Our previous posts discussed what cryptocurrency staking is and how to get started with staking to earn passive income. Now let’s take it a notch higher and analyze the most viable cryptocurrencies for staking in 2022.
Recap: What is crypto staking?
Cryptocurrency staking involves pledging specific cryptocurrencies to verify transactions on the blockchain. You receive new tokens or coins on top of your staked assets in exchange. Stakers also receive tokens from transaction fees and from the network itself.
Coin Staking can be a great way to earn passive income since it removes the risks involved with mining or trading. However, the profits you make will depend on how much you stake and how long you do it.
📖 Learn more: Is Staking Crypto Worth It?
Beneﬁts of staking cryptocurrency
The primary purpose of staking is to help maintain the security and efficiency of the blockchain. However, staking can be an excellent way to earn passive income in crypto. All you need to do is buy crypto, lock up your coins inside a staking pool and sit back to collect the rewards. You don’t lose your coins either, but some projects might require you to stake your coins for a specific period.
- Staking enables you to earn interest on your crypto holdings
- It’s pretty easy to stake cryptocurrency since you don’t need any equipment to get started.
- When you stake cryptocurrency, you help maintain the security and efficiency of that coin’s blockchain network.
- Since staking doesn’t require solving complex computational problems, less energy is consumed verifying transactions.
The best cryptocurrency for staking
Staking is not available to all cryptocurrencies. Only coins that employ the Proof-of-Stake model to verify transactions in the blockchain enable staking. For example, Bitcoin doesn’t allow staking because it relies on the Proof-of-Work method of validating transactions. So, it is important to check if your preferred coin is eligible for staking.
The following is a list of the best cryptocurrency coins to stake in 2022 – based on returns and ease of staking.
Ethereum (ETH) remains one of the most popular cryptocurrencies in the market today. As of January 2022, the ETH market cap stood at USD 291 billion. Ethereum also oﬀers substantial staking returns – you can expect to earn an average return of between 5% to 17% per year.
Cardano also supports staking of its native currency ADA on various platforms such as Binance, Coinbase, Bitfinex, etc. It is a smart contract platform that lets users earn passive income by locking up ADA to a staking pool to support the stability of the Cardano network. In return, users earn rewards in ADA which they can move freely to other platforms or exchange for BTC or ETH. If you stake Cardano on Binance, you can earn up to 24% APY.
EOS is a smart contract platform that enables businesses to launch and deploy decentralized applications (dApps). The EOS token is the network’s cryptocurrency. Like Cardano and Ethereum, you can stake EOS to earn yield. Stakers can earn rewards averaging 3.2%.
Cosmos currently oﬀers rewards of 5% for staking your ATOM via its exchange. Rewards are paid out in ATOM – Cosmos native currency. Other platforms that oﬀer Cosmos staking include Coinbase, Kraken, and Binance. Binance, for instance, provides a percentage yield of between 1.5% and 3% when you stake your ATOM, while Kraken gives you annual rewards of up to 7.5%. You can also stake ATOM using wallets like Atomic Wallet (up to 11% rewards), Leder Wallet (up to 10% rewards), and Trust Wallet (up to 10% rewards). Generally, Cosmos staking yields an average of 7% APY.
Tezos is a decentralized open-source platform that allows participants to control the rules of the network via smart contracts directly. Its native token is XTZ (Tezos). You can stake Tezos on Kraken (oﬀer rewards of up to 4.7%), Binance (up to 6.7% rewards), Ledger (up to 6% rewards), and Exodus (up to 6% rewards). Tezos generally oﬀers an annual yield of 6%.
Polkadot is a new decentralized platform focused on interoperability between various blockchains. Staking Polkadot (DOT) allows you to earn rewards passively without having to go through multiple extraneous steps. The best places to stake DOT include Binance, Kraken, Ledger, and Polkadot.js. The current annual average yield for staking Polkadot is 12%.
HI is a hi membership token and a cryptocurrency used to access hi.com’s services oﬀered by hi.com. Members can earn HI to access services and benefits based on their membership tier. For instance, you can stake your stablecoins (such as USDT) for HI and earn up to 11% of your coins. Payments are made in your deposited coins every Friday, allowing you to collect steady passive income every week.
⭐️ Read more about hi Flexible Earn
As a non-profit digital banking system, hi is the world’s first cross-platform financial service system based on chat tools. To stake HI, simply head over to Telegram or WhatsApp to register. Alternatively, you can register on the website to purchase HI directly from the hi Web App.
Here’s how to stake HI to earn rewards:
- Buy cryptocurrency that supports staking (e.g., USDT, ETH).
- Transfer your crypto to your hi staking wallet.
- Confirm that the funds have arrived in your wallet.
- Enable staking on the wallet. Sit back and wait to collect your rewards every Friday. Start claiming your free daily rewards now.