Cryptocurrency staking allows you to earn money from your cryptocurrencies without having to withdraw them. Put another way, you can put your unused cryptocurrencies to work and generate a passive source of income while retaining ownership of your crypto.
In this guide, we describe the top 10 cryptocurrencies for staking for 2022. We also discuss the concept of staking in detail and list the best platforms for this purpose currently available on the market.
Best cryptocurrencies to stack for maximum profits in 2022
As you read on, you'll learn why these particular projects made it onto our list best cryptocurrencies for staking. Moreover, you will have a clearer idea of how to make money from cryptocurrencies.
We'll also show you how you can buy cryptocurrencies and start staking them, paying minimal fees.
Let's take a closer look at the best cryptocurrencies for staking
From an investment perspective, the best cryptocurrencies for staking are those that offer a high return. How much you earn depends on factors such as the platform you choose and the staking period.
With this in mind, below we analyze the best staking coins for 2022.
1: Cronos(CRO) - Best cryptocurrency to be staked in 2022
Cronos Chain is one of the products in Crypto.com's offering, which aims to accelerate global cryptocurrency adoption.
Crypto.com allows users to deposit more than 40 different cryptocurrencies including and stablecoin to accrue interest. Some of these tokens are: Bitcoin (BTC), Ethereum (ETH), DogeCoin (DOGE), Shiba Inu (SHIB) and Solana (SOL). The amount you earn depends on a number of factors, including how much CRO (Crypto.com Coin) you have, which token you deposit, how much of that token, and the term or length of the contract.
With the earning feature, the more CRO you have in your account, the higher the percentage return you will see. You will also earn higher returns if you block your funds for a longer period of time, as opposed to a flexible period. The interest rate on the Earn option can be as high as 14.5% APY with certain tokens and rate periods. Interest rates will vary from coin to coin, but you can check Crypto.com's current token rates and how the Earn feature works here -.Crypto.com card review.
The future of money has arrived, and Crypto.com is leading the way. Crypto.com's products are easy to use and ideal for anyone who wants to take advantage of secure payments and rewards. For example, with the Visa debit cards and DeFi wallet offered by Crypto.com, you can enjoy all the benefits of digital assets today!
2. Ethereum - the best staking cryptocurrency for long-term investors
Ecosystem Ethereum is growing by leaps and bounds, attracting both developers and investors. However, the world's second largest cryptocurrency initially followed a consensus proof-of-work. This meant that in order to validate each transaction, computers had to perform complex tasks that required a huge expenditure of energy and time.
However, as a result of a recent update Ethereum has moved to a PoS mechanism and is therefore now one of the best staking tokens to consider for generating passive income. Nonetheless, in order to start staking Ethereum on your own, the requirements are quite high - not least because you will have to put up at least 32 ETH tokens.
The simplest alternative to this solution is to keep your Ethereum coins in a staking pool. Simply put, this means that you lend your tokens to other validators to use. This way you don't have to commit as much ETH. As for withdrawals, they will ultimately depend on the staking platform you choose and how long you lock up your tokens for.
3. cardano - The best stable cryptocurrency for staking
Cardano is one of today's best-known proof-of-stake (PoS) cryptocurrencies, focusing on scalability and sustainability. The network seeks to address the energy consumption issues of mining Bitcoin, making it an environmentally friendly choice compared to other digital assets.
Since its arrival on the cryptocurrency market, this digital asset has done exceptionally well - its value has increased by more than 4500%. Moreover, with the network launching its own smart contract system, Cardano is well positioned for further growth in the future.
Due to its popularity, Cardano can be found on many staking platforms, such as Crypto.com or eToro. However, by the same token, you may find that the interest rate offered varies widely from provider to provider.
4. uniswap - the best decentralized cryptocurrency for staking
If you are looking for the best DeFi cryptocurrencies for staking, then Uniswap is a worthy candidate for consideration. In fact, Uniswap accounts for about 25% of daily transactions on the Ethereum network. In its latest version, Uniswap V3, the protocol has managed to further reduce transaction fees, making it a one of the best cryptocurrencies to buy in 2022.
When it comes to staking, Uniswap is highly preferred by passive cryptocurrency investors. What's more, given its potential, Uniswap is considered a One of the most undervalued cryptocurrencies of 2022. By investing in Uniswap, you can benefit from the rising value of the cryptocurrency UNI, and you will also be able to participate in decisions about the operation of the network.
If you already have UNI coins, you can "bet" them in Uniswap liquidity pools or earn rewards by depositing your tokens on a platform such as Crypto.com. While staking in the Uniswap network requires locking up your assets, third-party providers allow you to withdraw your UNI tokens whenever you need to.
5.Solana - Best staking cryptocurrency with long-term growth
Solana is another DeFi token that was designed with scalability in mind. The blockchain enables fast transactions and low fees - which consequently boosted its market performance in 2021. Solana's price has risen from around $18 to over $100 in just one year.
Although the value of Solana has dropped since the beginning of 2022, the cryptocurrency continues to hold its own among developers. When you "stak: this cryptocurrency, you can expect annual returns in the range of 7TP3T to 11%, depending on the platform you choose.
You can either increase the amount of your Solan tokens in a wallet that supports staking, or deposit your cryptocurrencies into an account with interest - such as those offered by the Crypto.com. To get started, you can buy Solana from a user-friendly broker such as eToro.
6. polkadot - Staking of cryptocurrency using NPoS algorithm
In contrast to the conventional PoS consensus, Polkadot is built on a nominated proof-of-stake mechanism. In this system, nominators endorse multiple validators as proof of faith in their behavior. Therefore, if you choose a malicious validator, you are likely to suffer a loss.
However, since being a delegate at Polkadot is cumbersome and comes with unfavorable requirements, many investors choose to be nominees or contribute their funds to staking pools. Moreover, Polkadot also pays out attractive rewards in the form of tokens. This is because the rewards are offered in proportion to the work and not to the size of the stake.
On platforms such as Crypto.com you will be able to get as much as 14.5% APY on Polkadot. In terms of potential capital gains, Polkadot seems to have a lot of growth potential, as it allows developers to combine blockchains and even create new protocols.
7. Polygon - Best cryptocurrency for staking with high interest rates (APY)
Polygon is a cryptocurrency that was developed as a way to add scalability to Ethereum. This blockchain provides compatibility for Ethereum-based applications, facilitating interconnection. This also makes this cryptocurrency a good option for long-term investments. Over the past year, Polygon has witnessed the token's price rise by more than 350%.
Polygon is also one of the best crypto for staking, preferred by validators. It requires only one MATIC token to participate in the network and a minimum of two to start staking. If you don't want to become a validator yourself, you can also use platforms such as Crypto.com to generate attractive returns from Polygon.
At the time of this writing, Crypto.com offers high APY of 10% for those who have held Polygon tokens for three months. This will, of course, vary depending on the lock-in period and whether or not you choose to trade CRO tokens - a characteristic of the Crypto.com.
8. Algorand - best staking cryptocurrency for systems with PPoS mechanism
Most of the top staking cryptocurrencies we've discussed so far work with the conventional PoS consensus. However, Algorand goes a step further and uses Pure PoS, which makes the protocol even more efficient. As a result, blockchain Algorand does not fork, but it can still facilitate immediate transactions.
ALGO is considered one of the best staking cryptocurrencies, because the protocol has very minimal requirements for validators. In fact, unlike its Ethereum counterpart, you only need one ALGO token to start staking. This means that you can find several staking pools for this asset, but it can also be cumbersome for platforms that offer high APYs.
Nevertheless, the total profit depends on the staking platform you choose. If you buy Algorand and keep the tokens in an interest-bearing account, you can expect an annual return of 3-10% on your total investment.
9. Chainlink - a popular staking cryptocurrency for investing in Bliockchain interoperability
Chainlink is considered one of the best cryptocurrencies to invest in today. It serves as a link between blockchains and real-world data. Of the other oracle systems, Chainlink seems to be the most advanced, as it offers many integrations and partnerships.
Although staking is not yet supported within the network itself Chainlink Network, you can deposit this cryptocurrency on third-party platforms to generate income from your tokens.
If you decide to buy Chainlink and keep your cryptocurrencies for a longer period of time, waiting for the capital value to increase, you can invest your assets in a cryptocurrency account and earn up to 9% APY - depending on the platform you choose.
10. the Graph - the best staking cryptocurrency with high growth potential
The Graph is an emerging cryptocurrency that aims to create an index system for blockchains. This will make the data available on blockchains more easily accessible. In addition, it will also help blockchains be more efficient by moving any redundant data to an off-chain protocol.
As you can see, The Graph has enough potential to increase in value, especially in the long term. The digital currency was released in late 2021 and is still finding its way to popular cryptocurrency exchanges. However, you will still be able to buy The Graph at low fees through the eToro platform.
Since this blockchain uses a PoS mechanism, this cryptocurrency can also be staked on many major platforms - some of which offer double-digit APYs on GRT tokens.
What platforms to use to stack cryptocurrencies?
There are dozens of platforms that allow you to generate passive income on the discussed above best cryptocurrencies for staking.
To get started, you can consider the three best cryptocurrency staking platforms described below. They are not only user-friendly, but also allow you to buy and stake cryptocurrencies at low fees.
1. eToro - Best cryptocurrency staking platform with low investment fees
eToro is one of the most popular cryptocurrency brokers in the industry - with more than 20 million customers. This trading platform is regulated on many fronts - namely by the SEC in the US, the FCA in the UK, CySEC in Cyprus and ASIC in Australia. In addition, eToro provides a seamless experience for cryptocurrency traders of all skill levels.
It is particularly user-friendly and allows you to purchase all the best coins for staking, which we have discussed in this guide. When it comes to staking, eToro offers support for three digital assets - including Cardano, Ethereum and Tron. The interest rate you receive depends on the eToro Club you belong to, which is determined by your realized capital on the platform.
For example, Diamond and Platinum+ Club members are entitled to 90% of monthly staking profit, while Silver, Gold and Platinum Club users receive 85%. All eToro users are members of the Bronze Club by default and receive 75% of monthly profit in return.
eToro offers some of the highest rewards when it comes to staking. Although the number of supported cryptocurrencies for staking is currently limited, you can use this platform to buy dozens of digital currencies. What's more, eToro has a built-in wallet that you can use to store your digital assets for free.
If you want to sell your cryptocurrency investments, eToro makes it easy to do so at very low fees. To buy cryptocurrencies, you can deposit funds into your eToro account via bank transfer, credit/debit card or e-wallet.
eToro is also a great broker for investing in stocks and ETFs, as well as for trading commodities and forex. This platform further excels with its beginner-friendly mobile app.
2. Crypto.com - The best platform for staking cryptocurrencies with high interest rates
Launched in 2016, Crypto.com has become the One of the best cryptocurrency exchanges in the world. In fact, Crypto.com has launched an entire ecosystem that supports many cryptocurrency-related services, including loans, savings accounts, trading, credit cards and more - see Card review Crypto.com. It also allows the purchase of more than 250 digital assets at low fees and through an easy-to-use interface.
If you want to buy digital assets, Crypto.com facilitates payments through its app. You can pay for your cryptocurrencies in more than 20 fiat currencies with a credit/debit card or by making a bank transfer.
As for interest accounts, Crypto.com allows you to earn rewards for 50 digital assets - including nine of the top staking coins listed in this guide. When you deposit your tokens in these accounts, Crypto.com will use the funds to facilitate loans to other verified users.
Borrowers repay the loan with interest, which is paid daily. Moreover, Crypto.com accumulates interest, giving you the opportunity to increase your long-term profits. As for the interest rate offered, it depends on the cryptocurrency and the chosen lock-in period.
For example, if you decide to buy $1,000 worth of Ethereum and hold the tokens in your interest account for three months, you will receive an APY of 5.5%.
On the other hand, if you hold Polkadot under the same terms, you will receive 10%. Flexible plans are also available, but they can yield much lower interest rates. You can also increase your returns by holding a CRO, Crypto.com's native digital token.
3.BlockFi - That is, a way to earn passive income
What is BlockFi?
BlockFi is a cryptocurrency exchange and platform that offers a cryptocurrency wallet, cryptocurrency trading, cryptocurrency-backed loans and a cryptocurrency rewards credit card. Customers outside the US can also open a BlockFi Interest Account and earn interest on their assets.
Another advantage of BlockFi is that you can borrow against your cryptocurrency holdings. Instead of selling them when you need funds, you can take out a loan. This avoids the need to sell in a falling market.
We will discuss how BlockFi is able to offer loan services while allowing it to earn interest on deposits.
Who is BlockFi?
BlockFi is a cryptocurrency depository that allows its customers to take out loans in US dollars against their cryptocurrencies. Its founders are Flori Marquez and Zac Prince. BlockFi was founded in August 2017 and is based in Jersey City, New Jersey. The company has raised $158.7 million in Series C funding.
What does BlockFi offer?
BlockFi allows you to earn interest on cryptocurrencies and take out loans in USD. You can also trade cryptocurrencies on BlockFi. It currently offers a limited number of cryptocurrencies for trading, including BTC, ETH, LTC, USDC and GUSD.
BlockFi wallet
With the recently launched BlockFi Wallet, users can buy, sell, trade and store cryptocurrencies and stablecoins. You can also use the wallet to store the cryptocurrency rewards you receive from your BlockFi Rewards payment card.
Remember, however, that you will not earn any interest on the assets stored in BlockFi Wallet. To earn interest, your tokens must be held in a BlockFi Interest Account.
Cryptocurrency loans
BlockFi allows you to borrow USD against your cryptocurrencies on deposit. The minimum loan amount is $10,000. The loan-to-value (LTV) ratio is 50%. This means that 50% of your coins will have to be brought as collateral.
The cryptocurrencies that can be used are BTC, ETH or LTC. The loan term is 12 months and the interest rate is 4.5%. Loan origination fees may also apply.
Since cryptocurrencies are highly volatile, you can quickly exceed 50% LTV. When the LTV reaches 70% (known as a trigger event), BlockFi will send a notification that you need to set up additional security to lower the LTV back to 50%.
BlockFi Bitcoin Rewards Visa Credit Card
BlockFi has introduced a Bitcoin Rewards Visa credit card. Similar to cash back credit cards, BlockFi Visa will bring you rewards in Bitcoins!
The card provides 1.5% in Bitcoin rewards for all purchases made with the card with no annual fee. In addition, you will receive 3.5% in Bitcoin rewards during the first three months of card ownership.
That's a pretty good deal that puts it ahead of most other bitcoin rewards products.
BlockFi Bonus Offer
BlockFi organizes various bonus offers from time to time. Currently, it is offering the following offer:
New BlockFi customers can receive up to 250$ of Bitcoin (BTC) bonus if they make qualifying deposits within the first 30 days of opening. This offer has no expiration date.
You can get started with this bonus for only 100$!
What is cryptocurrency staking?
Simply put, staking coins are cryptocurrencies that allow you to receive rewards for supporting the PoS process of a particular blockchain. You can do this by opening a node yourself or by simply depositing your digital assets on a third-party platform that facilitates staking.
By adopting this fundraising strategy for your dormant cryptocurrencies, you will be able to earn interest instead of simply holding them in your wallet until you are ready to sell.
Here is a brief example of how you can make money from staking:
- Suppose you want to stak Ethereum
- On the staking platform of your choice, Ethereum staking yields an APY of 10%.
- You have decided to put up $1,000 worth of ETH tokens for six months.
- This means that at the end of the year you will receive $100 in rewards.
- In the case of six months, this means a return of $50.
Remember that the return will be paid in ETH tokens. In addition, the value of Ethereum may also increase during the staking - which will bring additional profits.
As you can see, staking can be an extremely easy way to generate passive income - especially given the high interest rates offered on cryptocurrency assets.
Benefits of staking cryptocurrencies
If you've read our guide to this point, you know that staking can actually be very beneficial. To bring you up to speed, here are the benefits of staking:
- Stacking cryptocurrencies allows you to generate profits from digital assets that might otherwise lie idle in your wallet.
- It also allows digital coins to be stored while generating profit.
- Many investors view staking as a way to hedge against cryptocurrency price declines.
In other words, when you bet on cryptocurrencies, you will generate profits regardless of how the digital asset behaves in the market. What's more, if you don't block your coins, you can retrieve them at any time and withdraw them at your convenience.
How to choose the best cryptocurrency for you to stak?
When it comes to choosing the right cryptocurrency for staking, the decision does not depend solely on the amount of APY you receive.
If you are wondering which options represent the best staking coins for you, consider the following factors to make your decision.
Lockout periods
Perhaps one of the first things to consider is whether you will need to lock in your chosen coin for staking for a certain period of time in order to receive rewards.
As you can imagine, the ideal solution would be to choose a flexible plan that gives you access to your cryptocurrencies at all times.
While fixed plans may offer higher APYs, locking up your digital coins may prevent you from taking advantage of a sudden market opportunity.
A steady supply of staked cryptocurrency
Cryptocurrencies with limited circulation can also stimulate demand in the market. This can be a useful feature to look for in the highest-rate coins, especially if the token shows upside potential.
This is due to the basic concept of supply and demand. This means that in the case of a limited number of available tokens , demand potentially increases, which can lead to an increase in price, and thus - to an increase in profits from staking.
Among the best cryptocurrencies for staking, which we described here, many digital assets, including Chainlink, Algorand and Uniswap, are in limited supply.
The utility of a particular cryptocurrency
As we mentioned earlier, you can also benefit if the value of the cryptocurrency you invest in increases. This means that you should carefully check which cryptocurrencies are likely to increase in the future.
If a particular cryptocurrency has many uses in the real world, it may be well positioned to increase its value in the coming years.
As such, the cryptocurrency will continue to attract both demand and rising prices.
This way, even if the APY rate you receive is relatively low, you will still be able to generate returns on capital appreciation when you are ready to cash in your investment,
Frequently asked questions about cryptocurrency staking:
There are dozens of cryptocurrencies that allow you to earn interest. After researching the market, we found that the best coins for staking are Uniswap, Ethereum, Cardano and Algorand.
Some of the most commonly staked cryptocurrencies are Etherium,Cardano, Solana, Algorand and Polkadot.
Stacking cryptocurrencies can be extremely profitable. Platforms such as ABlockFi and Crypto.com allow you to earn interest of up to 12% and 14.5%, respectively.
We have found that Crypto.com is currently one of the best platforms for staking. You can also check out eToro and BlockFi for access to the best cryptocurrencies for staking, which we discussed in the guide.
The views and opinions expressed here are solely those of the author and should not be taken as financial advice either. Every investment and transactional activity involves risk, so you are advised to do your own research when making any trading, investment or financial decisions.
