What is crypto staking? Best staking crypto in 2024

Crypto staking is the most popular way to earn passive income by staking the asset in the blockchain network. Just like we keep our asset in bank in the form of FD(fixed deposit) and earn a yearly or monthly interest. Similarly, staking crypto in the blockchain network can earn us a certain percentage of interest.

For instance, you have 20 Ethereum and you stake it or a year which will offer a return of 7% per year. If we calculate the value of 7% of 20 Ethereum, it is equal to 1.4 Ethereum. The value of 1 Ethereum is 3534.73 USD.

Different ways of Crypto Staking

There are different ways for investors to stake their asset in the blockchain network and earn profit. Majorly, crypto staking is categorized in four different types, Direct Staking, Delegated Staking, Liquid Staking and Non-custodial staking.

1. Direct Staking: Direct staking, also known as Active Staking. Where validator needs to actively participate and create new blocks on the blockchain network. Validators earn reward for actively participating in the consensus process.
2. Delegated Staking: In Delegated staking the delegator doesn’t manage the technical aspects instead, the validator does it. The profit earned of the delegated stacking is distributed between the validator and delegator. It is a form of passive income where we can earn just by investing.
3. Liquid Staking: In liquid staking the investors can stake their tokens with a flexibility of using the token elsewhere like trading. From liquid staking investor can earn profit from the staked assets and also from DeFi.
4. Non-Custodial Staking: In Non- custodial staking the investor can directly stake their assets by connecting the staking platform and wallet.

Best crypto to stake in 2024

Many exchanges like Kucoin, Binance and Coinbase provide opportunity to earn by staking crypto from our own wallet. Here is the list of few crypto with their reward percentage.

Beginner’s guide to stake crypto

Everyone wants to earn passive income. Crypto staking is a good source for passive. Here I have given few points to remember before investing. Before you invest understand the risk factor as well along with the profit.

• Choose a coin that gives high return and a good history in terms of stability.
• Buy the coin from any exchange. Some exchanges like Kucoin have built in staking features.
• Choose a short lock-up period (Since, you are a beginner).
• Monitor your stake time to time..

Pros of Crypto Staking

• Passive Income: Crypto staking provide a source for passive income. Here investor have to stake their token to get reward. There is no hustle for management or working to earn the reward. Your asset will earn it for you.
• Low investment: Crypto staking requires a very low entry fee. Anyone with low capital can start earning from crypto staking.
• Potential growth in future: Staking crypto is like a investment for future. Investing now can give a high return in future when the value of the asset will increase.
• Stable income: Compared to trading staking is a stable source of income.

Cons of Crypto Staking

• Hacking: Hacking of wallet or crypto exchanges are not impossible these days. Recently the DMM crypto exchange hacked and people lost their assets. So, there is a risk of loosing assets.
• Price declination: As we know crypto are not stable. The price may decline sometimes. So, there is a high chance of losing money.
• Lockup periods: When we stake any asset there is a certain lockup period in which you cannot access your assets. So, incase of emergency you won’t be able to use your assets.
• Technical management: Some platforms might look complex for new users, which can become a hurdle.