You can build your wealth in various ways, but the approach of investing in cryptocurrency, Metaverse games and other blockchain assets that produce passive income is time tested. This income can be in form of interest received through staking or lending. The best crypto staking strategy is based on a low cost, a well-mixed portfolio locked up that tend to produce an average market return without much stress or thinking.
The crypto staking strategy is based on the theory that low-cost crypto assets will produce a substantial staking interest. An easy way to take advantage of the crypto staking strategy is to buy a crypto asset with strong potential and that provide a high Annual per yield percentage (APY%). Staked it for a given period. Let time do the rest.
Crypto staking strategy is best for those who are not in a rush to trade their crypto assets – The Hodlers. They can let their investment sit and receive Weekly, Monthly or even yearly interest on them.
Crypto Staking strategy
The Crypto staking strategy calls for buying long term holding balanced across the different types of Market capitalisation sizes.
Here are top crypto staking strategy rules to abide by if you want to earn a massive return.
Coin potential over APY –Don’t be tempted by the interest rate only, make research on the crypto asset project itself.
Crypto-assets Security over anything else -Staked your crypto assets with the most reliable platform rather than being swayed by high-interest rates offer by a non-reputation website.
Reinvest your Staking reward: Don’t panic over the staked Crypto assets price fluctuations no matter the level of distress
Invest only when you intend to Hodl – Never sell your Holding rather reinvest them
Crypto staking strategy safeguards you from acting on your own emotion. It requires no commitment and it’s inexpensive.
The chart below shows the growth of crypto staking over the years within the cryptocurrency ecosystem.
Cryptocurrency staking price chart
With the increase in awareness of crypto staking as a low effort input, low-risk strategy to earn massive gains. The proof of stake industry has grown over 1550% within a year.
At the time of writing, the value of all crypto staked is over 400 billion dollars, which has risen from 20 billion dollars in 2020. Undeniable staking is a place where smart long term investors are heading to.
The History of the Concept.
Many investors and blockchain developers are familiar with this concept thanks to Sunny King and Scout Nedal who created the first proof of stake cryptocurrency in 2012.
Sunny King and Scout Nedal built their first cryptocurrency inspired by Bitcoin on proof of stake consensual protocol helping investors to make more money with their staked crypto assets while protecting the ecosystem.
During the early adoption of Bitcoin, Despite being triumphant, King sunny realized some of the limitations of Bitcoin proof of work consensual mechanism, its massive energy consumption.
In response to that, King Sunny took it as a responsibility to find another way to validate blockchain transactions that will be safer and more secure. He manages to build a proof of stake consensus mechanism, an algorithm that is capable of replacing proof of work.
How do I earn passively in the crypto industry
There are three legit major strategies to earn passively within the crypto industry.
1) By Staking:
Any cryptocurrency built on proof of stake can be staked, for example, Solana, Cardano, Polkadot among others.
Here are the top crypto assets that are being staked at the moment and their staking reward a.k.a Annual per yield percentages.
Investors who are aware of staking are also familiar with lending as they both have basic similarities which are making your crypto assets bring some extra cash for you.
However, there is a need for you to know that one is risker than the other, yeah you guess right! Lending is considered risky, why tho? Unlike staking that you only need to lock up your crypto assets into the protocol, your crypto is still in your wallet, Lending requires you to sign out your ownership to your coin over some time, in return you will be paid for your service.
Okay, I haven’t told you why is considered a risky investment, there might be some chances the borrower doesn’t return your coin, Don’t get discouraged yet!! Several well reputable platforms have been established to mitigate this risk.
3) Become a Liquidity provider.
As a liquidity provider, you would have to fund a liquidity pool with your crypto assets to enable trading on the exchange and earn passively for your service.
A good example of this is, Uniswap, Sushiswap, Binance Liquidswap, Pancakeswap etc
Becoming a Liquidity provider can be tricky especially when you start at first, so I recommend starting with Binance Liquidswap.
I shy away from the Liquidity pool built on the Etherum blockchain, e.g Uniswap, because of excessive gas fees.
Compounding Crypto Staking Strategy
If there is a hidden formula to earn massive gains via Staking, it will be Compounding. It’s a cheat that any investors wanting to earn massive gain shouldn’t undermine.
It’s similar to the ‘dump money’ strategy, investor reinvests their staking reward over the year, It can crush the averaging earning of Hodl investors within the period.
With Compounding Strategy, you stand a chance to double the investment yield of others.
Short Term Crypto Staking strategy
I understand this might be a bit confusing.
The majority of crypto investors have the belief that Staking is a long term investment, they are partially right.
Staking is not necessary a long term investment, it can be a short term investment as well.
However, this depends on your definition of short term investment, in my view, if you’re open to receiving a 30-100% yield on your investment without actually doing anything within 10 days, then staking can do that as well.
This is the Strategy I use during the bull market, especially when I want to make a quick massive gain in a short time without actually exposing myself to the detrimental risk of Crypto trading.
You should know this is a bit risker than the long term staking but if successful, it can earn you a massive return.
You probably thinking about what the short term investment risk could be. Well, it is kind of clear that a lot can happen within 10 days of staking especially in the crypto ecosystem where volatility is a dear friend.
Suppose your crypto assets dipped more than the interest rate you will receive after the staking tenure (10 days), you would be at a loss.
This is the reason this strategy works best in the bull market.
At the time of writing this post, Axie infinity offer over 111% return on your investment with a 10-day staking cycle, which is quite a tangible offer for just locking your assets within a protocol.
To participate in short term staking, go to Binance earn feature to begin your Staking Journey.
One of the famous criticism you might hear regarding Crypto staking is denying one the right to sell during a bull matter, but that is less harmful of risk than it is said to be.
It’s barely an issue when a staking portfolio is spread among solid, diversified crypto assets and you actually thinking of a long term staking, since crypto assests are famous for breaking all time high annually.
Bitcoin, Ethereum, Cardano, Polkadot are solid projects that still maintain an annual price uptrend movement despite the social media panic during few months of a bearish cycle.
Is Crypto staking right for me?
You can best enjoy the benefits of crypto staking if you don’t want to be addicted studying the charts and News.
Your investment can settle down to working for you because a long term plan is in place.
No matter who you are, it’s quite easy to check your portfolio frequently and panic over the unforeseen dip, but staking enabless you to eliminate this fear.
A few checks here and there, with compounding on your staked assets will return a massive gain for you.
So many investors, including me in my early days in crypto have sold out ideal portfolios for the fear of missing out on the next big one.