Back in days, there was only a way to be rewarded in cryptocurrency, proof of work (PoW). It was all about hash power (computing power) a miner creates to share the next block reward. It is the main idea of bitcoin blockchain. The PoW is necessary to verify each transaction and secure cryptocurrency blockchain. In 2012, Sunny King and Scott Nadal introduced the idea of Proof of Stake and staking coins. With POS security and transactions are verified by distributed nodes and coins among holders. In another word, it is the act of locking coins up to verify transactions for cryptocurrencies with Proof-of-Stake consensus mechanisms. The creator of Steem and EOS, Daniel Larimer, developed the Delegated Proof of Stake (DPoS). DPoS is a system of voting based on crypto coins share. By the way, Peercoin is the first cryptocurrency that applied the concept of PoS.
PoS allows coin holders to receive rewards as staking produce and validate new blocks through. The amount of reward that each user will receive is up to amount of crypto coins held. And every staking coin has its own blockchain that rewards its holders with its own coin.
Hash wars among mineable cryptocurrencies like bitcoin and bitcoin cash have been creating mass consumption of electricity, human effort, space occupation, and expenses on maintenance on devices. Counting all these cons of PoW mechanism, staking and its mechanism, PoS, comes in hand as a saver.
Top 10 Staking Coins
Considering all mentioned above, here I would like to list my top 10 cryptocurrency to earn crypto coin by staking. I will keep it short in detail.
1. Tezos (XTZ)
This coin was built with a multi-purpose platform supporting dApps and smart contracts. XTZ was the first coin that was allowed for staking on exchanges after staking mechanism added on. Earning rate is 6-7% and minimum holding is 1 XTZ. Tezos has the highest traded volume over 24 hour among staking coins. Current supply is 705,020,740 XTZ and ROI 350% since beginning. Current price on market is $2.11 as of April 9, 2020.
2. Atom (Cosmos)
Cosmos is the second highest trading volume staking coin on market. This coin was built to transfer digital values between different blockchains. The earning rate is 6-9% and minimum holding amount is 0.5 Cosmos. Cosmos has a current supply of 237,928,230.822 with 190,688,439.2 in circulation. It is last price is $2.45 as of April 9, 2020.
BNB is the native coin of binance exchange and it was built on Binance Blockchain. It has a certain purpose that offers lower exchange fee on the largest exchange platform by volume, binance.com. The staking interest is paid from transaction fees on Binance Chain. Earning rate is up to trading fee volume and there is no minimum holding amount. Total supply is 187,536,713 BNB with circulating amount of 155,536,713 BNB. The current price against USD is $15.1 as of April 9, 2020. ROI for BNB since beginning is more than 9000%.
NEO uses smart contracts to automate the management of assets on blockchain, basically. By staking NEO, earning rate is 1-3% and minimum holding is 0. That means you can receive rewards with any amount you hold. The staking interest is paid from inflation of the total supply. With staking NEO, you will not be effected by inflation in coin value. Total supply is 100,000,000 NEO with circulating amount of 70,538,831 NEO. The current price against USD is $7.95 as of April 9, 2020. ROI for NEO since beginning is more than 4200%.
This coin has Ethereum’s smart contract and Bitcoin’s secure feature built with. Even though it has higher rate for staking reward, 6-7%, it has grabbed attention from crypto community. The minimum holding is 1 Qtum. It is the 4th most traded cryptocurrency on the market as staking coin. Total supply is 102,263,900 QTUM with circulating amount of 96,513,880 QTUM. The current price against USD is $1.49 as of April 9, 2020. ROI for QTUM since beginning is -76.22%.
6. Komodo (KMD)
KMD is offering composable, multi-chain architecture, an open-source model, and an open, business-friendly ecosystem. It allows developers, start-ups, and enterprises to work with blockchain. You can stake Komodo coin and earning rate is 5-6% with minimum amount of 1 KMD. Total supply is 200,000,000 KMD with circulating amount of 119,143,969 KMD. The current price against USD is $0.44 as of April 9, 2020. ROI for KMD since beginning is 287%.
EOS is a cryptocurrency initiated on EOS.IO blockchain. Total supply is 1,018,326,098 EOS with circulating amount of 921,626,086 EOS. Earning rate is 1-3% and minimum amount to hold is 0.25 EOS. The staking interest is paid from inflation of the total supply. The price is $2.75 as of April 4, 2020. Since beginning is has a ROI rate of 164%.
This coin is a hard fork of Dash and a privacy proof of stake token. Earning rate is 8-10% and minimum holding is 0 PVIX. That means you can receive rewards with any amount you hold.
This protocol powers a decentralized streaming network. The first Dapp built on blockchain was SILVER.tv later turned to THETA.tv where people rewarded for streaming. Staking THETA coin will give an earning rate of 1-2% with minimum holding 10 THETA. Rewards is in monthly payment of TFUEL.
10. ETH2, Cardano (ADA), and Crypto.com(CRO)
The number 10 will include 3 coins to be upgraded for staking in 2020.
As ethereum team has seen the usability of PoW mechanism, developers are getting ready for a new upgrade. The second largest cryptocurrency by volume, ethereum, will eventually migrate from PoW to PoS by Ethereum Casper upgrade. So, be sure to store some ethereum to receive your possible fork reward.
Crypto.com is a mobile wallet and offers a lot with credit card purchases, investment on wallet, lending, and even rewarding options. It creates a community every day and gains attention by crypto community. Its native crypto coin CRO will soon provide staking rewards for its holders starting on crypto.com wallet. Check it out here to earn $50 bonus.
According to teams’s plan, It will launch on Q2 2020. More data will be available then. Just a rough estimation, the rate of interest may be 2-4% with 500 ADA minimum holding. However, since its multi-layer and quantum resistance feature it will soon gain attention and be one of the top staking coins.
Where to stake
There are two types of staking, cold and online. Cold one is usually available by providing nodes on a simple computer, validator. Even a Tezor hard wallet can be used for cold staking. The other option, online staking, is available with exchanges as well. There is a big advantage of staking on exchanges because they offer less fee options and easy to exchange to change staking coin.
For this purpose, I would like to suggest using binance exchange. It offers 0% fee for all (14) staking coins listed on. Click here to create your account. To know more about cryptocurrency click here.
Some Important Notes
Most of the promising coins offer lower ROI rate but shady and early stage coins relatively offer high staking rewards.
High yield, high risk. Think of MATIC case.
ETH2 update will allow ethereum holders to earn staking rewards.