Best Staking Coins 2021: What to look for.

Here at the Divi Project, we believe the crypto revolution will be made up of many different currencies, all adding unique utility and value. We’re passionate about forging relationships with these projects and creating an ecosystem that works for everyone. That’s why we’re happy to give attention to coins that are paving the way in the Proof of Stake space! This blog focuses on some of our favorite proof of stake coins (Divi included), and how they’re leading the way!

What are staking coins?

Staking coins use proof of stake consensus to validate transactions. As cryptocurrencies continue to increase in popularity, concerns mount regarding the energy consumption of Bitcoin. Staking coins use a consensus mechanism called Proof of stake. Proof of stake requires the user to put up collateral for the ability to validate transactions on that network. For a more in-depth discussion on staking, read this blog.

How do we define what the best coins to stake are?

This list serves as a starting point for those interested in exploring some solid proof of stake projects. We’ve gathered a diverse range of PoS coins, all with different value propositions. We’ve tried to include the coins paving the way for crypto adoption, and ones that are a robust example of proof of stake. This list has nothing to do with profits or returns, however, all the below coins have enjoyed phenomenal increases over the past 12 months. This list includes some of the best staking altcoins!

At the Divi Project, we believe that price is a result of value, not the other way around. The cryptocurrency space needs more projects concerned with the development of the space, rather than their short-term gains. This list includes coins that fall into this category!

1) Cardano

Launched in 2017, after years of pre-development, Cardano is a unique peer-reviewed blockchain platform. Known as a third-generation cryptocurrency, Cardano’s goal is to improve upon three key issues that blockchain faces; scalability, interoperability, and sustainability. Simply put, an interoperable blockchain can easily speak with other chains, and make sense of the information they receive. Cardano continues to be one of the most popular coins on the planet.

2) Divi

One of the most decentralized PoS coins around, Divi’s goal of creating an easy-to-use ecosystem of financial services powered by blockchain forms the foundation of their vision. Ease of use is one of the biggest barriers to the adoption of cryptocurrencies. It’s no coincidence that a proof of stake that makes life easy for its users is so decentralized. With the upcoming mobile wallet, Divi is a project you’ll want to keep your eye on.

3) Ethereum

In December, Ethereum moved from proof of work to proof of stake. This move has been popular, with over 2million Ethereum tokens collateralized and staking to support the network. Ethereum is the 2nd most valuable cryptocurrency by market cap on the planet. It is a platform that supports the global development of decentralized applications (dApps).

4) Tezos

Tezos is a proof of stake native coin, with a focus on developing future-proof smart contracts. Tezos uses a delegated proof of stake model. Among its many benefits, Tezos boasts on-chain governance, a self amending blockchain (no need for a hard fork), and security through formal verification.

Those are big words, so here’s what it means: Tezos can make amendments to the blockchain without having to disrupt the current chain (a process called forking). This can be done as all network participants are involved in making decisions about the blockchain (on-chain governance).

5) Polkadot

Nominated proof of stake. The meteoric rise of this coin in 2020 drew massive industry attention, which was reflected in their rapid rise into the top 10 cryptocurrencies by market cap. Much like Cardano, Polkadot is laser-focused on the interoperability of blockchains.

Polkadot utilizes a complex network of heterogeneous ‘blockchain shards’. These are known as parachains which connect to and are secured by the Polkadot Relay Chain. They can also connect with external networks via bridges. These network bridges allow Polkadot to speak to other blockchains with ease, which is known as interoperability.

So, those are some of the top proof of stake coins to sink your teeth into. If you’re still confused, or just want to know more, our blog covers many of these topics in-depth!

So, you’re interested in getting in on some of these staking rewards. Great. You’re going to need a wallet to do so. We have a full blog on where to stake crypto, but here’s a quick summary of the different options available to you!

• Staking Wallet: This is usually a specific wallet, built for your coin of choice. It holds specific functionality for the coin you’re using. If you’re staking, this wallet usually must remain connected to the internet so it can always be ready to validate. Staking wallets involve maintenance. If you’re looking for the best staking wallet, look no further than the Divi Wallet.

• Crypto staking platform: These can be a great option for beginners, or those looking to stake multiple coins. A platform such as mycontainer.com allows you to stake many different currencies, all in the same place. Staking platforms take the maintenance out of staking, however, they bring up custodial security issues, which we’ve discussed in-depth in our blog on staking security.

A final word on staking coins

We recently published a blog on proof of stake coins and their importance in blockchain’s future. We discuss why they’re unique, and how they are set to facilitate the new digital economy. If you're interested in continuing your proof of stake adventure, check out the link below.