We all have heard or read about the popular term passive income but most of us have never understood it nor experienced it until you are into cryptocurrency staking.
Before being introduced to cryptocurrency staking, my opinion about passive income was that it is a myth created by online marketers to promote their products.
I am sure most of you might have felt the same as I did then back in those days.
Staking of cryptocurrency is becoming very popular among crypto investors after exchanges as Binance started providing this service for zero fees.
The recent report published by Binance shows that the total amount being staked is more than $6.4 billion.
What is Staking?
In simple words, staking means holding and locking cryptocurrency in a crypto wallet to support the blockchain network using Proof of Stake (POS) consensus mechanism.
How do Staking works?
Cryptocurrency generation is either based on POW (proof of work) or POS (proof of stake) consensus. POW relies on verifying and validating new blocks through mining using a lot of GPU and consuming a lot of power.
Therefore it is considered not environmentally friendly.
Whereas POS relies on simply locking and holding cryptocurrencies in a wallet by which their algorithm produces and validates new blocks.
Hence, It is environmentally friendly.
An article that might Intrest you: How to earn Cryptocurrency with Binance Staking
Types of Staking:
There are two types of cryptocurrency Staking and they are:
- Hot staking.
- Cold staking.
Hot staking is done using cryptocurrency wallets that are always online. For example, a mobile wallet or an exchange wallet.
Cold staking, on the other hand, means holding cryptos in a wallet that is not always online. For example a hardware wallet or a desktop wallet.
Although you can use POS native coin wallet for staking. In this article we will only discuss about multi cryptocurrency wallets that allow staking.
Best Cryptocurrency Wallet for Cold Staking:
The Atomic wallet is a multi-cryptocurrency wallet available both in desktop and mobile versions. It can store more than 300 cryptocurrencies and has inbuilt features to buy crypto, exchange and stake them.
I have been using it for the past one and a half years as my primary wallet and have faced, not a single issue.
Cryptos that you can stake using the Atomic Wallet are:
The Exodus wallet is another multi-cryptocurrency wallet that is available both for desktop and mobile. It is has been in existence for more than five years now and is a highly trusted and most recommended wallet in the crypto universe.
At the moment the desktop version supports 70 cryptocurrencies and 33 ERC20 tokens, whereas the mobile version only supports 35 cryptocurrencies and does not support ERC20 tokens.
Cryptos that you can stake using the Exodus wallet are:
Founded back in 2014, it is a multi-cryptocurrency wallet that supports 125 blockchain and numerous tokens.it is available to download for both desktop and mobile.
Cryptos that you can stake using the Coinomi wallet are:
- ETH tokens
- ETC tokens.
You can check further details here.
Ledger & Trezor:
Ledger and Trezor are both known and trusted hardware wallets. They both are multi-cryptocurrency wallets. Ledger Nano S supports more than 1000 coins and also supports ERC-20 tokens. Whereas the Trezor model T supports more than 1000 coins ERC-20 tokens.
Crypto that you can stake on both the wallet is :
Best Cryptocurrency Wallet for Hot Staking:
Trust wallet which is now the official wallet of the Binance Exchange is another multi-cryptocurrency wallet that supports staking. It not only supports ERC-20 tokens but also BEP2 tokens. It can be easily integrated with Binance DEX and Kyber Network protocol.
Cryptos that you can stake using Trust wallet are:
In the End:
With exchanges like Binance, Huobi, Kucoin, and others offering cryptocurrency Staking and more coins shifting to POS consensus from POW. Staking has become a new form of investment for investors.
I personally do not prefer crypto staking on exchanges due to security reason, therefore I wrote this article to help you all know the best cryptocurrency wallets that are providing staking services.
I hope you have enjoyed reading this article as I did writing for you. Thanks for reading.
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