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Trending Staking coins
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What is a staking coin?
Oftentimes, when we think about investing in crypto, we only think of mining or buying and trading it on an exchange. However, staking coins is another option to potentially grow your capital passively.
View all staking coins on Coinranking
Crypto staking involves locking up your tokens in your crypto wallet to earn rewards or interest in exchange for participating in the network’s consensus processes.
This is in line with the proof-of-stake consensus, which requires staking to validate transactions on a blockchain.
Not all cryptocurrencies use proof-of-stake, however, one of the most famous ones would be Ethereum.
Ethereum underwent “The Merge” where it switched from a proof-of-work consensus to proof-of-stake.
The main difference between the two would be the consumption of power that is significantly less with proof-of-stake.
How staking works?
When an investor holds a certain crypto that can be staked, they can stake them in an exchange or through a wallet.
By staking, the network will be able to use the tokens to forge new blocks on the network blockchain. If you stake more cryptos, there is a high chance that it would be selected to validate the transactions.
The coins that are staked already have the “markings” of validation. So they can be used to validate any new tokens that are having new information “embedded” into the block.
The tokens used for validation generate rewards for the owner and that’s how staking rewards you with passive interest.
Is staking coins worth it?
It’s pretty difficult to tell if any form of investment is worth it because it all depends on the level of experience and know-how of the investor. Generally, the more you know, the less riskier your investment.
Therefore, before deciding to stake your tokens, make sure you have evaluated the pros and cons of staking and if it’s a risk you’re willing to take.
Staking coins you should know about
We already have a staking coin list that you can check out but if you want a quick breakdown of some of the more popular tokens, read on below!
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Ethereum (ETH)
Ethereum just recently switched its status as a staking coin on September 15th 2022. It has a programmable blockchain that is used to create smart contracts called dApps. -
Cardano (ADA)
Cardano was founded through extensive peer review and is developed using evidence-based methods, ensuring a secure and sustainable blockchain. It utilizes a unique proof-of-stake consensus called Ouroboros, designed for scalability, interoperability, and environmental efficiency, making it a powerful competitor in the crypto space. -
Polkadot (DOT)
Polkadot is a blockchain platform that enables different blockchains to connect and share data, improving interoperability and scalability. It uses a unique relay chain and parachain system, allowing seamless communication. Staking DOT can offer an average return of 14%, depending on the platform used. -
Solana (SOL)
Solana is a scalable blockchain known for fast transactions and low fees compared to Ethereum. It uses Proof of History and Proof of Stake for high throughput, processing thousands of transactions per second at minimal cost, making it ideal for DeFi, NFTs, and Web3 apps. -
Pocketcoin (PKOIN)
Pocketcoin (PKOIN) is a proof-of-stake cryptocurrency that powers advertising and barter payments in Bastyon. Bastyon is a blockchain social and video platform with mini-apps connected into one economy by Pocketcoin (PKOIN), offering one of the highest staking returns in the industry at 30% per year.
Final thoughts on staking tokens
Staking can be a good way to passively earn interest while participating in the crypto network. If you have cryptos that you are not looking to trade, it could be staked for interest while it sits on an exchange or a wallet.
However, it is always important to do your own due diligence when buying into cryptocurrencies due to their volatility. It only makes sense to buy a cryptocurrency for the long term and stake it when you believe it’s a good investment.
The best way to do this is by reading about their projects and evaluating the pros and cons of purchasing the tokens.
Ever heard of restaking coins? Check out this article here to learn more.