Passive crypto earn. List of best staking coins in 2023
1. What is Proof-of-Stake
2. Popular Proof-of-Stake blockchains
3. List of best staking coins in 2023
4. How to stake crypto on exchange
5. How to stake crypto in hardware wallet
6. Try Coinhold savings wallets
Crypto staking is the process of holding onto cryptocurrency tokens in a wallet for a specific amount of time, usually for a reward. It is an alternative way of participating in the consensus process of a blockchain network, in contrast to traditional cryptocurrency mining. Staking helps to secure the network and validate transactions, and in return, the holder earns rewards in the form of newly minted coins or a share of transaction fees.
Crypto staking refers to holding and holding onto cryptocurrency in a wallet and participating in the validation of network transactions to receive rewards. Not all cryptocurrencies support staking, but some popular ones that do include Ethereum, EOS, Tezos, Cosmos, and more. The specific coins that can be staked depend on the network and its consensus mechanism.
Staking is a process of holding and locking up a certain amount of cryptocurrencies in a wallet to participate in maintaining the network, validate transactions and receive rewards in return. The rewards earned depend on the amount staked and the staking rewards rate of the particular cryptocurrency. Staking can be done with coins that support the proof-of-stake consensus algorithm, such as Ethereum 2.0, Cardano, and others.
In 2023, you can earn through staking by holding a certain amount of a proof-of-stake (PoS) cryptocurrency in a wallet and actively participating in the validation of network transactions. You receive rewards in the form of new coins for helping to secure the network. The amount you earn will depend on the specific coin, network conditions, and the amount you are holding and staking. Make sure to research and choose the best staking coins with a good return on investment and solid project development.
What is Proof-of-Stake
In a proof-of-stake (PoS) blockchain, the native coin is used to secure the network and validate transactions. Instead of mining, as is done in proof-of-work (PoW) blockchains, validators are selected to validate transactions based on the amount of native coin they hold and are willing to "stake" or lock up as collateral. These validators are incentivized with rewards in the form of newly minted native coin or transaction fees for performing this work. By staking their coins, validators not only help secure the network but also earn a reward for their efforts.
Popular Proof-of-Stake blockchains
List of popular and big blockchains that use Proof-of-Stake consensus mechanism:
- Ethereum (ETH): Ethereum is the second largest blockchain by market capitalization and is transitioning to a proof-of-stake consensus mechanism. Staking allows users to earn rewards for helping to secure the network.
- Cosmos (ATOM): Cosmos is a decentralized network of independent blockchains, each powered by its own consensus mechanism, including proof-of-stake. It enables cross-blockchain communication and interoperability.
- Tezos (XTZ): Tezos is a decentralized, self-amending blockchain that uses a proof-of-stake consensus mechanism. Staking allows users to participate in the network's governance and earn rewards.
- Algorand (ALGO): Algorand is a fast, secure, and scalable blockchain that uses a proof-of-stake consensus mechanism. It enables decentralized applications and digital assets to be built on top of its network.
- Cardano (ADA): Cardano is a blockchain platform that uses a proof-of-stake consensus mechanism and is built on a research-first approach. Staking allows users to participate in the network's governance and earn rewards.
List of best staking coins in 2023
- Tezos (XTZ) - a decentralized platform for building smart contracts and decentralized applications, built on the proof-of-stake consensus algorithm.
- Cosmos (ATOM) - a multi-chain ecosystem of interconnected blockchains, using the Tendermint consensus algorithm.
- Cardano (ADA) - a blockchain platform for building decentralized applications, using a proof-of-stake consensus algorithm and an innovative programming language.
- Algorand (ALGO) - a fast, secure, and decentralized blockchain platform, using the pure proof-of-stake consensus algorithm.
- Ethereum (ETH) - the second largest cryptocurrency by market capitalization, is currently transitioning from a proof-of-work to a proof-of-stake consensus algorithm.
- EOS (EOS) - a decentralized platform for building decentralized applications, using the Delegated Proof-of-Stake (DPoS) consensus algorithm.
- TRON (TRX) - a decentralized platform for building decentralized applications, using a Delegated Proof-of-Stake (DPoS) consensus algorithm.
- NEM (XEM) - a smart asset blockchain, using the proof-of-importance consensus algorithm.
- Neo (NEO) - a blockchain platform for building decentralized applications, using a Delegated Byzantine Fault Tolerance (dBFT) consensus algorithm.
- Icon (ICX) - a decentralized platform for building decentralized applications, using a Loopchain-based consensus algorithm.
How to stake crypto on exchange
To stake crypto on an exchange, you typically need to follow these steps:
- Choose a compatible exchange that supports staking.
- Create an account and complete any necessary verification.
- Deposit the cryptocurrency you want to stake into your exchange account.
- Navigate to the staking section of the exchange and select the coin you want to stake.
- Follow the instructions to delegate your coins to a validator or staking pool.
- Wait for rewards to be distributed.
- Repeat the process as desired.
Note: Staking rewards may vary based on the exchange, coin, and network conditions. It's important to research and understand the specific details of each exchange and staking opportunity.
How to stake crypto in hardware wallet
Staking crypto in a hardware wallet is a secure way to earn rewards while keeping your coins safe. To stake crypto in a hardware wallet, follow these steps:
- Buy and transfer the desired coin to your hardware wallet.
- Connect the hardware wallet to your computer or mobile device.
- Access the wallet's staking feature and select the amount of coins you want to stake.
- Wait for the staking process to complete and start receiving rewards.
Note: The specific steps may vary depending on the type of hardware wallet and the coin being staked. Make sure to read the instructions provided by the wallet manufacturer.
Try Coinhold savings wallets
EMCD users can use Coinhold savings wallets for crypto staking and passive income up to 14% annually. With Coinhold, you can stake even cryptocurrencies that don't run on Proof-of-Stake algorithms. Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and stablecoins USDT and USDC are available for staking on Coinhold. Coinhold users can withdraw funds or add coins to staking at any time to increase their income.