There’s a lot of people in the crypto world who love staking their coins. Why because it gives you that sweet, sweet passive income. This article will give you an overview of the top coins I am watching at stake.
One question, why would anyone want a stake anyways? Well, there are two main reasons.
First, because they want to support their favorite project by securing the network and keeping it decentralized.
Second, they want that sweet passive income because, remember, stakers earn coins when they successfully validate a block. And if you’re going to huddle anyways might as well put your money to work.
So let’s check my watch lists.
Number 5 (Polkadot-DOT)
This is one of Ethereum’s top competitors. And it’s quite similar to eth 2.0 architecturally speaking. That should come as no surprise since it was created by dr Gavin Wood, one of Ethereum’s co-founders.
They currently rank top 9th in the total market cap, which is impressive because their parachains haven’t even launched yet.
Their staking rewards varies depending on how much dot is being staked across the whole network. But their current rate is around 14% per year with an adjusted rate of about 5%, and adjusted rate means how much you earn after taking into account token inflation.
Becoming a validator for Polkadot is quite difficult, though. Because you either need to have millions of dollars worth of dots by yourself or have a bunch of people nominate you with a large enough collective stake.
So you should delegate then, in my opinion. But that’s not quite that approachable either since right now, the minimum nominated requirement is 80 dot which is over two thousand dollars.
So that high barrier of entry, along with their super-long 28-day lock-up period, is why I put them at number five on my list.
Number 4 (Solana-SOL)
This has been one of the hottest projects of 2021 so far. Solana is well known for utilizing their proof of history algorithm to create their blazing fast speed alongside proof of stake.
As for staking, you need pretty expensive and fancy hardware to become a validator, so once again, I recommend delegating instead.
Their rewards rate is just okay, though, currently sitting at around six percent a year, but then when adjusted for inflation, that drops down to about one percent.
That’s because the fees from staking providers are super high at about ten on average. But it still may be good to stake anyways because if their coin continues to rocket, then it’ll be worth it.
To get started, it’s pretty simple to find a Solana wallet that supports staking, and it shouldn’t take more than a few steps to get going.
The best part is that you maintain control over your funds the whole time. There is no minimum amount like Polkadot has, and your rewards are automatically reinvested.
There is some risk of your funds being slashed if your validator acts maliciously, but choose a reliable one, and you’ll be fine.
By the way, they do have a two-day unlock period before you can move your delegated funds again. Read More…
Categories: CARDANO ECOSYSTEM, CRYPTO 101 GUIDE, POLKADOT ECOSYSTEM, SOLANA ECOSYSTEM
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