Learn more about the best cryptocurrencies for staking in 2022.
Cryptocurrency staking is one of the most popular activities in the market. It is a means of earning returns on your crypto by depositing it with a third party. The term staking refers to the Proof of Stake (PoS) system. In this system, traders use coins to verify transactions on the blockchain. This is an alternative to mining, which employs a Proof of Work system where computers solve cryptographic puzzles to verify transactions.
Crypto staking allows you to earn rewards on your digital assets without cashing out. In other words, you can put your idle cryptocurrencies to work and generate a passive income stream while maintaining ownership of your coins.
Notably, not all coins can be staked. So here is a list of the top crypto to stake for the highest yields in June 2022.
Ethereum (ETH)
Ethereum 2.0 is the long-awaited upgrade to the Ethereum protocol that will see the transition of Ethereum’s consensus algorithm from PoW to PoS. Among other benefits of the network upgrade, such as faster transaction speeds, the POS network will make mining available to ETH holders.
In order to get started with Ethereum staking, a validator needs to lock up a minimum of 32 ETH into the official deposit contract address. While Ethereum staking pools exist to give you the opportunity to stake without 32 ETH, Ethereum 2.0 does not permit delegation. In addition to the minimum ETH requirement, Ethereum staking requires you to run specific software to access the network known as a node client to verify transactions on the blockchain.
This makes it very hard for most holders with a small portfolio to participate in the official staking program. However, you can work your way around it by joining various staking pools offered by exchanges or staking services. With their help, you can stake any amount of Ether and collect 4% to 6% interest, depending on the platform you use to stake ETH.
You can stake Ether on exchanges like Binance, Coinbase, and Kraken, making ETH one of the top cryptos to stake for the highest yields.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cardano (ADA)
Cardano is another one that stands tall in the list of the top cryptocurrencies to stake for the highest yields in June 2022. You can easily stake ADA on a number of exchanges like Bitfinex and Kraken and on wallets such as Trust Wallet and Atomic Wallet.
Cardano’s unique properties have earned it the title of 'the Ethereum killer'. This is because Staking on the Cardano platform is comparatively easier and more secure. First of all, you do not need to have a lot of ADA tokens to begin staking. You can start with just a few coins, and ADA has an affordable entry price. The most crucial part is that you get rewarded with a fair percentage of tokens each year, with actual rates varying from 3% to 6% depending on the platform you have staked on.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Solana (SOL)
Solana is a blockchain-based smart contracts platform designed for deploying decentralized applications (dApps). Its native SOL cryptocurrency is a stakeable token that facilitates on-chain transactions and is used to pay network fees.
Solana staking rewards can be earned by users participating in the network as validators or delegated stakers. Validators are responsible for processing transactions and maintaining the network. Delegated stakers are SOL holders who delegate their tokens to stake pool operators for staking rewards using Solana wallets like Phantom.
Solana is unique from other notable PoS blockchains because it uses a timestamping system known as a proof-of-history (PoH) consensus. By combining PoS and PoH, Solana is able to clock an incredibly fast block time of 400 milliseconds. By comparison, Cardano’s block time is 20 seconds, and Ethereum produces a new block every 13 seconds.
These aspects make SOL one of the top cryptos to stake for the highest yields in June 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon (MATIC)
Polygon is a unique staking coin that was created in an attempt to scale Ethereum. Its purpose was to ensure compatibility by connecting every Ethereum-based dApp (decentralized application). Notably, network validators secure transactions on this blockchain. MATIC is among the top cryptos to stake for the highest yields in June 2022 because it can validate up to 65,000 transactions per second (TPS), allowing Ethereum networks to complete transactions efficiently.
Another reason Polygon is one of the best staking cryptos is that delegators are only required to stake a single coin before participating in the network while staking itself requires at least two tokens. You can begin staking by connecting your MetaMask wallet to your Polygon wallet. The expected annual staking reward depends on how many coins you stake. Therefore, Polygon is definitely a profitable and top crypto to stake in June 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Binance Coin (BNB)
Last but not least, an unexpected crypto to stake for the highest yields in June 2022 is BNB, the native token belonging to the most popular crypto exchange platform in the world, Binance. BNB’s uniqueness lies in how it is delegated. There is currently no minimum stake for delegating the BNB coin to validators, and the “unstaking” process takes just seven days.
The average annual return for the BNB coin is between 6–9%. However, it is possible to earn returns as high as 30%. The rate of return can be highly volatile because it depends on transaction fees. You can stake this coin directly on the Binance platform, which offers a level of convenience that is not possible with most of the top staking coins on this list.
These factors make BNB one of the top crypto to stake for the highest yields in June 2022.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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