Investors adore earning passive income, but many industry professionals contend that cryptocurrencies cannot serve as a source of income. That’s not really accurate. The cryptocurrency you own can produce interest income through staking and various other reward schemes. By locking up your cryptocurrency to sustain the blockchains that support particular networks, you can receive rewards through staking. Selecting the right cryptocurrency exchange is crucial if you’re interested in staking or a rewards program for digital currencies. By doing this, you may be sure that you’ll have access to the best resources and yields.
What is Crypto Staking?
Crypto staking is the process of depositing money into a digital wallet and maintaining it there in order to support proof-of-stake (PoS) blockchains’ transaction validation. Participants gain additional cryptocurrency by taking part in transaction validation.
Mining and staking differ from each other in a few significant ways. In general, staking platforms allow you to earn money on both PoW and PoS coins while mining solely uses proof of work (PoW) systems. Blockchain transactions can be verified by PoW and PoS without the assistance of a third party like a bank or other financial institution. The two mechanisms’ energy requirements are the primary distinction. You must first acquire PoS coins if you want to begin the staking procedure.
List of Some Best Coins to Stake
1. Tether (USDT)
Try staking a stablecoin as an alternative if you’re concerned about the value of your staked tokens and coins declining. Although selecting the finest stablecoin for staking is a matter of personal opinion, Tether (USDT) is always a good choice because of its enormous trading volume. The huge daily USDT volume makes it simple to exchange USDT for more attractive tokens, which can do wonders for liquidity.
2. Ethereum 2.0 (ETH)
Ethereum 2.0, or Eth2, is the world’s second-most widely used cryptocurrency provider after Bitcoin and one of the finest staking coins. If you wish to stake on the base Ethereum layer, you have to begin using at least 32 ETH. There are third-party staking protocols and services, such as Lido Finance, that allow you to stake less. Ethereum previously used a PoW consensus algorithm but it has now shifted to PoS, with more than $12 billion in ETH staked.
3. USD Coin (USDC)
Similar to Tether, USD Coin (USDC) is a stablecoin backed by fiat currency that is frequently used for money transfers due to its stable value and strong liquidity. However, Grant Thornton, LLP conducts an accurate monthly audit of USDC, which makes it different from Tether. The reports are made publicly available online, allowing for theoretically more transparency by substantiating that USDC is mostly supported by cash and cash equivalents.
4. Cardano (ADA)
Cardano is a strong PoS network that is frequently compared to Ethereum. The primary benefit of using the Cardano network is that it can execute hundreds of transactions per second. Cardano made the list as one of the best staking coins because users can withdraw any of their staked assets whenever they choose.
Phemex veToken (vePT): Is it worth Staking?
vePT is an ERC20 on-chain governance token that offers users unique voting rights in the PhemexDAO (“Phemexia”). After the launch of Phemex Token, vePT can be obtained by staking PT for any period of time ranging from one month to two years. vePT holders have exclusive voting rights in the PhemexDAO, allowing them to actively participate in Phemex‘s decentralized governance and make choices about the platform’s treasury. Staking yields and trading reward enhancements in the form of PT are also available to vePT holders.
The benefits of vePT includes:
- DAO Governance
- Treasury Management
- Staking Yield
- Trading Reward Boost
- Fee Discounts & Earn Boosts
- Exclusive Launchpad & Launchpool Access
You can find out more details about Phemex Token here.
Staking has the potential to be a rewarding and potentially profitable way to contribute to the blockchain ecosystem while generating passive income. However, there are several aspects that beginners must be aware of regarding crypto staking. Everyone should do their own research and think about factors like staking returns, lockup periods, withdrawal limits, and potential risks before investment.