The best cryptocurrencies for stacking in 2021

Mining (mining) of cryptocurrencies is often considered as an effective type of passive income. But modern mining requires very powerful equipment and high electricity costs.

These disadvantages are devoid of staking, which is called “mining without hassle”.

How to participate in stacking

The essence of stalking is that cryptomonets are stored in a special account, and the user receives a reward proportional to the number of coins. Stacking can be considered as an analogue of deposits and deposits in a bank for fiat currencies.

The owners of nodes in the blockchain network are called validators. Stacking participants who give (delegate) their coins are validators, called forgers (as well as delegates).

It should be borne in mind that there is usually a minimum threshold at which a forger can start stacking. Its value is different in each blockchain network, but it can reach up to $100,000 in dollar terms.

Staking is possible in the blockchain network that works according to the PoS (Proof of State) algorithm. There are more than 100 types of cryptocurrencies available for stacking. Consider the best cryptocurrencies for stacking in 2021.

Ethereum 2.0

This is the second largest cryptocurrency by capitalization (after bitcoin), and its value is constantly growing. The entry threshold is high: the validator needs to deposit an amount of Ethereum equivalent in value to more than $ 100,000.

The withdrawal of coins received in stacking will be possible only after the full transition of the Ethereum blockchain network to the PoS algorithm.

PancakeSwap

It is a decentralized exchange that operates on the BSC blockchain. Its advantages are low commissions and high profitability. The profitability of operations usually ranges from 15% to 400%.

PancakeSwap is based on the CAKE token. Since the beginning of 2021, its price has already increased 7 times. You can participate in the stacking of this token, other profitable tokens and coins on the BSC blockchain. The asset pool is designed so that a drop in the value of one asset can be accompanied by a drop in the value of another asset.

Stacking in this network is profitable, but very risky, so it is suitable only for experienced participants of the cryptocurrency market.

UMI

This type of cryptocurrency appeared in the summer of 2020. Most (87%) of cryptocurrencies are traded in staking. Logging in to stacking is very simple: it is enough to have a UMI wallet and join one of the pools. UMI has the highest percentage of new coins on the cryptocurrency market (up to 32%).

The network operates through smart contracts, which gives significant advantages to the forge. So, cryptomonets do not need to be frozen, they can be withdrawn from the wallet or sold at any time. New coins are immediately credited to the wallet. Interest accrual occurs continuously (usually accrued once a day or a month).

Bancor

The Bancor crypto platform was founded in 2016 by brother and sister Guy and Galia Benartsi from Israel.

The platform aims to support the activity of pool users, is compatible with Ethereum and some other cryptocurrencies.

You can invest your crypto assets in pools on the app.bancor.network project website.

Binance Coin (BNB)

The internal coin of the leading crypto exchange Binance. Almost immediately after the launch, its cost exceeded $ 650. To start staking, you need to have 10,000 coins, which in dollar equivalent is 659 thousand dollars.

The profitability of validators is more than 23%, and the owners of coins – 18%. To prevent inflation, some coins are “burned” quarterly.

There is no minimum threshold for withdrawing coins, and the reward is calculated daily.

Cardano

Some experts of the cryptocurrency market predict that this coin will soon surpass Ethereum in popularity. The Cardano development project is led by mathematician Charles Hoskinson, co-founder of Ethereum.

Over the year, ADA has increased in price by more than 20 times. The reward is accrued every 20 days, and the coins are not frozen during the staking. Staking Cardano brings in more than 7% of new coins per year.

Solana

The Solana project appeared in 2017 . Its blockchain network operates on both the PoS algorithm and the PoH algorithm. The essence of the latter is that the network nodes (nodes) work independently, but at certain times they must synchronize. This principle of operation significantly increases the speed of transaction processing.

You can participate in the staking yourself or transfer coins to one of the validators for a reward. The minimum size of the stake is 1 coin.

Avalanche

This platform for exchanging tokens and currencies of different systems was launched in 2020. The internal currency of the platform in which the reward is paid is called AVAX. After the launch, the value of the coin increased 8 times.

To become a validator, you need to have 2,000 coins (the value of this amount exceeds $ 80,000). You can start staking with an amount of 25 coins. Validators and delegates receive a reward of approximately 5%. Fees are charged for transactions.

The yield is approximately 23% per annum.

Published: 7 August, 2021