If you’re planning to earn passive interest with your cryptocurrencies, staking is the best way to do it. The process is similar to earning interest from your savings account.
Skating is an amazing idea to use cryptocurrency as a well-productive asset. The annual interest can range from 5% – 20% on crypto coins holdings.
Let’s have a deep look at staking coins.
What is Staking Coins?
Staking cryptocurrencies include buying or holding them in the wallet. Just like buying the stock and holding them. Hold the coins in your wallet and wait for appreciation. The potential upside is that when you staking the coin, the coins will be doing additional work by contributing to POS (Proof of Stake). It verifies every block on the blockchain.
Staked coins are fixed for a certain period of time. Also, these coins are used to validate every transaction on your block. In the exchange, you can easily earn a percentage of staked coins as a reward.
It’s time to explore the best staking coins.
Tezos (XTZ) is one of the popular staging coins available in the crypto market. It is the blockchain network connected to the digital coin, which is known as TEZ. Investors will earn a reward for participating in POS (Proof-of-stake) transactions.
The aim of Tezos is to become a powerful blockchain in the market. The blockchain should easily handle development and upgrades without the requirement for hard forks such as Ethereum, Litecoin, etc in similar space.
The value of TEZ was tripled between Oct 2019 to Feb 2020. Finally, TEZ has reached heights. The price of Tezo is gaining attention around the world. You can earn 5 to 6% as annual interest on Tezos.
VeChain (VET) has been grabbing millions of crypto investors worldwide. VET is popularly called an Ethereum-inspired blockchain platform. It strongly concentrates on large enterprises and supply chain industries.
The VeChain team strongly believes blockchain is the key foundation for future technology, alongside popular technologies like AR, VR, 5G, etc. The ultimate goal of VeChain (VET) is to lower the barriers to blockchain technology. VeChain vision is to solve technical, business and governance consensus.
At the VeChain application hub, users can quickly explore applications and the necessary information that is required to build on the VeChain blockchain. Bounty programs help users to get additional support on the blockchain. VeVote at VeChain ensures accuracy, anonymity and is impossible to manipulate.
One of the excellent features of VeChain (VET) is meta-transaction. Users can enjoy multi-task transactions, transaction dependency, controllable transaction lifecycle and more.
VeChain (VET) is one of the popular proof-of-stake coins. VET itself states that low computing power is necessary to maintain user consensus and achieve better security. The annual interest earned on VeChain is 2.2%. The interest value can change from time to time.
Neo (NEO) is popularly known as “Chinese Ethereum”. Neo (NEO) was introduced by Da Hongfei and Erik Zhang in Feb 2014. Neo considers itself as – Rapidly growing and developing ecosystem. The ultimate goal of Neo is to become the foundation for the future internet. Simply put, Neo wants to introduce the latest economy. All the digital payments, assets and identities can be managed under one roof.
Continuous development is one of the excellent features of Neo (NEO). The constant improvement helps to ensure Neo is future proof and has the ability to survive during an increase in demand. The NEO 3.0 version enhances the overall network security. Also, transactions are processed every second. There are 70.5 million tokens in circulation. The annual interest on Neo tokens can range from 1.5% to 2.50%.
Cosmos (ATOM) is the leading decentralized network that enables data exchanges among multiple blockchains. ATOM was introduced by Jae Kwon, Zarko Milosevic and Ethan Buchman in 2017. Cosmos resolved scalability issues and interoperability problems encountered in the existing blockchains.
The developers at ATOM concentrate on “Modularity”. On Cosmos blockchain, there are several transactions that can be performed simultaneously than traditional blockchains such as Bitcoin, Ethereum and Litecoin. With Cosmos, new startups are easily creating their blockchain services without hassles.
Cosmos (ATOM) uses the “Proof-of-stake Consensus Algorithm” to enhance security. The validator nodes that staked a major quantity of Cosmos coins are likely to be preferred to verify the transaction and get rewards. The expected interest in Cosmos (ATOM) is 8% per annum.
Lisk (LSK) is the blockchain application destination for everyone around the world. The platform makes blockchain easily available and accessible by creating a world where people benefit from Lisk technology.
The products developed on Lisk are open-source. The open-source feature enables everyone to create their individual blockchain without any difficulties. Lisk designed the blockchain application to ensure flexibility. LSK offers delegated Proof-of-stake by using an energy-efficient consensus algorithm.
Lisk wallet is an excellent product introduced by Lisk (LSK). List Desktop is the comprehensive platform to manage the Lisk account. Investors can easily access and send or receive tokens. The wallet is a lightweight version of blockchain that is introduced for the on-the-go purpose.
DAI (DAI) is the leading Ethereum-based stable token. DAI was developed by Maker Protocol. The value of the DAI token is soft-pegged to the dollar. Also, DAI is collateralized by several crypto’s that are stored in smart contracts vaults.
MakerDAO is a well-known decentralized autonomous company. It runs in a decentralized way through using smart contracts. Also, the company runs on self-enforcing terms expressed in the programming language and executed on Ethereum (ETH) blockchain.
Staking DAI coins is an amazing way for risk-averse investors. Keep a note, Gemini and BlockFi are used to stake DAI. Investors are earning around 6% – 8% per annum.
In a nutshell
Do you think crypto staking is worth your time and effort? Of course Yes! Crypto staking is totally worth it. The process is simple and easy. When the crypto price decreases, you can average the entry price. Or when the price rises, you will be in the winning zone.