Smart investors have been staking their crypto assets to earn rewards over their assets. Staking works by the deposition of assets by the investors in a staking pool. Depending on the number of assets staked by the investors, the pool chooses one validator. The validator inputs the transaction history of a blockchain into a new block. In return, the staking protocol rewards them with APY rewards and governance tokens. Now, as a new investor, you may wonder which cryptocurrencies you should stake in order to get maximum rewards. We are helping you here by listing down 9 best cryptocurrencies to start your staking journey.
Polygon
Polygon is one of the most affordable cryptocurrencies to buy right now. Therefore, investors can stake their Polygon assets without having to pay any high staking fee. If you have Polygon’s native tokens, Matic, you can stake them at the best staking platform, that is, UniFarm. Staking at UniFarm is sure to give at least 36% APY rewards on your stake. However, the staking rewards at this platform have shot up to 250% in the past. On the other hand, if you stake your Matic tokens at KuCoin, you can get only 10% APY rewards.
Polkadot: Best Cryptocurrencies to Stake
The process of staking your Polkadot assets is slightly different from the normal staking process. The investors have to lend their Dot tokens to certain projects participating in the slot auctions. The projects participate in the auctions in order to become parachains in the Polkadot blockchain. Parachains are usually independent chains that operate parallely with the Polkadot blockchain network. If the project that you lent your Dot tokens to, wins, you earn rewards. The rewards are normally the native governance token of the winner project.
Ethereum
Ethereum is the best cryptocurrency to stake if you are an advanced investor, having at least 32 Ethereum tokens in possession. The only good thing about staking Ethereum tokens is that you can stake it on almost all the big platforms like Coinbase, Binance, Bitfinex, Kraken, etc. However, the APY rewards are no different for Ethereum. They typically range from 4 to 10%.
Tezos: Best Cryptocurrencies to Stake
Tezos is an open-source smart contract platform that enables the making of dapps and generation of brand new digital assets like NFTs and cryptocurrencies. You can stake the native token of Tezos, that is, XTZ, on numerous staking platforms like Binance and Kraken. Usually, the staking platform requires you to stake one or even less than one XTZ token to participate in the staking pool. The rewards earned on top of your XTZ tokens can range from 4 to 8.5%, depending on the platform on which you are staking and the staking period.
Cardano
Cardano allows staking to be accessible to people with all kinds of financial backgrounds. Priced at $0.93 (as on April 12, 2022), any investor can buy and stake Cardano tokens on different platforms like Kraken and Bitfinex. At present, Cardano may not be one of largest tokens in the market. However, the fact that Cardano has Proof of Stake as its consensus mechanism, makes it desirable for the upcoming revolution in the crypto market. Cardano is a sustainable cryptocurrency and hence, the future of this market. In addition, the minimum requirements to stake Cardano are usually low and the stakers can earn an APY rewards of 3 to 6%.
Cosmos: Best Cryptocurrencies to Stake
Cosmos is another affordable cryptocurrency to begin your staking journey. Priced fairly at $23.68 (as on April 12, 2022), investors can easily buy Cosmos tokens and start staking a small amount on platforms like crypto exchanges, software and hardware wallets. The average amount of rewards that an investor can earn from staking Cosmos tokens (Atom) range between 5 to 10%, depending upon the staking platform that they choose and the number of tokens they stake. The rewards are enough to make staking Cosmos tokens as a good source of passive income.
Algorand
Algorand is again a very cheap cryptocurrency to buy and stake. The best part about staking Algorand is that there are many big platforms like Binance, Coinbase, Trust Wallet, Exodus, and more. Therefore, even if the minimum amount of tokens that the platform requires you to stake is higher, you can easily spend a few hundred dollars to buy Algorand and stake them. You can earn rewards ranging from 3 to 10%, depending upon the platform.
Solana: Best Cryptocurrencies to Stake
Solana is another smart contract-based blockchain. It has its own token named SOL. This token allows you to record transactions on the blockchain and pay the network fees. On Solana, the investors can earn rewards, both as a delegator as well as validators. While validators are responsible for the processing of transactions and maintenance of the network, delegators are responsible for delegating their tokens to the stake pool. Staking on Solana as a validator can earn an APY of 10% whereas staking as a delegator can earn an APY of 6.41%.
Conclusion
Staking, as a mode of generating passive income, may look very attractive to investors. However, investors must always stay informed about the included risks in the staking process. There are smart contract risks involved in staking. Furthermore, there can be theft risks and validator risks in staking. If you want to escape all the risks and ensure a minimum APY, UniFarm should be your go-to platform. You can earn a minimum APY of 36% by staking a variety of tokens.
