Besides trading on crypto, did you know you could also generate income out of your holdings passively? Yes, you can do that, by staking your crypto. Here are 5 of the best crypto staking projects to start your staking journey.
For newbies: Check out what is crypto staking here!
Best Crypto Staking Projects
Solana (SOL)
SOL is one of the best crypto staking projects to start your first staking. It is one of the fastest blockchains, with thousands of projects spanning NFTs, DeFi, and Web3. The native token of Solana is stakable which can be useful in paying the network’s fee. If you wish to earn rewards on Solana by participating in the network, you should either be a validator or delegated staker. The task of the validators is to process transactions and maintain the SOL network, while the delegated stakers take pool operations for rewards. The reward is aligned between validators and delegators. So, the validator’s and delegator’s staking rewards depend on Solana’s fine-tuned staking yields.
Avalanche (AVAX)
Avalanche is a blockchain that allows developers to launch decentralized applications (dApps) and enterprise blockchain solutions. The platform’s native token, AVAX is useful in paying fees and securing the blockchain through staking. You can stake as a validator or as a delegator on Avalanche. The more tokens a particular validator stakes, the more they can participate in the network earning rewards. On the other side, the delegators can earn rewards for their support to validators.
Cardano (ADA)
Cardano is a proof-of-stake blockchain platform to build and run smart contracts. You can stake the native token of the platform, ADA, to increase security and allow transactions. On Cardano, you can earn rewards through staking delegates and running a pool. The platform uses a game theory to determine which stake pool can create the next block on the chain. The probability of becoming a ‘slot leader’ increases by the total amount of ADA staked. So, whenever the protocol selects your pool to validate the block, it receives a reward. This reward will then be distributed among all the stake delegators.
The interesting element with regard to ADA is that the website provides users a calculator with an estimate of how much staking rewards where you can expect for both delegating and running a staking pool. Overall, Cardano staking can be profitable for people who can run a staking pool keeping the fee managed.
Polkadot (DOT)
Polkadot is an open-source blockchain network providing interconnectivity and interoperability between blockchains. DOT is the native cryptocurrency of the platform helpful for staking, governance, and connecting to new ‘parachains’. You can stake rewards being a validator or a nominator. When validators are responsible for validating transactions on the Polkadot network, nominators see to it that validators are on track. And validators can charge commissions for staking rewards, which is subject to change any time.
Tezos (XTZ)
Tezos is a decentralized open-source blockchain platform which can execute peer-to-peer transactions for deploying smart contracts. XTZ is the native cryptocurrency of Tezos which fuels the platform and enables holders to vote in the protocol proposals. The holders of the token can also commit their tokens in exchange for validating the blocks and winning rewards for it. This is called ‘baking’. The profitability of baking can vary depending on if you are a solo baker or are delegating the users rewards.
Also read: Yield farming vs Staking
Conclusion
Even though crypto staking is a good way to earn passive income, you should not stake more than you can afford to lose. These are just a few of the best crypto staking project suggestions from our side. For staking enthusiasts entering the staking world, it is always better to do your own research and stake.
FAQs
1. What is the benefit of staking crypto?
Staking refers to locking your cryptos for a certain period of time to ensure the smooth running of a blockchain network. In return, the blockchain network rewards you with more cryptos based on the amount of crypto you staked. It is a great way to earn passive income.
2. Can you lose money with staking?
There is a slight risk of losing money with staking. If someone hacks your staking pool or if the validators of the network you have staked your crypto on don’t validate transactions rightfully, you stand a chance to lose your crypto.
3. Which crypto is best for staking?
There are multiple cryptocurrencies that you can use for staking and earning a passive income. Some of them include ETH, ATOM, MATIC, ADA, DOT, etc. However, ensure you use a trusted platform to stake your crypto.
4. Can staked crypto be stolen?
Staked cryptocurrencies can be stolen from your wallet if the private key is compromised, or it can even be hacked. Even though the chance of this happening is low, there is a possibility. It is advised to use only a trusted, secure platform to stake your crypto.
Happy Staking!
