In a cryptocurrency exchange, can there be rewards provided for your ownership of the cryptocurrencies? The statement is true as rewards can now be received on your cryptocurrencies or digital assets with Crypto Staking. To put it simply, an individual can earn a consistent passive income by mining their own cryptocurrencies.
What is Crypto Staking?
The process of staking coins or cryptos revolves around the generation of interest in a smart contract or crypto wallet by locking your coins. Furthermore, this mechanism is constructed on a Proof-of-Stake (PoS) blockchain technology or network, or an identical phenomenon, which allows the execution of the coin staking in a systematic and safe manner.
How to begin crypto staking as an investor?
After getting an understanding of the term “Crypto staking,” the potential investor needs to get acknowledged on how they can start their crypto staking journey.
Crypto staking can usually be done by every investor. The procedure to become a full-time validator has certain requirements to be fulfilled, such as practical knowledge, a considerable amount of minimum investment, and a reliable computer that can do verifications endlessly.
At this stage, the work of the validator can go downhill if their work is subjected to any mishappenings in security considerations. Thus, these security measures have to run smoothly to efficiently implement the validator’s work.
This write-up will give well-informed insights into the best staking coins for the year 2022. Some of them are:
- Polkadot (DOT)
Created by one of the Ethereum co-founders, Gavin Woods, in coordination with Peter Czaban and Robert Habermeier, Polkadot appeared as one of the finest staking choices due to its stately and ascendable multi-chain mechanism.
With an interesting average annual return of 14%, Polkadot users or investors would be required to have at least 40 DOT staked in the Polkadot network to earn rewards.
- ETH 2.0 (ETH)
As Ethereum is slowly changing into a Proof of Stake (PoS) network, i.e., ETH 2.0 territory, this step will add more staking capacity to the network.
In the Ethereum network staking pool, around $30 billion ETH has already been locked in December 2020, since starting the testing phase.
For staking ETH, investors would have to contribute a minimum amount of 32 ETH, and in return, they would get an almost 4.95% annual return.
- SushiSwap (SUSHI)
In order to stake SUSHI (the native token of SushiSwap), investors can purchase it from different cryptocurrency exchange platforms, such as WazirX, and then send it to their crypto wallets.
Sushi users who stake SUSHI can also receive xSUSHI income of 5% of all network transaction costs.
- Tezos (XTZ)
With its liquid-proof Proof-of-Stake model, impressive smart contracts operationality, and progressive infrastructure, Tezos as a stalking coin is formed via their network’s self-deployed “baking” system.
As a profitable staking option, an investor can gain benefits by only maintaining 1 XTZ in their wallets. Between the rates of 6.75–10.60%, these annual rewards are paid out after 35–40 days and subsequently every 3 days.
- Cardano (ADA)
Cardano is a part of the top 10 cryptocurrencies in the crypto industry and is a PoS blockchain network that offers its users no limits on the time period in which their ADA coins can be staked. The rewards will gradually lose their value if the investors keep on staking the coins in the same liquidity pool.
Providing an average annual return rate of 6%, Cardano has two kinds of wallets, like Yoroi and Daedalus.
Staking coins requires tremendous research and analysis as each cryptocurrency has its own associated risks. So, before you begin Crypto Staking, check more information about the current crypto trends, price fluctuations, and more with one of the best cryptocurrency wallets in India, such as WazirX!
