Crypto staking is becoming increasingly popular as a way to earn rewards on your investment. By staking your coins, you not only earn interest on your investment, but you also get to secure a PoS (proof-of-stake) blockchain network. This way, users are effectively helping to protect the network from attacks.
In the current bear market, staking can help crypto holders weather this winter without being forced to sell their coins and keep on holding them.
Staking can also help to increase the value of a currency. And the thumb rule is when more people stake a currency, it typically becomes more valuable.
But most importantly, with staking, you can earn a passive income on your investment without having to do any extra work.
As the crypto industry matures, we are seeing an increasing number of high-quality chains emerge. This is good news for stakers, as it provides more options for earning a return on their investment.
One of the most popular chains is Ethereum (ETH). This is because Ethereum has a lot of potential with the largest developer community of any blockchain project and the potential to revolutionise how we interact with the digital world. Other popular choices are Polkadot (DOT), Solana (SOL), and Avalanche (AVAX). While popular, they do not offer the highest yield.
Of the many chains out there, we have identified a few that we believe will be the best to stake in 2023. These chains offer the highest APYs, and we believe they have the potential to provide great returns for stakers.
The highest yield is currently offered on ELF tokens, the native cryptocurrency of the decentralised blockchain network Aelf, which is empowered by cloud computing infrastructure.
On staking ELF tokens, you can earn an estimated 91.4% yield. While you only have 1 ELF required to start staking, it would take three months for you to be able to access your tokens for selling. However, the good thing is, RockX charges zero commission for this high yield.
Aelf network is designed to be scalable, efficient, and flexible. It uses a consensus mechanism called delegated proof of stake (DPoS) to achieve these goals.
It also allows for on-chain governance, which means that decisions about the network can be made by the community of users that are using the network. Still in the early stages of development, Aelf has the potential to be a major player in the blockchain space.
Another coin on which you can earn more than 56% in estimated yield is UMEE, the local cryptocurrency of the cross-chain DeFi protocol Umee, which allows collateralising assets on one blockchain towards borrowing assets on another blockchain. To earn this yield, the minimum requirement is just 1 UMEE and a bonding period is only two weeks.
The cross-chain DeFi protocol is a revolutionary new way to bring the benefits of decentralised finance to the masses. By allowing users to cross between different blockchain networks seamlessly, the Umee protocol opens up a world of possibilities for users to earn, save, and invest in a variety of assets and currencies. With Umee, users can finally take advantage of the many benefits of DeFi, without the hassle of dealing with multiple blockchain networks.
While not as high as others, CMDX coins can still help you earn an excellent double-digit yield on platforms like RockX. The coin is native to the Comdex chain, and besides staking, the coin holders can collect fees and participate in the protocol’s governance. While you can start with as little as 1 CMDX, you must wait 21 days for your coins to become transferable.
Comdex is a decentralised synthetics protocol that unlocks access to a vast set of commodity debt assets and liquidity, making the flow of capital from DeFi to CeFi seamless. It uses the Cosmos SDK to provide a robust and secure infrastructure for synthetic asset trading.
Here’s yet another double-digit yield provider. Persistence is the specialised Layer-1 powering an ecosystem of DeFi dApps focused on unlocking the liquidity of staked assets.
To earn as much as 28.78% yield on XPRT, you just need to stake as little as 1 XPRT. But there is a 10% commission involved, and it takes about 21 days for your XPRT to become transferable.
Persistence is a blockchain project focused on unlocking the liquidity of staked assets. By staking assets on the Persistence platform, users can earn rewards while maintaining ownership of their assets. In addition, users can trade their staked assets on the Persistence marketplace, providing liquidity that is not possible with traditional staking platforms.
This platform is powered by Tendermint, a high-performance, scalable blockchain platform that enables developers to build decentralised applications quickly and easily. Tendermint is the underlying technology that powers the Cosmos Network, a popular decentralised application ecosystem.
Just from 1 CTSI token, you can start taking advantage of the 22.27% estimated yield on RockX. What makes this Cartesi network token attractive to stakers is its minimum two days unbonding period.
Cartesi is a layer-2 platform and the first blockchain operating system based on Linux and utilises containerisation technology to isolate applications from the underlying blockchain. This allows developers to code in a familiar environment while benefiting from the blockchain’s security and immutability.
It is also designed to be scalable and easy to use, focusing on developer experience. On top of that, it is designed to be compatible with existing Ethereum applications, making it easy to port existing applications to the platform.
If you are looking for high yield and low minimum staking requirements and period, OSMO is the right choice. By staking just 1 OSMO, the native token of the Osmosis Hub, you can start earning about 22.23%. It only takes 14 days for tokens to be usable once undelegated.
Osmosis is a decentralised peer-to-peer blockchain that enables the creation of IBC-enabled tokens. It is a cross-chain AMM built for the Cosmos ecosystem that offers interoperability with other blockchains using Inter-blockchain Communication Protocol (IBC) and Axelar.
As “the largest interchain DEX,” Osmosis aims to compete with the user experience of centralised exchanges like Binance and Coinbase.
The estimated yield on the BNC token of the Bifrost network is between 20% and 30%. But unlike others on this list, you need to stake a minimum of 50 BNC. Rewards for this asset are distributed every 4 hours. Moreover, when withdrawing your delegation can take an estimated 48 hours.
Bifrost is a cross-chain network that provides liquidity to bonding assets and enables developers to create dApps on multiple protocols. In addition to interoperability across a wide range of blockchain networks, Bifrost maximised security and speed, high-performance oracle services, and access to a wide range of institutional-grade services in one place.
Before committing to a chain, it’s important to note that the APY of a staking chain can change over time. For example, if a chain experiences a lot of inflation, the APY will go down. Similarly, if a chain becomes more popular and more users start staking, the APY will also go down.
When staking, besides rewards, you may also want to look at the blockchain’s security and the token’s liquidity. Staking further involves paying a commission, minimum staking requirements, and staking and unstaking periods, so keep them in mind too.
The easiest way to stake cryptocurrency is by choosing a third-party platform. If you want a higher interest rate on the coins you are staking, you may opt for a better-paying platform like RockX.