- Crypto staking allows holders to earn passive income through rewards on the tokens locked within a network.
- Staking coins cam earn you passive hustle-free income annually.
One of the best tools used by the world’s wealthiest people is passive income. In the world of cryptocurrencies, it is important to know come of the best coins to stake which could earn you hustle-free passive income. Over $200 billion of cryptocurrencies is currently being staked generating significant passive income for thousands of people around the world.
In this article, we list three best coins to stake for high returns in 2021. Before we dive in, let’s look at what staking is.
What is cryptocurrency Staking
Staking is an emerging trend referring to the act of holders of specific crypto assets pledging to a blockchain platform, earning rewards in return. Staking, however, goes beyond these rewards because users secure the networks by having their tokens locked. This makes two types of crypto staking. The first one uses the Proof of Stake (PoS) algorithm on a blockchain where an algorithm is validated by noted locking up cryptocurrencies which are used to process transactions on the platform. The users then earn transaction fees and block rewards as payment for this service.
The second type of crypto staking takes the form of locking a token or coin on centralized or decentralized platforms and protocols.
This article dives into the nitty-gritty of the best coins to stake for high returns and some good earn passive income in the following months.
Capital at risk
Three best Coins To Stake This Year
1. Ethereum (ETH)
Among the top 3 best coins to stake in September is Ether (ETH), the native token for the Ethereum platform which has unique staking services. Ethereum is the second largest cryptocurrency by market cap after Bitcoin. You can earn some good money by becoming an early Ethereum validator. Note that you need at least 32 ETH to stake this asset. This coin recently transitioned from PoW consensus to PoS consensus after the London hard fork upgrade.
Staking on this platform provides you with impressive staking returns ranging from 5% to 21%. On average, staking on Ethereum can provide you a return on investment of around 7.5 per annum.
- Find out some of the best Ethereum staking platforms
Capital at risk
2. Algorand (ALGO)
The Algorand blockchain is aimed at solving the scalability problem experienced on most blockchain networks while maintaining decentralization and security. It is also focused on enabling a borderless economy which it achieved through charging minimal transaction fees.
It utilizes a Pure Proof of Stake (PPoS) consensus algorithm which prevents malicious activities in the system by ensuring that a majority of is stakes are benevolent, further allowing the system to reach a consensus without a central authority.
ALGO is one of the best coins to stake in September since the staking rewards are handsome, ranging from 5-10% depending on your choice of exchange platform. For example, you can generate up to 8% staking reward per annum by staking ALGO on Binance.
Capital at risk
3. Polkadot (DOT)
DOT is one of the best coins to stake because it is designed to allow a wide range of blockchains to transfer messages such as sharing features while pooling their value and security.
Polkadot is a heterogeneous, scalable, multi-chain technology founded by Dr. Gavin Wood, the former Ethereum co-founder. Wood played a vital role in developing Ethereum. That is Polkadot stands out a top Ethereum competitor.
The Polkadot blockchain uses the POS consensus algorithm and staking DOT can give you handsome returns of up to 14% per annum.
Where To Stake ETH, ALGO and DOT
Some of the best staking services providers where you can stake the three best coins to stake are:
- eToro staking service: Supports the staking of such coins as ETH
- Aave: Supports the staking of Cardano, Solana, Polkadot, Avalanche, Algorand, and many others.
- PancakeSwap: Supports the staking multiple crypto assets, including CAKE.
Capital at risk
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Nancy Lubale
