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WHICH CRYPTOS HAVE THE BEST STAKING REWARDS?

staking rewards

May 3, 2021 | 

JOHN K MWANIKI |  0 Comments| 

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Crypto staking is an activity whereby a user holds or locks their funds in a crypto wallet to engage in the process of maintaining the operations of a proof of stake (PoS) blockchain. Crypto staking is a consensus model just like crypto mining, in that it helps the network achieve consensus while rewarding crypto users who participate. 

Crypto mining requires many resources and energy, which makes it hard for some users to participate. But the proof of stake blockchains allows users a chance to validate blockchain transactions by using their coins as a stake. This method enables users to earn passive income, and it is also an income generation method that is sustainable in the cryptocurrency market. But, to achieve the most profits out of staking, you have to find coins with the highest returns. Here are some with the best staking rewards.

Tezos (XTZ) 5-6% ROI

Invented in 2018, Tezos caught the cryptocurrency market by a storm as the largest initial coin offering holding over $230million in investment. It leverages a PoS version known as liquid proof of stake. The native currency of Tezos is called XTZ, and its staking process is known as baking.

Participants or bakers use Tezos native coin, and malicious users who engage in fraudulent activity face a penalty of having their stake confiscated. To stake on Tezos blockchain, you need to have 8000XTZ and run a full node. You can also use third-party services that allow small coin holders to delegate their XTZ coins to bakers and share the rewards. Note that validators or bakers charge a commission. Staking on XTZ can earn you revenue of 5-6% annually.

VeChain (VET) 2.2% ROI

VeChain is an Etherium inspired blockchain platform that focuses on businesses and supply chain management. It offers good rewards for staking. When you put a certain amount of Vechain into a wallet, you can apply it to become a Node. You don't need any hardware or computing power to run a VeChain Node or stake. All you need is your VET in a wallet.

These Nodes come in two categories. 

  • Authority nodes for validating all transactions in the blockchain- they have more requirements but more rewards.

  • Economic nodes provide stability to the ecosystem and are beneficial to a user compared to non-node VeChain users.

Staking in VeChain can earn you around 2.2% ROI annually, but it is susceptible to heavy fluctuations.

Cosmos (ATOM) 8% ROI

Cosmos calls itself the new internet of blockchains and provides an opportunity for startups and developers to easily create their own blockchain services. Cosmos aims at bridging the gap between blockchains to make it easier for them to communicate with each other and coexist.

Stakes have been running validation nodes on Cosmos Testnets. The annual ROI for staking ATOMs is 8%, but it fluctuates heavily. Delegation is non-custodial, and delegates cannot spend your ATOMs. 

Staked pays 90% of the rewards to delegates and provides the industry's only 100% SLA on block creation. Keep in mind that there is a 21day unbonding process for staked ATOMs whereby delegator Atoms cannot be spent, exchanged, or transferred.

Algorand (ALGO) 8% ROI

Algorand aims to facilitate low-cost cross-border payments. Since it uses the PoS model, it needs users to stake for transaction processing and maintain the network's security. It leverages a pure proof-of-stake consensus model and requires staking users to run full nodes.

Staking ALGO can earn you a 5-10% reward annually, and there are third parties who facilitate ALGO delegation. But the rewards are impacted by the platform used. For example, those using Binance enjoy an annual percentage yield of 8%.

Icon (ICX) 6-36% ROI

Icon is a Korean blockchain that allows staking. But it differs from the other coins mentioned above because it uses delegated proof of stake mechanism. With this type of consensus algorithm, a designated number of users create new blocks and verify transactions while the other users delegate their coins to them. The native staking coin for Icon is called ICX and can earn you an annual staking reward of between 6-36%.

Neo (NEO) 1.5-2.50% ROI

Neo is the Chinese EEtherium and provides a platform for new dApps and services and a launchpad for new tokens. Neo platform has two native tokens NEO and GAS, which serve different purposes. 

NEO tokens stand for the ownership of the NEO blockchain and are helpful to the users for creating new blocks and managing the network. Whenever you hold NEO in your wallet, you are rewarded in the form of GAS tokens. GAS tokens give its users the right to use the NEO blockchain. Basically, GAS fuels transactions in NEO just like ether is to the Etherium network.

So, you can purchase NEO tokens to represent your stake in the future of the platform. As you hold your NEO, you generate GAS automatically as new blocks are added to the blockchain. With every blockchain spawned, 8GAS are distributed among all the 100milion NEOs in existence. The expected annual ROI for NEO is 1.5-2.50, which also fluctuates heavily.

Lisk (LSK) 5-6% ROI

Lisk is one of the blockchain platforms offering a gateway into the blockchain. It aims to make it easy for developers to create their own blockchains. Staking LSK earns you rewards and also helps to maintain the Lisk network. Lisk uses the delegated proof of stake model whereby you stake your LSK offline by voting on the Lisk delegates you want. Then the delegates forge Lisk, and when they earn rewards, they share them with their voters depending on the coins delegated.

CONCLUSION

Through staking, you get a chance to monetize your idle funds and expand your income stream in cryptocurrencies. Binance and Coinbase are some of the exchanges supporting cryptocurrency staking. But you must identify the most profitable coins before you stake on them.

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