Table of Contents
Introduction
Cryptocurrency transactions are verified and validated using a number of mechanisms like the Proof-of-Work for Bitcoin, Proof-of-Stake for Ethereum (very soon), and Proof of HIstory for Solana. Among these, the proof-of-stake mechanism allows crypto holders to lock their holdings for a specified period to contribute to the validation process and also allows traders/holders to earn interest or income from the same.
Stakers approve and verify transactions on proof-of-stake blockchains and earn interest/rewards in return. Staking works similar to bank deposits where the account holder deposits movie to earn interest. Below we have compiled a list of top staking coins for you to read and choose from.
6 Popular Crypto Staking Coins
1. Ethereum (ETH)
Ethereum will definitely be placed among the best crypto staking coins after the shift to the Proof-of-Stake algorithm during the Merge upgrade. A recent Chainalysis report reveals that the stakers would be able to earn up to 15% annual staking gains, much higher than what treasury bonds or other cryptos offer as staking rewards.
2. EOS
One of the many top staking coins, EOS is very similar to Ethereum. It hosts dApps and Defi platforms. EOS tokens are the native token of the EOS blockchain and can be staked to earn rewards of up to 3.2%.
3. Tezos (XTZ)
XTZ or Tezos is the native coin of the Tezos platform – an open-source smart contract-based blockchain. We added Tezos to our list of top staking coins for the staking rewards it promises. Any XTZ holder can stake XTZ tokens on several platforms and earn around 6% – the current expected rate of returns.
4. Cosmos (ATOM)
Among the best crypto staking coins, Cosmos or ATOM is another significant name. Cosmos calls itself the ‘internet off blockchains’ and seeks to solve interoperability issues between blockchains. Many exchanges support ATOM staking, and holders can earn an annual return of 7% from ATOM staking, as per the mid-2021 figures.
5. Cardano (ADA)
This name from our list of top staking coins is no stranger. One of the biggest layer-scaling solutions, Cardano is also a smart contract-based platform that supports dApps. ADA is the native token of the Cardano network and can be staked to earn annual staking yields as high as 24% (mid-2021 figures).
6. Polkadot (DOT)
Launched in August 2020, Polkadot is another name from the top crypto staking coins. Polkadot is another network that facilitates inter-blockchain interactions via parachains to make them interoperable. DOT can be staked to earn staking rewards of up to 12% annually.
Conclusion
Staking crypto coins can be a great way to earn passive income. Investors and traders often look for staking opportunities to put their idle holdings to work. If you are looking to try staking, remember that there’s always a certain degree of risk involved in staking tokens. For instance, a trader might be earning annual yields from their staked tokens, but their tokens could lose value. In such a situation, a holder can do nothing as their holdings are locked up for a fixed tenure (most of the blockchains have a minimum lock-in period).
We compiled a list of the best crypto-staking coins for you purely from an educational point of view. Always DYOR (Do Your Own Research!)
Disclaimers: Opinions expressed in this publication are those of the author(s). They do not necessarily purport to reflect the opinions or views of Shardeum Foundation.
About the Author: Anuska is a sci-fi lover freshly exploring the blockchain and Web3 space. Her expertise lies in simplifying complex Web3-related concepts and topics for herself and others.
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