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In addition to engaging in crypto trading, investors can also utilize staking as a significant method to generate extra income in the crypto space. Staking, a long-standing practice, appeals to both seasoned and novice investors as it offers the potential for substantial profits. Instead of risking assets in an uncertain market, investors can adopt a low-risk approach by participating in staking.
Through staking, investors can secure increased earnings without exposing themselves to the volatility of the market. This proves especially advantageous during market downturns, as investors lock up their funds to support crypto platforms, subsequently earning passive income in return.
Simply put, crypto staking serves as a means to mitigate market fluctuations, particularly during downward trends. It may even outperform traditional trading regarding profitability, with some platforms offering rewards ranging from 5-30% and others going as high as 50%.
Staking can be likened to depositing money in a high-yield savings account, ensuring that you don’t incur losses. While there may not be profits during losses, the invested assets are still returned. The benefits of staking extend not only to investors but also to the staking platforms, as it contributes to the seamless operation of the network and the overall security of the blockchain.
In this blog, we have listed 10 crypto-staking coins that you can stake in 2024.
#1 Ethereum (ETH)
Ethereum (ETH), a leading and widely embraced crypto, has recently made a significant transition from a Proof-of-Work (PoS) to a Proof-of-Stake (PoS) consensus mechanism. This shift positions Ethereum as a strong contender among the top cryptos suitable for staking in 2024. The upgrade addresses critical network issues such as high gas fees, scalability concerns, and transaction speed while drastically reducing energy consumption by 99.9%.
Following the implementation of this new upgrade, investors now have the opportunity to stake Ethereum, contributing to the security of the network and earning rewards in the process. However, it’s important to note that there is a minimum staking requirement of 32 ETH.
#2 Cardano (ADA)
Developed by one of the co-founders of Ethereum, Cardano stands out as one of the top proof-of-stake blockchains in 2024. The native crypto, ADA, can be staked on the Cardano network, allowing investors to earn annual interest in exchange for validating blocks on the blockchain.
In the Cardano ecosystem, the verification of new blocks involves the selection of nodes. When an individual participates in a node, their ADA is locked within that node. Subsequently, as blocks are generated, the rewards are distributed among the participants, commonly known as pool contributors.
Alternatively, investors have the option to stake their assets with stake pool operators—individuals possessing specialized knowledge to carry out the essential tasks of network maintenance.
Related Read: ADA Coin Price
#3 Solana (SOL)
Solana emerges as a decentralized blockchain designed to facilitate the global deployment of scalable and user-friendly applications. Renowned for its rapid speed and cost-effectiveness, the network appeals to a diverse range of decentralized applications (DApps) and developers, boasting support for over 50,000 transactions per second (TPS) with an average transaction cost below $0.1.
Functioning as a proof-of-stake coin, SOL can be effortlessly delegated to network validators, offering investors the potential to earn a notably high annual percentage yield (APY). With a current APY of $5.32%, SOL stands out as one of the premier staking cryptos for investors seeking to generate passive income.
#4 Polygon (MATIC)
Operating as an open-sourced and permissionless blockchain, Polygon (MATIC) is constructed on the Ethereum network to provide scalable solutions. The native crypto, MATIC, serves multiple purposes, including settling transactions and being staked to fortify the platform, and it has delivered substantial growth to investors in recent years.
Out of the total supply of 10 billion tokens, 12% of MATIC is earmarked for staking rewards on the Polygon network. Employing a Proof-of-Stake (PoS) consensus mechanism, Polygon adopts a sustainable and environmentally friendly network that avoids the need for extensive computational power.
Any individual has the opportunity to become a network validator by staking MATIC, with the extent of rewards tied to the individual’s stake. The network is upheld by over 100 global validators, with a staggering $3.7 billion staked on the Polygon network. With nearly half a billion in rewards disbursed from the staking pool, Polygon establishes itself as one of the prominent staking coins in 2024.
#5 Avalanche (AVAX)
Avalanche (AVAX) stands as an Ethereum Virtual Machine (EVM) compatible open-source platform designed to serve as a foundation for diverse decentralized applications. Positioned as one of Ethereum’s primary competitors, Avalanche is not only smart contract compatible but also boasts higher throughput levels.
With a capacity to handle 6,500 transactions per second (TPS), Avalanche surpasses Ethereum’s 17 TPS. The native crypto, AVAX, provides an avenue for staking, potentially allowing participants to earn significant annual yields. On average, individuals staking AVAX can expect to earn around 8.53% over a 365-day holding period.
Delegators, individuals opting to stake AVAX, entrust the responsibility of utilizing the staked tokens for network security to validators.
#6 Polkadot (DOT)
Polkadot (DOT) stands as a widely adopted protocol facilitating the seamless cross-chain transfer of tokens, data, and diverse asset types. Its overarching goal is to establish a decentralized web, placing control in the hands of its users. Consequently, the blockchain incorporates staking options for various network operations, contributing to the overall security of the network.
With a circulating supply exceeding 1.1 billion DOT, a significant portion, accounting for 52.65% of the available tokens, has been staked. This notable staking activity is largely driven by the network’s attractive high annual yields. On average, individuals staking Polkadot can anticipate earning approximately 6.92% over a 365-day holding period.
#7 Tezos (XTZ)
Tezos emerges as an open-source smart contract-compatible platform, specifically crafted to drive the Web3 revolution. Tezos provides users access to a decentralized network characterized by high-speed connectivity, facilitating direct interaction and communication among users.
An integral aspect of the Web3 revolution on Tezos is its user-driven governance. This pivotal feature enables users to participate in the evaluation and maintenance of the platform actively. Staking XTZ, the native crypto of Tezos, is a prominent method of governing the platform.
Distinguished by its energy-efficient operations compared to Ethereum and Bitcoin, Tezos utilizes XTZ to create a highly sustainable crypto platform. On average, individuals staking Tezos can expect to earn approximately 8.53% over a 365-day holding period.
#8 Algorand (ALGO)
Operating as a decentralized blockchain network, Algorand employs a distinctive consensus mechanism called Pure Proof-of-Stake (PPoS). This system, based on the Byzantine consensus, ensures the network’s self-maintenance through staking activities.
Under PPoS, users staking ALGO are randomly chosen to propose new blocks and partake in voting on block proposals. Importantly, a user’s influence is directly linked to the quantity of ALGO they stake on the network. Consequently, users with higher stakes hold a substantially greater likelihood of contributing to the network.
On average, participants staking Algorand can anticipate earning around 4.70% over a 365-day holding period.
#9 Tether (USDT)
Tether stands out as a stablecoin tethered to the US dollar, providing a reliable anchor amidst the fluctuations of the crypto market. Despite not offering particularly high staking rewards, it remains a favored option for investors seeking to steer clear of the price volatility often associated with other cryptos. Tether has garnered widespread popularity and holds the position of the third-largest market capitalization in the crypto market.
On average, individuals staking Tether can expect to earn approximately 5.75% over a 365-day holding period.
#10 Cosmos (ATOM)
Cosmos (ATOM) serves as the crypto powering an interconnected ecosystem of blockchains designed for scalability and seamless communication. The team’s overarching objective is to establish an “Internet of Blockchains,” creating a network of decentralized blockchains capable of interacting with one another. Cosmos employs the Proof-of-Stake consensus mechanism.
Engaging in staking with your ATOM holdings emerges as an excellent avenue for generating passive income through staking rewards. ATOM is utilized to distribute these rewards, akin to earning interest on your crypto holdings. Staking in Cosmos entails committing to locking up a specific amount of your ATOM for a predetermined period, during which it becomes unspendable. However, it’s important to note that you retain the flexibility to unlock your ATOM at any time.
On average, individuals staking Cosmos can anticipate earning around 9.22% over a 365-day holding period.
Bottomline Thoughts: Is it Worth to Stake Crypto?
The decision to stake crypto hinges on your investment goals and risk appetite. Staking offers a potential avenue for passive earnings and the augmentation of your crypto portfolio. Nevertheless, it’s imperative to undertake comprehensive research, evaluate associated risks, and select staking strategies that resonate with your financial aspirations.
Frequently Asked Questions
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
Is Cryptocurrency Safe To Invest In?
Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
What Is Cryptocurrency?
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
Is Cryptocurrency Legal In India?
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
