18 Nov 2023

7 Top Cryptocurrencies for Staking Rewards in 2023

The concept of consensus algorithm is the core of decentralized networks. While many people are familiar with the groundbreaking Proof of Work(PoW) that underpins Bitcoin, some people do not fully grasp what Proof of Stake(PoS) is all about.

But what exactly is Proof of Stake, and how does it work? In this blog, we'll embark on a journey to unravel the inner workings of PoS and explore the enticing world of staking.

PoS is a consensus mechanism that relies on participants, known as validators, who stake a specific amount of new cryptocurrency as collateral to propose and validate new transactions and blocks. This fundamental shift away from the energy-intensive mining process brings about a series of mind-blowing advantages.

There are rewards associated with staking coins, the challenge however is knowing which coins to stake. Do not fret, in this article, we will give you 7 cryptocurrencies to stake for maximum rewards in 2023.

Ethereum

Ethereum is the king of smart contracts and it is the second most popular crypto to stake in 2023. It is one of the most well-established cryptocurrency staking markets with robust blockchain and the capacity to create decentralized (DApps). There seem to be three major ways to stake Ethereum: Solo staking, staking pools and exchanges.

Solo staking: a common way of staking by depositing 32 ETH in exchange for rewards. It means that the more ETH you deposit, the more rewards you gain. But this is not the case for lots of people because they're struggling to deposit that huge amount of ETH. This is where a more accommodating way of staking comes in Staking Pools.

Staking Pools: it is another way of staking in the Ethereum network without having to deposit 32 ETH. Better still, you can run a node on Ethereum for a lesser amount of ETH, 16 ETH. However, two things are there; you share your rewards with other delegators in your pool, and you need a very good node provider.

Exchanges: Several cryptocurrency exchanges support Ethereum staking, making it convenient for users to stake their ETH directly from their exchange wallets.

Estimated staking APY:

The estimated annual percentage yield (APY) for Ethereum staking varies, but it is commonly in the range of 3 to 4%. Of course, it is dependent on the market conditions and the staking service you choose to deal with.

Minimum amount required to stake

The minimum amount required to stake Ethereum can vary depending on the platform or service you choose. Typically, it ranges from 32 ETH for solo staking to as low as 0.1 ETH in some staking pools.

Where to stake ETH:

There are a plethora of options to stake assets for Ethereum holders, and these options include prominent staking centralized exchanges like Coinbase and Kraken. Plus, these staking exchanges allow you to securely save ETH and receive rewards.

However, solo staking has proven to be the safest option compared to staking on centralized platforms.

Cardano

Cardano stands in its own class in the blockchain space as a platform with an unwavering commitment to sustainability and interoperability. Plus, it also executes smart contracts just like the Ethereum blockchain network. Cardano is clear on its stance and operations -its Proof of Stake (PoS) consensus mechanism enhances security and efficiency on the blocking. It also requests energy consumption drastically as compared to other blockchain protocols.

By utilizing PoS and focusing on energy efficiency, Cardano has not only reduced its environmental impact but has also garnered attention as a frontrunner in the pursuit of a more sustainable blockchain future.

Ways to Stake ADA

Delegated Proof of Stake (DPoS)

Delegated Proof of Stake is the way of staking ADA by delegating holdings to a staking pool of your preference, thereby contributing to the network's security and consensus process. The method is popular because it is accessible and user-friendly, therefore making it the go-to choice for Cardano enthusiasts.

Running a Stake Node

Running a staking node is the alternative to DPoS, but requires a deep technical expertise. Individuals who wish to use this method of taking, opt to Run their staking node and they assume the role of active participants on the network. This approach gives hands-on experience to staking and makes it more direct.

Estimated staking APY

The estimated annual percentage yield (APY) for staking ADA can vary but typically falls in the range of 4% to 6%. Just like Ethereum, this percentage can vary depending on the network's dynamics and participation rates.

Minimum amount required

The minimum amount required to stake is 5 ADA, but some pools offer varying amounts depending on the pool you are using. While some pools have no minimum, others bench their minimum amount of 10 ADA.

Where to stake ADA:

Binance
Kraken
Daedalus.

Polkadot

We cannot complete our list of staking cryptocurrencies without mentioning Polkadot. Polkadot is a leading cryptocurrency and has served as a Beacon of innovation in the blockchain space.

Polkadot seamlessly facilitates data and asset transfers and its reputation in interoperability and scalability has reached the ends of the earth already. The most distinguishing feature of Polkadot is the Nominated Proof of Stake (NPoS) consensus mechanism, a mechanism that ensures its reliability and integrity in accordance with an array of blockchain projects.

Polka Dot's multi-chain architecture, coupled with its NPoS consensus mechanism, showcases the platform's commitment to fostering a new era of blockchain synergy. This forward-thinking approach not only empowers developers but also enhances the user experience, offering a dynamic environment for building and deploying cutting-edge blockchain applications.

Estimated staking APY

The estimated annual percentage yield (APY) FOR staking DOT ranges between 10% and 15%, depending on the staking platform.

Minimum amount required

The Minimum amount required to stake DOT varies but it is typically between 1 DOT to 10 DOT.

Where to stake DOT:

Kraken
Binance

Solana

Anyone familiar with the cryptocurrency spaces knows that Solana shines as a high-performance blockchain platform. Solana is a true game changer because of its remarkable scalability and support for decentralized applications (DApps) and Decentralized Finance (DeFi). Solana's innovative Edge stems from its utilization of a groundbreaking hybrid consensus mechanism that combines the Proof of History(PoH) and Proof of Stake (PoS).

Solana's standout features have made it a solid game changer in this space, cooking its mettle by facilitating swift economic transactions. Experts confidently affirm that Solana's ecosystem is setting a new standard for blockchain innovation and efficiency.

Estimated staking APY:

The estimated annual percentage yield (APY) for staking SOL can vary, but it's often in the range of 5% to 10%. Solana's APY is competitive, making it an attractive option for stakers.

Minimum amount required:

The minimum amount required to stake SOL can vary depending on the staking service you choose. Typically, it ranges from as low as 1 SOL to 10 SOL. This flexibility makes it accessible to a broad range of users.

Where to stake SOL:

You can stake your SOL tokens on various platforms, including popular cryptocurrency exchanges like Binance and dedicated staking platforms such as Coinbase, BTC20 and eToro. These platforms provide a convenient way to earn staking rewards on your Solana holdings.

Cosmos

Cosmos is a cutting-edge blockchain technology that enables interoperability between different blockchains, resulting in the "Internet of Blockchains." It is a network of interconnected chains that allows the transfer of assets and data between separate blockchains, ensuring the blockchain ecosystem's scalability and adaptability.

Estimated Staking Annual Percentage Yield (APY):

The estimated staking APY for Cosmos (ATOM) can vary over time and is influenced by factors such as network participation, total staked tokens, and inflation rates. As of the time of writing this article, staking rewards for ATOM ranged from 7% to 11%.

Minimum Amount for Staking ATOM:

The minimum amount required to stake ATOM is 0.077 ATOM, depending on the staking service you choose to stake on. In most cases, the minimum staking amount is typically low ranging from as little as 1 ATOM to 10 ATOMS.

Where to Stake ATOM:

Kraken
Coinbase
OKX
Kucoin

Tezos

Tezos is a distinctive platform with the ability to allow users to propose and partake in the voting process by staking tokens. Individuals who stake also have the power to make decisions for the community. Beyond its governance structure, Tezos is finely tuned for the creation of smart contracts and the facilitation of decentralized contracts and the facilitation of decentralized applications (DApps), making it an enticing hub for developers and enthusiasts alike.

Tezos' unique blend of community-driven governance and its versatile support for smart contracts and DApps exemplify its commitment to user empowerment and the advancement of blockchain technology. With LPoS at its core, Tezos has firmly positioned itself as a versatile, resilient and forward-thinking blockchain platform that is well-prepared to meet the ever-evolving needs of the crypto space.

Estimated staking APY:

The estimated annual percentage yield (APY) for staking XTZ can vary, but it's often in the range of 4% to 6%. Tezos offers a competitive APY, making it an appealing choice for stakers.

Minimum amount required:

The minimum amount required to stake XTZ can vary depending on the staking service you choose. Typically, it ranges from as low as 1 XTZ to 10 XTZ. This accessibility ensures that users with varying levels of investment can participate in staking.

Where to stake XTZ:

You can stake your XTZ tokens on various platforms, including popular cryptocurrency exchanges like Kraken and dedicated staking platforms like Exodus and Coinbase. These platforms provide an easy way to stake your Tezos tokens and earn rewards.

Algorand

Algorand is renowned for its unwavering commitment to speed, scalability, and security, setting the gold standard for the industry. Algorand is meticulously designed to accommodate a broad spectrum of applications, spanning from the dynamic world of decentralized finance (DeFi) to the complex demands of enterprise use cases. At the core of its operation, Algorand employs the innovative Pure Proof of Stake (PPoS) consensus mechanism, a testament to its dedication to fostering a reliable and secure blockchain environment.

Estimated staking APY

The estimated annual percentage yield (APY) for staking ALGO can vary but it is usually between 4% to 6%, but more specifically 6.12%. Plus Algorand offers a more competitive APY than other APY, making it a very attractive option for stakers.

Minimum amount required:

The minimum amount required to stake ALGO can be 1 ALGO, plus it has 3 months locked up for governance rewards. Meanwhile, depending on the staking service you choose, staking on ALGO typically ranges from as low as 1 ALGO to 10 ALGO, ensuring accessibility for a wide range of users.

Where to stake ALGO

Coinbase
Exodus
Atomic wallet
Ledger nano
Bitfinex

To Wrap It Up

There you have it - A list of cryptocurrencies to stake for maximum rewards in 2023. This list was carefully made to help you make the best decision and consider some essential factors while making your decision. Some of these essentials include APY and the minimum amount required to stake.

While some of these cryptocurrencies have fixed minimum amounts, others have varying amounts. Depending on which every cryptocurrency you wish to stake and how you wish to stake it, here is a list of cryptocurrencies you should stake.

Disclaimer: The information provided in this blog is for informational purposes only and should not be considered financial or investment advice. Readers should research and consult with a professional before making investment decisions.