the best delegator on this list in terms of staking rewards. It takes 64,946 ATOM, or about $850,000, to become a validator node operator, but the payoff is 20.45%. It is recommended to hire a professional.
Due to its lower market cap and lower adoption compared to Ethereum and Binance Coin, ATOM ranks as the fifth best staking cryptocurrency to invest in. However, if you’re looking to diversify your crypto holdings, Cosmos is a great project that has done well despite the recent bear market.
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.
Website | Twitter | Telegram | Telegram News | Reddit | Litepaper