While we await the next crypto bull market, a great way to earn passively from your crypto investment is through crypto staking. On one hand, you can engage in different network operations and help in enhancing the security and decentralization of crypto projects. Essentially, staking your crypto is a long-term investment strategy that can fetch you mouth-watering rewards. If you are willing to learn this strategy, let’s start by guiding you through the best crypto to stake in 2023.
On the flip side, some would rather skip the technicalities and focus on earning. Bitmama helps you simplify the crypto staking process by handling all technicalities and allowing you to stake crypto assets and earn up to 4% yearly profit. Download the Bitmama app to get started.
What is crypto staking?
Before we discuss the best crypto to stake in 2023, let’s briefly explain the meaning of crypto staking. Crypto staking is simply the process of ”sealing” up your coins for a specific period of time to pitch into the decentralization and safety of the particular blockchain network. Blockchains generally offer the parties involved staking rewards as an incentive to purchase and keep staking assets.
This enables stakers to gain rewards, typically in the form of extra coins or tokens. The more crypto a person stakes, the higher the likely rewards. So, people with large crypto possessions can earn huge profits from crypto staking.
Best crypto to stake in 2023
If you want to stake your cryptocurrency but don’t want to go through the stress of doing thorough research, we’ve simplified everything for you by providing the best crypto to stake in 2023:
1. Tether (USDT)
Tether is one of the best coins to stake in 2023, as it can give yields as high as 12.3%. Currently, this digital currency ranks as the greatest stablecoin according to its market cap.
As the biggest stablecoin, Tether produces tokens when funds are deposited into their reserves and burns equal amounts as funds are withdrawn or extracted. For this reason, fewer Tether coins will be in circulation, which automatically means that the demand and price will increase. So you can earn more funds when staking cryptos like Tether.
2. Ethereum 2.0 (ETH)
Ethereum finished off its transition to proof-of-stake in late 2022. This has caused a yield of faster and more scalable transactions, which makes it one of the best PoS tokens to invest in right now. Also, ETH can now be easily staked by investors who want to enjoy passive rewards.
In April 2023, Ethereum also successfully finalized the Shanghai-Shapella upgrade. This means that staked ETH token now has the capacity to be withdrawn. Although many people predicted that billions of dollars worth would be withdrawn, declining the price, the opposite happened, which has caused ETH to be one of the most promising future cryptocurrencies.
Staking ETH automatically became an inviting investment option, with projected annual yields varying between 2% and 34%. With the ETH Shanghai upgrade, participating stakers can now reap the benefits of their staking investment sooner, which is a substantial advantage.
3. Bitcoin (BTC)
Easily the most popular cryptocurrency today, Bitcoin staking is an exciting way for Bitcoin holders to earn rewards while actively participating in the blockchain ecosystem. It offers a chance to diversify your crypto portfolio, support innovative projects, and potentially earn additional Bitcoin along the way. Although the digital asset has not hit the same heights it was in 2020, it remains a good option to stake and earn a profit.
USD COIN is a cryptocurrency that is fully backed by U.S. dollars. Essentially, this currency authorizes people to transfer, spend, and exchange money globally quickly and safely.
Staking the USD COIN comes with much lower risk because it’s already backed by an external asset usually, USD. Just like other crypto assets, USD COIN also possesses a burning mechanism. This coin is “burned” whenever a person sells it for fiat currency (USD).
5. Polygon (MATIC)
Polygon, symbolized as MATIC is a Layer 2 popular scaling solution for ETH that delivers quicker and cheaper transactions, which makes it an inviting investment prospect for people looking to partake in the evolving DeFi ecosystem. Currently, MATIC is projected at a 4.2% yearly yield.
Staking Polygon can be done through: staking through a cryptocurrency exchange, where you seal up your coins on the crypto exchange or entrust your tokens directly to a crypto public validator. Another approach that enables you to stake funds and gain rewards while still retaining access to those sealed funds is liquid staking is another approach. With this method, you avoid lockup periods.
6. Cosmos (ATOM)
Cosmos is a decentralized and customizable crypto platform where fresh startups can easily create their blockchain service. Essentially, the purpose of the platform is to connect different blockchain service providers, thereby promoting a seamless communication process among them.
ATOM is the native token of Cosmos. When you stake ATOM, you have the capacity to actively contribute to the safety and governance of the Cosmos Hub. You also gain rewards for assisting in securing the network. When staking ATOM coin, the usual APY is 9.7%.
7. Cardano (ADA)
Cardano (ADA) is a popular decentralized blockchain crypto platform that makes use of the Ouroboros proof-of-stake (PoS) consensus protocol. Essentially, Ouroboros is reputable for its strong security and is supported by academic research. This implies that every upgrade on the Cardano ecosystem is exhaustively vetted and validated. Currently, ADA, the native coin of Cardano is projected at a 4.2%* annual yield.
8. Tezos (XTZ)
Tezos is a blockchain that has one of the largest ICO funding movements, with the plan to deal with upgrades and expansion without any demand for hard forks, like Ethereum and many other blockchains.
When you stake Tezos, you can passively gain rewards for your assistance in securing the network. The more Tezo tokens you stake, the more cash you can earn.
9. Solana (SOL)
This is a blockchain-centered smart contracts platform. Its native crypto, SOL, is a stackable digital coin that can be utilized to promote on-chain transactions and easily pay for network fees.
An individual who holds SOL tokens can gain rewards and assist in securing the network. The APY for SOL relies on the total number of transactions every day, but on average, APY rewards range between 7 to 8%.
10. Polkadot (DOT)
Polkadot is a renowned decentralized blockchain that offers interoperability and interconnectivity between different blockchains. It is one of the best crypto to stake in 2024z If you are interested in staking on Polkadot, you have to own their native token, DOT.
By staking your Polkadot token, you help to secure the crypto network and validate all your transactions, and receive a reward in return. The staking reward is roughly 13%.
What are the most profitable coins to stake?
Staking your cryptocurrencies is a great way to earn passive revenue in the crypto market. However, before you try it out, you must consider the short-term rewards and long-term prospects. Here are two major strategies for finding the most promising coins to stake:
1. If you want to go for a low-risk staking option with stable profits, try Tether (USDT). Since Tether is a stablecoin backed by the US dollar, it has a fairly low level of volatility. The usual annual percentage yield (APY) for staking this coin ranges between 5% and 20%, depending on the platform. So Tether makes a great option for yielding passive income without carrying on too much risk.
2. The next approach simply involves staking coins with substantial long-term prospects and reasonable price possibilities.
Such tokens include Cardano (ADA) and Polygon (MATIC), which are both existing infrastructure projects with powerful development teams and thriving ecosystems. With these cryptocurrencies, investors can easily gain staking rewards and benefit well from possible price appreciation over the long term.
Is crypto staking still profitable?
There is no specific answer to this question because profiting from crypto staking is primarily dependent on the crypto market volatility and conditions. Generally, staking your crypto can be a very profitable way to earn passively as a crypto investor. However, you should note that staking rewards can vary depending on numerous factors, including crypto market demand and supply, coin price fluctuations, and network congestion.
However, you can earn up to 4% yearly interest when you stake on Bitmama. The process is simple, stake your coin, sit back, and trust us to handle the rest.
What are the benefits and risks of crypto staking?
There are so many advantages of staking your crypto. However, there are also disadvantages. Listed below are the benefits and risks of engaging in crypto staking.
Benefits of crypto staking
Here are some of the advantages of staking your crypto:
The major advantage of staking your crypto is that you can gain more crypto in the form of rewards, and get favorable interest rates.
Staking can be an extremely profitable way for you to invest your money
Staking is far less resource-intensive than regular crypto mining and it also services the crypto ecosystem by making digital coins more rare, which eventually increases the value of your crypto holdings.
Risk of crypto staking
Here are some of the risks of staking your crypto:
The biggest danger of crypto staking is the potential negative price movement of the token you’re staking. Hence, it is so important to carefully select the assets you choose to stake.
Risk of liquidity when staking.
When it comes to crypto staking risks, it’s also crucial to keep in mind the lock-up periods. If you choose to no longer want to stake your crypto for a given period, you must wait for your funds to get unlocked.
How to choose coins for staking
Listed below are some things to consider when selecting the best coins for staking.
1. Coin value
The value of the token you’re staking is very important. Hence, it is best to avoid staking digital coins with a very high inflation rate. You may earn rewards at first, however, that profitability may drop after a while.
2. Fixed supply
Ensure the token has a fixed supply before you choose to stake it. If there’s a restricted supply of tokens in circulation, the price will eventually rise as its demand increases and this will enable you to gain the highest potential reward in the future.
3. Real-time application
This is a major factor in deciding the intrinsic value of a cryptocurrency. Real-time application talks about the use cases of a token, and how valuable the coin is to some industries and processes in the real world. If a token has numerous real-time applications, then the coin is probably high in demand. Hence, its price increases.
When searching for tokens to stake, make the most of your portfolio of stablecoins. This is because stablecoins are generally safer and easier because they have much less volatility than other coins.
5. Reward rates
Another good factor you can consider when choosing the best cryptocurrency to stake is the generally estimated reward rates. These rates will give you a concept of how much reward you can earn from staking it.
Steps to Choosing the Best Coins for Staking
Let’s take a look at the steps to take if you want to choose the best crypto to stake in 2023:
1. Learn about cryptos that offer staking
Not every cryptocurrency offers staking opportunities, so it is important to research the token you’re interested in. Remember that you must hold a proof-of-stake cryptocurrency since they’re the only coins people can stake.
2. Research deeply into how staking works for various cryptocurrencies
By doing this, you’ll understand the different prerequisites for staking specific crypto and will be able to decide on the staking strategy that works competently for you and delivers the most rewards.
3. Purchase the cryptocurrency you want
After thoroughly researching various cryptocurrencies to stake, you have to own crypto. So, purchase the token that you want to start staking rewards for.
4. Stake your crypto
After selecting a crypto exchange, just visit their website and go to their staking page. Alternatively, you can find a staking option listed on your portfolio. Bitmama offers the best staking feature with up to 4% yearly profit.
How to stake crypto on Bitmama
With Bitmama earn, you can stake your crypto assets, sit back, and watch it generate passive income for you as we handle the rest.
Follow the steps below to start making money on Bitmama Earn:
1. Download and register on the Bitmama app, completing your verification up till level 3.
2. From your app dashboard, select staking.
3. Select staking once again and click on “earn now”.
4. Enter the payment wallet, amount you wish to stake, subscription type, duration, and other necessary details.
5. Lastly, click “Submit”.
That’s it! Your coin will yield a profit over a duration.
Having walked you through the best crypto to stake in 2023, it is important to mention that although staking is profitable, it comes with risks. To mitigate some of the inherent risks of staking, professionals recommend that you create a diversified portfolio of staking tokens, incorporating stablecoins that can easily provide a cushion during times of extremely high volatility.