Home Altcoin Staking: these are the 5 preferred cryptos for passive profits

Staking: these are the 5 preferred cryptos for passive profits

Staking has been called in various ways, some accurate, others not so much.

This has also happened with PoS, the Proof of Stake protocol. Proof of stake, proof of stake, anyway. Stack, bet, there is everything, but the idea behind staking is very simple.

PoS is precisely the consensus system that allows you to stake (some say so) your cryptos. We will see it sometimes in its variants, such as dPoS, delegated proof of stake, nPoS, or nominated proof of stake and others.

Decentralized finance, or DeFi, seeks to emulate and enhance legacy financial systems.

Taking advantage of the advantages offered by blockchains, it was obvious that DeFi also offered some way to use cryptocurrencies to earn interest, as is done with savings accounts.

And staking is practically that, saving with crypto. The user leaves some amount of his coins without moving them for a stipulated time, and the network rewards him with interest paid in the same currency.

The addition of blockchain systems allows stakers to participate in things like network governance, for example.

Not all blockchains give the same staking benefits to their users. Even performance is often different in many cases.

The staking capacity is not something native to electronic wallets, nor to crypto exchange platforms. It is usually added depending on the volume of coins destined for savings in each network.

But the idea is that these benefits make it attractive for the owners of the coins to hold them captive for a time.

That is always the first requirement to earn interest when staking.

Next, we are going to review the 5 cryptos that staking enthusiasts prefer the most. They are those that appear as those that accumulate the most captive capital producing passive profits.

Cardano (ADA)

Founded in 2017, the Cardano network has brought some breakthroughs to the blockchain world. Among them, the ability to program smart contracts and decentralized applications in modules.

The Cardano blockchain is also often used to optimize supply chains, guarantee the origin of certain products and the tamper-proof storage of digital identities.

According to Staking Rewards data, Cardano, whose native token is ADA, is the network that presents the highest amount of money accumulated in staking. More than USD 39,800,000.

ADA is currently trading at $ 1.74, and the reward that returns to its staking users is 7.29%. As you can see, it is an accessible price token, and it could be a good option to start in passive earnings.

Polkadot (DOT)

The second blockchain with the most captive capital in staking is Polkadot.

In the Staking Rewards classification, the Polkadot network accumulates about USD 17,592,297 in staking.

Polkadot, whose native token is called DOT, is one of the most interesting and complex chain of blocks that can be found in the blockchain ecosystem.

It is also related to Acala Network, a network that provides the Acala Dollar stablecoin.

Among its outstanding figures are the parachains, or parallel chains. Parallel chains allow the execution of simultaneous transactions, which greatly improves the scalability of the network.

This blockchain was conceived to serve as a hub between different blockchains, and facilitate the exchange of data, tokens and other digital assets between them.

The yield per staking of DOT is 13.18%. The DOT token is currently trading at about $ 25.32.

Ethereum (ETH)

In the third place of the most relevant cryptocurrencies in staking we find the eternal shadow of Bitcoin, Ethereum.

As most of you already know, the paternity of Ethereum is attributed to the young Vitalik Buterin. But the reality is that the network has other co-founders.

Some of them, like Charles Hoskinson, or Gavin Wood, decided to carry out their own blockchain initiatives, founding networks where staking is allowed.

The cryptocurrency of Ethereum is ETH, or ether, although it is also called Ethereum interchangeably. Staking Rewards data indicates that the Buterin network accumulates some USD 13,319,377 that produce rewards for its savers.

ETH yield is 6.65%.

Solana (SOL)

Do you know the famous blockchain trilemma? Supposedly, no blockchain can satisfy at the same time the three most desirable requirements in them: security, scalability and decentralization.

When the network focuses on one of them, it is at the expense of the other two. But that was before Solana appeared, whose creators claim to have settled the matter.

The main attraction of the Solana network is its speed and its rates, which are estimated in fractions of a dollar. Solana blocks are created in just milliseconds.

Although it is a blockchain that allows staking, its main protocol is called PoH, or proof of history. Something that its creator, Anatoly Yakovenko, an individual who made a career at Qualcomm, invented.

Solana’s currency is SOL, and it is currently trading at USD 30.21. The yield per staking of SOL is 10.37%. The capital that Solana has retained in staking is calculated at USD 12,650,936.

Algorand (ALGO)

Algorand is the product of the mind of a genius, one of those who work at the Massachusetts Institute of Technology. His name is Silvio Micali, and he has made important contributions in the research of communication between computers.

Micali has also participated in developments related to blockchain projects, and the improvement of existing electronic money systems.

Like many other blockchains, Algorand’s main idea was to offer a highly efficient network whose transactions far exceed the speed of Bitcoin.

The network also stands out for its super cheap rates.

It is clear that today, almost all cryptocurrency networks are considerably faster than Bitcoin, which, despite its limitations, no other crypto has been able to take away its number one place.

On their website, Algorand promotes itself as a platform focused on the Finance of the Future, something they call “FutureFi”.

They themselves count by the hundreds the financial organizations, blockchain initiatives and investment companies, and others, that rely on the technology offered by the Algorand network.

Among the best known are Circle, Tether, Cudo (popular with blockchain developers), Chainalysis, and Ledger.

Algorand’s native currency is ALGO, which is currently trading for $ 1.01, according to data from CoinMarketCap. It is the cheapest cryptocurrency of those listed in this ranking.

The Staking Rewards board indicates that, by “stake” with ALGO, its users receive a yield of 5.56%. The value of the tokens on deposit slightly exceeds $ 5,700,000.

Staking for everyone

In the world of staking there is a variety of currencies with which to access passive profits.

Each blockchain network has its particular conditions to be able to practice staking with its tokens. Some are more demanding, others provide more flexibility.

Sometimes it is necessary to have a large initial amount of money to run a node and to be able to hold the coins. On some networks, a few accumulated coins will already earn you rewards.

The minimum retention time is a condition to consider, at least for those who wish to have mobility. It can be as long as a year at times.

If you are interested in passive income, you can surely find a crypto to start with. But you have to do your homework, so start your research.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Staking: these are the 5 preferred cryptos for passive profits

Staking has been called in various ways, some accurate, others not so much. This has also happened with PoS,...

United Kingdom forces to block cryptocurrency advertising

The advertisements of the company Luno will be withdrawn from the United Kingdom after the resolution that obliges them to do so...

Cryptocurrencies find some relief after their crash

Cryptocurrencies find some support for a bounce after one of the toughest weeks for investors. Although last Thursday we...

China Strikes Cryptocurrencies Again, Bitcoin Slumps Again

The highest level of government in China has proposed new measures to regulate mining in the country. The proposal has been received...

Bitcoin on the Playstation? Sony’s patent finally accepted

On May 17, 2021, the publication of a patent by Sony Interactive Entertainment mentioning Bitcoin was greeted with great fanfare by the...