Best crypto to stake in 2022
It's always interesting to speculate about which coins will be worth staking. This blog post will explore our top ten picks for the best crypto to stake in 2022. I'll also provide some understanding of staking crypto and why it's such an effective investment strategy. So, if you want to increase crypto profits, make sure you read on for the most secure options for producing passive income in your portfolio.
Top 10 Staking coins
Firstly, what is crypto staking?
Staking is a way to get rewards for holding certain cryptos. If a cryptocurrency you own permits staking, you can "stake" some of your assets and earn a percentage-rate reward over the period. It is usually done through a "staking pool" similar to an interest-bearing saving bank account.
Your crypto earns profits while staked because the blockchain uses it. Cryptos that allow staking use Proof of Stake to verify and protect transactions without a bank or payment processor. So when you stake your crypto, you'll be contributing to that process.
What is the meaning of crypto staking coins?
Simply, a coin that provides rewards for supporting the Proof-of-Stake protocol on each blockchain. Rather than just keeping your cryptocurrency idle, you can earn interest on it by acquiring a stake in it.
Now, what is Proof of Stake (PoS)?
Staking crypto refers to the Proof of Stake (POS) system. Coins are used in this system to verify transactions on the blockchain. It is an alternative to mining, which uses a Proof of Work approach in which computers resolve cryptographic puzzles to confirm transactions.
With POS, cryptocurrency owners verify block transactions based on the number of coins a validator stakes. POS was established as an alternative to Proof-of-work (POW), the initial blockchain consensus technique.
Proof-of-stake reduces the danger of a network attack by making attempts less profitable. A POS blockchain network includes users, delegators, validators, developers, etc. Validators and delegators oversee staking.
Delegators and validators in crypto staking
Delegators are people who own cryptocurrencies and want to earn staking rewards by giving their tokens to validators. Delegation is the process of giving validator ownership of your tokens so that they can stake them on your behalf.
In a proof-of-stake (PoS) network, validators are the people or groups that run nodes. They check that transactions are legitimate and add new blocks to the blockchain. They are compensated by the network with block rewards and transaction fees in exchange for their services.
Best crypto staking coins in 2022
Crypto staking coins provide excellent financial returns. The profits received are determined by the chosen platform and the staking period.
Here is a list of 10 crypto coins that are best for staking and can be purchased to earn staking rewards.
1. Ethereum (ETH)
Ethereum was a proof-of-work blockchain until recently, making direct staking difficult. However, Ethereum is now a top option for crypto staking as it converts to a proof-of-stake blockchain. Also, Ethereum's transition has made it an increasingly popular choice in crypto stakes.
The native token of the blockchain is Ether. It is the fuel that runs the blockchain. Ether is needed for blockchain transactions and to validate transactions on proof-of-stake blockchains. These changes are meaningful for investors and make Ethereum an excellent choice for generating passive income with staking rewards.
To stake Ethereum, you must first deposit 32 ETH to activate the validator software. As a validator, you will be in charge of storing data, processing transactions and adding new blocks to the blockchain. It will keep Ethereum safe for everyone while also earning you new ETH.
If you believe in Ethereum's future, crypto staking can help you earn passive revenue. You can add 3% to 5% to your Ethereum investment. So, if you plan to keep your Ether for a long time, why not put it on the line? It is the best crypto to stake in 2022.
2. Solana (SOL)
Solana is a DeFi token built with high scalability in mind. It is an optimized blockchain that was designed with a focus on speed. Solana's minimal fees and efficient transactions empower this scalability.
Solana is among the best crypto to stake in 2022, as most deals are done in just a few seconds. You can stake your coins with more than 640 validators on the Solana network. To begin, purchase Solana from a user-friendly broker such as eToro.
Even though the value of SOL has fallen since the start of 2022, the coin remains popular among developers. When you delegate stakes to validators on Solana, you will be able to share in their rewards. SOL coins have done well in recent months, hitting $210 each.
So, put your Solana tokens into a wallet that enables staking or into a crypto interest account, such as those provided by Crypto.com.
3. Cardano (ADA)
Cardano is a popular proof-of-stake (PoS) crypto that focuses on scalability and stability and offers good returns and security during the staking process. It makes it the best crypto to stake in 2022. The strong PoS network that's commonly compared to Ethereum.
The key benefit of using the Cardano network is that it can execute hundreds of transactions per second. ADA is one of the most excellent staking coins since users can withdraw any of their staked assets whenever they choose. It is ideal to begin if you're new to the staking technique.
Cardano is interesting because staking rewards lose their value over time if too many people put their assets in the same pool. As a result, diversity is vital to enhancing your crypto earnings. Yoroi and Daedalus are Cardano's official wallets.
The annual return on ADA is 5-9% on average. The network seeks to address the energy consumption issues associated with Bitcoin mining. It is also setting itself as eco-friendly crypto compared to other currencies.
4. Cosmos (ATOM)
Cosmos is the best crypto staking coins in 2022 and decentralized blockchain network that uses BFT consensus algorithms such as Tendermint. The project aims to build an Internet of Blockchains in which multiple blockchains can efficiently communicate.
ATOM is the Cosmos network's native coin and is used to pay transaction fees. The holders of ATOM tokens can use them to validate transactions and get crypto rewards.
Moreover, you can stake your Cosmos on an exchange, a software wallet, or a hardware wallet. Even though ATOM is a little more pricey, it is not out of reach for most people.
By staking Cosmos, you can earn between 5% and 10% in rewards, and you only need a small amount of ATOM to begin. It's the best crypto to stake and can help you make some extra money.
5. Polkadot (DOT)
Polkadot is built on a designated proof-of-stake mechanism, which is different from the usual consensus. In this structure, nominators support several validators to demonstrate their faith in their behavior. Therefore, you risk losing money if you choose a deceitful validator.
But being a delegator for Polkadot is complex, so many investors choose to be nominators or put their money into staking pools. On top of that, Polkadot also gives out impressive token rewards. The rewards are proportional to the work and not the stake size.
On platforms like Crypto.com, you can get an annual percentage yield (APY) of up to 14.5% on Polkadot. Polkadot seems to have a decent chance of making money because it lets developers connect blockchains and make their own protocols.
6. Tezos (XTZ)
Tezos is also a famous and best crypto to stake in 2022 among cryptocurrency enthusiasts. The project focuses on smart contract security and formal verification.
Tezos employs a one-of-a-kind Proof-of-Stake (PoS) consensus algorithm known as Liquid Proof-of-Stake (LPoS). The primary benefit of LPoS is that it does not require users to stake many coins to participate in consensus.
Tezos investors can earn rewards in the form of newly generated XTZ tokens. The current average annual yield for staking Tezos is roughly 5-6%.
Tezos is available on Binance, Coinbase, Kraken, and many other exchanges. You may also stake it using many software and hardware wallets such as Ledger, Atomic Wallet, and Exodus.
Aside from the variety of available staking platforms, it is not necessary to stake a large amount of Tezos. Most platforms require a minimum of one XTZ or less, making Tezos staking accessible to nearly everyone.
7. Polygon (MATIC)
Polygon is the best crypto to stake and was launched for the scalability of Ethereum. This blockchain is compatible with Ethereum-based apps, making it easier for them to work together. It makes this digital coin an excellent alternative for long-term investment.
Network validators secure polygon transactions. It is one of the best staking coins since it can validate up to 65,000 transactions per second, which helps speed up Ethereum networks. Attractive profits on Polygon can be made through platforms even if you do not choose to participate as a validator.
Moreover, delegators just need to stake one coin to join the network, whereas staking demands at least two currencies. You can connect MetaMask or Web3 wallet to the Polygon network to stake. Then, deposit your MATIC tokens into a staking contract and choose how long to stake.
Your return depends on how much time and MATIC tokens you stake. The maximum APY for this coin is just over 12%.
8. Algorand (ALGO)
Algorand is the best crypto to stake in 2022, and for a good reason. Most of the best coins for staking that I have talked about so far use a standard PoS consensus. However, Algorand takes it a step further by integrating a Pure PoS system, which makes this protocol even more reliable. Thus, the Algorand blockchain can avoid forking while still handling instant transactions.
Users can stake ALGO, the native currency of the Algorand network, to win incentives. ALGO is regarded as one of the best staking coins due to the protocol's minimal rules for validators. In fact, unlike Ethereum, you only need one ALGO token to begin staking. It means that there are several staking pools for this asset, but it can be challenging for platforms to offer high APYs.
To stake ALGO, you must first purchase some tokens and put them into an Algorand staking wallet. You can begin receiving prizes once your tokens have been deposited. Currently, the annual reward rate for staking ALGO is around 5%. But this figure could change depending on how much ALGO is being staked.
9. VeChain (VET)
The next best crypto to stake in 2022 is VeChain (VET). This blockchain platform focuses on supply chain management and has partnered with major companies, including Walmart China, BMW, and PwC.
VET is the native currency of the platform, which can be staked to earn rewards. The amount of VET you hold and the stake will determine how much you can earn – the more you have, the higher the rewards. There's also a good chance that the price of VET will continue to rise as the project gains more adoption.
VeChain is available on several major exchanges, including Binance, KuCoin, and Huobi. So, if you're looking for a good blockchain project to invest in and stake in, VeChain is surely one to consider.
10. Uniswap (UNI)
The last best crypto to stake on this list is Uniswap. It was introduced in November 2018 and rapidly became a popular decentralized exchange. The system permits Ethereum (ETH) and ERC20 token trading. Smart contracts and a liquidity pool fuel the protocol's trades.
So, if you're seeking the best DeFi coins for staking, Uniswap is a good option. It is responsible for about 25% of daily transactions on the Ethereum network. The protocol's latest version, Uniswap V3, has greatly cut transaction fees, making it one of the top cryptos to buy in 2022.
When it comes to staking, passive crypto investors choose Uniswap. Moreover, Uniswap is regarded as one of the most affordable cryptocurrencies of 2022 based on its potential. By investing in it, you will be able to benefit from the rising value of UNI coins while also having a say in how the network functions.
Where Can I Stake?
There are multiple platforms where you can put high stake coins mentioned above to earn passive income. Depending on the platform, traders can also stake stablecoins like USD Coin, Dai (DAI), and Tether.
Many exchanges allow staking, and some crypto wallets also offer crypto staking. While Gemini, KuCoin, Kraken, Coinbase, and Binance are a few of the Best Crypto Exchanges.
Read in-depth crypto staking platform reviews to learn more. They all provide a simple and easy way to buy and hold cryptocurrency at affordable pricing.
Exchanges are one of the most famous ways to earn staking rewards. Many platforms offer staking services for many assets. Binance, for example, allows users to stake more than 30 different cryptocurrencies on its platform.
You can stake Ethereum, Ripple, and other supported cryptos and receive rewards based on the amount of crypto you hold and the length of time you hold it.
Cold or Private Wallets
Cold or Private Wallets are a secure method for crypto staking. They offer security and peace of mind. Your cryptocurrency is stored offline in a cold wallet, which means it can't be hacked or stolen. And since you're the only one with access to your private keys, you're in complete control of your crypto.
For individuals who are not good with technology, some services offer cold storage and staking a service such as Stakecube.
Web or Browser-based wallets are also an option for staking your crypto. My Ether Wallet, for example, is a web-based wallet that supports the staking of Ethereum and other ERC20 tokens.
Staking-as-a-Service (SaaS) Platforms
DeFi staking is a new kind of crypto staking that has gained popularity in recent years. Through decentralised exchanges and lending platforms, you can use DeFi staking to earn interest on your crypto assets.
Binance, Aqru, YouHodler, and other popular DeFi staking sites are listed below.
Benefits and Risks of Staking Crypto
Although Crypto Stakes is an excellent technique to earn passive income, it is not without risk. Thus, before you begin crypto staking, you should be aware of both the potential benefits and risks.
Benefits of Staking Crypto
The opportunity to earn interest on your coins.
You can get started staking quickly with an exchange or crypto wallet.
Also, earn rewards for participating in staking pools.
You may support your preferred projects by staking crypto. Many projects reward users who stake tokens for them.
A way to help secure a cryptocurrency network; By staking coins, you increase the blockchain's attack resistance and transaction processing.
Risks of Staking Crypto
Crypto prices are pretty volatile. Users worry about volatility in staking, which could lead to significant losses.
Delegated proof-of-stake users can lose their tokens if their validator acts unfairly.
As with any crypto project, a user's specified project may get hacked, used against them, or disappear entirely.
Some users may have liquidity issues during stake and unstake periods.
Overall, staking crypto can be a fantastic way to earn some extra income. Still, it's also suggested to understand the risks involved before you start.
An overview of the best crypto-staking platforms
Here is a short review of the 10 best crypto staking platforms for staking your digital assets in 2022:
Binance is a popular crypto exchange platform and offers a comprehensive staking platform. Binance allows users to stake various digital assets, including Bitcoin, Ethereum, XRP, and others. The staking rewards range from 3% to 15%, depending on the crypto.
Coinbase is one of the popular crypto exchanges and wallets. Coinbase also features one of the crypto staking platforms that allows users to stake various digital assets, including Ethereum, XRP, and others. Invest your cryptocurrency and earn up to 5.75 % in returns.
Kraken is a US-based cryptocurrency exchange founded in 2011 and one of the largest in terms of the trading volume. The exchange offers many cryptos, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Monero, Dash, Zcash, and more. Kraken also allows staking some of these currencies, allowing users to earn rewards for crypto holdings. With Kraken, you may earn up to 23% yearly on your crypto.
KuCoin is a crypto exchange that offers staking services for various digital assets, including BTC, ETH, LTC, NEO, and KCS ( KuCoin Shares). The KuCoin platform offers attractive returns, starting at around 2% and going up to 10%, depending on the assets.
eToro is a multi-asset social trading platform with over 10 million registered users. The platform allows users to stake some of these digital assets and earn rewards. eToro's staking rewards are among the most substantial, paying 75% to 90% of staking profit. Staking ETH 2.0 on eToro is similar to staking other crypto assets, and you can potentially earn up to 4.3%.
MyCointainer is a staking-as-a-service platform that enables users to stake their digital assets and receive rewards. It also offers one of the highest APYs for staking different digital assets. The APY offered by MyCointainer is up to 15% depending on the crypto asset.
Gemini is an exchange founded by the Winklevoss twins in 2014. The Gemini exchange is also a well-known crypto-staking platform. It can stake stablecoins, and there are no hidden fees when staking cryptocurrency on Gemini. Gemini provides rewards for almost 40 different cryptocurrencies. The maximum APY for cryptocurrency staking is 8.05%.
Crypto.com has millions of users. It also provides crypto staking and is known as one of the best staking platforms. Additionally, the platform offers digital asset loans, crypto credit cards, debit cards, and NFT markets. You can earn up to 14.5% on the assets you stake.
AQRU is a simple-to-use staking platform, and you can access your crypto staking account with the Aqru mobile app. The returns are determined on the coin staked. The platform also accepts fiat currencies and offers one of the highest APYs on digital assets. AQRU allows you to earn up to 8% on your digital assets.
The Future of Crypto Staking
Staking as an investment method is here to stay when looking into the future. We can expect an increase in the number of people wishing to stake their coins as more projects shift away from PoW and toward PoS. It will improve the security and reliability of crypto networks and allow more users to generate a passive income from their digital assets.
Furthermore, we may see changes in how staking is carried out, with new protocols and technologies being created to make staking even more accessible and convenient. Whatever the future crypto market has in store, it seems apparent that staking will play a notable role in the crypto industry.
Key take away
Crypto staking has become popular as a feature offered by several crypto platforms. Considering the benefits, it's not really a surprise. Therefore, generate passive income by placing the high stake coins I outlined. Various crypto platforms simplify buying and holding crypto at low fees.
Earning rewards while making blockchains more secure can be a win-win for both the user and the platform. However, remember that you cannot stake every coin, and some give better staking rewards than others. So, choose the best crypto to stake in 2022 that matches you, and start staking!
Read more: Top 10 crypto-staking platform