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I know many folks who were completely disrespected by their management and quit their jobs because they rarely if ever got recognition for their talent. There are ways to do this without making everyone else feel inadequate.
Don't make the same mistake. You will lose good people on your teams a lot faster than by any other form of negligence.
As for how you give sincere praise... don't force it. It should come naturally, and if it does, don't keep it in.
Ego is a big problem in this respect, I think. There are many unscrupulous people who think that, just because they are manager, they shouldn't bestow praise on their underlings because it undermines their perceived "power". Or something along those lines.
Okay, I realize this is a pretty work-centric answer, but I think you can apply it fairly well to non-work situations.
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"There are finer fish in the sea than have ever been caught." -- Irish proverb
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