Best Cryptocurrencies for Staking and Generating Passive Income
Today, the only way to make a profit with cryptocurrencies is not just to buy cryptocurrencies hoping to resell them later at a higher value. There are now practices that allow you to generate an income passively like “Staking”.
In this article, we want to introduce you to the best cryptocurrencies to earn money with staking. Of course, good old cryptocurrency trading on reliable platforms like Bitcoin Era will always be in vogue, but new trends are also emerging. However, as a reminder, this article is offered in good faith for educational purposes. It is not an investment recommendation.
What is staking?
Staking is a bit like savings since it allows you to lend a sum of money to earn interest. However, staking works differently. When you decide to stake cryptocurrencies, you freeze your cryptocurrencies for a certain amount of time to support the operation of a blockchain and its Proof Of Stake protocol. As a reward, you receive fixed interest. Several major crypto trading platforms allow you to do staking easily.
5 Best Cryptocurrencies for Staking
1). Kusama (KSM)
The Kusama blockchain is a miniature blockchain of the Polkadot blockchain. It allows you to experiment in advance with upcoming projects on Polkadot. This makes it possible to test and verify the viability of these projects and therefore to avoid making errors that could harm the Polkadot blockchain and its large community. This makes it possible to have more flexibility, encourage innovation, and therefore develop more ambitious projects which could seem risky.
Monitoring the progress of projects also makes it possible to anticipate any problems and therefore resolve them. Regarding Kusama, you can stake this cryptocurrency and obtain interest rates close to 10% per year by gradually receiving your interest every day. The Kusama (KSM) cryptocurrency value is currently $179.61.
2). Polkadot (DOT)
We talked about it in the description of the Kusama blockchain. Polkadot is Kusama in a big way. It is a blockchain that works extremely well and attracts a lot of investors. The value of Polkadot’s cryptocurrency, DOT, is currently around $18. This cryptocurrency is available on most major trading platforms and has made a lot of noise in the crypto community thanks to its auction system, the “parachains” which give the possibility to the community to vote for the projects that they want to see develop on the Polkadot blockchain. Regarding DOT, you can get interest rates above 10% by staking.
3). The Coti (COTI)
COTI is a token that belongs to the Cardano ecosystem. It is one of the projects that is generating the most excitement on the Cardano blockchain network for its technological solutions which mainly focus on its protocol and which could revolutionize the way payment solutions work. This cryptocurrency offers extremely attractive interest rates to attract investors. You can obtain interest rates that reach 35% annually. The unit value of COTI is low compared to many cryptocurrencies since it is $0.2658.
4). Cardano (ADA)
The Cardano blockchain is known to be one of the main competitors of Ethereum. Cardano is one of the most trusted and recognized blockchains by investors. There is generally no doubt about the viability of this project. The current value of its cryptocurrency, ADA, is around $1.
It is a blockchain that focuses on developing its scalability and interoperability. This is an extremely reliable project with lower risks than some other projects. There are already many investors and the need for blockchain staking is less strong. You can still get interesting interest rates of 5% per year. It’s still much better than what you’ll usually get in the bank!
5). The SandBox (SAND)
The Sandbox is a game in which you can earn money by playing. It is said to be a “Play-to-Earn”. Its cryptocurrency is SAND. The Sandbox is a game that belongs to the category of metaverses that have experienced strong development lately. The Sandbox game is an open metaverse that brings together a large community of players who have the opportunity to live a kind of second life online.
There are digital assets such as NFTs. The SAND cryptocurrency probably has a great future as it is one of the most important metaverses and this game is part of the trend of Play To Earn games which is very much in vogue and expected to continue to be so in the years to come. coming. You can stake SAND and get interest rates around 12%. The value of SAND is currently around $3.