Stakero Blog

Cryptocurrency Staking | Definitive Guide 2022

Proof-of-Stake (PoS) coins are currently attracting a lot of attention from crypto investors. Major cryptocurrency exchanges, crypto wallets, and even storage solution providers have begun integrating staking services into their platforms. Even existing crypto projects are trying to enable this feature.

PoS tokens provide cryptocurrency holders with an easy way to grow their token stocks, allowing them to generate passive income with the digital assets they already have. The experience of many crypto investors has shown that this is an effective and more profitable way of earning cryptocurrencies than just holding them and waiting for the market value of tokens to rise. However, before you deposit your funds in any project, always first research it on your own, so as not to lose money.

Cardano (ADA) prides itself on being one of the most advanced projects in the PoS ecosystem. It is supported by developers who are well versed in distributed ledger technology and are also known as innovators in the field due to their extensive research and development experience.
The Cardano was created by one of the former Ethereum developers. ADA is included in the top Coinmarketcap and represented on the world's leading cryptocurrency exchanges.
Cardano has one of the largest communities, with over 50% of all ADA coins available are locked in staking. It is powered by delegated proof of stake dPos algorithm.
Cardano can be staked on both exchanges and wallets. ADA staking yields 3-12% annualized returns.

Tezos (XTZ). It is a community-driven smart contract and application platform. The holders of tokens can conduct voting at which they make decisions about updates on the network, as well as choose the general course of development of the project.
Tezos has been in development since 2014, and the first testnet was launched in 2018. Large funds have been invested in this project.
You can stake XTZ tokens at 3-11% per annum on the official website or on exchanges that support XTZ stacking.
Bakers receive 6.1% of revenue and the Delegates 5.48% APY.
The smallest amount that can be invested is of 8,000 XTZ.

Polkadot (DOT) is the coin considered Ethereum's main contender. The main idea of the Polkadot project is the security core, around which the parachain ecosystem will be. Large funds were invested in the project and it quickly became popular in 2020. In 2021, it only grew in popularity and continues to grow.
You can stake a DOT token both from the official wallet and on exchanges.
The annual yield is at the level of 10-18%.
The period of locking DOT tokens when staking on the official wallet is 28 days.
The entry threshold is 350 DOT.

Algorand (ALGO) has been gaining a lot of attention from the cryptocurrency community lately since its mainnet launch in the middle of this year. The main goal of the project is to create a borderless economy, inclusive and transparent for building prosperity wherever. Additionally, it was developed by Turing Prize winner, MIT professor and Zero-knowledge proof developer Silvio Micali.
The unique Algorand protocol allows it to create new blocks in less than 5 seconds with immediate completion. The protocol also allows developers to create new fungible tokens and perform atomic multilateral transfers (AMPT) without using smart contracts. This avoids unnecessary computational and transaction costs using virtual machines.
The annual yield is at 7.35%.

Ethereum (ETH) has a proven track record, high potential value, and great utility for thousands of dApps, most of which are powered by its blockchain today.
You can stake Ethereum in the ETH 2.0 deposit contract and in the DeFi system. In the second case, the annual percentage is much higher, it can reach 400%, but this option is much riskier due to the potential unfairness of the developers of some dApps and the possibility of hacking the DeFi contract of any project.
10-15% when staking ETH is considered a good norm. This is the percentage that proven projects usually give.

The minimum entry threshold is quite high and amounts to 32 ETH, which at the end of 2021 amounted to more than $ 120,000, but it is possible to enter with less investment when staking in pools together.