The best cryptocurrencies for steaking in 2022

Steaking into "shorts."

Before we get directly to the coins you can use to make money, it's important to briefly explain what steaking is in the crypto industry.

Simply put, stacking means blocking tokens in your wallet, external address, or smart contract for a certain period of time. During this period, which can range from a few minutes to several years, your coins will do all the work for you and bring you income, depending on the amount you have allocated to this activity.

Unlike your savings account at the bank, betting providers, DeFi protocols and blockchain networks will not lend your invested funds to others or invest them in other assets. Instead, blockchains that use the Proof-of-Stake (PoS) consensus mechanism or variants thereof (e.g., DPoS, NPoS) will use your coins as collateral to validate blocks or to delegate or assign your cryptocurrency to validators in the ecosystem.

Which cryptocurrencies are best suited for stacking?

1. the Graph (GRT).

The Graph has its own token called GRT, which has a great annual interest rate for staking. In fact, it's one of the best among the top 100 coins by market capitalization. You can either delegate your tokens to indexers - validators who work with nodes to index data and serve queries - or become an indexer yourself.

More information https://redot.com/blog/proof-of-stake-pos-best-coins-to-stake/

2. Axie Infinity (AXS)

Average annual return: 74.1%

Axie Infinity is not only a key player in the Play-to-Earn revolution, but also one of the most popular blockchain games on the market. In fact, when we previously explored how P2E games make money at AAX Academy, Axie

3. pancakeSwap (CAKE).

Average annual return: 48.26%

When Binance Smart Chain began gaining momentum as a competitor to Ethereum in the smart contract blockchain space, PancakeSwap was one of the first major projects to launch on top of the DLT network.

As an automated market maker (AMM) protocol, PancakeSwap used much of the code of the popular Uniswap AMM to build its platform. Soon after launch, however, it quickly became much more than just a food-themed Uniswap clone.