Home Cryptocurrency Top 10 Best Altcoins for Staking Rewards 2023

Top 10 Best Altcoins for Staking Rewards 2023

by edward

Interested in earning money passively with your crypto, so that you can sip on mai tais on your own private island. Well, that’s the dream for most of us, but there is a myriad of factors that you should consider. When you invest in coins that are based on proof of stake, you can engage in staking, which helps PoS networks operate more securely and efficiently. The only requirement for staking is that you keep coins in your cryptocurrency wallet over an extended period of time, which allows you to earn staking rewards. Staked coins are like interest-bearing savings accounts, or dividends in the stock market, since with both options you earn interest on your initial investment. Which leads to that sweet, sweet passive income.



How Staking Works

But before we get into the 10 best altcoins for staking rewards, let’s first go over what staking is and how it works. Crypto staking is a process that involves placing funds into a digital wallet and keeping them there to support validating transactions for PoS blockchains. By participating in transaction validation, participants earn extra cryptocurrency.

The main benefits associated with staking crypto include the following:

  • Crypto staking doesn’t require any extra equipment, unlike crypto mining.
  • You can earn a certain amount of interest on your crypto holdings.
  • Staking is substantially less harmful for the environment than mining.
  • Staking directly enhances the efficiency and security of PoS blockchains.

Okay, and now let’s get into the best coins to start staking. We will also be recommending a few different exchanges to get these on below as well.

1. Polkadot

And first up we have Polkadot. Polkadot provides one of the best staking coins because it uses scalable, multi-chain technology created by Ethereum cofounder Gavin Wood. Polkadot is among the best staking coins because it comes with an average annual return of 14%, which is great for earning passive income. You can stake DOT at exchanges including Uphold. As for prospects, DOT is among the best cryptos to stake because of its top 10 market cap, which will likely grow in the coming years.

2. Solana

Next, we have Solana.Solana is an efficient blockchain that was designed with scalability in mind. This scalability is achieved via Solana’s low fees and quick transactions. When it comes to crypto market caps, Solana ranks in the top 10. SOL is one of the best staking coins because of the speed of transactions and the low cost for completing them. Most transactions are finished in a few seconds. While you can’t manage your own node when staking on the Solana network, there are more than 640 validators with whom you can stake your coins.

3. Algorand

Third we have Algorand. Algorand is a powerful platform that provides effective scalability through validator nodes and instant transactions. ALGO is among the best staking coins because stakers only need to have a single ALGO coin to become validators. Having such a low staking minimum does have its pros and cons. While there are typically more validators than most other networks have, it’s also possible that some validators don’t participate as much as they should because of the minimum staking requirement.

4. Ethereum

Fourth we have Ethereum. The Ethereum ecosystem continues to grow by leaps and bounds, attracting both developers and investors. However, the world’s second-largest cryptocurrency initially deployed a proof-of-work consensus. This meant that to validate any transactions, computers had to perform complex tasks which demanded enormous energy as well as time.

5. Polygon

Next is Polygon. Polygon (MATIC) is a token on the Ethereum network designed to improve transaction speed and lower costs using “sidechains” that work parallel to the primary Ethereum blockchain. It allows users to transfer Ethereum tokens onto the Polygon blockchain and back again as needed. The rewards you can get for this coin are also very attractive.

6. Cardano

Number six goes to Cardano. Created by one of the founders of Ethereum, Cardano is considered one of the best proof-of-stake blockchains. ADA, the native cryptocurrency, can be staked on the Cardano network to earn yearly interests in return for validating blocks on the blockchain. On Cardano, new blocks are verified through nodes selection. When an individual joins a node, ADA is locked away in that node. After blocks are produced, the nodes earn rewards distributed among the individuals, also referred to as pool contributors. The rewards are also solid on Cardano, and it’s a safe coin to get into with a lot of staying power.

7. Binance Coin

Next  we have Binance Coin. Binance is the most popular crypto exchange platform in the world, and BNB is one of the world’s top staking coins, due to the way it’s delegated. There’s 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’s possible to earn returns that are 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 isn’t possible with most of the top staking coins on this list.

8. Basic Attention Token

Number eight goes to the Basic Attention Token. The Basic Attention Token (BAT) was created by the co-founder of Mozilla and Firefox, Brendan Eich, to improve the security, fairness, and efficiency of digital advertising through blockchain technology. It is the native token of the Brave web browser built on top of Ethereum. As of this year, the project is still being developed, although the Brave browser is available for download. To date, there are 54.5 million monthly active users and 16 million daily users of the Brave browser. As blockchain and digital currencies continue to increase, companies have sought new ways to apply this innovative technology to older problems and issues, such as web browsing and web-based advertising.

9. Sushiswap

Sushiswap is a great platform that offers both staking and yielding. However, many investors choose to stake their SUSHI coins because of the high annual returns. You can obtain SUSHI coins on popular exchanges like Binance. Once you decide to stake SUSHI coins, you can do so with wallets such as MetaMask and Atomic Wallet. If you decide to stake SUSHI coins, the returns you generate can be used for voting rights, or as a token that allows you to interact with other platforms. The returns generated from SushiSwap staking investments are largely consistent, typically ranging from 7–10%.

10. Avalanche

And our final staking coin goes to Avalanche.Avalanche is like platforms like Cosmos and Polkadot. However, AVAX is one of the best staking coins because its platform can scale to millions of different validators. You can start staking with the AVAX platform once you have at least 25 AVAX coins. To become a validator, you’ll need to stake at least 2,000 coins. Once you stake your assets, you’ll need to do so for at least two weeks before you claim your rewards. AVAX has proven to be among the best cryptos to stake, with an annual return on investment from 8–14%.


Top 3 Exchanges for Staking

1. Uphold


Uphold has some of the best rates for staking, with up to 19.5% returns. It is also considered to be one of the safest ways to buy cryptocurrency by many digital asset experts. Since launching in 2014, Uphold has maintained an exemplary reputation for security among its customers. The site is unique in the sheer amount of assets it offers. You can get started on Uphold here.

Pros

  • The steps to stake your coin on Uphold are easy
  • It offers some of the best rates in staking
  • You receive payouts every week
  • Uphold is a secure platform. Third-party organizations perform audits
  • There are a lot of educational resources you can use in your staking journey

Cons

  • There is a 15% fee on all your withdrawals
  • Unstaking requests take three business days to complete
  • The FDIC does not insure your funds
  • The mobile application doesn’t have the best user experience


2. Binance US


Binance US is ranked as one of the largest platforms in terms of cryptocurrency trading volume. Rather than its numerous paths to make bucks, users can stake and earn rewards. Calculation of rewards is based on the number of rewards on stake, inflation rate, and period of stake. You can get started on Binance US here.

Pros

  • They do not charge any fees for staking, which maximizes the user’s benefits
  • It has a vast coin range for trade
  • Traders enjoy a lot of additional services
  • It offers locked, ETH 2.0, and DeFi staking
  • There are lower barriers in staking amounts, time lengths, and catches

Cons

  • Not available in all the states
  • It has limited opportunities when staking assets
  • Users can face complications when navigating the site
  • Defi staking requires prowess due to intense risks
  • Users may experience poor customer support


3. BlockFi


It is a financial service company located in New Jersey whose main role is developing products for cryptocurrencies. Funds at BlockFi are accounted for by Gemini Trust company. You can use the platform to acquire loan funds in USD rather than selling your crypto assets. Additionally, you can earn interest by staking where your assets are lent out to gain interest. You can get started on BlockFi here.

Pros

  • It is available worldwide
  • Users can execute instant trades
  • The platform requires no commission fees
  • It does not have monthly fees or minimum deposits
  • You can use it as collateral rather than selling your crypto assets

Cons

  • The platform does not support joint or custodial accounts
  • Users have extreme limitations on free withdrawals
  • There is a loan rate volatility
  • Borrowing has a risk of losing your crypto assets if the crypto value drops


And finally, you should be aware that there are some risks to staking crypto. Despite the benefits of crypto staking for earning passive income, there are several risks to be aware of. The primary ones are as follows:

  • Crypto prices are relatively volatile, which means they can depreciate quickly. In the event that your assets drop by a sizable amount, you may not earn enough interest to outweigh your losses.
  • While it’s possible to “unstake” your crypto earnings, doing so can take at least seven days for certain platforms.
  • Also If you want to use some of the top staking coins, it’s important to understand that these coins will remain locked for a short period of time. This means that nothing else can be done with these assets in the interim.

Final Thoughts

Of course, the bottom line here is that staking is totally a way to earn passive income with your crypto. And sometimes it’s the smart play if you’re a long-term holder and not actively trading your coins. Keep in mind rates change for coins all of the time, and its to be expected once you get started.


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