Building A Passive Income Machine – Layer 1s With Exceptionally High Staking Rewards
A Great Time To Start
When it comes to Proof-of-Stake projects, investors often wish they had bought projects such as Solana and Polkadot when they first launched. Considering the high APR, it would have been a killer move. Unfortunately, you can’t go back in time. However, you can apply a similar form of wisdom, regarding the current up-and-coming Proof-of-Stake projects. Furthermore, it’s probably the best time to consider such a strategy.
Altcoins have only just left the starting line, and there is a long race ahead. Furthermore, up-and-coming projects are yet to make their mark, as well as enter into true price discovery. It’s a great time to begin building positions, especially if the coins and tokens in question are Proof-of-Stake. Polkadot has a fairly high staking reward of approximately 14%, while Cosmos (ATOM) has an even higher APR of approximately 15%.
These are pretty juicy rewards. However, the projects I am addressing today, offer even higher rewards. Depending on where you choose to stake your coins, the abovementioned figures can fluctuate. Both of these projects are still in the formative stages of adoption and growth, further aiding in future profitability. A project that is yet to step into its own has the highest income-generative potential. However, this is only true if it goes on to achieve that end.
Staking Power
The first project has perhaps begun garnering some attention. However, it is still very much below the radar. Taraxa offers an extremely attractive APR, especially when compared to other layer 1 Proof-of-Stake chains. The current APR of 17.6% has the potential to create a potent “compounding machine”. Compounding these rewards over two years could turn out to be a very lucrative move.
This is especially true when you consider that the TARA price is likely to increase in multiples when compared to other Proof-of-Stake chains. This creates a double whammy, essentially the compounding of an existing compounding dynamic. This is a powerful dynamic to set in motion going into a bull market. However, third-party risks do exist. However, in certain instances, the execution can be non-custodial based.
This helps to offset and mitigate risks. However, risk can never be entirely removed. This is a reality that investors need to accept and embrace. Then we have, Findora! This is a recent micro-cap altcoin pick. FRA is still heavily undervalued, in my opinion. Considering that it’s a layer 1 with privacy features, as well as a recent shift to gaming. The launch of Game Specific Chains is yet to be absorbed and realized by the market.
Findora is currently offering a 21.35% staking reward and can be staked directly from the official Findora wallet, which is available for download on the official Findora website. Compounding the staking rewards of these two projects over the next two years is likely to be a fairly smart move. Given the fact that both projects are still below the $100 million market cap mark, there’s a strong possibility of enormous returns.
Final Thoughts
It’s important to note that these projects have a high risk/reward ratio. However, in the same breath, numerous boxes are being ticked. This is what I focus on.
Micro-cap projects
Unique layer 1 opportunities
Incredibly low market cap valuations
Technologically positioned for the expected trends of 2025
As always, to each his own. This should not be considered investment advice. Always conduct your own research and take responsibility for your investment decisions. See you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.