There are lots of staking options available out there that will provide handsome rewards.
You will find some that are easy to start and some that can generate a considerable amount of income through passive interest such as cold staking in particular.
Crypto staking is pretty much the same as storing your money in your savings account and gaining interest on it.
The only difference is that you will need to stake the crypto coins on blockchains and follow a Proof of Stake consensus model.
Just like mining and forging, staking crypto coins can also offer some significant benefits such as:
- You can do it through any crypto exchange that has this option such as Binance, Coinbase, and KuCoin
- Cold staking is very easy and accessible and
- It consumes less computational power and energy.
Therefore, staking is a great way to earn additional income and invest in crypto. Check out Best Real World Crypto Applications.
However, you will need to know which specific crypto coin to buy to generate more passive income. Read on to know some of the best crypto staking coins that will offer you great rewards.
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15 Best Crypto Staking Rewards
There are several coins out there and therefore without a shortlist of them it will be quite difficult for you to choose one particular coin to rely on and gain high staking rewards.
This will be all the more difficult if you are new to this market space.
This list of crypto staking coins is not an exhaustive one but features some of the best ones only. With these following coins you will find that staking is quite easier than you thought it to be and is fairly rewarding.
You can buy these coins at some of the most popular and trustworthy crypto coin exchanges such as Binance, Coinbase, Kraken and more. Here is the list for you in no particular order.
1. Tezos (XTZ)
This is one of the most popular blockchains and biggest ICO endowment campaigns that seem to be ever-lasting.
It does not need hard forks to keep pace with the regular developments and upgrades like Ethereum and other coins.
With an enhanced focus on the security tokens, you can expect a consistent return on your investment of about 5 to 6% annually on an average using Tezos, barring high fluctuations.
2. VeChain (VET)
This is another top staking crypto coin for high rewards. It is Ethereum-inspired and primarily focuses on the supply chain industry and enterprise.
A lot of clients use it for staking and gaining high annual returns of up to 2.2%, with a high chance of notable fluctuations.
3. Neo (NEO)
This Chinese Ethereum made news when it was first released in 2017. Though it struggled a bit after that, this is a very good crypto coin to earn high staking rewards.
With its new developments on a regular basis, it has been able to gain high traction.
And, with additional nodes made available to the network, all your doubts regarding decentralization are also left behind.
Through Neo, you can expect to have an annual return on your investment ranging between 1.5 and 2.5%, with little fluctuations.
4. Cosmos (ATOM)
This is known as the internet of blockchains and allows the users to create new blockchains very easily and pretty quickly.
This means that you will find it very easy to co-exist with a host of different blockchains and collaborate to make it work successfully.
Depending on the fluctuations, the expected annual return of staking can be as high as 8%!
5. Lisk (LSK)
Lisk is typically an open-source blockchain that offers a gateway to any user who is interested in creating their respective blockchains.
It is more accessible because the SDK or Software Development Kit of Lisk is written in JavaScript.
This is a very good feature that helps the new developers to build the chains quickly and expect to have a staking reward of 5 to 6%, based on the fluctuations.
6. Synthetix (SNX)
This is another Ethereum based synthetic asset based on anything that has value.
You can lock the tokens as collateral in a smart contract and you will need to maintain a 750% collateralization ratio to collect the fees generated.
In order to contribute to the system and fulfill the needs of the people, staking rewards were added in March 2019 and it is paid out on a weekly basis.
This is in the form of transaction fees which you will have to claim via the Mintr dApp.
The annual staking reward considering the fluctuations can be as high as 55.28%, which means you will have a high passive income.
7. Algorand (ALGO)
This decentralized blockchain enables an unstipulated economy and also solves the most significant issues regarding blockchain.
It is secure, has low transaction fees and an exclusive consensus algorithm called PPoS or Pure Proof of Stake.
However, there is no machinery for delegation which means a single user or a small group of users cannot create any issues even with a preponderance of voting power.
If the fluctuations are positive, you can earn staking rewards with 1 ALGO or more in your non-custodial wallet ranging between 5 to 10% and an average of 8% with Binance Staking.
There are no special requirements to earn the rewards which are typically paid in every 20 minutes, roughly.
8. Loom Network (LOOM)
This PaaS or Platform as a Service blockchain helps in running the side chains with solidity based dApps.
Each app uses a suitable consensus model depending on the inherent threats as well as the needs of the people.
It uses Delegated Proof of Stake which means that you can scale the dApps and stay on the Ethereum blockchain to ensure security.
Staking was launched in 2019 to motivate people to secure the Loom Basechain which bridges a variety of other chains such as Bitcoin, Ethereum, Binance, Tron, Cosmos, and EOS.
If you hold it in a supported wallet such as Ledger, Metamask, and Trezor and put in a small deposit of ETH for the gas costs on the ETH network, your staking rewards will be accumulated in the Basechain wallet.
You can collect an annual return of 17%, which may fluctuate.
9. Decred (DCR)
This Bitcoin fork was launched in 2016 based on consensus mechanism and chain governance.
It has a hybrid Proof of Work and Proof of Stake consensus voting system. It validates the transactions and new blocks built and offers a block reward of 60%.
The other notable features of it include smart contracts, cross chain atomic swaps, public proposal, and cross platform wallets.
In spite of some scalability issues, the annual yield for staking it is 7.93% according to the April 2020 report.
It offers a good staking reward with its larger user base and being a stable project for long term benefits.
10. Icon (ICX)
This decentralized blockchain allows interoperability so that you can connect and transact between any blockchain, thanks to the proprietary Blockchain Transmission Protocol.
In addition to allowing you to move your digital assets sans a central organization, it also ensures data sharing with integrity and transparency.
It also allows smart contract usage through the Byzantine Fault Tolerant Delegated Proof of Stake or BFT-DPoS consensus method and DPoC or Delegated Proof of Contribution which is an economic governance protocol.
The proprietary ‘Loopchain’ blockchain engine allows making hundreds of transactions in a second and its unique staking reward model can provide a return of 6% to 36% in a year, though in April 2020 it was a bit more than 16%.
11. BNB
Offering a staking reward of up to 30%, this is a good native coin of the most popular crypto exchange Binance to generate a high passive income.
Using the BNB vault for staking is one of the most popular ways. You will find this inside the Binance exchange.
You can also use the Trust Wallet to stake BNB if you are okay with a mobile wallet which is known not to have as solid security features as the hard wallets.
You will get these tokens to generate passive income on different crypto exchanges as well such as FTX apart from Binance.
12. DASH
This is one popular crypto coin that is commonly termed as digital cash. This is one of the early implementers of the Proof of Stake consensus mechanism.
This unique crypto is built on Bitcoin core but comes with better features that ensure quicker transfer and more privacy such as InstantSend and PrivateSend features respectively.
This electronic cash is as liquid as real cash but is decentralized and can be used in different countries using different currencies such as USD, EUR, GBP, CNY and more.
The HODLers of at least 1000 DASH can earn staking rewards by operating running a master node to the tune of 7.5% and more depending on the price appreciation.
13. PIVX
Private Instant Verified Transaction or PIVX is also a good POS crypto that assures more security and privacy while making a transaction.
It is a fork of DASH and released in 2016. This fully functional POS currency allows staking coins on blockchain with a promise of a decent annual return.
One of the most significant aspects of it is that there is no cap on staking. This means you can stake any amount, making it a nice option for beginners.
You can also run a master node with 10000 PIVX units. This will offer you an annual return of around 5% in lieu of a small fee.
14. QTUM
This open-source crypto and blockchain is developed and maintained by the QTUM foundation.
It is decentralized and allows you to run smart contracts on a large number of virtual machines but with a Proof of Stake consensus.
It is a hybrid of Ethereum and Bitcoin but it has its own POS component.
You can expect to avail the best of both Ethereum and Bitcoin by combining the blockchains with the real world and expect to have a high annual return of about 8% with literally no minimum reserve necessities.
15. NAV Coin
The unique feature of this cryptocurrency is that it is the first one to have a double blockchain that allows safer private transactions.
Released in 2014, this fully functional cryptocurrency based on the core code of Bitcoin allows faster transactions within 30 seconds, POS staking reward with no cap on it, and an optional privacy.
You can earn rewards up to 5% annually using the NAV coins.
How Does Staking Work?
Now that you know about the crypto coins with high staking reward potential, you should also know how Proof of Stake works, at least the basics.
This will raise your confidence significantly.
Cryptocurrencies are used through a secured network or Proof of Work algorithm. However, it faced a few issues while operating which is why it needed a Proof of Stake consensus algorithm.
Proof of Work algorithm uses computational power to validate blocks, secure a network and solve cryptographic issues.
The Proof of Stake algorithm on the other hand selects the nodes based on an election process to validate these individual blocks.
This election process uses a number of factors such as:
- Randomization
- Coin amount in the wallet
- Staking age and more.
Proof of Stake and Proof of Work systems vary in the creation process of the coins as well as in the type of rewards offered.
For Proof of Work blockchains, newly created cryptocurrencies are given as rewards to the miners and in Proof of Stake blockchains it is in the form of the transaction fees.
In Proof of Stake systems, the blocks are “forged” and not “mined” as it is in Proof of Work systems. It is typically done by locking a specific amount of coins as the stake.
Conclusion
Staking can be very rewarding provided you know which specific coins you should choose. If you select one of the above coins in the list you will find it effortless to generate an extra income, whether you are an experienced or an amateur trader.
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