How Much Would You Earn With Crypto Staking?

A welcome derivative propelled by Proof-of-Stake technology, staking crypto is reportedly the next big thing in the contemporary and future crypto scape. Staking in crypto opens the door for a handy passive income in the form of crypto staking rewards, thereby pulling in a rising number of investors to the scene. After trading and HODLing, staking is the 3rd popular revenue earning avenue among the crypto holders today. It must be stressed here that the crypto staking market is growing by leaps and bounds- so much so that the staking scene has recently piqued to its first splendid ATH in the first quarter of 2022. How much would you be able to earn depends on the percentage of rewards and many other factors. On an average, you can expect something around 5% to 20% yield through crypto staking rewards.

How Much Can You Earn?

As mentioned above, several factors will decide your overall earning. A major factor is the percentage of yield you receive. As of mid-quarter of 2022, the average annual yield is around 6%-10%. So, if you stake in, say, $100,000 and if the yield percentage on staking rewards is 10%, then you will make a profit of $10,000.

Below is a list of different factors that will influence your earning as a staker.

Crypto staking platform APY

Crypto trading exchanges are the most frequented platforms for crypto staking. For those uninitiated, the APY (Annual Percentage Yield) rate varies from one exchange to another. The APY is the percentage of annual yield offered on staking coins. Some trading platforms offer a flat APY for almost all the coins. On the other hand, many other exchanges extend variable APY, depending on the type of coin.

Then, you have crypto staking pools. These are platforms where multiple coin holders participate in validating together through a cumulative collection of tokens. As it comprises multiple participants, a pool always divides the rewards among its members.

Given the distributed nature of the reward, individual pool members receive a lesser percentage of rewards than what you receive from an exchange.

Type of staking

Broadly speaking, you can choose between two methods- flexible and locked staking.

With locked staking, your holdings (coins) will be locked in for a specific period. In other words, if you opt for this type, you won't be able to withdraw your coins at any cost. In flexible crypto staking, you will have the flexibility to take out the staked coins even before the lock-in deadline. But, while flexible staking sounds convenient, it comes with lesser rewards than that of locked staking.

So, if you opt for locked staking, you will earn more percentage of crypto staking rewards than what you will get with flexible staking. If you are aiming for high income and you can afford to keep coins on hold for a lengthy period, choose locked staking.

Reward APY percentage on Altcoins

The APY of rewards is never the same for all crypto coins. Put simply, your selection of coins will determine how much you will earn from crypto staking.

You can expect around 5-6.5% to 20% APY on a bunch of major PoS coins, such as Ethereum, Polkadot, and Cardano. However, when it comes to smaller altcoins, you can expect around 100%+ crypto staking rewards.

Ethereum blockchain started to accept staking after the launch of Beacon Chain in 2020 December. You can expect around 4-5% APY with ETH. But the upcoming Merge upgrade is predicted to shoot up the ETH price as well as the rewards big time. Post Merge upgrade, ETH stakers might receive a significantly higher APY of 7%-12%.

Cardano and Solana are other popular altcoins among crypto stakers. As a Cardano staker, you can expect something around 11% yield. Regarding Solana, currently stakers receive around 5.8% annually. Then, there is Avalanche. If you stake on AVAX, you might receive a solid 8.56 staking yield.

Reward APY percentage on Stablecoins

Mention must be made of Terra here- the sweetheart of stablecoins and hence a staple favorite of crypto stakers. Stakers generally prefer to put money on stablecoins as they are backed by a stable asset and hence are less volatile than regular cryptocurrencies. Terra stakers had previously earned around 24% APY on rewards. However, things are slightly grim on Terra after the catastrophic financial attack and crypto crash in May 2022. So, if you have plans to stake Terra coins, wait for a while till it reaches its previous status at par with USD.

A major altcoin that has shown excellent APY in recent times is Polygon (19.5%).

Metaverse coins have shown to offer dramatically high yields on crypto staking. You can expect around 30% yield on crypto staking rewards with SAND (Sandbox) staking. AXS, the native token of Axie Infinity, offers an even higher APY. Leading crypto exchanges are extending a jaw-dropping 75% + APY on AXS staking rewards!

Would You Put Money on Crypto Staking?

Well, that depends largely on your crypto coin investment goals. It must be stressed here that crypto staking would need stakers to lock in a certain number of coins for a certain period of time. Also, some coins have fixed a "minimum amount" requirement for stakers. For example, the minimum staking requirement for Ethereum staking is 32 ETH.

If you cannot afford to keep your crypto holdings locked up for a specific time period- most importantly, if you are more interested in quick trading, crypto staking might not be compatible for you.

But, if you are eager to utilize a part of your crypto holdings for passive income and are flexible to keep them locked in, you can certainly try your hands.