Today, a large number of people around the world believe in cryptocurrency. They believe that blockchain based companies will explode in the future. Many cryptocurrency believers hold many alt coins in their portfolio. Passive earning can also be generated by utilizing these coins. In this article we will learn about some of the best projects (Top 5 Staking Coins) that you can generate enough passive income by stacking. This is a huge opportunity for long-term holders to genarate extra profit.
Type of Cryptocurrency Staking
There are technically two types of staking in cryptocurrency. The first is staking on a proof of stake blockchain.
This is where validator nodes lock up cryptocurrency to process transactions on the blockchain and earn transaction fees and block rewards as payment for this service.
The second type of cryptocurrency involves locking a coin or token on centralized or decentralized platforms and protocols.
Rather than securing a proof of stake blockchain, this staked cryptocurrency earns rewards from lending, liquidity provision, or yield farming.
Top 5 Staking Coins
1. Polygon (previously matic)
When it comes to proof of stake cryptocurrencies, one of the best on the market is Polygon’s MATIC. Polygon co-hosts some of Ethereum’s most popular dApps and has over 10 billion in total value locked(TVL) and it is continuously growing fast. Matic is the most popular layer 2 solution on ethereum network rigit now. For Lower fees and first transaction 300+ decentralised application (Dapp) move ethereum to polygon network.
MATIC network run on proof-of-stake mechanism. MATIC staking rewards range from 520 percent per year to 5.2 percent per year depending on the total amount of MATIC being staked, and this reward currently sits at about 19 percent per year.
► Polygon MATIC Staking Interface: Click Here
Also Read: What is Bitcoin & How does Bitcoin work ?
2. Terra (LUNA)
Another top-of-the-line proof of stake cryptocurrency is Terra’s LUNA. Terra is a cryptocurrency project that makes it possible to create stablecoins that are backed by cryptocurrency. Terra’s native stable coin called UST backed by Terra.
Besides collateralizing stablecoins, LUNA is used for staking on Terra’s proof of stake blockchain, and LUNA staking rewards are stable at around 12 percent per year.
► LUNA Staking With Terra Station: Click Here
3. Polkadot (DOT)
Polkadot is one of Ethereum’s top competitors, which is no surprise given that its founder Dr. Gavin Wood also co-founded Ethereum and played a important role in Ethereum’s development.
Like Polygon, staking rewards for DOT vary based on how much DOT is being staked, and the current annual return is about 14 percent per year. Note that 300 DOT is currently required to stake.
► Polkadot JS Browser Wallet Extension: Click Here
4. Binance (BNB)
Binance is the world’s largest cryptocurrency exchange, and BNB plays an integral role in its various products, services, and platforms. Binance has also their own blockchain called binance smart chain.
BNB staking rewards on the Binance Smart Chain can be as high as 30% per year. The caveat is that these staking rewards are not stable as they come from transaction fees alone.
► BNB Staking Interface: Click Here
5. Etereum 2.0 (ETH)
Staking on Ethereum 2.0 began last winter, and over 12 billion dollars’ worth of ETH is currently being staked by nearly 130 thousand validators even though the network isn’t technically live yet.
Any ETH staked on Ethereum 2.0 could be locked up for a year or more. This is not ideal if you’re planning on selling your ETH anytime you want.
► Ethereum 2.0 Staking Interface: Click Here
One platform that lets you create this tokenized staked ETH is ANKR which will give you aETH when you stake regular ETH in their web app using Metamask.
► Ethereum 2.0 Staking With Ankr aETH: Click Here