Crypto asset staking is a way to earn money by holding digital coins in a wallet account to support the functioning of the blockchain. Staking is considered a passive source of profits.
Currently, there are several ways to make money through virtual asset staking. One is to establish nodes on the platform network that process transactions and act as validators. To begin these operations, you must manually configure network nodes to process transactions. Some systems may only begin working as validators after asking users to keep a certain amount of digital currency in their account.
Another way is delegation. In this case, users can use their existing infrastructure. This form of activity has received its own designation: staking as a service. Users send a certain amount of transactions for processing to validators who have nodes on the network.
Delegation is considered the simplest way to earn through staking. As a result, node launches are considered the most profitable. A variety of virtual assets can be used for staking.
Cryptocurrencies considered best for staking in 2022
You can specify several cryptocurrencies that are considered to be the most profitable throughout the year.
Ethereum
This cryptocurrency ranks second in terms of popularity and capitalization after Bitcoin. It is considered to be one of the most popular for staking. Users receive assets and store them in their account. The profitability of ETH staking is 4-8% per year. Many cryptocurrency exchanges such as Binance, Coinbase, and other major cryptocurrency exchanges offer staking.
The next staking asset is Tezos.
thesis
As you know, this project is almost entirely owned by the investor community. Each of them can provide ideas for further development. Additionally, the right to do this belongs to investors participating in Tezos staking. The platform’s website provides users with the opportunity to stake their assets, and cryptocurrency exchanges also provide the same opportunity.
The profitability of Tezos staking can be said to be 5-7% per year. To start staking, users must have at least 8000 coins in their balance. This amount is the key to start staking of sorts.
Another asset considered promising for staking is ADA.
Cardano (ADA) was launched by Charles Hoskinson, who previously covered Ethereum. It was decided to create it based on PoS. This allows ADA to perform transactions faster, does not overload the network, and has a mechanism for users to profit through staking.
You can also participate through the platform’s official wallet. These are Yoroi and Daedalus. In terms of staking profitability, it is about 5% per year.
theta
Structurally, it belongs to a decentralized platform. Users can stake Theta. To do this, you can use the platform website or use Theta’s wallet. The staking starting threshold is 1,000 tokens.
Once a user has that amount in their balance, they can start staking. The returns from staking are determined by how much assets a user has on their balance sheet and how long they keep those assets in their account. The more currency you have in your account and the longer you hold it, the higher your profits.
Matic
The Polygon project belongs to a second-level protocol that combines decentralized applications based on Ethereum blockchain technology. To participate in MATIC asset staking, you can use the MetaMask wallet or your own Polygon wallet. Profitability is determined by many factors.
Among them are the number of assets a user holds, the length of time the account is held, etc. It is also possible to calculate your profits in your Polygon wallet. To start staking, users must hold at least 1 MATIC token.
what
Unlike other similar projects, this project has low fees and transactions are performed quickly. PPO is used and has a higher degree of decentralization. Users can use their own project wallet. The difference from other platforms is that you only need one token for staking. Annual profit is 4-5%.
atom
The main goal of this project is to make all existing networks compatible with each other. The Cosmos website has information posted indicating which sites allow staking. You must have at least 0.05 ATOM in your account to start staking. There is demand for the coin because the approximate profit is at least 9.5% per year.
dot
The Polkadot project is considered one of the most prominent competitors of Ethereum. You must have at least 30 DOT tokens in your account to start staking. Users can use a Ledger Bitcoin wallet or use a cryptocurrency exchange. Validators can earn at least 10% from DOT staking, sometimes profitability reaches 13-15% per year.
ICX
The ICON project aims to simplify interaction between blockchains. A modified PoS is used on the platform. To participate in staking, you can hold as much ICX as you want. For staking, users can use numerous cryptocurrency exchanges. You can also use your own project wallet. The rate of return is up to 15% per year.
summation
Therefore, the above coins are currently considered the most promising for staking. With their help, users can earn between 4 and 16% per year. You can choose almost any or several and participate in staking. Many people do this, and in this case, profitability increases several times.
Perhaps in the next year, other cryptocurrencies will come out that will offer better staking conditions and higher profitability for customers.