Investing in cryptocurrencies has never been so interesting as it was today ten years ago. It is not too much to say that the crypto market is the most embattled industry ever created. BTC (bitcoin), the first-ever digital asset launched has been long considered as a bubble. The whole market is still up against regulations from countries across the globe. But despite going through a lot of hurdles, the adoption by institutional investors has propelled the industry to where it was today.
With numerous investments offered in the market, staking is one of the safest ways to earn passive income in crypto. For sure, this statement is true but one may ask, is it really profitable? The answer is a resounding “yes”. Although it has less action than trading as you only need to hold a minimum amount of digital assets in a certain period of time, you can earn more than 5% to 20% per year. Not bad right? Let’s take for instance the ETH (ethereum) staking on the Binance trading platform. To be a validator, one should stake a minimum of 32 ETH in the Ethereum network. In the case of the Binance Ethereum launch pool, it allows users to stake as low as 0.1 ETH or less than $3o0 with ETH (ethereum) price at $2,899. You get an equivalent amount of ETH that you stake with the platform’s launch pool. Also, ETH staking on Binance is free of charge so when the redemption period is already reached, you get twice the quantity of tokens you initially staked. So, if you delegated 110 ETH, you get 220 ETH during redemption.
And with the ETH 2.0 upgrade just around the corner, it is also anticipated that the price of ETH (ethereum) to spike. But this can happen not only with ETH (ethereum) but also with other cryptocurrencies that offer staking. But with ETH (ethereum) current price, it may be pricey to join the staking now. Some have taken advantage of the price corrections to buy and hold the digital asset and stake. But there are other crypto assets that utilize proof-of-stake and offer users to stake their digital assets. Here’s a list of cryptocurrencies that offers high passive income through staking that you can choose from. Prices of these assets are still relatively low and very ideal to buy at their current prices.
Dubbed as “Internet of Blockchains” since it bridges all the myriad of blockchains into a single network that allows the optimal transfer of all tokens. The network utilizes DPoS (Delegated Proof of Stake) as its consensus mechanism. In this type of mechanism, delegators authorize which validators will verify the transactions and add new chains.
The current APY for staking ATOM (Cosmos) is between 8% to 10% less validator’s fee. You need to have at least 0.05 ATOM which is equivalent to $1.6 as per ATOM (Cosmos) current price at $32.28. The staking period is flexible, meaning you can unstake your tokens anytime but it will take 21 days before your crypto asset becomes available to send or exchange.
The platform utilizes Liquid Proof of Stake as its consensus mechanism. Staking in the network is called “baking” and validators are referred to as “bakers”. Staking XTZ (Tezos), the native token of the platform can give you an annual yield of around 6%, minus a validator’s fees. Delegators in the platform have no minimum stake amount. But to be a “baker” you need to stake a minimum of 8000 XTZ tokens or $27,360 with XTZ (Tezos) price at $3.42. It takes 35 days for the staking approval but once approved, you will start earning rewards after 3 days.
Formerly Antshares (ANS) launched in 2014 but later rebranded to NEO in 2017. Referred to as a “Chinese version of Ethereum” and belongs to the “ETH killers”, the platform is an open network and is designed for new dApps and services. Currently, it serves as a launchpad for new tokens. By staking NEO (Neo), you will receive GAS tokens as rewards. No minimum amount of NEO token is required to start receiving rewards. It does not require a minimum holding period also for users to receive rewards. APY is up to 2% to 3%.
Definitely, one of the top cryptocurrencies to invest in after its price spiked before 2021 ended. The network is an open-source blockchain platform for algorithmic stablecoins, that are pegged against traditional fiat. The network uses DPoS or Delegated Proof of Stake as its consensus mechanism. No minimum amount of LUNA (Terra) is required for staking but this would depend on the platform you will be using for the staking. In the case of Trust Wallet, you are required at 0.01 LUNA (Terra) to be able to stake. APY is around 8% to 9% less validator’s fee. Also, by staking LUNA (Terra) you can also be eligible for airdrops in the network. That’s another means of earning by staking your tokens.
One of Ethereum’s leading competitors was founded by Ethereum co-founder Gavin Wood in 2016. The network runs using nominated proof-of-stake (NPoS) as its consensus mechanism where stakers can nominate validators of their choice. As a nominator, you need to hold a minimum of 120 DOT or $2,186.40 with the DOT (Polkadot) price at $18.22. Currently, the maximum slot of 22,500 nominators is already filled in so even if you hold the minimum token required, you will not be able to nominate. Elected validators should stake a minimum of 350 DOT or $6,377 with the token’s current price. APY is around 10% less validator’s commission fees but could be higher depending on the platform where you will stake your DOT (Polkadot).
But staking although safe may also come with risk. These risks may include market volatility, lack of the token’s liquidity, trapped tokens due to lockup periods, lengthy distribution of rewards, misbehaving validators, validator’s commission fees, and security breaches. Is there a way to mitigate these risks? How? In our next article, we will be discussing the possible ways to mitigate the risk in staking.