What are the Best Cryptos to Stake in 2023?

Today, blockchain and crypto technologies are developing at a rapid pace. Even during the crypto winter that shook the whole industry in 2022, many new crypto projects emerged and still emerge in the market.

Today, the most valuable digital assets are those released for the following purposes:

• connecting the real-sector assets and businesses with the blockchain scope;
• facilitating transfers of different currencies around the world;
• allowing the developers of smart contracts and decentralized apps to lace their products and run them smoothly;
• tokenizing real-world assets and opening the full range of earning possibilities for them;
• allowing game players earn real money for participating in games;
• etc.

Crypto projects have different purposes, technologies and foundations. Some projects are based on the Proof-of-Work protocol, like the first known crypto asset – Bitcoin. This protocol works in such a way that to create every next block in the blockchain, a huge array of work is done by advanced machines and computers. The process is called mining. When the first crypto asset appeared, it was possible to mine BTC on ASIC and home PC, but over time, the difficulty of the mining process increased, causing the following problems:

• high energy expenses;
• low throughput;
• high fees;
• carbon footprint.

Ethereum – a platform and crypto asset ranked second in the world’s crypto rating, used to run on the Proof-of-Work mechanism as well. Hundreds of products were built based on the Ethereum blockchain – games, NFT marketplaces, decentralized apps, smart contracts, etc. However, with the increased loading of the Ethereum network, transactions started to be too slow, and the fees – were too high. At the same time, another popular project and its bright time – Solana.

Solana was built on the Proof-of-Stake mechanism of reaching consensus in the network. That is an entirely new method to create each new block in the blockchain. Instead of calculations done by advanced and expensive massive computer equipment, PoS uses a proof of ownership method, which means that having some coins, you can lock them on their network and earn more assets in return. Staking cryptocurrency is a way to generate new coins that do not imply those Proof-of-Work drawbacks:

• enormous power consumption;
• expensive advanced machines and space for them, ventilation, etc.;
• harm to the environment;
• high fees and long transaction proceedings.

Staking crypto can be done individually or in pools – people gather in pools to create more liquidity and stake more coins, so in the end, they receive much higher returns and share them according to the amount of coins locked by each participant. The more assets you hold in staking, the more chances of receiving bigger rewards.

Crypto staking is accessible to anyone, unlike mining, which is now losing its popularity. We can see all up-and-coming projects are developed on the Proof-of-Stake protocol. The Ethereum network has recently transitioned to PoS in order to propose much better conditions for developers, high throughput, low commissions and an eco-friendly environment that consumes much less energy.

Now that we got crypto staking explained, let’s talk about the advantages and disadvantages it may have as well as the most popular assets used in staking.

Advantages and Drawbacks of Crypto Staking

Let’s first list the benefits staked crypto brings to users:

• Possibility to capitalize from just keeping funds on the blockchain. It is probably the same as purchasing and keeping coins, but with the advantage of generating additional coins.
• Being an alternative to holding assets long-term, staking crypto is preferred by novice investors when picking between staking and trading crypto, which requires maximum attention and a thorough understanding of trends. 
• Ecologically friendly blockchains attract users.
• There are no extra worries about how to buy equipment and where to place it, how to supply ventilation, etc. To earn passive income, you just need to have an Internet connection and a digital wallet.

Disadvantages of this passive income option:

• We should not forget that staking is a feature of the cryptocurrency environment, which is incredibly volatile. If you lock crypto and its rate drastically drops during the staking period, there is a chance that your losses will exceed the rewards you would potentially receive. To avoid such a situation, you should always pick crypto assets with high liquidity and resistance to trend fluctuations. Simply put, do not buy unknown coins.
• Another disadvantage is the fact that you have no opportunity to take coins back or unlock them before the lock term ends. Some exchanges impose penalties for such actions, which exceed possible rewards and even result in losses of your initial coins. So be careful and read the conditions for staking thoroughly before locking assets.

These are all disadvantages of crypto passive income tool. Let’s see what assets are the best for crypto stalking.

Best Crypto for Staking

As we mentioned at the beginning of this article, Solana was one of the first and the most popular digital assets running on the staking method. Solana is a network that has become the foundation for numerous decentralized apps, NFT marketplaces, smart contracts, and other digital product development and deployment. When the Ethereum network suffered from overloading, Solana enjoyed its best times. The SOL coin’s price peak was $258 in November 2021. At the end of the year 2022, the SOL rate is $11.46. It is quite a normal thing that the SOL price dropped, for we all witnessed the entire market collapse this year. It is very likely that 2023 will be the new life for the market’s bull trend, so now we have a good opportunity to purchase SOL at a low value and stake them.

Other worthy crypto assets for staking:

• Ethereum 2.0
• Terra Luna
• Polkadot
• Polygon
• Cardano.

The crucial thing in picking assets is to pay attention to those with big or middle market capitalisation. Why does capitalisation matter? The fact is that big and middle-cap assets are more resistant to the fluctuations of trends, so with a high degree of probability that they will live through market drops and survive the crypto winter. Volatility directly impacts the passive income – if the asset loses its value while participating in staking, you risk losing your bonuses, or they may even exceed the amount you have.  

How Can I Stake Crypto on WhiteBIT?

Many small crypto websites try to attract clients with high rates and bonuses while offering low liquidity and unknown crypto coins. When you pick a website for crypto passive income, you should take a look at the following parameters:

• What is the interest rate, and how much can you receive?
• What are the fines for withdrawing coins before the blocking term ends?
• What assets are supported?

We recommend considering the WhiteBIT cryptocurrency exchange. It is a regulated company for crypto trading and investment that offers the following earning opportunities:

• spot;
• p2p;
• trading with margin;
• leverage;
• futures derivatives;
• codes;
• DEX;
• and many more profitable instruments.

The company also supports passive income options – in the WhiteBIT Earn block, you will find the next opportunities to make passive income:

• Lending. WhiteBIT users can provide the loan on the exchange, putting their funds and getting up to 30% interest from the invested funds.
• Crypto staking – this option is under development, but it is supposed to allow crypto holders to lock their coins and receive interest for it.

Lending is provided in over 40 different plans. Each plan includes a promising crypto coin with variations to pick the block period (up to 360 days) and the amount of crypto blocked. It is better to begin with the smallest blocking length and gradually increase it each next try. 

Feel free to use the staking calculator and try different options to see the correlation between the period of blocking, the amount of crypto and interest. Don’t forget – the longer the time of holding crypto in lending, the higher benefits you have.

Wrapping Up

Beginner crypto owners often do not dare to get involved in complex trading strategies that require fast decision-making and thorough market analysis, such as intraday trading and scalping. Instead, they tend to purchase and hold crypto. A perfect alternative to just keeping assets idle is staking, for it allows you to increase the amount of assets you own and thus expand your portfolio. Moreover, making passive income from such promising and established coins as SOL allows capitalizing in the sooner terms compared with long-term holding coins.

Non-PoS assets can also be locked. For instance, on WhiteBIT, you can even pick a BTC staking plan and earn additional crypto passively. The process takes place not through the network, of course, but through the WhiteBIT servers. The features of locking your assets on WhiteBIT include:

• safe storage of crypto assets in WhiteBIT’s cold wallets with no chance for hackers to reach them;
• personal approach and quality customer support;
• possibility to open several staking programs at the same time;
• possibility to leave the lending plan without penalties;
• track your personal account and balance easily and conveniently in the WhiteBIT app.

On the WhiteBIT blog, you can read more about crypto staking plans. This resource includes educational articles and guides on trading and staking, creating your own token, adding bank cards, funds withdrawals, and trading different styles, and many more interesting and helpful step-by-step instructions. The resource includes a block with newly added cryptos and their overviews and recommendations. The platform conducts competitions and quizzes for its community with pleasant bonuses.

WhiteBIT is not only a trading space but an entire ecosystem and a big family welcoming new projects, partners, and users. The platform released its utility token WBT, which opens great discounts on translations and zero commissions for some operations to its holders. In addition, having WBT, you get access to many more earning options and products on WhiteBIT.

Pick only reliable and trusted crypto exchanges for crypto trading and staking, and do not be tempted by increased staking rates and bonuses on little-known and small services. Always check an exchange’s compliance with regulations, and never forget that crypto trading is risky and hides many pitfalls, so you need to find a reliable and transparent website for operations with crypto assets, where you could hold your savings without fear that someone can steak them, where you can use tools you need, and be confident that you can receive assistance at any moment you need it.