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Proof of stake (aka POS) cryptos have many technical benefits but apart from that some proof of stake cryptos also give different economic benefits/dividends to their holders by giving them the option of running a master node or staking their coins in a stake-able wallet. Here is the most profitable proof of stake cryptocurrencies to know about.
Ethereum is not the most profitable yet most popular proof of stake coin. Ethereum network is the most used and in-demand blockchain network at the moment. More than 2800 Decentralized Applications are built on it, which are clogging the network, and there is an urgent need to scale it. Ethereum is currently a Proof of Work (PoW) network, and to solve its scalability issues, it is scheduled for its next big update, i.e., Ethereum 2.0, which would convert it into a Proof of Stake network. This would optimally scale and secure the network and allow building more innovative Decentralized Applications. ETH (Ether) is the native token of the Ethereum Network. Although the final merge of Ethereum 2.0 is yet to happen, the Beacon Chain of Ethereum 2.0 was launched in December 2020, and ETH holders can stake their tokens on the network.
You can stake your ETH directly on the network by becoming a node operator. For this, you need 32ETH or more and should have the technical capabilities to run a node on the network. The problem with this is that there is a long waiting list for prospective node operators. Further, the staked ETH cannot be unstacked till the Ethereum 2.0 merge is complete. The easier way is to stake your ETH with staking service providers who have their node operators and take a portion of your staking rewards as a fee. Some service providers also allow you flexible staking, which means that you can unstack your funds anytime.
Hence, there are predominantly three ways to Stake your ETH
1. Become a node operator on the network
2. Use a centralized Ethereum staking service providers such as Coinbase, Kraken, and Binance
3. Use a decentralized staking service provider such as Lido Finance
BNB is the native coin of popular exchange Binance. There are multiple ways by which you can stake BNB coins and earn up to 30% or more by staking alone. The most popular way is by using BNB Vault which is available inside Binance exchange. Another way to stake BNB is by using the Trust wallet, which is a popular mobile wallet. Though I'm not a huge fan of it, as the security of the mobile wallets is not rock-solid in comparison with hardware wallets. However, if you understand the risk and reward of a mobile wallet, you can use the Trust wallet to stake your coin. Here is a video that explains what staking is, and how to stake BNB token on Trust wallet:
BNB token is available on multiple exchanges, some of the most popular websites to get BNB tokens are:
Flow is an independent Layer 1 blockchain for games and NFT. You can stake Flow token using 3 methods, and I have highlighted them in the video below:
You can get Flow tokens on:
Akash Network is a proof-of-stake chain, built on Cosmos Hub, that leverages Akash Token (AKT), a native utility token, to govern, secure the blockchain, and provide a store and exchange of value. You can stake Akash (AKT) token to earn up to 58% APR. Unlike other proof of stake tokens, this offers one of the highest staking rewards.
You can use the Keplr wallet to stake your AKT token. You can get AKT token from:
Raydium is an automated market maker on Solana platforms, which boasts high TPS and fast settlement. You can participate in Ray staking on the Raydium platform to earn close to 50% APR. You need a Solana wallet like Phantom to access the Raydium platform. The best part, you can also use the Phantom wallet with your Ledger wallet for enhanced security. If you ever tried staking, you would find Raydium staking to be a seamless experience.
Ray Token can be purchased on the following high-quality exchanges:
However, I recommend you to buy Ray token on FTX, as it offers a Solana blockchain withdrawal address.
Tezos is a multi-purpose blockchain with on-chain governance. By Staking (Baking) Tezos (XTZ), you will be able to earn passive income. Tezos is also the first proof of stake cryptocurrency that is supported by all major exchanges for staking. In fact, it is seen as a paradigm shift that now exchanges are offering crypto staking lately. Tezos can be staked easily using any of the below-mentioned methods: The easiest way for staking Tezos is by using Binance. They are the only one that offers zero-fee staking and all you need to do is, just hold the coin in your Binance wallet. It is perfect for traders and investors.
You can get Tezos (XTZ) from Binance (Global) or CoinBase (USA).
$DG is an ERC20 governance token awarded to community members who provide value to the decentral. games ecosystem, such as playing games, providing liquidity, participating in governance, and referring new players. There will never be more than 1 million US$DG.
NOW token is a native cryptocurrency of an instant crypto exchange ChangeNOW. It was issued in 2018 and serves as an internal currency on NOW products. The token was issued as an ERC20 token, but now it also exists on Binance Chain (BEP2 Standard). In 2020 it has introduced NOW Staking as a way of profit from holding NOW tokens. NOW Staking offers up to 25% in yearly interest, making it one of the tokens with the highest expected return. There is a progressive reward scale in place, meaning that it gradually increases with time. If you hold a NOW token for a week – you'll get a 5% reward after a month it increases to 10% and reaches 25% in a year. ChangeNOW has an informative reward calculator to approximate your profits during a staking period.
DASH is a popular cryptocurrency known as digital cash. It is one of the pioneer's cryptos to implement a proof of stake consensus mechanism. Dash is unique crypto built upon Bitcoin's core with additional privacy and quick transaction features such as PrivateSend and InstantSend. It advocates itself as peer-to-peer decentralized electronic cash and intends to be as liquid as real cash which we use in our respective countries like USD/GBP/EUR/INR or CNY. DASH also allows its holders to earn dividends in the form of DASH by running a master node. But the catch is that you need a minimum of 1000 DASH units to run a master node and at the time writing one unit of DASH is approx. US$300 in price.
NEO, formerly known as Antshares, is the first Chinese open-source blockchain project, tagging itself as a "distributed network for the smart economy". NEO is also a cryptocurrency that exists on NEO's blockchain. Apart from the NEO cryptocurrency, NEO has one more crypto-token called GAS (formerly known as ANC or Antcoins) which can be staked in a NEO wallet for a handsome return and doesn't require you to keep your staking wallets open all the time like in other POS cryptos.
