A staking coin is a coin that requires a proof-of-stake instead of a proof-of-work. Staking can also be used in proof-of-work assets to incentivize masternodes and regular holders.
A proof-of-stake coin uses staking as its transaction validation setup instead of mining. Staking means that you are holding the cryptocurrency to verify a transaction and to assist the network in its operation. You will earn a reward when you have the coin and keep the network running.
The proof-of-stake algorithm uses an election process to identify which node is going to confirm a block. Sometimes the election entails picking someone by random, or it could involve the number of coins one holds.
Staking is easier to manage than mining, plus it is more accessible. You do not have to spend immense amounts of money trying to mine the coin to make this work. It is no surprise that people are looking for proof-of-stake coins, and it is sensible that there would be more of them available today.
You’ve got many choices to consider when finding the best staking assets in today’s crypto market. Here are a few of the best ones for you to explore.
Tezos (XTZ)
Tezos is similar to Ethereum in its code, but the blockchain it produces can modify its set of rules. The rules can change without disrupting the network. Tezos focuses on smart contracts, making it more efficient. XTZ stakeholders can get about 6 percent interest each year.
Dash (DASH)
Dash is a coin that comes from a fork on the Bitcoin chain. Dash can help people send and receive payments.
Dash’s most famous point comes from how it uses masternodes, which are nodes that confirm transactions without having to mine anything. Dash masternodes only require a stake as collateral. Anyone who runs a masternode can earn about 6.5 percent interest each year.
Tron (TRX)
Tron is a currency running on a decentralized operating system. People who have a stake in TRX can earn 4 percent interest.
Decred (DCR)
Decred focuses on decentralized governance when making decisions on the blockchain. The design has a secure body that prevents hard forks from developing.
Decred uses a mix of proof-of-stake and proof-of-work algorithms with dictating the blockchain’s actions. You can expect about 8 percent interest when playing.
Waves (WAVES)
What makes Waves different from other currencies is that Waves helps people build separate tokens. The tokens people create through Waves may produce currencies for apps, loyalty programs, and other platforms. Waves provides an average interest rate of 5.5 percent.
Synthetix (SNX)
Synthetix is another Ethereum-based blockchain system that creates synthetic assets that connect to the value of another asset. Synthetic assets can be based on stocks, physical currencies, outside cryptocurrencies, and other things that are available with value.
SNX tokens can be locked in a network for collateral purposes. You can earn a return of about 55 percent per year with SNX, although you’d have to collect your staking reward within two weeks after it is available. Any rewards that people do not collect will return to the reward pool.
Algorand (ALGO)
Algorand is another proof-of-stake coin that supports online payments. ALGO features low transaction fees and creates an economy with fewer restrictions.
What makes ALGO different is that it features a pure proof-of-stake system. The setup lets people reach consensus without requiring a central authority to make it work. Any inappropriate or malfunctioning actors in the chain will be tolerated, but this is only when most of the stake isn’t malfunctioning. There are no delegation rules either, ensuring one or a few people won’t hold most of the voting power.
The annual return on ALGO varies, as it can go from 8 to 10 percent on average. It may drop to 5 percent, but the simple design of ALGO and its ability to work without nodes or other demands make it a good choice.
Cosmos (ATOM)
Cosmos is a proof-of-stake currency hoping to become a more powerful blockchain that will connect other blockchains. Cosmos will help people switch out assets between multiple chains. Cosmos has become popular among many parties looking to make exchanges easier, including Binance.
Cosmos has a high-value staking reward with a return of 8 percent per year. That number may rise as Cosmos continues to grow and become more viable to many crypto entities.
Loom Network (LOOM)
The Loom Network is a blockchain that helps decentralized apps run on side chains. LOOM helps create a consensus model based on specific needs and addresses any threats that might develop on the market. The basechain on LOOM also connects multiple chains in one system, including Cosmos, Bitcoin, and Tron.
The LOOM token secures the network on the blockchain. It has a high return rate of 17 percent per year, but you must hold LOOM in a wallet supported by the blockchain. There are not many of these wallets available for use, with Trezor and Ledger being among the choices available.
Ready to fill your portfolio with some of these?
The entry threshold for staking will vary by choice. You can purchase these tokens on an exchange, but some may require you to pass long registration and verification processes.
Good news is that all of these assets are currently available on Swapzone, our exchange aggregator that picks all the best from 10+ exchanges and brings it to you!
Start staking with Swapzone!
