Crypto staking has opened a new window for earning in the crypto industry through staking rewards. However, the staking crypto process is exclusive to the PoS coins or tokens that are developed on Proof-of-Stake blockchains. Thus, you cannot expect staking activities with coins like Bitcoin that have been developed on a Proof-of-Work blockchain. But, on the other hand, the second best crypto, ETH, now allows staking crypto even though the coin was initially developed on the PoW blockchain. Apart from ETH, there are many other promising cryptocurrencies today that allow investors or holders to stake crypto. Read more at Multibank.io.
The post below offers an expert guide on the best cryptos to stake crypto today. However, we jump into that, let’s have a compact discussion on crypto staking.
As mentioned, crypto staking is followed by PoS blockchains.
Staking is the process by which PoS blockchains verify a new batch of blocks before linking them to the existing chain of blocks. For the process, the PoS blockchains need their own native coins or tokens which they derive from crypto holders. When you stake crypto, your crypto holdings stay locked up in the blockchain for a specific period of time. In return, you will earn staking rewards that can make way for handy passive income.
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Top PoS cryptos for staking
Ethereum is one of the latest and most interesting additions to the stake crypto scene.
The second largest crypto was originally developed on PoW blockchain. But, finally, with the recent Merge upgrade, the Ethereum chain has been elevated to PoS blockchain, thereby offering higher TPS, reduced energy consumption, and more economical gas fees. If expert predictions are to be believed, Ethereum could surge up by 400% after the Merge upgrade.
In regard to staking rewards, ETH staking is currently offering little over 5% APY. However, some of the leading exchanges might offer as much as over 15% annually.
Just one thing to remember here- you will need to stake 32 Ethereum for participating in ETH staking. Now, that’s almost a small fortune. However, if you are unable to afford that much ETH to stake crypto, you can sign up with staking pools.
Added to Ethereum, another PoS crypto that had a major upgrade in September 2022 is Cardano.
As per the market reports, Cardano recently had its long-awaited Vasil fork that is expected to assure lower fees and faster transaction. A relatively new entry in the stake crypto scene or the crypto scene in general, Cardnao has already been boasting a whopping high of $640 million+ trading volume (24 hours). After the Vasil upgrade, the crypto is expected to witness a further high in trading volume.
Bottom line is, Cardano assures both high demand and excellent liquidity, despite being a new entrant. The crypto also offers standard stake crypto rewards, ranging between 3-6%. You will earn more if you are flexible to stake this crypto for a way longer time. The entry point in Cardano staking is only 5.5 ADA.
If you are looking to stake crypto for higher staking rewards, Polygon must be on your list.
Polygon allows a whopping volume of 65,000 TPS that eventually help the Ethereum network with faster transactions. In regard to stake crypto rewards, Polygon assures an inspiring 14%+. You will need no more than 3 MATICs to participate in Polygon staking. One coin is needed for participating in the network while you need the other two for staking the crypto.
Algorand is the perfect crypto when you are looking to stake on a crypto that offers a fantastic staking reward and that too with a lower entry point. The starting point of Algorand staking is no more than 0.1 ALGO. Now, it’s true that some crypto exchanges might ask for a little more but it’s nothing that would cost you a leg.
What about the stake crypto rewards for Algorand? Well, you will earn something like 5.75 percent on average. Also, Algorand is available for staking at a wide range of exchanges.
Why is Solana a top favorite of the smart crypto stakers? Well, first Solana allows staking with an extremely low entry point. The other one is, the new rising crypto assures super high staking rewards- that is comparatively higher than most of the staking cryptos.
The minimum requirement to take part in Solana staking is 0.01 SOL. When it comes to stake crypto rewards, you can expect a mighty volume of 7 to 11% APY on average.
Solana’s excellent TPS and economical costs have made the crypto one of the most in-demand coins in the latest crypto scene.
Also Read: Multibank | trading crypto with leverage
It’s true that Cosmos is somewhat slightly more pricey in comparison to most of the new entrants in the scene but it’s still less costly than legacy coins like ETH. The crypto assures up to 10% staking rewards and that too with an extremely nominal basic entry point (0.05 ATOM).
So, you have a good bunch of cryptos here that would be handy for staking. It’s great that you are planning to find a way of making good cash with your idle holdings. However, the stake crypto scene comes with certain risks as well, such as liquidity risk, locked-period, crypto theft, slashing etc. Study about these risk factors beforehand to ensure that you don’t end up committing these mistakes.