Let’s take a look at some of the most widely used proof-of-stake cryptocurrencies today.
And I’m sure there’s one more essential question on your mind: “Why proof of stake cryptocurrencies?” Why should they be known? What makes them so unique? But before we start introducing you all with Proof of Stake Cryptocurrencies, you should have slight knowledge on Staking as well. to brush your concepts on Staking, give it a try on this article!
So, let’s get started answering these questions!
What are Proof of Stake Cryptocurrencies?
Stakeholder proof (aka POS) Many cryptos have numerous technical advantages. Still, some Proof of Stake Cryptocurrencies also provides various economic benefits/dividends to their HODLers by allowing them to run a master node or stake their coins in a stake-able wallet.
To put it another way, you can make money just by possessing a large number of Proof of Stake Cryptocurrencies.
This has the twin benefit of protecting the blockchain network and allowing users to receive incentives or dividends on their holdings.
Market dynamics also influence the energy usage of cryptocurrency. For example, miners often slow down or switch off their computers when the price of Bitcoin, Ethereum, or other major players in the space falls below a certain level since it is no longer profitable to run the machines at that level.
Because of the price drop in November 2018, the Digiconomist believes that Ethereum miners reduced their energy usage by more than half (from roughly 20 TWh to 10 TWh) in less than 20 days. In addition, the energy usage linked with Ethereum has grown in tandem with the cryptocurrency’s valuation in 2021. As a result, the Digiconomist believes Ethereum will consume 31 TWh annually by March 31, 2021, an all-time high.
So, which cryptocurrencies have a better chance of long-term viability than Bitcoin? Here are a handful of the leading competitors, given in no particular order, with the disclaimer that this is not investment advice. I have no stakes in or ties to these or any other cryptocurrencies at the time of writing. So lets now begin with our list of Proof of Stake Cryptocurrencies in 2021!
Top 14 Profitable Proof-of-Stake Cryptocurrencies
1) ETH 2.0 (5% to 7%).
Ethereum is the most extensively used Proof of Stake Cryptocurrencies. However, it is not the most lucrative.
At present, the Ethereum network is the most popular and in-demand blockchain network. However, it is home to over 2800 Decentralized Applications, which are clogging the network and need immediate scaling.
Ethereum is now a Proof of Work (PoW) network, and it is slated for its next major update, Ethereum 2.0, which will convert it to a Proof of Stake network to address its scalability difficulties. This would allow for optimal network scaling and security and the development of more creative Decentralized Applications.
The Ethereum Network’s native token is ETH (Ether). The Beacon Chain of Ethereum 2.0 was introduced in December 2020, and ETH holders may stake their tokens on the network. Although the final merging of Ethereum 2.0 has yet to happen, the Beacon Chain of Ethereum 2.0 ( ETH2.0 ) was launched in December 2020, where ETH holders can stake their tokens on the network.
By becoming a node operator, you may directly stake your ETH on the network. You’ll need a minimum of 32 ETH, as well as the technical skills to run a node on the network.
The issue here is that potential node operators are on a long waiting list. Furthermore, until the Ethereum 2.0 merge is complete, the staked ETH cannot be unstacked.
Staking your ETH with betting service providers who have their node operators and taking a percentage of your staking winnings as a fee is a more straightforward option. Some service providers also provide flexible staking, allowing you to withdraw your cash at any moment. Finding the best Etherium wallet to hold your assets safely? Check it out here for The Top 12 Best Ethereum Wallets.
As a result, there are primarily three methods for staking your ETH.
- First, join the network as a node operator.
- Use a Coinbase, Kraken, or Binance-style centralized Ethereum staking service.
- Instead, make use of a decentralized staking solution like Lido Finance.
Please keep in mind that selecting the right staking platform is critical for the following reasons:
- If a node operator misbehaves in any manner, the network will seize a portion of the ETH he has staked. “Slashing penalties” is the term for this.
- These fines would then be passed on to you by the node operators. Some service providers, such as Lido Finance, are covered by insurance against penalty reductions.
- Centralized staking systems are custodial, which means they have complete control over your cash. This implies that if the platform is hacked, you may lose all of your money.
- Smart contracts underpin decentralized staking services, making them vulnerable to smart contract hacking.
- Some staking services require you to wait a certain amount of time after unstacking before you may access your cash.
2) BitGreen (BITG) is a cryptocurrency.
BitGreen was formed in late 2017 in reaction to Bitcoin’s negative environmental effect. It is a community-driven project that offers a more energy-efficient alternative to cryptocurrencies based on the Proof of Work consensus. The firm established a non-profit foundation to supervise the BitGreen project’s upkeep.
BitGreen is designed to encourage environmentally beneficial behaviour, with users earning BITG for things like carpooling on a ride-hailing service, purchasing sustainable coffee, and volunteering. You can earn BITG by staking,’ utilizing a desktop wallet or setting up a masternode.
How does it work?
BitGreen implements a low-energy Proof of Stake method with segwit and deterministic master nodes as part of their proprietary system.
BitGreen may be used to purchase goods and services from BitGreen’s partners or exchanged on exchanges such as ProBit Exchange, Mercatox, STEX, and Crex24.
3) Nanotechnology (NANO)
Nano is a free, quick Proof of Stake Cryptocurrencies and consumes a lot less energy than Bitcoin and many other cryptocurrencies. It’s been around since the end of 2015, and it still has a low carbon impact. It’s also scalable and light because it’s not reliant on mining.
How does it work?
Nano makes use of energy-saving block-lattice technology. The Proof of Work algorithm is still in place, but the block-lattice extends beyond the blockchain to establish an account chain for each network user.
The Nano platform employs a technique known as Open Representative Voting (ORV). Account-holders vote for a representative, who then works to confirm blocks of transactions safely.
User accounts on the Nano platform may be updated asynchronously rather than requiring the usage of a whole linear blockchain, as is the case with Bitcoin and other Crypto.
On the other hand, Nano is based only on the sender and recipient account chains and can process up to 125 transactions per second.
4) Stellar (XLM)
The Stellar network (which split from Ripple in 2014) was created to bridge the gap between traditional financial institutions and digital currencies. Stellar doesn’t charge institutions or people to use the network, and it’s becoming a significant competitor to PayPal since it allows for faster, more straightforward, and more cost-effective cross-asset and cross-border transactions.
The Stellar Development Foundation, a non-profit organization, manages Stellar. Stripe (a payments company) provided seed money and gifts from BlackRock, Google, and FastForward.
Tax-deductible public donations fund the network’s operating costs, and the hard market cap for Lumens and the removal of the inflation standard show that the SDF is more interested in maintaining a network that enables easy, accessible, low-cost cross-border payments than in making a quick buck with massive Lumen price gains.
There has been a great deal of interest in the network from IBM and Deloitte as well as financial institutions in the United States, South Pacific Islands, Nigeria, the Philippines, India, France, and most recently, Ukraine.
The SDF’s goal of “unlocking the world’s economic potential by making money more fluid, markets more open, and people more empowered” comes to life in this way. The first distributed technology ledger to be certified as Shariah-compliant was Stellar.
How does it work?
You may swap US Dollars, Bitcoin, Pesos, Yen, and pretty much any other traditional or crypto money using the Stellar network. Lumens, the network’s currency, is utilized to enable these exchanges on the distributed ledger’s blockchain for a fraction of a penny and with remarkable efficiency (which also translates to a lower carbon footprint).
Individuals and institutions can also develop tokens for usage on the network, which has prompted some to use the network for environmental efforts like renewable energy investment.
The Stellar network’s consensus protocol is its most distinctive characteristic. This SCP is open-source and depends on a collection of trustworthy nodes to authenticate transactions rather than executing a proof-of-work or even proof-of-stake algorithm over the whole network.
As a result, the authentication cycle is significantly shorter and quicker, lowering expenses and reducing energy consumption. A federated byzantine agreement is an algorithm underlying this, and it is a more energy-efficient alternative to the Bitcoin-style classic mining network.
Lumens (XLM) can be purchased and sold on most exchanges, including Binance, Coinbase, Kraken, Bittrex, Bitfinex, Upbit, and Huobi.
5) TRON (TRX)
TRON is a non-profit organization and public blockchain-based in Singapore that supports practically every programming language. The peer-to-peer network enables developers to exchange programmes directly on the blockchain, reducing energy consumption.
TRON has a decentralized governance approach based on a two-tier paradigm of Super Representatives (SR) and Super Representative Partners. Each account can become an SR and vote for SRs.
Tronix, the TRON currency, is pre-mined and can be traded on Binance and other exchanges. TRON’s future intentions include using it to build decentralized gaming platforms. TRON stands at #5 on our list of Proof of Stake Cryptocurrencies.
6) Holochain and HoloTokens (HOT)
Although Holo is still under development, the network is predicted to have a massive year in 2021. As a result, pre-sale of transferrable ERC20 tokens branded HOT on the Ethereum public blockchain was the focus of Holo’s Initial Community Offering.
This distinguishes Holo from other cryptocurrencies in that it is backed by a physical object (cloud-hosting services). Holo charges a fee for P2P transactions. Therefore income is directly proportional to the number of apps and servers on the network.
On Holochain, transaction speed is theoretically limitless, yet energy consumption is minimal. Unfortunately, I haven’t seen any clear statistics on how much energy Holochain uses in practice, though I’m sure it’s a lot less than Bitcoin, Ethereum, and practically every other cryptocurrency.
How does it work?
Holochain is an open-source platform for peer-to-peer applications, and its currency, HoloTokens (HOT), is decentralized and does not need mining. This implies you won’t need any specialized processors, and the mining of this coin won’t consume a lot of energy. HOT may be earned by anybody who hosts hApps on their computer or smartphone.
Holochain is fast and efficient, and it doesn’t need proof-of-work or proof-of-stake, yet it still allows for scalable crypto-accounting. As a result, P2P web applications may operate considerably without using centralized data centres or infrastructure since each user offers a modest amount of computation and storage. However, this is dependent primarily on the number of people that sign up.
Holochain is unique in that it may be used in a web browser without the requirement for Holo Hosts to install any software. This makes it far more approachable for new, interested, and maybe cautious users. Holochain acts as a link between the realm of decentralised, peer-to-peer developers and traditional payment methods.
According to the business, because Holochain is a ‘pragmatic compromise,’ some network sections are centralized. This distinguishes it from other cryptocurrency initiatives that strive to be completely decentralized and rely solely on blockchain technology.
Holo, in essence, serves as a link between an utterly decentralised network and traditional, well-known internet browsers, assisting in the expansion of the DApp ecosystem and marketplace.
7) Hedera Hashgraph (HBAR):
On May 6, 2021, Hedera Hashgraph surpassed the amount of Ethereum (ETH) transactions, making it one of the largest cryptocurrency networks in the world. Hedera Hashgraph could theoretically handle more than 100,000 TPS, allowing it to compete with Visa and other popular payment systems easily. Fortunately, this cryptocurrency (HBAR) is a proof-of-stake token, which means it consumes significantly less energy than proof-of-work tokens such as Bitcoin.
The present supply of HBAR is around 8 billion bars, with a constant supply of 50 billion bars. It’s a decentralized public network that’s utilized for in-app payments, micropayments, transaction fees, and network security, among other things. Hedera allows developers to create secure apps with near-real-time consensus. This is because Hedera is more of a graph than a block “chain.” In reality, it’s built on a Directed Acyclic Graph (DAG) technology, which implies that when more transactions are added to the network, the speed of transaction verification rises.
Hedera’s directors include Avery Dennison, Boeing, Deutsche Telekom, DLA Piper, FIS (WorldPay), Google, IBM, LG Electronics, Magalu, Nomura, Swirlds, Tata Communications, University College London (UCL), Wipro, and the Zain Group.
Hedera Hashgraph comprises four primary services: HBAR, a cryptocurrency that enables low-cost, highly customizable transactions. In addition, smart contracts, file services, and consensus services are among the various services available.
How does it work?
Hedera Hashgraph employs an asynchronous Byzantine Fault Tolerance scheme (aBFT). Even if there are bad actors on the network, this enables high-level security. In addition, it is quicker than Bitcoin and Ethereum because transactions are processed in parallel rather than sequentially via the whole blockchain.
Instead of mining, the network achieves consensus through “gossip,” Nodes on the hashgraph communicate and compare notes on the network’s transactions. Because certain transactions are broadcast early in the gossip process and subsequently validated by several nodes across the network, they are labelled “famous” by the nodes.
In the second half of 2021, Hedera Hashgraph wants to further enhance the network, including sharding. This will split the network into numerous shards, allowing for more transactions to be processed.
Hedera Hashgraph is already being used to help with sustainability projects, one of its unique features. Power Transition, a software solution powered by Hedera Hashgraph, is one example. People and businesses may regulate energy consumption from microgrids to national grids using this highly scalable digital energy platform.
In addition, it can aid in cost reduction and the transition to a zero-carbon economy by drastically enhancing communication between actors in any network, resulting in increased energy efficiency.
Hedera Hashgraph uses 0.001-kilowatt-hours for each transaction, compared to 250 kWh for Bitcoin (the Digiconomist estimates it at 950 kWh), 55 kWh for Ethereum, and 0.003 for Visa.
8) Algorand (ALGO)
Algorand is a proof-of-stake blockchain with smart contract capability that gives it value. The network’s power is proportionate to each user’s stake in the system, and Algorand’s blockchain is scalable, secure, and free of forks and other possible governance difficulties.
Algorand, released in late 2019, is similarly a newcomer to the crypto industry, but it could handle around one million transactions per day by December 2020. In addition, Silvio Micali, one of Algorand’s developers and a computer science professor at MIT, won the Turing Award in 2012 as part of his contributions to cryptocurrencies and blockchain protocols, which inspires a lot of faith when compared to newer, less established crypto coins, such as Bitcoin.
The Algorand platform’s transaction speed and low transaction fees, combined with its permissionless pure proof-of-stake blockchain protocol, indicate that the network is more accessible, scalable, and energy-efficient than Bitcoin and its ilk.
How does it work?
Because Algorand uses a pure proof-of-stake technique, all validating nodes are aware of each other and must agree to construct a new block each time.
Algorand does not entail mining, and the network is attempting to set a precedent for blockchain sustainability by establishing a carbon-neutral network. It was built from the ground up to be energy efficient, and it has committed to offsetting any emissions shortfalls to decrease its environmental effect further. “I care about the world,” Micali said, adding that the proof-of-stake algorithm “drives power use to virtual nil.”
Algorand declared on April 22, 2021, that its blockchain is carbon neutral, owing partly to its collaboration with ClimateTrade. This organization is a pioneer in carbon emissions transparency and traceability, and the cooperation with Algorand allows CimateTrade to expand its sustainability efforts with businesses worldwide.
This work is being spearheaded by the Algorand Foundation, a non-profit organization. The Foundation also intends to bring on board a large community of blockchain and mainstream developers and people who wish to use the platform to promote sustainable initiatives.
Algorand and ClimateTrade want to build a mechanism in which Algorand’s carbon footprint on-chain for a certain number of blocks will be notarized, allowing for an equal amount of carbon credit calculation. By meticulously tracking and offsetting these quantities, the Algorand Standard Asset (ASA) will be locked into a green treasury, and the protocol will continue to function as carbon-negative.
There are presently 10 billion ALGO on the Algorand blockchain, with distribution ongoing until 2030. ALGO can be purchased and traded on Coinbase, Binance, OKEx, Kraken, and Huobi at the moment.
9) Raydium (RAY)
Raydium is a Solana platform-based automated market maker with high TPS and quick settlement. You may earn close to 50% APR by participating in Ray staking on the Raydium platform.
To use the Raydium platform, you’ll need a Solana wallet like Phantom. The best aspect is using the Phantom wallet in conjunction with your Ledger wallet to increase security. If you’ve ever attempted staking before, you’ll find Raydium staking to be a breeze.
Ray Tokens may be acquired on the high-quality exchanges listed below:
- FTX (Foreign Exchange)
- MXC Exchange is a service that allows you to trade many currencies
- However, because it contains a Solana blockchain withdrawal address, I propose buying Ray currency on FTX.
10) NEO
The first Chinese open-source blockchain project, NEO (previously Antshares), bills itself as a “distributed network for the smart economy.”
On NEO’s blockchain, there is also a coin called NEO. Apart from the NEO cryptocurrency, NEO also features a crypto-token called GAS (previously known as ANC or Altcoins), which can be staked in a NEO wallet for a profit and does not require you to keep your staking wallets open all the time like other Proof of Stake Cryptocurrencies.
One receives a return in the form of NeoGAS, which is now worth $24 apiece (at the time of this writing).
- Staking Wallet–NEON wallet (or stake a NEO wallet from here)
- Staking Calculator
- NEO Annual Return – Approximately 5.5 percent
11) QTUM
The QTUM Foundation created and maintained an open-source blockchain and cryptocurrency known as QTUM. It’s a decentralized blockchain software platform that can run smart contracts on numerous virtual machines using Proof-of-Stake consensus.
QTUM is a mix of Bitcoin and Ethereum, with its own point-of-sale system. It integrates the most excellent features of both blockchains in the real world to provide the best of both Bitcoin and Ethereum.
To begin staking QTUM, like other currencies, there are no minimum reserve requirements:
- Annual Return – Approximately 7% Ticker Symbol: QTUM
- Staking Wallets: QTUM Desktop Staking Wallets
- Staking Calculator & Staking Guide for Do-It-Yourselfers
12) NAV
NAV Coin is the first cryptocurrency to use a private transaction blockchain.
It is a fully working point-of-sale cryptocurrency that has been in operation since 2014 and is based on the Bitcoin core technology. Faster transactions (30 seconds), configurable privacy with twin blockchains, and a Proof of Stake Cryptocurrencies rewards structure that lets you profit while you sleep are some of the currency’s USPs.
There is also no staking limit.
- NAV Annual Return – Up to 5% Ticker Symbol
- Staking Wallets – NAV Coin Desktop Staking Wallets
My Thoughts On Crypto Staking
One of the best methods to gain passive money is to stake Proof of Stake Cryptocurrencies. Furthermore, the entrance hurdle to many coins is minimal.
I feel that a free reward of 1% to 5% for doing nothing but having your wallet open is not awful at all.
Also, when I consider that some nations, like the United States, have harmful or zero interest rates, bitcoin staking becomes much more beneficial. Also we should keep one thing in mind, if you are not into Proof of Stake Cryptocurrencies then I will highly recommend you to store your Proof of Stake Cryptocurrencies if you are HODLING! Check this out to know List Of 5 Best Crypto Wallets Available In 2022.
A few other currencies provide staking benefits, such as NXT, PAY, and others, but the payouts are so minimal that I didn’t think it was worth including them. On the other hand, other currencies, such as DASH and PIVX, reward masternodes that stake a minimum of 1000 DASH units or 10,000 PIVX units, which I feel is a significant investment for many.
You might be aware of what’s going on with WEB3.0 in the crypto world right? Wanna know more about Web2.0 and how it is differentiated with web1.0 and web2.0? GO here and find out What Is Web 3.0? How It Can Bring The Huge Digital Revolution In 2022?
So, if you’re taking anything, let me know what your favourite Proof of Stake Cryptocurrencies is. Then, let me know what you think in the comments section below! Till then, See yaa only on cryptocurrencysimple.com!
Frequently Asked QuestionsWhich crypto pays the most for staking?
1) Which crypto pays the most for staking?
Ethereum Version 2.0 (ETH) Ethereum 2.0, or Eth2, is the world’s second-most popular Proof of Stake Cryptocurrencies provider, behind only Bitcoin, and is one of the greatest Proof of Stake Cryptocurrencies accessible. Rest 11 Options I have already shared above!
2) Is staking crypto profitable?
When staking, coins are locked up in a crypto wallet, which means they can’t be traded normally during this time. Stakers, on the other hand, can increase the value of their wallet over time by obtaining a percentage return on their staking efforts. Now you tell me is it Proof of Stake Cryptocurrencies still doesn’t seem to be profitable? You got your answer!
3) Can you make money with Proof of Stake Cryptocurrencies?
The major advantage of Proof of Stake Cryptocurrencies is that you earn more cryptocurrency, and rates of interest may be quite high. In rare circumstances, you may be able to make more than 10% or 20% every year. It has the potential to be a highly rewarding method to invest your money. And all you need is crypto that operates on the proof-of-stake mechanism.
4) Which Cryptocurrency will rise in 2022?
Ethereum Could Become the First Cryptocurrency to Surpass Bitcoin. Cryptocurrencies Will Be More Accepted as a Payment Method More countries will accept cryptocurrency as legal tender. There’s a lot to come in this World! Just wait n watch cryptocurrencysimple.
5) What is the best staking wallet?
we have already discussed and written a full detailed article on this topic. Check out here for Best Crypto wallets in 2021.
