With projects like AVADO removing the barriers for entry that have long prevented non-tech savvy people from making money through staking, many are now finding that staking is a great way to earn passive income. In this guide, we’re covering the projects with the best staking rewards available in 2022.

How to earn staking rewards

The term ‘staking reward’ refers to the compensation given to people who help maintain a network’s independence by engaging in a process known as staking. The exact method you’ll need to follow depends on the crypto project that you’d like to stake, though plug-and-play devices like the ones offered by AVADO make the process simpler compared to when you try to figure it out on your own.

Importantly, different projects offer different staking rewards. This means that the amount of money that you can passively earn will depend on the project that you choose to stake.

Which projects offer the best staking rewards?

Polygon (MATIC)

Polygon currently offers a competitive 14.3% return on investment per year, according to the project’s website. This can be earned passively by becoming a validator or delegator on the Polygon Proof-of-Stake mainnet. The minimum to become a validator or delegator on the Polygon network is just 1 MATIC, meaning there is virtually no barrier for entry when it comes to staking this asset.

The project has enjoyed substantial popularity over the last few years. Further, billions of dollars worth of MATIC is currently staked in the network, giving legitimacy to the project in addition to its high staking reward.

Cosmos Hub (ATOM)

According to Staking Rewards, staking ATOM currently rewards stakers in the form of a 15.25% annual return on their investment. As in many staking networks, users are paid as incentive to encourage people to support the decentralization of the ATOM network. In addition to this financial reward, staking ATOM also allows users to vote on proposals that will determine the future of the project.

There is currently no fixed minimum required to stake Cosmos Hub; you’ll just need a miniscule amount of ATOM to cover the initial transaction cost.

BNB Chain (BNB)

BNB has become an increasingly popular token over the last few years. Its role is to power the BNB Chain ecosystem. According to Staking Rewards, staking this project can potentially net a return on investment of 7.31% per year.

The minimum you’ll need in order to stake is just 1 BNB.

Despite the high return, if investors want to stake with their own hardware, the requirement of 12 cores of CPU and 48 gigabytes of memory (RAM) is a huge barrier to overcome. As a result, it drives people to use centralized cloudservices such as AWS, or stake with crypto exchanges. That increases the network risks.

Polkadot (DOT)

Polkadot currently has a listed return on investment of 14.07% per year. In addition, the project has the sixth-largest staked value of any coin or token listed on Staking Rewards. As an incredibly popular project in the current crypto landscape, both its name recognition and its high ROI have made many people convinced that Polkadot is a project worth staking.

It currently requires a minimum of 120 DOT in order to stake this project.

Avalanche (AVAX)

As listed on the project’s website, Avalanche currently offers an average staking reward of 9.49% per year. The project boasts low hardware requirements for staking, and there are currently around 1,380 validators active on the network.

The minimum amount that is needed to run a validator is a stake of 2,000 AVAX, while delegators will need to have just 25 AVAX.

Cardano (ADA)

Cardano currently offers a staking reward of around 5.01% per year, according to Staking Rewards. It is an extremely popular project to stake, with 71.89% of eligible tokens currently being staked in the network and the fourth-largest total staked value of any project.

There is technically no minimum amount required to stake Cardano, so you’ll just need a miniscule amount of ADA in order to cover any initial transaction fees.

Terra (LUNA)

People who stake LUNA can currently expect an average staking reward of around 6% per year. Notably, this project features close to no minimum investment amount for staking LUNA (0.000001 LUNA). This makes it a popular staking option for many people.

However, only the validators with the 130 biggest LUNA stakes are allowed to participate in the validation process. As of today, to become a LUNA validator, the minimum worth of LUNA staked to be validator is close to $13million. For majority of investors, they can only choose a validator and delegate their coins to. Therefore, staking LUNA does not increase the number of validators in the network. But by staking with smaller validators you can help diversify the risks of centralization, where a few large validators don’t own the majority of the stakes.

Ethereum 2.0 (ETH)

As one of the largest cryptocurrencies of all time both in terms of market cap and adoption, the cryptocurrency industry as a whole is closely watching Ethereum’s transition towards Proof-of-Stake in the form of Ethereum 2.0.

You’ll need a minimum of 32 ETH to run an Ethereum validator. However, if this is too steep a price, you can also stake ETH 2.0 via Rocket Pool, which brings down the minimum requirement to 16 ETH.

In exchange for staking ETH 2.0, you can currently expect a staking reward of 4.7% per year, according to Ethereum.org. The project currently has the second largest staked value of any cryptocurrency, and many people expect a short window of time in which people will be able to earn a significant annual return per year as a result of the transition towards Ethereum 2.0.

Solana (SOL)

According to Staking Rewards, Solana is the project with the largest staked value at the current point in time. Users who participate in the network’s governance by staking SOL tokens are currently rewarded at a rate of around 5.8% per year.

Which projects should I stake?

It is important to remember that there is more to deciding on which project to stake than just the estimated annual percentage yield that the project offers. It helps to find projects with a strong reputation and a bright future that you can get behind. This is important, as digital assets require the backing of their community to stay valuable. Unknown projects may offer a large annual return but actually fail to sustain their value. Meanwhile, larger projects like the ones included on this list might offer a slightly lower return per year, but may be more sustainable options thanks to the fact that they are backed by each having a significant staked value in their network, a strong community, and strong public interest.

Claiming your staking rewards

After having seen how much money you can earn passively by staking leading cryptocurrency projects, you may be wondering how you can even access these rewards in the first place. The truth is, it was once incredibly difficult for anyone who wasn’t extremely technically proficient to start staking. Fortunately, it is now easier than ever to get started without needing a background in finance or blockchain technology.

That’s because AVADO has released a range of plug-and-play blockchain devices that can be easily set up and used by anyone. With no barriers for entry, you can order your own AVADO device based on your specific needs. From there, you can start staking one or multiple cryptocurrency projects immediately. AVADO keeps working on growing the ecosystem, even with one AVADO device, users can stake new tokens when new packages are added to the DappStore. Gone are the days of having to try and follow a complicated setup process in order to start staking.

To find out more about how you can easily start earning staking rewards, visit AVADO’s website today.