The top crypto staking coins to invest in 2023: Cryptocurrencies offering the high yield to be invested in
Crypto-staking coins are cryptocurrencies that allow investors to earn passive income. The staking process locks crypto assets for a set period to help support the operation of a blockchain. In return for staking crypto, investors earn more cryptocurrency.
Many blockchains use Proof-of-Stake (PoS) consensus mechanism to validate legitimate transactions and to add new blocks to the blockchain. Staking is how PoS cryptocurrencies prepare a functioning ecosystem on their networks. The staked cryptocurrency can be held as an investment, put up for staking, or trade for cash and other cryptocurrencies. The benefits of staking crypto are it helps earn passive income, easy to get started with an exchange or crypto wallet and also contributes to the security and efficiency of the blockchain projects the user supports. Here are the top 10 crypto-staking coins to invest in 2023:
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Ethereum
Ethereum is the second-largest cryptocurrency trailing just behind OG Bitcoin by market capitalization. It was launched in 2015 that recently made a transition from the traditional Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism. This shift provides stakes to earn more rewards for holding and validating transactions on the network. In April 2023, Ethereum also completed the Shanghai-Shapella upgrade which means the staked ETH can be withdrawn.
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Cardano
Cardano is an efficient blockchain in terms of energy consumption, speed, cost, and scalability. A very popular staking option and one of the top 10 Cryptocurrencies with a market capitalization of more than $13 billion. Cardano is backed by its own staking coin ADA that stakes using non-custodial wallets, unlike many PoS networks. Yoroi, the most popular Cardano wallet is used by investors who are looking for an easier staking option for Cardano which is available on Chrome, Firefox, Android, iOS, and Edge.
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Tezos
Tezos is a self-amending blockchain that allows stakeholders to vote on changes to the protocol. Businesses and organizations opt for Tezos to build on the blockchain because of its governance and transparency. Staking Tezos help actively support the Tezos network by allocating resources to it and contributing to the stability of the Tezos network. Additionally, they are partners with major players in the blockchain space, such as Binance and Coinbase.
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Polkadot
Polkadot debuted in 2020 as a multi-chain platform with a market cap of more than $7 billion. Their interoperability and scalability make them an attractive option for businesses looking to build dApps and services on the blockchain. It operates as multiple chains called para chains that operate simultaneously.
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Avalanche
Avalanche is a highly scalable, low-fee blockchain, similar to Ethereum in that it has smart contract capabilities. It combines PoS and a Byzantine fault tolerance (BFT) algorithm. Staking AVAX is similar to any other token in a PoS-based blockchain. It implies looking at it in a staking pool so the assets can earn some yield.
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Cosmos
Cosmos is a decentralized network of interconnected blockchains using the PoS mechanism. This blockchain aims to make a network of interoperable crypto ecosystems using independent parallel blockchains, while ATOM is the native currency. Investors can stake ATOM to earn passive income for supporting the security of the network through a centralized exchange, delegate to a validator directly or run their validator node.
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Solana
Solana is a DeFi token with a market cap of more than $7 billion. Staking Solana by running a node is the best option but it needs a bit of technical knowledge. The voting account is required to run a validator and no need for a minimum deposit for Solano for that purpose.
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Algorand
Algorand blockchain platform uses a variation of PoS called Pure Proof of Stake aiming to become the next major payment processor by offering speed, security, and decentralization. ALGO is deemed one of the top staking coins and unlike its Ethereum counterpart, only one ALGO token is needed to start staking. ALGO can also be staked using centralized custodial exchanges like Kraken or Binance.
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Polygon
Polygon was developed as a means to add scalability to Ethereum. It allows faster transactions with lower fees and providers compatibility for Ethereum-based applications facilitating interconnectivity. The native currency of the Polygon network is MATIC and requires one MATIC token to take part in the network and a minimum of two to start staking.
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Chainlink
Chainlink is a decentralized Oracle network that serves as a link between blockchains and real-world data. It is considered one of the best cryptocurrencies to invest in because it offers a lot of integrations and partnerships. To generate income, investors can deposit this cryptocurrency into third-party platforms since staking is not supported within the Chainlink network.
