best coins to stake
With the help of staking, you can earn returns on your crypto by depositing it along with a third party. It is usually referred to as the Proof of Stake or PoS system. This system uses coins to verify transactions performed on the blockchain.
Cryptocurrencies are not dependent on any centralized authority. That is why all of its transactions are recorded on a public ledger known as a blockchain. The blocks comprising this blockchain should be verified by some consensus mechanism like mining or staking.
Staking comprises two different methods. Many users choose the most effortless path of staking, i.e., cryptocurrency platform or exchange. It is simple and complex as it just enables them to deposit the coins and consent to stake them.
Some opt for setting up a staking node, which requires a decent amount of knowledge and expertise.
Best Coins To Stake in 2022
Some of the coins you can stake in 2022 are:
Algorand is a proof-of-stake cryptocurrency that primarily focuses on scalability and security, minimizing costs, as well as optimizing transaction time on the network. It is usually used for making smart contracts like making decentralized applications, mint NFTs. Moreover, investors also use it for loans and decentralized finance.
Avalanche is another cryptocurrency that helps in creating smart contracts for Dapps and to pay transaction fees. It is one of the fastest smart contracts platforms with the highest number of validators performing proof-of-stake. It is compatible with Solidity, the programming language designed by Ethereum.
This cryptocurrency is issued by Binance, one of the fastest cryptocurrencies in the world. It is used to pay fees on the exchanges. If you are a Binance user, you can acquire discounts while paying fees in Binance Coin.
After Binance, Ethereum is the most valuable cryptocurrency in the world. It is also designed for creating smart contracts, Defi, Dapps, games, and many more. It is also used for global payments, NFTs, and minting tokens. Ethereum originated as a proof-of-work cryptocurrency but concentrated on the shifting process to a proof-of-stake protocol.
Cardano, a cryptocurrency, tends to improve on the design of Ethereum by focusing on flexibility, scalability, and sustainability. It can be used for creating smart contracts, for Defi, for creating Dapps, and even mint new cryptocurrency tokens. Its proof-of-stake mechanism enables you to solve the energy usage issues involved in mining Bitcoin.
Polkadot enables you to secure communication between separate blockchains like Bitcoin and Ethereum. It deploys parallel blockchains, known as parachains that improve transaction speed. It works faster than the most famous cryptocurrencies in the world.
An Ethereum competitor, Solana is designed to do many of the same things Ethereum does, but relatively faster. It is not only used to pay transaction fees but also entitles holders to the right to vote on Solana. It is also efficient for smart contracts, Defi, and many more.
This coin is a stablecoin whose value is similar to that of a US Dollar. It provides a less volatile option in comparison to other cryptocurrencies. It is usually run on an Ethereum platform and helps in paying smart Ethereum contracts.
Factors To Consider For Choosing The Right Coins For Staking
With the list of stackable coins growing significantly, there are some factors that enable you to choose the right coin quite conveniently.
- Market Cap- The price of one coin multiplied by the number of coins in circulation. When you choose high market caps coins, you acquire better odds of staking a currency with a significant amount of interest and momentum.
- Staking Effortlessly- Before staking a coin, you should consider a coin that is available on a mainstream platform and is easily accessible to everyone. It does not have a significant barrier of skills or available money to invest.