Staking has become a major part of the cryptocurrency ecosystem. It has become one of the best ways for investors to make money while still holding on to their coins and tokens.
However, there are hundreds of coins and tokens investors can stake now, making it harder for them to know the best ones. This article explores the best proof of stake coins and their rewards.
What Is Crypto Staking?
Cryptocurrency staking is a process that allows investors to place their funds in a digital wallet and leave the funds there to support validating transactions for proof of stake blockchains. By participating in staking, investors earn extra cryptocurrency.
PoS Coins With The Best Rewards
Here are some of the leading coins with the best rewards for investors.
BitDAO (BIT)
This project has some popular backers like Peter Thiel and Pantera Capital. BIT is considered as one of the next big exchange tokens in the market. As one of the largest decentralized autonomous organizations (DAOs), BitDAO seeks to become a major part of the DeFi ecossttem.
BIT token holders have the opportunity to shape the future of BitDAO by voting on governance proposals. Investors can earn up to 14.77{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} annually when they stake their BIT token
Ethereum
By becoming a proof of stake blockchain, only a few coins compare to Ether in terms of appeal to investors. Ethereum investors now have the opportunity to stake their ETH coins and earn extra income in the process. On-chain ETH staking yields are currently around 4{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} APY. however, as one of the leading cryptocurrencies in the market, Ether staking is totally worth it.
Ethereum staking is an excellent way to put your assets to use and earn passive income, thanks to the fact that Ethereum is currently the second-largest cryptocurrency by market cap.
To stake on the Ethereum network, you will need at least 32 ETH staked to become a validator. At today’s rate, 32 ETH is worth around $51k. This is tough to do unless you are a seasoned crypto enthusiast. If you don’t have up to that, there are other ways to stake your ETH coins without allocating such a huge amount.
The beauty of the Ethereum network is that validators allow smaller ETH holders to assign their tokens to them and earn part of their staking rewards. With this, you can stake your ETH coins on centralized cryptocurrency exchanges and with staking pools.
If you have the resources, you can operate your own node and become a validator on the Ethereum network. To do this, you must own at least 32 ETH coins and can stake them. Furthermore, you will need a powerful computer to help you run transactions while constantly connected online.
Tezos (XTZ)
Tezos has been one of the oldest proof of stake blockchains and remains an industry leader in various areas. Tezos uses the XTZ cryptocurrency, and the coin is created by a “baking” process.
As a baker, you will receive excellent rewards when you stake your XTZ coins as you will be helping to validate new blocks of transactions on the blockchain. With a 10{ee212069bfc2680724ddd6b0d505d051cd6a6be760d8da0a6a57844f2abae5c8} APY, you stand to make money by becoming a baker on the network.
To start staking on Tezos, you will need to have a minimum of one XTZ token. Tezos rewards to stakers are largely consistent. Hence, the reason why is it considered one of the best cryptocurrency staking coins.
Final Thoughts
Proof of stake coins give investors reward for validating transactions on the network and providing additional security. The above-mentioned coins are some of the PoS coins with the best rewards.