In general, when investors consider investing in cryptocurrencies, they either consider mining it or buying it outright from a crypto exchange. In addition to staking crypto assets, another viable way for crypto-curious individuals to get help into their accounts is through crypto staking.
Investors interested in crypto must understand what “staking” is, although it is relatively new to the financial lexicon. Just what does it entail? Which cryptocurrencies may be acquired by “staking”?
It may seem like learning how a cryptocurrency exchange works or buying BTC is a step beyond essential knowledge. But learning about cryptocurrency staking can make you a more knowledgeable investor. The article will cover the best crypto coins to invest in or stake.
What is staking in crypto?
It is a process of locking up a cryptocurrency holding to earn interest or reward. In cryptocurrencies, transactions get verified in the blockchain, and it stores the resultant data. It is another way of describing the process of confirming a blockchain transaction.
The validation processes vary according to how you’re using cryptocurrency and the supporting technology you’re using. Some call them “proof-of-stake” and some “proof-of-work.”
Crypto networks can gain consensus through these processes or confirm that all transaction data is the same.
You need participation to reach a consensus. Staking is just that — participants in these networks’ consensus-taking processes actively retain crypto holdings in their crypto wallets. Blockchain shareholders are, in essence, those who approve and verify transactions.
Staking crypto might be helpfully considered equivalent to depositing cash in a savings account. However, each network offers a different reward. Those networks reward investors for their efforts.
When you deposit cash in the bank, the depositor receives interest from the bank, which uses the money for other uses (lending, etc.). It is the same as staking coins.
Top 5 crypto coins for staking and investing
Below you will find the top five cryptocurrencies based on their market capitalizations and could be a wise option to invest in.
Bitcoin (BTC)
Bitcoin staking benefits traders in earning more crypto and receiving great interest rates.
Most special aspect
It is possible to earn more than 10% or 20% in some cases. Your money is safe this way. Nevertheless, crypto entrepreneurs and investors are unwavering in their belief in this cryptocurrency. Significant institutions such as Deutsche Bank and JPMorgan hailed it as a digital gold bar and inflation hedge.
Price-performance
In terms of market capitalization, Bitcoin leads all cryptocurrencies with an $8111 billion market cap, according to coinmarketcap.com.
The pioneering cryptocurrency experienced several volatile moments in its lifespan, going down to $40,000 in September and reaching $65,000 in October 2021.
Price prediction
By December 2022, BTC is expected to rise to $139,647-$173,330.
Ethereum (ETH)
People and organizations notably use ETH for running several applications built on the blockchain, such as NFTs. A Deutsche Bank analyst also called it silver digital because of this.
Most special aspect
Ethereum will switch from proof of work (PoW) to proof of stake (PoS) by 2022 to improve scalability and make it more eco-friendly.
Price-performance
Over one year, this cryptocurrency could hold onto its second position. According to coinmarketcap.com, its market capitalization was around $390 billion.
Price prediction
The price of Ethereum is forecast to reach $3923 by 2022 at the lowest level.
Tether (USDT)
Tether has pioneered the concept of the digital token, Tether tokens are the most widely adopted stablecoins. According to CoinMarketCap.com, Tether has a market capitalization of 78 billion dollars.
Most special aspect
In addition to reducing volatility, stablecoins are pegged to US dollars and euros and are among the most popular investments for those hesitant to deal with the volatility of cryptocurrencies. It is a stable coin that reflects the parity with the US dollar.
Price-performance
The Tether token price remains unchanged as it is a stable coin. However, the volume, adoption, and utility largely increased in 2021.
Price prediction
In 2022, we expect the price to reach $1.276.
Binance Coin (BNB)
Due to the way it is delegated, BNB is one of the most popular staking coins globally due to Binance’s popularity as a crypto exchange. It takes just seven days to delegate BNB coins to validators, and there is currently no minimum stake requirement.
Most special aspect
In terms of volume, the Binance cryptocurrency exchange is the biggest globally.
Price-performance
With its platform, Binance expanded very quickly after its launch in 2017. As of January 3, 2022, the cryptocurrency price at $520 is more than 52000 percent higher than in 2021, when it was just $0.10. In terms of market cap, Binance (BNB) is ranked fourth on coinmarketcap.com with an $80 billion market cap.
Price prediction
At the end of 2022, BNB is looking to reach a maximum of $739.94.
Solana (SOL)
Solana is an efficient blockchain, designed with scalability in mind. The coin achieves scalability via Solana’s low fees and quick transactions. When it comes to crypto market caps, Solana ranks #7.
Most special aspect
This system has a high transaction speed of 65000 tps with smart contracts, Dapps, and DLT. The project belongs to the group of Ethereum killers, utilizing a hybrid consensus model built on proofs of stake (PoS) and evidence of history (PoH).
Price-performance
Cryptocurrency is a promising investment with over $54.82 billion market capitalization. When Solana appeared in the market with a value of $0.77 on January 3, 202, it had increased nearly 22,000 percent within two years.
Price prediction
By the end of 2022, the Solana price may hit $200.
Final thoughts
A cryptocurrency stake can be a significant revenue source if done correctly. Staking is all about the number of coins you hold, so you are rewarded according to that amount. In addition, securing a secure and sustainable coin can make you more likely to be chosen as the new block validator.
The entire staking process is also environmentally friendly since POS is an environmentally friendly technology. Because of this, the staking market will grow eventually, and more people will shift from mining to staking.
Even the best stake coins carry a high level of risk. So it is always emphasized the importance of investing carefully after thorough research and considering all factors involved.