3 Of The Best Cryptocurrencies To Buy Now For Income
Staking is one of the best ways to earn a passive income in cryptocurrency investing. Over the last couple of years, the number of projects that allow for staking has grown exponentially. Many have pretty high returns, too, with some even offering an APR of over 50%.
For this reason, staking has come out as a perfect way to generate a passive income in crypto. It is also a fantastic way to grow a crypto portfolio.
That’s because one can reinvest the returns and grow their portfolio through compounding.
That said, here are three of the best cryptocurrencies to buy now, stake, and earn high rewards.
3 Of The Best Cryptocurrencies To Buy Now For Income
1. Ethereum (ETH)
The Platform blockchains top dog
Ethereum offers investors staking rewards of between 5% and 7% per year. This may not seem like much, considering that there are cryptos that offer much higher rewards.
However, one needs to consider that when looking to stake crypto, there is a little more to it than just the returns.
For instance, security is an important consideration. There are lots of projects that offer crazy APRs but end up getting compromised. The value depreciation that follows invalidates any staking rewards that one would have stood to gain.
Ethereum happens to be one of the most secure projects in the market today. This is by virtue of its network effect and its huge market cap.
Essentially, when staking Ethereum, one is assured that they are not only earning a passive income but that their investment is secure as well.
There is also the aspect of the potential for value appreciation as well. While Ethereum may not have the highest staking rewards in the market, it has the potential to offset this with its high potential for value appreciation.
This pretty much beats any project that may offer much higher staking rewards but ends up depreciating so much in value that one ends up net negative.
Ethereum’s high potential for value growth is anchored on the fact that it is the number one platform blockchain in the market.
Pretty much all DeFi projects in the market today run on the Ethereum blockchain. Many other dApps run on this blockchain, and ERC-20 tokens make up the bulk of the total crypto market cap.
Now that Ethereum is working to eliminate the inefficiencies that were making it impossible for it to scale effectively, the number of projects building on it will rise.
It’s also noteworthy that Ethereum has been attracting lots of institutional money. This is likely to play into its demand long-term.
All these are strong pointers to the direction that Ethereum could take in the future. This makes it a perfect project for anyone that wants to combine capital appreciation and passive income through staking.
Read Also: Will Ethereum Make Me Rich In Ten Years?
2. Cardano (ADA)
A high potential 3rd generation blockchain
Cardano is a 3rd generation blockchain that is scalable, secure, and decentralized. It also has some of the highest staking rewards of the big cap cryptos. While staking rewards are not constant, Cardano currently has an annual APR of 12%. This is double that of Ethereum, and its fundamentals are equally good.
One of the biggest Cardano attributes is that it is built with solutions to the problems that first and second-generation blockchains like Bitcoin and Ethereum are still struggling with.
Cardano’s Ouroboros proof-of-stake algorithm is scientifically proven to be secure, scalable, and decentralized.
The best part is that Cardano will soon be running smart contracts on its mainnet. Essentially, this means that soon, everything from DeFi to many other applications will be running on the Cardano blockchain.
Given all the efficiencies that Cardano offers, there is no doubt that it will draw in a sizeable number of projects that would have, otherwise, built on Ethereum. This will add to the intrinsic value of this project, and the same will reflect in its price action.
So far, Cardano is outperforming most cryptos ahead of the launch of smart contracts on its platform.
It’s a good indicator that Cardano is a win-win in terms of capital appreciation and a high passive income through staking rewards.
At an average staking reward of 12% per year, one can grow a sizeable portfolio of Cardano long-term, by reinvesting the rewards every year.
3. Avalanche (AVAX)
A top DeFi player
Avalanche is one of the top players in the DeFi ecosystem today. The project is designed to allow developers to launch DeFi and corporate grade dApps in a highly scalable and secure environment.
Avalanche has some of the highest annualized returns of any other crypto. At the moment, its annualized staking rewards stand at 10.31%. This is fair by crypto standards and much higher than any bank can offer investors.
Besides the high staking rewards, Avalanche’s underlying fundamentals make it one of the projects with a high potential for value appreciation going into the future.
For starters, the project is secure and highly scalable, which makes it perfect for projects that want to build enterprise-grade blockchain applications.
So far, several projects have been built on Avalanche, which is a good pointer to its future direction.
Besides its strong intrinsic value, staking AVAX is very easy, making it attractive to a lot of new investors looking to earn a passive income in crypto.
There are two ways that one can stake AVAX, and earn a good passive income. The first one is to run a validator node. This is an option for the tech-savvy, who are conversant with how to set up a node.
There is the option to do delegated staking for those who do not have the skills to set up a node. This is where you stake through someone else.
This option has slightly lower staking rewards, but it is still a healthy 8% return on investment.
With delegated staking acting as a key demand-driver for new investors. AVAX stands out as a pretty good crypto to hold for income in the long term.
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