TOP 5 Coins for Staking with the Maximum Passive Income

TOP 5 Coins for Staking with the Maximum Passive Income

Earnings on cryptocurrency is a very real opportunity to increase your capital. The easiest and relatively safe way to make money is hodling, the so-called “buy and hold” strategy. Hold until the quotes rise to the desired level. However, this method cannot be considered risk-free either, the high volatility of the crypto market makes its own adjustments to the rosy picture of the world.

At the current stage of development of cryptography, it is not necessary to be limited to hodling. Cryptocurrencies can make cryptocurrencies and it’s not just about ETH to TRX exchange and trading. Coins of networks based on a consensus mechanism Proof of Stake can be staked. This is a bit like a regular bank deposit, when interest is charged on your deposit.

What is cryptocurrency staking?

Staking refers to the long-term placement of coins in a special crypto wallet. Thus, the coins are used to verify transactions in the blockchain, and their owners are rewarded.

Key benefits of staking:

  • For staking, you do not need to purchase additional equipment.
  • You are guaranteed to receive remuneration in the established amount and within the established time frame.
  • Staking does less harm to the environment than mining.
  • Staking directly improves the efficiency and security of PoS blockchains.

If you are interested in this type of earnings, you first need to get PoS coins, for example, buy them on LetsExchange. After the purchase, you need to decide how much you want to invest in staking and choose the appropriate platform.

Staking risks

Any activity related to cryptocurrencies is inevitably accompanied by risks:

  • High volatility of the cryptocurrency market. A sharp price drop can wipe out your profits.
  • When using coins for staking, they will be locked for the period you choose. During this time, you will not be able to do anything with your coins.
  • It will also take some time to withdraw assets from staking. On some platforms, instant withdrawal is possible, but this is not practiced on all exchanges.

Best coins for staking

1. Tether (USDT)

Tether is one of the best betting coins in 2023 with up to 12.3% returns and real money pegs. The token is in the TOP-10 with the highest market capitalization. The stability of the Tether cryptocurrency is ensured by its peg to the dollar and the possibility of direct exchange of coins for fiat currencies. USDT tokens are an attractive option for earning on staking due to the stability of the exchange rate, dollar collateral and the possibility of being used as an alternative to fiat currencies.

2. USD COIN (USDC)

USD COIN is also a fiat-backed stablecoin, its rate is pegged to the US dollar. The token is based on the ERC-20 algorithm, the digital asset integrates with all wallets running on the Ethereum blockchain. Like other stablecoins, USDC coins are used as an alternative to fiat currencies, they can be quickly exchanged and sent anywhere in the world with minimal fees.

Due to the pegging of the coin rate to real dollars and a wide range of applications, the USDC stablecoin is a profitable asset for making money on staking.

3. Ethereum 2.0 (ETH)

Investors can earn passive income by freezing their assets in the Ethereum 2.0 cryptocurrency. The platform currently uses the Proof-of-Stake algorithm, which validates transactions using user votes controlled by validator stakers. To obtain the status of a validator, you must deposit an amount of at least 32 ETH. But you can earn on staking with fewer coins by delegating them to a validator.

As of the end of August 2022, the income of validators was approximately 4.5% per annum. Experts predict that after the transition to the new algorithm, the profitability of deposits will increase and will be in the range of 7-13% per annum.

4. Binance Coin (BNB)

Binance is the most popular crypto exchange in the world. In addition to making transactions, the site also issues its own native BNB token. Binance Coin digital currency can be used to pay fees on the Binance exchange, purchase other cryptocurrencies, as well as for investment.

In order to maintain the value of the BNB coins are burned quarterly, while Binance buys back the BNB and destroys it. This process will continue until Binance burns 100,000,000 BNB. The BNB token is a fairly attractive staking asset as the BSC blockchain network expands, its popularity grows with users, and the number of BNB tokens available for purchase gradually decreases. This pushes the digital currency quotes up, increasing the yield on deposit contracts.

5. Solana (SOL)

Solana is a platform where a scalable blockchain protocol is created for the development of smart contracts and decentralized applications. The SOL token is one of the fastest growing cryptocurrencies due to Solana’s high network bandwidth and rapid ecosystem development. By entering into staking contracts, SOL token holders are rewarded while helping to secure the network.

APY for SOL depends on the number of transactions per day, but the average reward is between 7 and 8%.


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