Staking in crypto is the process of depositing tokens in a digital wallet and keeping them there as a way to support validating transactions for proof-of-stake (PoS) blockchain networks. This process directly improves the security and efficiency of blockchain networks on the proof-of-stake consensus mechanism. There are several proof-of-stake blockchain networks that an investor can stake crypto on, however, Avalanche (AVAX), Solana (SOL) and Parody Coins (PARO) are great options and a good place to start.
Designed by Ava Labs, Avalanche (AVAX) is a decentralised blockchain network that enables the development of decentralised applications (DApps) and multi-functional blockchains. The platform offers low costs, high speeds and is eco-friendly.
Holders of the AVAX token are rewarded for staking their tokens and securing the Avalanche network. Investors can earn up to 11% APY on staked tokens and they can set their own fees for accepting delegations to their nodes. To stake, only the lightest hardware is required and investors never have to fear the slashing of their staked tokens, as they do on other platforms.
Users can start staking on the Avalanche platform once they have up to 25 AVAX tokens and can become a validator with at-least 2,000 coins. Stakers will have to wait for at least 2 weeks after staking to start claiming their rewards. Investors can stake AVAX tokens on Metamask, Avalanche Wallet, and others.
Solana (SOL) is the fastest blockchain in the world and the fastest-growing ecosystem in the crypto space. It is a decentralised, open source blockchain developed to enable scalable and user-friendly apps. It has thousands of projects spanning DeFi, NFTs, Web3 and more. The platform is very popular, ranking 7th on CoinMarketCap with a market cap of over $21 billion. This is no doubt thanks to its low cost and high speed transactions.
Stakers on the Solana platform earn SOL for helping to validate the ledger. The platform has no strict amount of SOL tokens required to be a validator but it has some hardware recommendations.
Investors can stake their SOL with Ledger, Atomic Wallet, Exodus and MathWallet and sit back to receive their rewards. Stakers can make up to 7-11% annual returns.
Parody Coin (PARO)
Parody Coin (PARO) is a deflationary new utility token, which is a BEP20 meme coin built on the Binance Smart Chain (BSC).
With ParoRewards, Parody Coin (PARO) seeks to reward holders of the token with BEP20 tokens. The ParoRewards system also has a staking component. The Parody Coin blockchain uses a bridge to convert some of the PARO tokens into BEP20 tokens. A smart contract then subsequently shares the rewards to existing holders of the Parody Coin (PARO). With this model, it is possible for investors to earn from the token reflection of the Parody Coin, and also from the rewards paid by the Binance Smart Chain (BSC) as part of the network consensus mechanism. However, for users to benefit from this, they would have to lock their Parody Coins for over two weeks.
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