5 Best Coins for Staking in 2023
Investing in cryptocurrency has always been an exciting way to earn money. However, if you’re looking for a steady stream of passive income, staking your coins might be just what you need. Staking is when you lock your crypto assets for a certain period of time to help maintain the operation of a blockchain. In exchange for staking, you’ll earn more cryptocurrency.
A lot of blockchains use a Proof-of-Stake (PoS) consensus mechanism. This means that network participants who want to validate new transactions and add new blocks to the blockchain must stake a certain amount of cryptocurrency. By staking, you’re helping to ensure that only legitimate data and transactions are added to the blockchain.
If you’re thinking of staking, it’s important to note that there is a risk involved. If you improperly validate flawed or fraudulent data, you may lose some or all of your stake as a penalty. However, if you validate correct and legitimate transactions and data, you’ll earn more crypto as a reward.
MinePlex
MinePlex is a blockchain-based ecosystem of decentralized services, such as advanced payment solutions, a marketplace and business-focused crypto payment gateway. The project announced a phased transition to the new Tendermint Core architecture and the launch of two new tokens, XMine (MPX) and CrossFi (XFI).
With the MinePlex 2.0 blockchain utilizing the DPoS consensus protocol, MPX holders can stake their tokens and by choosing a validator and delegating their tokens. MPX is a non-volatile token that represents MinePlex’s blockchain computing power and is needed to generate new XFI tokens, while XFI is a volatile utility token that provides access to MinePlex’s ecosystem services and products. The project team set the target level at 7% per month, which in annual terms gives approximately 100% APY based on the economy and development strategy of the new MinePlex 2.0.
Those MPX sent to staking are immediately put into operation, and staker starts receiving rewards nominated in XFI. The coins obtained via staking can be withdrawn at any time. But it will take 15 days to withdraw MPX from staking in order not to disrupt the stable operation of the network.
MinePlex’s dual token business model has already been successful on the previous version of the blockchain with its MINE and PLEX tokens, making it an exciting option for staking in 2023.
Optimal strategy: long-term investments
Staking rate: < 100% per annum
Risks: common risks associated with the cryptocurrency market, such as volatility and security
Ethereum
Ethereum is the largest blockchain in terms of capitalization, operating on the PoS consensus mechanism. However, to begin the Ethereum staking process, a validator must deposit at least 32 ETH into the official deposit contract address. Currently, staking on Ethereum 2.0 has a 4% annual percentage rate (APR), or 1.28 ETH if you staked 32 ETH. That’s where liquid staking services like Lido Finance come in. Thanks to them, you can start staking even without owning 32 ETH.
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