You can earn rewards on your digital assets through cryptocurrency staking without having to sell them. This means you can keep ownership of your idle bitcoins while putting them to use and creating a passive income stream.
Are you prepared to stake your cryptocurrency investments to earn returns? The top ten staking coins for 2022 are examined in this article. We also go into great detail on the idea of staking and its benefits.
Discover how to stake and which coins work best for staking by reading on.
The Best Coins to Stake
There are numerous cryptocurrencies that can be used to gain staking rewards. The following are the top ten coins to stake based on availability, interest rate, and coin value:
- Algorand
- Avalanche
- Binance Coin
- Cardano
- Ethereum 2.0
- Polkadot
- Polygon
- Solana
- Terra
- USDC
How Does Staking Work?
By storing your cryptocurrency with a third party, you can stake it to earn profits. The Proof of Stake (PoS) system is referred to by the word “staking.” In this approach, coins are used to validate blockchain transactions.
Staking can be done in two different ways, but one is much more complex than the other. The simplest option for the majority of consumers will be to stake through a cryptocurrency platform like an exchange. Just deposit your coins and agree to have them staked, that’s all there is to it. Several well-known exchanges, including Binance, Coinbase, and Kraken, have staking opportunities. The alternative involves setting up your own staking node, which necessitates knowledge and experience.
Here is a brief illustration of how staking can be used to receive rewards:
Let’s say you want to stake some Ethereum. Ethereum staking offers a 10% annual percentage yield on your selected staking platform. You choose to stake ETH tokens worth $1,000 for a period of six months. This indicates that you will receive $100 in incentives after a year. This corresponds to a $50 return over the course of six months.
Keep in mind that the payouts will be made in ETH tokens. Additional earnings will result from the possibility that the value of Ethereum will rise during staking.
Examining the Best Staking Coins in More Detail
Algorand (ALGO)
With the help of validator nodes and instant transactions, Algorand is a strong platform that offers efficient scaling. Because stakers just require one ALGO token to become validators, ALGO is one of the greatest staking coins. There are advantages and disadvantages to having such a low staking minimum. While there are usually more validators than in most other networks, the minimum staking threshold may prevent certain validators from participating as much as they should.
You can start staking with ALGO by utilising a Ledger wallet, an Algorand wallet, or Coinbase. The staking platform you choose to employ will affect your overall returns. You can typically anticipate annual returns of 5 to 10 percent of your overall investment.
Avalanche (AVAX)
Platforms like Polkadot and Cosmos are comparable to Avalanche. However, due to the fact that its network can scale to support millions of diverse validators, AVAX is one of the greatest staking coins. Once you have a minimum of 25 AVAX coins, you can begin staking on the AVAX platform.
You must stake a minimum of 2,000 coins in order to become a validator. In order to receive your rewards, you must stake your assets for at least two weeks. With an annual return on investment ranging from 8 to 14 percent, AVAX has shown to be one of the greatest cryptocurrencies to stake. The three main wallets for AVAX coins are Ledger, MetaMask, and Avalanche Wallet. You can stake your AVAX coins with any of these.
Binance Coin (BNB)
Due to the way it is delegated, BNB is one of the top staking coins in the world and the most widely used cryptocurrency exchange site. The BNB coin can currently be delegated to validators for no minimum stake, and the “unstaking” procedure takes place in just seven days.
The BNB coin has an annual return of 6 to 9 percent on average. However, it is feasible to generate returns of up to 30%. Because it is dependent on transaction costs, the rate of return can be quite unstable. This currency offers a level of convenience that isn’t achievable with the majority of the top staking currencies on this list because you can stake it directly on the Binance platform.
Cardano (ADA)
Strong Proof-of-Stake networks like Cardano are frequently compared to Ethereum. The ability of the Cardano network to perform several hundred transactions per second is its biggest advantage. Because users can withdraw any of their staked assets whenever they choose, Cardano has established itself as one of the top staking coins. This is a very user-friendly platform if you’re new to the staking procedure.
It’s important to keep in mind with Cardano that if too many people pool their resources in one spot, staking rewards may eventually lose some of their value. Diversification is crucial to maximising your returns as a result. Yoroi and Daedalus are the two authorised wallets for Cardano. 5 to 9 percent on average is the annual return for ADA.
Ethereum 2.0 (ETH)
One of the greatest staking coins is Ethereum 2.0, often known as Eth2, which is the second-most popular cryptocurrency in the world after Bitcoin. You will need to start with at least 32 ETH if you wish to stake this specific cryptocurrency. Prior to this, Ethereum employed a PoW consensus algorithm. With more than $12 billion in ETH staked, it has now made the switch to PoS.
Remember that Ethereum 2.0 is still in the early access stage and is being tested before going live. This is important to remember before you start staking Ethereum 2.0. The coins you stake will remain in the network up until the 2.0 launch. The Eth2 is anticipated to launch around the first few months of 2022. Why not make some passive income while you’re HODLing the coin using one of the top smart contract networks? With Bybit Earn’s variable staking rates, you can anticipate to earn a consistent 2.5 percent APY.
Polkadot (DOT)
Due to its usage of scalable, multi-chain technology developed by Ethereum creator Gavin Wood, Polkadot offers one of the greatest staking coins. The most current minimum stake to begin receiving rewards is 40 DOT, or roughly $1,600. However, your donation will need to be significantly higher at 350 DOT if you wish to build a validator node with Polkadot.
Because it offers an average annual return of 14%, Polkadot is one of the finest staking cryptocurrencies for generating passive income. At exchanges like Binance, Kraken, and Fearless Wallet, you can stake DOT. Regarding prospects, DOT is among the greatest cryptocurrencies to stake due to its top 10 market cap, which is expected to increase over the next several years.
Polygon (MATIC)
In an effort to grow Ethereum, a unique staking coin called Polygon was developed. By connecting each Ethereum-based DApp, Polygon aims to ensure compatibility (decentralised application). Network validators provide total security for polygon transactions. As one of the best staking coins available, it can validate up to 65,000 transactions per second (TPS), which enables Ethereum networks to process transactions quickly and efficiently.
The fact that delegates only need to stake one coin in order to join the network, although staking itself necessitates at least two coins, makes Polygon one of the greatest staking cryptos. By syncing your MetaMask and Polygon wallets, you can start staking. The number of coins you stake will determine the anticipated annual staking return for Polygon. This coin’s maximum APY is just over 14 percent.
Solana (SOL)
Scalability played a key role in the development of the effective blockchain known as Solana. Solana’s minimal fees and speedy transactions enable this scalability. Solana is ranked 7th in terms of cryptocurrency market caps. Because transactions are completed quickly and inexpensively, SOL is one of the finest staking coins. In most cases, transactions are completed quickly. On the Solana network, there are more than 640 validators with whom you can stake your coins, despite the fact that you cannot run your own node.
You will be able to share in the earnings that validators on Solana receive when you assign your stake to them. Over the past few months, SOL coins have fared incredibly well, achieving an all-time high (ATH) of $210 per coin. You may anticipate annual returns from Solana that range from 7 to 11 percent when you stake your coins with them. Using Ledger, MathWallet, Atomic Wallet, and Exodus, you can stake SOL.
Terra (LUNA)
Due to how simple it is to invest in Terra, it is among the finest cryptocurrency staking coins. Terra promotes the development of TerraUSD (UST), a stablecoin backed by digital cash . You can trade one UST for the amount of LUNA that equals one dollar to invest in this coin, which comes highly recommended.
The ability to exchange inexpensive UST for $1 of LUNA allows you to make a profit and generate passive income in the event that the price of UST ever dips below one USD. One of the greatest cryptocurrencies to stake is LUNA, which has an annual staking reward of about 12.10 percent. You can locate LUNA on cryptocurrency exchanges like Binance when you’re ready to buy it and begin staking.
USD Coin (USDC)
Similar to Tether, USD Coin (USDC) is a stablecoin backed by fiat currency that is frequently used for money transfers due to its stable value and strong liquidity. Fortunately, Grant Thornton, LLP conducts an accurate monthly audit of USDC, unlike Tether. The reports are made publicly available online, allowing for maximum openness and substantiating the company’s assertion that it is mostly supported by cash and cash equivalents.
With Bybit Earn’s adaptable staking options, you can start staking USDC and earn lucrative rates. When it comes to the best staking coins that provide a constant value and complete transparency of how the stablecoin is tethered to the dollar, there is no better option with average returns up to 8.88 percent. We have a flexible staking system that allows you to freely unstake at any time if you need the funds, which makes this passive investment method even better.
Benefits of Crypto Staking
If you have followed this article to this point, then you are aware that staking can be really helpful. Below are compiled advantages of staking to help you understand the situation more:
- By staking cryptocurrency, you can make money off of digital assets that would otherwise just be sitting in your wallet.
- Additionally, it enables you to keep your digital currency while processing a refund.
- Many investors also consider staking as a way to protect themselves against falling cryptocurrency values.
Therefore, investing in cryptocurrencies will yield rewards independent of how the market values the digital asset. Additionally, if you don’t lock away your coins, you can get them whenever you want and cash them out as desired.
Conclusion
You can generate passive returns by staking your bitcoins without needing to sell them. The 10 top staking coins for 2022 and their advantages have been covered in this article to help you get started.
A fantastic technique to create large returns and earn passive income is by staking your coins on a PoS blockchain network. If you withdraw your profits at the appropriate moment, these investments can offer dividends with relatively little risk.
After reading this article, you should have all you need to start staking.
