5 Crypto Asset Recommendations for Staking

5 Crypto Asset Recommendations for Staking

Posted on

The way to profit from a rising cryptocurrency is staking. Profits in the staking process are like “bank interest” when we save money as deposits. The more coins we stake, the greater the profit we get.

Staking can also be a way to raise money, because the money in crypto assets will increase when the asset goes up and of course it can make the interest earned from staking bigger.

There are a number of different coins that can be used for staking. On the stacking rewards website, it is noted that there are more than 100 digital assets that support staking.

However, not all coins from the list are reputable and can generate sustainable profits when staked.

Therefore, choosing a suitable asset for staking must be done carefully and of course know all the risks that exist.

Best Proof of Stake CoinsIn this article, we will review 5 choices of coins for staking that can be used as a reference if you want to stake.

The coins listed here have a good development team and have the opportunity to experience a price increase.

1. Tezos (XTZ)
Tezos (XTZ) is one of the blockchain and cryptocurrency projects released on June 30, 2018.

Unlike many other blockchain projects, Tezos is not based on the codebase of any other blockchain.

It uses the OCaml and Unique programming languages. It also implements a different Proof of Stake consensus called Liquid Proof of Stake (LPoS).

The Tezos blockchain is powered by the XTZ cryptocurrency, which is created through a “baking” process. It’s actually the same name as staking, and the people who do the baking at Tezos are known as bakers.

In Tezos, there are two methods for staking, the first is baking and the second is delegate tezos.

In the individual baking process the capital required is 8,000 XTZ. Users also need to run their own complete nodes. Then for baking at XTZ independently, users must use the Galleon wallet.

Meanwhile, for delegate tezos the process is much easier and the capital is less, because this is like staking in a pool, where you will collaborate with other users to do staking.

But the rewards you get are certainly not as big as individual baking tezos. To delegate tezos you can use various staking service providers such as Binance Staking, Everstake, Tezgate, Proof of Bake and so on.

Reporting from stakingrewards if you delegate XTZ, the reward you get per year is 5.56%

Tezos is one of the preferred assets for staking, due to its good results and Tezos has made it into the top twenty cryptocurrencies with the largest market capitalization.

Read also:  Exploring a Brief History of Cryptocurrency

2. Cosmos (ATOM)
Cosmos (ATOM) calls itself a customizable, scalable, robust and interoperable connected blockchain ecosystem.

It is a decentralized independent blockchain network powered by Tendermint and the Byzantine Fault Tolerant algorithm.

Cosmos uses a Delegated Proof of Stake (DPoS) system where there are delegators (aka shareholders) and validators.

User can stake any number of ATOMs by delegating them to the validator. The validator keeps a portion of the staking rewards which can vary from 0% to 25%.

ATOM’s staking reward in April 2020 is 8.2% per annum, but it could be as high as 20% if the proportion of ATOM staked falls below two thirds of the total supply.

Staking ATOM is quite easy, users only need to have the appropriate wallet. Then choose a validator to delegate. You also need to claim your prizes manually.

ATOM is currently ranked as the 25th largest cryptocurrency by market cap.

The staking rewards for these tokens are quite lucrative, and if the team manages to implement its vision for an “Internet Blockchain” it is predicted that ATOM could start paying staking rewards in a number of different cryptocurrencies, placing it above other projects.

3. Synthetix (SNX)
Synthetix (SNX) is an Ethereum-based project created for the creation of synthetix assets that are linked to the value of several other assets.

Synthetix for StakingThese assets can be based on physical commodities, fiat currencies, stocks, bonds, other cryptocurrencies, or basically anything of value.

Every synthetix asset created is an ERC-20 construct and is supported by Synthetix Network (SNX) tokens.

Staking prizes were added to the Synthetix network in March 2019 as a way to meet the need for people to contribute to the system. This means that SNX holders can create new Synths and then get staking prizes every week.

Rewards come from transaction fees and must be claimed by the user via the Mintr dApp, which is also used to create Synths.

Prizes staked can be claimed up to two weeks thereafter, but if they are not claimed at that time, they will be returned to the rewards pool.

As of April 2020, the annual return for SNX staking is 55.28% according to StakingRewards.com.

With a large annual reward, this is definitely a great way to generate passive income.

The project is also well developed, as synthetix assets are a good way to gain exposure to traditional markets.

4. Cardano (ADA)
Cardano for StakingCardano (ADA) is a decentralized platform that allows programmable and complex transfer of value in a secure and scalable way. Founded by Charles Hoskinson, development began in 2015, and then raised an estimated $ 60 million in ICO in 2017 before its release. Hoskinson is also a co-founder of Ethereum.

Read also:  The Origin of Bitcoin and its Mysterious Inventor

Cardano has just launched its staking service in July 2020. For staking on Cardano you only need to provide a Daedalus or Yoroi wallet and users simply hold ADA in the wallet and users can delegate ADA to the staking pools provided.

If you use the Yoroi wallet, users can delegate ADA directly to several staking pools in one wallet, whereas if you use Yoroi you must have multiple wallet accounts if you want to use more than one staking pools. The reward that you can get from staking ADA as reported by stakingrewards is 6.09% / year.

5. Algorand (ALGO)
Algorand (ALGO) was created as a decentralized, permissionless blockchain with the aim of enabling a borderless economy.

It aims to solve major blockchain scalability issues while maintaining decentralization and security.

Algorand does all of this and also provides users with very low transaction fees.

The Algorand network allows for the development of decentralized applications, and with a reported throughput of 1,000 transactions per second.

This is a good alternative for dApp developers looking for a faster, lower-cost network.

Anyone who has 1 or more ALGO in a non-custodial wallet can earn staking rewards with each block created.

Staking rewards are initially set at an annual rate of 10%, but as of April 2020 the annual reward is 5.46% according to StakingRewards.com or around 8% on Binance Staking.

Algorand is much preferred for staking because of the fairly simple staking process. There are no nodes to run, and no other special requirements.

Users only need to store their ALGO in a suitable wallet, and payments are made approximately every 20 minutes.

You can make five choices of coins if you want to try staking.

In calculating the benefits obtained from this process, you can try to calculate it through the simulation calculator provided by Stakingrewards.

As always, all the decisions to go through this process are completely yours, make sure you do enough research and know the benefits and risks of the coins you want to lock in the staking process.