Best Crypto to Stake in 2023

This article provides a list of best staking cryptos 2023, including but not limited to, Ethereum staking, Cardano staking, Vechain staking, Cosmos staking. You can also find a guide on how to stake crypto in Guarda Wallet.

What is staking crypto?

Crypto staking is a process where individuals who hold cryptocurrencies participate in the operation of a proof-of-stake (PoS) blockchain network. It involves keeping funds in a cryptocurrency wallet to support various network operations, including transaction validation, security, and maintenance.

Stake Crypto

Staking Protocol

  • Locking Up Cryptocurrency: Staking involves locking up a certain amount of a particular crypto assets in a network. This is also known as a “stake”. These locked up funds help maintain the operations and security of the blockchain network.
  • Participating in Network Operations: Once you’ve staked your cryptocurrency, your assets can be used by the network to verify transactions, add new blocks to the blockchain, or maintain the network’s overall security. In a PoS network, stakers with more cryptocurrency staked have higher chances of being chosen to create a new block.
  • Earning Rewards: In return for staking their assets, participants may earn staking rewards. These can come in the form of additional tokens or a share of the network’s transaction fees. Essentially, staking work can provide a form of “passive income” for crypto holders. Proof-of-Stake is considered more energy-efficient compared to the Proof-of-Work system used by Bitcoin, where miners need to solve complex mathematical problems to add a new block to the blockchain. However, it’s important to note that staking also comes with its risks, such as the potential for the value of the staked token to drop significantly, or for the staked tokens to be locked up for a period of time and not easily accessible.

Best Staking Cryptos 2023

Ethereum 2.0 (ETH) Staking

With the introduction of Ethereum 2.0, Ethereum moved from a Proof of Work (PoW) model to a Proof of Stake (PoS) model. This means users can now stake ETH to earn staking rewards in the network. Ethereum is one of the largest cryptocurrencies by market cap, making it a relatively stable choice for staking. However, it’s worth noting that Ethereum requires 32 ETH for staking, which can be substantial for some investors.

Tron (TRX) Staking

TRON uses a DPoS system where TRX holders can vote for Super Representatives (SRs) and Super Representative Partners (SRPs). These are nodes in the network that produce blocks and validate transactions. By staking TRX and voting for SRs and SRPs, users participate in network governance and earn rewards.

Cardano (ADA) Staking

Cardano is a research-first blockchain platform developed with the rigor of academic peer review. It uses the Ouroboros PoS algorithm, where token holders delegate their stakes to a staking pool run by stake pool operators. With low entry barriers and consistent development updates, Cardano provides a steady option for staking.

Stellar (XLM) staking

Stellar (XLM) staking refers to the process of holding XLM tokens on a supported blockchain to earn passive income. It is a way for holders to put their XLM tokens to work and earn rewards. Stellar uses the Stellar Consensus Protocol (SCP) for transaction validation. The amount of rewards earned through staking depends on factors such as the amount of XLM staked, the holding period, and the annual percentage yield (APY) offered by the platform or exchange.

Tezos (XTZ) Staking

Tezos, a self-amending blockchain network, uses a Delegated Proof of Stake (DPoS) consensus algorithm. It offers a more democratic system, where any holder of Tezos tokens (XTZ) can participate in staking and earn rewards. Its built-in upgrade system also reduces the risk of contentious hard forks.

Cosmos (ATOM) Staking

Cosmos aims to solve the problem of blockchain interoperability, and its native token, ATOM, can be staked. Its Tendermint BFT consensus algorithm is a unique blend of PoS and Byzantine Fault Tolerance (BFT), providing both security and scalability.

Vechain (VET) staking

Vechain (VET) staking refers to the process of holding VET tokens on a supported blockchain to earn passive income. By staking VET, users can contribute to the network’s security and consensus while earning rewards. The amount of rewards earned through staking VET can vary based on factors such as the staking amount, term, and type selected. Different platforms and exchanges may offer varying reward rates for staking VET. It is important to choose a reliable platform. Remember, while staking can generate passive income, it’s not without risks. It’s essential to perform a comprehensive evaluation before staking your digital assets. Consider factors like the cryptocurrency’s potential for future growth, the staking requirements, potential return on investment, and the security and reputation of the platform.

Best Crypto Wallet for Staking

Here are the general steps on how you can stake crypto in Guarda Wallet:

  • Setup your Guarda Wallet: If you don’t have a Guarda Wallet, you’ll first need to create one. You can do this by downloading the Guarda Wallet app for your device or by using the web interface. Follow the instructions to set up your wallet.
  • Purchase or Transfer Cryptocurrency: To stake cryptocurrency, you first need to have some cryptocurrency in your wallet. You can purchase cryptocurrency directly within the Guarda Wallet app or you can transfer it in from another source.
  • Select the Cryptocurrency: In the Guarda Wallet, navigate to the cryptocurrency that you want to stake. Please note, not all cryptocurrencies are available for staking.
  • Choose to Stake: Look for a “Stake” button in the interface for your cryptocurrency. This option might be located in a menu or in the main interface.
  • Choose Amount to Stake: Specify how much of your cryptocurrency you want to stake. Be aware that when you stake cryptocurrency, it’s often locked for a certain period of time and you won’t be able to sell or transfer it until the staking period is over.
  • Confirm: Review all the details, including the terms and conditions of the staking, and then confirm your decision to stake your cryptocurrency. Remember to always do your research before staking your cryptocurrency. Understand the staking rules, potential returns, and any possible risks.

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