With a protracted bear market, cryptocurrency bulls may face difficulties in generating sustainable profits. At this point, staking comes to the fore. Staking means locking your crypto assets on exchanges to earn interest or rewards. You can earn money by staking even if the price is low. Moreover, most tokens are at low levels. Therefore, you can get more for a lower price. Here are altcoins that are undervalued and suitable for staking, according to analyst Motiur Rahman.
First among the most suitable altcoins for staking: Cardano (ADA)
According to the analyst, Cardano (ADA/USD) is one of the best tokens to stake under $1. The cryptocurrency is trading at $0.3 after a long crypto winter. However, with the latest Vasil upgrade, Cardano is one of the top “contestants” as one of the best Blockchains around. According to the analyst, Cardano will continue to grow as more projects join the network. Thus, the staking feature will become more popular.
You can effectively stake on Cardano through a staking pool. Staking on centralized exchanges like Binance allows users to lock their crypto holdings in different timeframes. Users can also run staking pools.
Tezos also excels in passive income
Staking on Tezos (XTZ/USD) can provide passive income in a bear market. Tezos is an open source smart contract protocol. Users can create new crypto assets and dApps on Tezos. Staking on Tezos gives the user an annual return of around 3 percent, the fees for validators are reduced. The rate varies according to various criteria. According to the analyst, after transferring the tokens to a staking pool, it will take about five weeks for you to receive the initial reward. After that, rewards are received every 3 days.
Algorand (ALGO) is also on the list
Algorand is considered a Pure Proof of Stake (PPoS) protocol. It uses Byzantine consensus and takes a more egalitarian approach than PoS systems. The protocol is not forked, but is known for instant transactions. Algorand’s native token ALGO costs just $0.24. This presents limited restrictions. You can start using Algorand with a single ALGO. Staking rewards depend on how long you roll over your assets.
However, we cannot say that staking will provide a definite return for these altcoins. These are just analyst opinions. For this reason, every investor should make his investment in line with his own research. As Cryptokoin.com also reported, since the cryptocurrency market is quite volatile, it is in the category of risky assets. It is an area famous for its sharp falls as well as its steep rises.
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