5 Best Staking Coins to Earn Interest on Crypto

Let’s discuss the best staking coins of 2020 through which you can earn interest on crypto. I am sure you would like to know what is Staking and how you can earn interest from it.

What is Staking coins:

Staking in simple words means holding cryptocurrencies in a wallet that supports POS (Proof of Stake) consensus for a period of 30 days.

After the completion of 30 days on a set date, you are credited with the same crypto as a reward depending on the amount of crypto you were holding in your wallet at that time.

The next question you might have in your mind is..

What is POS and How it works?

Cryptocurrency works on two kinds of consensus mechanisms and they are:

  • POW (Proof of Work)
  • POS (Proof of Stake)

POW consensus uses miners to solve, add and verify blocks to the Blockchain. Here, a miner who is able to solve the puzzle gets rewarded first.

POW requires big hardware and electricity to run them. It is not considered environmentally friendly.

POS consensus uses a completely different algorithm, here there are validators instead of miners and depending on the user’s stake, a reward is paid in the form of a transaction fee.

Watch the below video to completely understand the concept.

So, if you are holding a considerable number of POS coins in your wallet then the reward you will earn will also be higher.

Best Staking Coins:

1. Tezos:

Our first cryptocurrency from the list of best staking coins is Tezos. It is a decentralized blockchain with on-chain governance. After the launch of staking on major exchanges in  2019, tezos was the first cryptocurrency that was supported by them.

Recommended platforms for staking Tezos:

Platforms Interest rate annually Fee
Binance (Global) 6-7% Zero
Atomic Wallet 6-7% N/A
Coinbase 6-7% 25%
Trezor Wallet 6-7% N/A

I have written in detail on how to stake cryptocurrencies on Binance exchange. If you find it difficult or if you are getting confused about how to stake cryptocurrency there, then you can read that article here.

Tezos Staking info:

  • Minimum Holding – 1 
  • Ticker – XTZ
  • CMC rank – 10
  • Earning Calculator – Click here

2. NEO:

It is known as the Chinese Ethereum and is the first open-source Blockchain project from China. There are two cryptocurrencies associated with the NEO blockchain.

The first one is known as NEO and the second one is known as GAS. When you stake NEO you earn rewards in the form of GAS.

Recommended platforms for staking NEO:

Platforms Interest rate annually Fee
Binance (Global) 1-3% Zero
Atomic Wallet 1.4% N/A
NEO Wallet 1-3% N/A
Apart from the Atomic wallet, there are other wallets that provide Staking services. To know which are those wallet you can read this article here.

NEO Staking info:

  • Minimum Holding – 0 
  • Ticker – NEO
  • CMC rank – 20
  • Earning Calculator – Click here

3. Decred:

Decred is the first and one of its kind Hybrid POW/POS cryptocurrency. The objective is to capture the benefits of both POW and POS in order to balance their respective weakness.

In Decred POS participants are basically voters, every voter buys a ticket by approximately staking 85 Decred. Each block randomly picks up 5 tickets to vote.

To understand more about voting you can refer to this post.

Recommended platforms for staking Decred:

Platforms Interest rate annually Fee
Kucoin 3.56% Zero fee
Decred Wallet 30%  1-5%

You can get Decred from Binance.

Decred Staking info:

  • Minimum Holding – 85 
  • Ticker – DCR
  • CMC rank – 38
  • Earning Calculator – Click here

4. Qtum:

Qtum is an open-source, POS blockchain application platform that is promoted by Qtum foundation based in Singapore.

You can call it a hybrid of both Ethereum and Bitcoin as it combines the functionality of the Ethereum smart contract and uses Bitcoin’s security features.

Recommended platforms for staking Qtum:

Platforms Interest rate annually Fee
Binance 6-7% Zero fee
Qtum Wallet 1% N/A

Qtum Staking info:

  • Minimum Holding – 1 
  • Ticker – QTUM
  • CMC rank – 36
  • Earning Calculator – Click here

5. PIVX:

This last one in this list is Pivx. It is a privacy-based POS cryptocurrency, which is forked from Dash. PIVX means Private Instant Verification Transaction. It focuses primarily on privacy and security while transacting.

Recommended platforms for staking PIVX:

Platforms Interest rate annually Fee
PIVX Wallet 4.8% N/A

You can get PIVX at Binance and Kucoin.

PIVX Staking info:

  • Minimum Holding – 0
  • Ticker – PIVX
  • CMC rank – 156
  • Earning Calculator – Click here

My thoughts :

The smartest way to start your passive income stream is by staking cryptocurrencies. Just for holding cryptocurrencies you are getting paid interest every month.

In general, most projects pay an interest of 1 to 5% some pay more. Those project which pays a higher rate of interest will pose a greater risk. Hence always do your research before investing.

So, if you want to earn interest on crypto just for holding them then invest in these 5 best staking coins. Always remember cryptocurrency business is risky. 

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About The Author: Shounak

Blogger, Writer, Cryptocurrency Trader and Tech Geek.