Welcome back to part 4 of our crypto staking course here at Cryptology. We hope you have enjoyed our staking course so far! Be sure to check out the previous parts if you haven’t done so already.

In this next part we’ll be covering the right crypto for staking and some of the different tokens we have hand picked for staking beginners like yourself.

The Best Coins to Stake

So you want to get into staking crypto? 

You’ll have read our other 3 parts on crypto staking to understand the basics. If you haven’t done so already we highly recommend you do to get the fundamentals down. The next step is to pick tokens to stake. But where do you begin looking?

Take a look at our top picks for crypto staking:

1. Ethereum ($ETH)

Ethereum is one of the most recognizable cryptocurrencies for staking. It popularized the Proof of Stake consensus mechanism after the Ethereum 2.0 update in 2022. 

We are proud to offer ETH as a staking option here at Cryptology. Currently we offer up to 6% APR when staking Ethereum tokens.

2. Solana ($SOL)

Solana is a very popular blockchain that has risen through the ranks over the years despite many setbacks. Their transaction processing power is unmatched and they’ve officially partnered with VISA in 2023.

SOL is available to stake on Cryptology offering upwards of 7%.

3. Polkadot ($DOT)

Polkadot is an example of a powerful Layer 0 blockchain. Its infrastructure hosts many different Layer 1 chains. The aim of Polkadot’s network is to build a completely decentralized web.

DOT, the native token of Polkadot, is also available on Cryptology. We offer a staggering 21% APR on staked DOT. 

4. Tether ($USDT)

Tether is a stablecoin which offers a lot more stability in terms of value compared to other crypto. While its value cannot go up as it is pegged against the U.S dollar, staking is a great way to utilize this token.

5. The Graph ($GRT)

Developers used The Graph to integrate data APIs into their decentralized applications for a better user experience and usability. Some of the blockchain’s biggest dApps use The Graph showing the utility of this protocol.

GRT token can be staked on Cryptology with returns at 10% APR.

6. Kusama ($KSM)

Kusama is very similar to Polkadot, where it’s highly useful in building and launching protocols on the blockchain. Thanks to interoperability, Kusama allows cross-chain communication seamlessly.

KSM is stakeable on Cryptology at an APR return upwards of 18%.

7. Cardano ($ADA)

The final pick on our list is Cardano. This is a fully open-source blockchain giving its users full accountability on development and activity. Cardana is able to tick many different boxes in terms of use cases for developers showing the utility for the project. 

These are just a few of the top tokens to stake on the blockchain, with some of them being available on our very own staking platform. 

Be sure to research past these examples. If you aren’t sure whether you can stake a crypto, simply check the consensus mechanism they’re built on. If Proof of Stake then you will be able to access staking!

Is Crypto Staking Profitable?

Crypto staking is profitable for many investors.

Depending on the staking platform and token you can earn lucrative staking rewards. For example on our exchange, you can earn upwards of 21% APR returns on your staking crypto and this is then paid straight into your crypto staking rewards balance.

When you’re staking crypto you become profitable when you validate the correct transactions on a blockchain. The overall rewards are dependent on the amount you stake so you have to be in it to win it.

Compared to Proof of Work (PoW), the consensus mechanism for Bitcoin, Proof of Stake is a lot more profitable. PoW rather than dependent on the amount staked, staking rewards rely on the computational power provided which of course can be extremely costly in today’s climate for mining crypto and Bitcoin.

Like anything related to crypto there is a chance you can lose your money. That’s why it’s always good practice to stake crypto you’re willing to lose and not use your full portfolio.

If you aren’t fully educated on crypto staking we recommend to learn the basics and understand the different staking options available to you and your skillset.

The Risks of Crypto Staking

While profitable, crypto staking does have some potential risks. Here they are in some detail.

  • Slashing

Slashing is the part where your staking rewards are slashed due to the wrong transactions being validated on the network. As mentioned, staking requires you to use your crypto assets as collateral in the case of a slashing occurring.

Be aware this does affect your overall rewards at the end of the staking period.

  • Token price fluctuation

Another risk to be aware of is the price volatility during staking period. Unfortunately staking doesn’t keep your crypto tokens from dropping in value whilst locked up. As a result this can also affect your crypto staking rewards.

Choosing our exchange to stake on is a great option to avoid price fluctuations. This is because we offer flexible bonding periods on all our staking options.

  • Asset safety

Crypto platforms can be prone to attacks from thieves that leave investors out of pocket. When staking your crypto you want to be sure you’re locking up your tokens on a safe and secure platform for peace of mind.

Cryptology is voted 10/10 by cybersecurity rating by CER (Crypto Exchange Ranking). We keep your assets safe and your potential returns high on our priority list.

The Right Crypto For Staking

Choosing the right crypto to stake is an important part of the staking journey. The benefits of crypto staking and what it does for the wider blockchain is a reason why so many people are choosing to do this. 

If you have any further questions on crypto staking you can always contact our customer support and we’ll be happy to assist you. 

Be sure to check out our academy to learn more about crypto and blockchain today!

! Disclaimer

The information provided in this article is for educational and informational purposes only and should not be construed as financial, tax, or legal advice or recommendation. Dealing with virtual currencies involves significant risks, including the potential loss of your investment. We strongly recommend you obtain independent professional advice before making any financial decisions. The products and services offered by Cryptology may not be suitable for all users and may not be available in certain countries or jurisdictions. The promotional materials do not guarantee any specific outcomes or profits from virtual trading. Past performance is not indicative of future results. It is important to read and understand the risks, which are explained in our Risk Disclosure Statement

Tom F.

Tom is one of the content managers here at Cryptology. While still fresh in his career he has been able to firmly place himself within the world of crypto and content creation, producing work for a number of publications including esports.net and The Times of Malta newspaper.