The Best Digital Currencies to Bet on

Today, there are many ways to make money in the world of digital currencies, and almost anyone with any capital can access this market. One of the best known methods that has gained many followers is staking. Staking is considered one of the safest methods due to its special properties and is often chosen by those who want to avoid market risks.

Remember that the low risk of gambling is not a reason to do it unknowingly; Investors who intend to stake their assets should know the best cryptocurrencies on the market to stake them and then act. As we present the definition of staking in the rest of this article, we will present the best digital currencies that can make staking profitable.

Definition of staking

Digital currencies use various methods to validate their network transactions. The two most popular are PoW and PoS. In the PoW method, which is also considered the first method, various miners do this by entering the network; however, with the PoS method, digital currency owners leave their assets on the network as collateral while also dedicating themselves to confirming transactions. In fact, the task of verifying transactions in PoS networks is the responsibility of the stickers and not the miners.

One of the important points of Scking that helps to understand better is that blocking assets on the network has nothing to do with the process of confirming transactions. In fact, transactions can be confirmed without deposit, but all blockchains have set a certain minimum deposit amount to ensure that no destructive actions take place on the network. In the event of a disruption caused by the administrative violation, your assets will be confiscated and used to remedy the disruption.

With the staking method, depending on the amount of assets that each sticker has locked on the network, they are entrusted with the number of transactions to confirm and validate, and then their fees are deposited into their digital wallet. The fee amount is usually a certain percentage of the total assets locked up; in fact, the more assets that are pledged, the more returns will be generated.

Best Cryptocurrencies to Stake

Nowadays, many digital currencies follow the PoS algorithm and allow you to stake your coins. Each of the cryptocurrencies has a certain percentage of profits to stake and has its own rules. Some of the best digital currencies to make good profits through staking are:

Ethereum digital currency

After Ethereum was updated to version 2.0, users found the opportunity to stake their coins and enjoy a stable income. The fact is that you need at least 32 Ethereum to stake Ethereum. With this amount of Ethereum, one can become a node and validate various transactions.

Users who cannot provide this amount of Ethereum can participate in offline mining pools. These groups allow users to join the network by collaborating as validators. In fact, they can earn money with smaller amounts of Ethereum.

Cardano digital currency

The Cardano digital currency, present in the cryptocurrency market with the symbol ADA, is another best betting option. This digital currency uses a type of PoS algorithm called Ouroboros, which has led to the development of interesting features. For example, staking Cardano coins does not require the asset to remain locked; in fact, whenever the user intends to withdraw his asset, he can use it without having to pay any compensation.

Solana digital currency

Another of the best cryptocurrencies to bet on is Solana. Today, this digital currency is bought and sold in the financial markets under the symbol SOL. The main reason for their popularity is their high speed and low transaction fees. Solana has not specified a specific minimum amount of cryptocurrency required for staking; However, it is recommended to stake large amounts to make a decent profit. Overall, Solana is considered one of the most open blockchain platforms when it comes to using digital currencies.

Tezos Digital Currency

One of the most successful PoS-based blockchain networks is the Tezos network. This network was founded in 2014 and began its public activity in 2018. The currency of the Tezos network is called XTZ and users can earn rewards by staking it.

The Tezos network calls users who stake coins. To become a node, Bakers must lock 8,000 XTZ on the network. Users who cannot lock this value can access the network as delegators; this means that they deposit their coins with a baker and receive their share of the profits.

Avalanche Digital Currency Network

Avalanche is another blockchain network that allows its users to stake coins. This network uses a native coin called AVAX where users can participate in the staking process if they own at least 2,000 coins.

The Avalanche network also allowed for assigning coins to headnodes. In fact, people with 2,000 AVAX or more are called validators, while other users with fewer assets are called delegators. Note that delegators must have at least 25 AVAX.

Polkadot Digital Currency Network

The Polkadot blockchain network was launched in 2017 with the aim of creating a platform suitable for the interaction of different blockchain networks and was able to gain a great reputation in a short period of time due to its innovative idea. Users can stake DOT coins on this network as a validator and nominator; these coins belong to the Polkadot network.

Validator users are the main stakeholders and nominator users are the people who entrust their coins to the validators. The amount of coins that each of these users needs to start the betting process depends on many factors: But in general, validators need several thousand DOT, and proposers need between 200 and 500 DOT.

Asset retention period

One of the questions that may arise for each user is: how long should the assets be locked? To answer this question, it is important to mention that each blockchain network has a different duration. Of course, this duration is relatively flexible and users can shorten or lengthen it according to their capabilities. It goes without saying that the longer the asset is locked, the higher the interest accrued on it. After this issuance, the final profitability of the investment process depends on two factors: the amount of capital locked and the duration of its blocking.

The biggest risk in betting

In addition to issues such as the protection of digital currencies, betting on a reliable platform, etc., betting involves other risks that should not be ignored. The most important of all the existing risks is the fluctuations in the prices of digital currencies; Because this market always experiences many ups and downs.

In the process of staking, the participants' earnings are calculated based on the digital currency they have staked. In fact, the income from this work does not depend on the US dollar or a fixed price. For example, let's say we have staked a digital currency if we have staked 10X, at the end of the year we will have 12X.

Suppose you bought digital currency X at the beginning of the year at a price of $1. If the price of this currency remains constant, you should have $12 at the end of the year; But what happens if the problem is not solved? Suppose the price of X drops by half. It is now the end of the year and your 12X is worth $6. If you spent $10 to buy 10X at the beginning of the year. Therefore, before betting, you should be aware of the stability of the digital currency and its potential.

Summary

In this article, we will try to highlight the most important points regarding betting and also present the best digital currencies to bet on. Today, Sermix offers its users the opportunity to work with more than 600 digital currencies. Digital currency market participants can buy a wide range of cryptocurrencies on this exchange and stake them on this exchange.