The proof-of-stake consensus mechanism was a big leap forward in the field of cryptocurrencies. This makes transactions cheaper and more efficient. Furthermore, the staking of cryptocurrencies offers investors the opportunity to generate high returns. We present the best staking coins for the year 2022.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency after Bitcoin and the largest network for decentralized applications. In the future, it has the potential to become the dominant network for staking. Investors have already deposited $ 21 billion worth of coins into the Ethereum 2.0 staking pool.
ETH still has a few question marks among staking coins. The transition from proof-of-work to proof-of-stake only started in the last few months. Nevertheless, the network offers huge potential for high staking returns through its already existing enormous amount of adoption.
Binance Coin (BNB)
Binance is the largest crypto exchange in the world. Their own platform Token Binance Coin was a huge success and is now the third-largest cryptocurrency by market capitalization. The Binance ecosystem will benefit from the increased trading activities on the entire crypto market in the future.
The minimum use of tokens for staking is extremely small and the Binance offers very high staking returns. BNB is one of the best options among staking coins, especially for investors who are new to staking.
Cardano (ADA)
Cardano has long been referred to as the "Ethereum Killer". Improving the Ethereum network was also the declared goal behind the development of Cardano. In contrast to ETH, Cardano has been using proof-of-stake for a long time. This year, the value of the native ADA token increases massively, especially in autumn.
The annual return at Cardano Staking averages 6%. In addition, Cardano scores with the lack of a mandatory "lock-in period", during which the staked tokens cannot be mobilized.
Solana (SOL)
Solana (SOL) experienced massive hype in 2021. As a "younger and more modern" version of Ethereum and Cardano, the network made itself popular with numerous investors. Above all, Solana scores with an extremely high transaction speed of up to 50,000 transactions per second.
The modern proof-of-history consensus mechanism makes these speeds possible. But Solana is also a solid option for staking. The annual rate of return is 6.6 percent. The “lock-in period” is only 5 days. Furthermore, there is no minimum limit for staked tokens, which makes the SOL token one of the best staking coins.
Algorand
Algorand is another modern cryptocurrency and one of the best staking coins. Due to increased adoption and awareness, the ALGO token has increased by over 600% in the last 12 months. For many, Algorand is the next "Ethereum Killer".
Algorand offers annual returns averaging 4.7%. However, staking is still relatively cheap so far and the upside at Algorand is currently much higher than with the aforementioned staking coins.
Tezos
Tezos has actually been active on the market for many years. However, as a result of the ICO in 2017, there were some instabilities and further difficulties. In the following years, however, Tezos showed a strong development. In 2021, the cryptocurrency gained 170%.
The annual return is very decent at 5.5% on average. There is also no minimum staking amount, which makes Tezos one of the staking coins for newbies. Furthermore, the network does not seem to have shown its full potential by a long way.
Whole
Now we come to the somewhat lesser-known staking coins. With its Valora payment app, Celo has recently found a strong adoption option, especially on the move. In addition, numerous large investors support the relatively young project.
At Celo, only a small amount of tokens are already stacked. The annual return is still relatively high at 13%. There is no minimum staking amount. Furthermore, the “lock-in period” is only very short at 3 days.
Mina (MINA)
At 22 kb, the Mina blockchain is probably the smallest on this list. (The Bitcoin blockchain is currently around 350 GB.) This means that Mina also offers a relatively high transaction speed. Some major blockchains have problems here.
Despite its small size, MINA is one of the best staking coins. The average annual return is a good 11%. As with Celo, there is also the factor of the still hidden potential.
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