Staking Crypto : A Comprehensive Guide
2020 was the year of Decentralized Finance (DeFi). Cryptocurrency staking played a huge role in the phenomenal growth of the new generation of crypto assets. At the time when the total number of miners on proof-of-work (PoW) blockchains (which involve Bitcoin mining and formation of a block after solving mathematical puzzles and verification of transactions) begin to dwindle (except for Bitcoin), the number of proof of stake PoS coins is increasing rapidly. Users stake their altcoins for earning fixed interest or yielding farming rewards.
In the Kraken platform itself, more than a billion dollars worth of cryptocurrencies is staked to earn crypto. Other major exchanges where huge amounts of stacked coins are there include Binance and Huobi. In January 2021, the total assets staked in DeFi platforms amounted to US$21-23 billion. The scope, platform, and expanse of crypto staking are increasing at a very fast pace. But what is it all about? Let’s explore more.
What Is Crypto Staking?
Staking of cryptocurrencies implies an activity (or a process of staking) where a user holds his crypto funds in a crypto wallet (hot or cold) and also participates to maintain the operations of a proof of stake (PoS) based blockchain system. This is a very similar system to crypto mining in the sense that it helps the network in achieving consensus as the users participating get rewarded.
In the staking process, the right of validating new blocks of transactions involves the number of digital coins that are locked inside a wallet. The stakers, just like mining of a PoW platform, get incentives for finding a new block of a cryptocurrency or adding a transaction on a blockchain. Besides the incentive aspect, PoS blockchain platforms are highly scalable in nature and also have high transaction speeds.
Top 4 Best Cryptocurrency Staking
A wide array of cryptocurrencies can be staked by the investors and users for earning passive income with their held or idle cryptocurrency assets. Here are some of the leading cryptocurrencies that offer excellent staking rewards:
It is one of the hottest staking options available. If you have already bought Ethereum (ETH), you can easily stake it, become one of the early validators, help the system grow further, and in return earn passive income.
For staking ETH, the minimum criteria is to own at least 32 ETH coins. In addition, you have to be the Eth1 mainnet client. You can get started by visiting the Eth2 Launch Pad.
In June 2018, Tezos was born. It caused a major uproar as it became the biggest ICO (Initial Coin Offering) with a total investment of more than US$230 million. It implemented liquid proof-of-stake (LPoS), a PoS version.
XTZ is the native currency of Tezos and the staking process is called “baking”. The participants in the Tezos’ staking process are rewarded with the native coin. The system penalizes malicious bakers by confiscating their stake.
A user has to hold 8,000 XTZ coins and at the same time run a full node to become a staker/baker on Tezos. Many 3rd party services have also emerged that allow smaller coin holders to delegate their held XTZ and consequently share their earning rewards. XTZ’s annual percentage yield varies from 5-to-6%.
The main aim of Algorand (ALGO) is to carry out low-cost cross-border payments. For both security and transaction processing, the network needs stakers. It is especially true because of the PoS protocol. A pure proof-of-stake (PPoS) consensus mechanism is used but still needs stakers in running full nodes.
The ALGO delegation is also supported by the 3rd party. The staking rewards for Algorand range within 5-to-10% annually. The reward percentage is mainly dependent upon the platform used. Binance Staking, for example, provides an 8% APY (annual percentage yield).
Icon (ICX), a complex Korean blockchain project, also offers a platform for staking natively. The Delegated-Proof-of-Stake (DPoS) consensus algorithm is used. This model involves finding of new blocks by a select number of users and verification of transactions. Others involved in the process simply delegate their ICX native tokens. The best part is the staking reward, which ranges from 6-to-36%.
Where to Stake Cryptocurrencies?
Crypto staking can be done on:
- Cryptocurrency Exchanges
- Wallets, especially hardware wallets
- Staking-as-a-Service Platforms
- Defi Staking
Top 2 Best Cryptocurrency Exchanges for Staking
- Binance: Ethereum 2.0 staking and many other DeFi staking including Binance Coin (BNB), DAI, BTC, Tether (USDT), and Binance USD (BUSD).
- Coinbase: ETH 2.0, ALGO, and XTZ.
Top 4 Best Wallet Staking
- Ledger Wallet: Tron (TRX), ATOM, and ALGO staking.
- Trust Wallet: XTZ, ATOM, VeChain (VET), TRX, IoTeX (IOTX), ALGO, TomoChain (TOMO), and Callisto (CLO) staking.
- CoolWallet S: Stablecoin (USDT) staking.
- Trezor: Tezos staking.
Top 2 Best Staking-as-a-Service Platforms Staking
- Stake Capital: Loom Network (LOOM), KAVA, XTZ, Aion (AION), Livepeer (LPT), and Cosmos (ATOM) staking.
- MyCointainer: Power Max, Power Plus, and Basic options available. Over 50 cryptocurrencies with on-chain staking support are available.
Top 4 Best DeFi Staking
- Maker (MKR)
- Synthetix (SNX)
- Yearn Finance (YFI)
- Compound (COMP)
Buy Proof of Stake PoS Tokens Now
If you are ready to invest in PoS coins or buy Bitcoins through online brokerage accounts, you can do so in a legit way by investing through cryptocurrency apps. You have to open an account with such an exchange, verify details (including basic personal information), and then fund your cryptocurrency trading account.
You can start depositing funds to your crypto exchange account to buy cryptocurrencies by connecting your bank account (savings accounts or checking accounts), and then transferring fiat currency money online through bank transfer, credit cards, debit cards, and other payment options. If you need further assistance, you may consider taking help from the vibrant and helpful community. You can trade these cryptos with credit cards, debit cards, or other payment options through reliable crypto trading platforms.
In case you are bullish on the future prospects of staking crypto, you can buy them with USD or other fiat currencies of your choice. Once bought, transfer them to hot wallets (including mobile app wallets and software wallets) or cold wallets (including most secure hardware wallets) and hold them for a longer time period for a significant price appreciation. Keep your coins safe with Ledger Nano S, Trezor One, other Ledger and Trezor models, or other popular ones and stake them directly from there.
This will help you get a higher return in the long run, much more than investing in stocks, mutual funds, index funds, real estates, CD rates, money market returns, yield savings accounts, real estate investment trusts, fiat currency trading (forex trading), and others. In fact, many retirement funds or IRA accounts such as Roth IRA are allowing cryptocurrency investors to purchase these altcoins. You can also check the retirement calculator to know how much you should invest in which asset class and what return you can expect.
Choose Cryptocurrency Copy-Trading Bots to Increase ROI
Cryptocurrency Trading Robots (such as NapBots.com) automatically scan the market in real-time and trade for you. They run 24×7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.
Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.
NapBots.com is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.
The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.
You may also check “Napbots Review – Simple Way To Increase Your Crypto Returns” before taking the plunge.
What’s so special about NapBots?
NapBots crypto trading software is special because it comes with:
- A unique trading algorithm that processes market data for you
- A unique crypto trading bot library so that you can create your own mix of trading strategies
- Autopilot mode that enables you to automate trading 24×7
- An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money
How does NapBots help you to Make Money?
With NapBots, you can enjoy financial independence by trading cryptocurrencies on autopilot mode and earn money automatically. To make it work on your behalf, you have to do the following:
Step #1: Connect to one of the available trust exchanges.
Step #2: Select from the unique list of performing Bots of NapBots
Step #3: Choose a plan that suits your investment style
Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!
Why Choose NapBots?
- NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
- The setup and installation process are easy. So, non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
- The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.
Pricing is simple and there are no setup fees. A 7-day trial is also available.
Are You Ready To Start Automating Your Passive Income Now?
If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods: