Crypto.com Staking Best Coins for Maximum Passive Income
Interested in investing in cryptocurrencies? There are a myriad of factors that you should take into account. When you invest in coins that are based on a proof of stake (PoS) blockchain network, you can engage in staking, which helps PoS networks operate more securely and efficiently. The only requirement for staking is that you keep coins in your cryptocurrency wallet over an extended period of time, which allows you to earn staking rewards. Staked coins are similar to interest-bearing savings accounts, since with both options you earn interest on your initial investment. Keen on giving this passive income strategy a go? Read on as we cover some of the best staking coins you can invest in if you want to earn passive income while taking advantage of the high yield.
What Is Crypto Staking?
Crypto staking is a process that involves placing funds into a digital Crypto.com Staking wallet and keeping them there to support validating transactions for PoS blockchains. By participating in transaction validation, participants earn extra cryptocurrency.
The main benefits associated with staking crypto include the following:
Crypto staking doesn’t require any extra equipment, unlike crypto mining.
You can earn a certain amount of interest on your crypto holdings.
Staking is substantially less harmful for the environment than mining.
Staking directly enhances the efficiency and security of PoS blockchains.
There are some notable differences between mining and staking. In general, while mining only occurs with proof of work (PoW) systems, you’re able to get a return on both PoW and PoS coins on staking platforms.
Both PoW and PoS as consensus mechanisms are able to confirm blockchain transactions without needing a third party, such as a bank or other financial institution. The main difference between the two mechanisms is in their energy consumption.
If you’d like to get started with the staking process, you first need to obtain PoS coins. Once you’ve selected the coins you want to use, you’ll decide how much of your top staking coins you’d like to stake. This process can be done on any major cryptocurrency exchange.
Keep in mind that it’s also possible to earn additional income through yield farming. Although somewhat more complicated than staking, yield farming involves earning coins by lending your current crypto assets to various DeFi platforms. With yield farming, you can contribute crypto assets for anywhere from a couple of days to several months. Higher lending amounts invariably lead to higher rewards.
Risks of Staking
Despite the benefits of crypto staking for earning passive income, there are several risks to be aware of. The primary ones are as follows:
Crypto prices are relatively volatile, which means they can depreciate quickly. In the event that your assets drop by a sizable amount, you may not earn enough interest to outweigh your losses.
While it’s possible to “unstake” your crypto earnings, doing so can take at least seven days for certain platforms. Conversely, platforms like Bybit offer flexible staking which allows for instant withdrawals.
If you want to use some of the top staking coins, it’s important to understand that these coins will remain locked for a short period of time. This means that nothing else can be done with these assets in the interim.
What Are the Best Coins to Stake?
The following is a comprehensive look at 19 of the best staking coins you can purchase in order to start obtaining staking rewards. The tokens’ symbols are listed after each crypto platform.
With big-name backers like Peter Thiel and Pantera Capital, investors can be confident in BIT being one of the next big exchange tokens. As one of the world’s largest decentralized autonomous organizations (DAOs), BitDAO seeks to nurture the DeFi space in achieving its vision of open finance and a decentralized, tokenized economy. BIT token holders can shape the future of BitDAO through voting on governance proposals, such as updates to core protocols and token swaps.
To begin staking, join the Bybit Launchpool. After signing up on Bybit and Crypto.com Staking completing Level 1 KYC, simply transfer BIT into your Bybit Earn account and begin the staking process. With a prize pool of 1,500,000 BIT tokens and an average annual return of 14.77%, you’ll certainly be hard pressed to find similar staking coins with comparable growth potential and staking rewards.
Stake BIT to Earn BIT
If you’re wary of your staked tokens and coins depreciating in value, try staking a stablecoin instead. While deciding which stablecoin is the best staking coin comes down to personal preference, we’re recommending Tether (USDT) thanks to its massive trading volume. This can do wonders for liquidity as the high daily USDT volume lets you effortlessly swap out USDT for more lucrative tokens.
Keen on giving USDT staking a go? Take advantage of Bybit Earn flexible staking and Crypto.com Staking enjoy average annual rates up to 3.5%. Thanks to the stability of USDT’s overall value, we certainly consider it as one of the best staking coins for beginners getting into staking and want to use a platform that offers instant withdrawals and little hassle.