Maximise Cryptocurrency Returns with Staking

Finance with HDHANSFORD

If you are looking for ways to earn a passive income from your cryptocurrency investment, consider staking your coins for interest paid directly into your crypto wallet.

Locked staking is basically just a high interest term deposit, available on one of many cryptocurrency exchanges.

Lock in your funds with the exchange and in return, interest is paid into your wallet either daily, or at the end of the staking period. The interest paid ranges from 3% to 50% annually, but returns vary depending on the coins and trading platforms used.

The Rise of Shiba Inu: a $1,000 investment in Shiba Inu at the start of 2021 would be worth more than $2,000,000 by November the same year. Staking during this period would have increased the profits by up to $100,000.

Below are some of the most popular coins to stake and their average annual yields on Binance. Click the ticker to go directly to the trading platform, but if you are a new member, be sure to use this signup link for discounts .

  • Algorand (ALGO): 7 – 15%
  • Binance Coin (BNB): 5 – 9%
  • Cardano (ADA): 5 – 9%
  • Etherium (ETH): 20%
  • Elrond (EGLD): 10 – 15%
  • Pancake Swap (CAKE): 30 – 40%
  • Polkadot (DOT): 11 – 17%
  • Polygon (MATIC): 11 – 14%
  • Shiba Inu (SHIB): 3 – 6%
  • VeChain (VET): 3 – 6%
  • 1Inch (1INCH): 4 – 7%

There are many platforms which allow staking for cryptocurrency rewards, Binance just offers the highest API % yields (more earnings for the user). Other popular exchanges which support cryptocurrency staking include KuCoin, Coinbase and eToro.

This is an example of staking Polkadot on Binance. Simply select the duration and the amount you would like to stake, then view the summary generated the right. Once confirmed, the amount will be locked into the exchange and interest will be paid daily.

Be mindful if investing short term, as staked coins are unavailable to trade or sell until the stake period has ended. If investing long term, staking is the perfect way to resist any temptations to liquidate too early, while growing your bags at the same time.

Some cryptocurrency values can rise and fall by up to 50% in a matter of hours, so it is important to understand market cycles and what drives the highly volatile price changes, before deciding whether or not this investment is right for you. Buy low and sell high, not the opposite.

My favourite exchanges:

Binance (Global)

KuCoin (Global)

Cointree (Australia) (Global)

Published by Harry Hansford

Australian in Spain with a passion for all things sport, health, fitnes & nature. Go deeper to find out more.

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