Until recently, mining was at the peak of popularity, but now the situation has changed. Mining is no longer worth the money invested. It has been replaced by staking. Let’s consider this type of passive income and choose the best crypto to stake. If you wish to learn more, please go to https://globalcryptoexpert.com/university/crypto/best-crypto-to-stake/
What is staking
Staking is a process where users store cryptocurrency and get rewarded for it. It uses the Proof of Stake (PoS) algorithm. It is a way to protect the blockchain from tampering and unreliable information.
The following three types of stakes are distinguished:
- Locked. Funds are frozen in the wallet for a certain period. After that period, funds are returned with interest.
- Flexible. Funds are not frozen, but the rate is lower. Interest is earned every day, and payments are made every 30 days.
- DeFi. The essence of the method is to provide services based on smart contracts. The rates are even higher, but this method has a high entry threshold.
How to choose the best crypto for staking
To correctly choose the best crypto to stake, an investor should:
- Make sure that the token is reliable.
- Find out the necessary information about particular staking rules of the platform.
- Do not trust dubious sites with high-income percentages.
- Take into account the reviews of other investors.
Analytical services can help you find all the necessary information.
Which coins are better to stake on
Staking continues to develop and gain popularity. Here is a rating of the most famous digital coins for investing.
Ethereum (ETH)
Ethereum ranks second in terms of capitalization and leads the number of investors who use the coin for staking. ETH 2.0 will freeze customer funds and rewards until updates are launched. But it has a significant entry threshold of 32 ETH. Yields range around 5-7% per annum.
Cardano (ADA)
This platform from the moment of its foundation is focused on PoS, thanks to what it was able to achieve the passage of transactions at high speed. Cardano also allows the withdrawal of assets from staking. Daedalus and Yoroi are used as service wallets. Profit from staking on the coin reaches 4.5% per annum.
Polygon (MATIC)
Polygon is a second-tier solution created for Ethereum secondary scaling. It reduces the load on the network due to its ability to confirm up to 65 thousand transactions per second. To stake, you must first connect the Polygon wallet to the Metamask wallet. At least 1 MATIC is required for staking. The average rate can be 14% per year.
Polkadot (DOT)
This project is called the “Ethereum killer” because it has no scalability issues. Such a feature is that Polkadot can create chains of multiple blockchains, simultaneously processing many transactions. Stacking requires 30 to 80 coins. Yields are as high as 14%.
Tether (USDT)
This option is suitable for investors who value stability. Tether stack coin will never fall and will provide a reliable, though lower, return. Betting on this coin provides a return of 3.5% a year and no risks due to its stability.
PancakeSwap (CAKE)
Binance Smart Chain Cake is well deservedly perceived as the best digital currency for staking. Using cryptocurrency inevitably involves connecting a wallet to PancakeSwap. It is worth noting that Binance Smart Chain commissions are lower than most other projects. The annual return of up to 42%.
SushiSwap (SUSHI)
This token is available for staking on the following popular crypto exchanges:
- OKEx;
- Binance;
- Huobi.
You need MetaMask or Atomic Wallet to use it. SUSHI generates about 7-10% of income per year.
Wrapping up
Staking is the choice of a person who has decided to earn seriously on cryptocurrency without too much risk. His income, relative to mining, will be small, but passive, not requiring a lot of time and a lot of work. To do this, it is only worthwhile to study the market for demand and accept the relevant offers.