The best aspect of crypto staking, apart from high yields, is the amazing possibility of passive income. All you would have to do here is to stake coins that you already own. Put simply, crypto staking enables you to create an additional channel of earning from the same coins that you are expecting to bring high ROI from HODLing or position trading. Bustling with hundreds and hundreds of staking coins, the crypto staking scene offers a huge range of options to choose from. So, what are the best staking coins for high yields? Read more
Well, we will definitely get into the list of best cryptocurrency staking coins with high yields- but first, let’s have a few words about the factors that determine “high yields” or “high income”.
Factors that determine high income in staking coins
The APY factor
APY stands for Annual Percentage Yield- the annual percentage a staker will receive on a particular coin. The APY differs from one coin to another. For example, while coins like Ethereum extend 5-10% APY (at the moment), newer cutting-edge coins such as DeFi coin offer up to 75% APY. Many altcoins offer up to 100% APY.
The rule of the thumb is, higher the APY, better the chances of passive income with the best staking coins. So, when you are in quest of best staking coins that can generate substantial yield, look for coins with high APY.
Coin value
It’s true that the best staking coins usually command higher APY.
But, on a second thought, higher APY should not be the sole or the absolute factor to decide on the best staking coins. It’s because there are several altcoins that might show way higher APY than even many iconic coins- but they can’t always be trusted. “Hype” is a big word in the crypto scene- a lot of coins rise purely out of hype. However, as they are usually not driven by a tangible and functional purpose, their days are always numbered. And, when they tank in value, the APY on staking rewards simply becomes worthless, no matter how high the APY had been previously.
So, don’t just focus on APY when you are looking for best staking coins with high passive income opportunities. You must also take into account the functional quotient of the coins. In other words, best staking coins are those that can offer some real-life functionality.
Top 10 staking coins
So, finally, we are ready to unveil the list of the best staking coins that are offering excellent passive income.
- Ethereum (ETH)
The second largest cryptocurrency is also one of the best staking coins that offer high passive income. Although Ethereum is yet to migrate to a full-fledged PoS network, it has already started offering staking activities since last year. As of now, you can expect around 4-5% APY on Ethereum staking. Around 12 million ETH has been staked in by now and the numbers are going to rise exponentially after the Merge upgrade. According to experts, after Ethereum migrates to a full-fledged PoS network with the Merge upgrade, the APY on ETH staking might shoot up to 12%.
- Cosmos (ATOM)
Running on the next-gen DPoS network, one of the best aspects of Cosmos is that it is able to attain consensus even if there is a malicious node. Dubbed as the “world-wide-web” of blockchains, Cosmos has taken up the great mantle to facilitate easy communication between various blockchain companies around the world. If you are looking for the best staking coins that have been developed to bring a positive change, count on Cosmos. Cosmos staking comes with around 8.3% APY.
- Tezos (XTZ)
Built on next-gen LPoS infrastructure, Tezos creates its native currency through cutting-edge baking process. It’s to note here, the coin offers excellent staking rewards especially for bakers. If you have been on the lookout for best staking coins that do not demand a handsome lot of coins for staking, then Tezos is the option for you. You just need 1 XTZ to start Tezos staking – the staking reward could range from 6 to even 10%.
- Algorand (ALGO)
When it comes to best staking coins that not only offer high APY but also assure low entry points, you have to bank on Algorand. The coin offers a fantastic APY on staking rewards that can hover around 5-6% at the moment. In regard to entry point, you will need just 1 ALGO to participate in Algorand staking.
- Polkadot (DOT)
A favorite in the staking world, Polkadot is one of the best staking coins with an eye-popping APY. You can expect around 14% APY on DOT staking. However, Polkadot staking requires staker to deposit a minimum 40 DOT tokens.
- Cardano (ADA)
A major reason why lots of stakers have a soft corner for Cardano among the best staking coins, is its amazing flexibility. With ADA staking, you are bound by a strict lockup period. Moreover, Cardano is about to launch a bunch of major upgrades shortly that are expected to shoot up the ADA price. As of now, Cardano offers 4-8% APY.
- Polygon (MATIC)
Polygon is one of the best staking coins that have been able to impress with super speed scalability. Developed to connect Ethereum-based dApps, Polygon offers a whopping volume of 65,000 TPS. The current APY on MATIC staking is also pretty high- up till 14%.
- Avalanche (AVAX)
If fast staking rewards is a priority, then Avalanche will be one of the best staking coins for you. AVAX staking allows takers to earn rewards in just 15 days of staking. In regard to APY, Avalanche offers a solid 10 to 14% annual yield.
- Synthetix (SNX)
When it comes to the best staking coins with aggressively high APY, Synthetix is a top pick hands down. The coin surprises with a solid 55% APY and also assures real-life functionality.
- Decred (DCR)
Designed to address BTC network’s scalability issues, Decred is a must-have in the list of best staking coins. The coin stands out with many notable features such as atomic chain swapping, smart contracts, cross-platform wallets, and more. The APY on DCR staking is over 7%+.
Final words
Unfortunately, Terra could not be listed in the list of best staking coins as of now given the declining value of the coin. But, experts are hopeful that the coin will recover and gradually get back to its former stellar status.
