Let’s say you:
- Have registered on a cryptocurrency exchange;
- Have funded your account (deposit is credited to your spot wallet);
- Want to choose a cryptocurrency for staking. But how?
A lot (if not everything) depends on your financial goals and risk preferences. Here are three approaches to finding the most profitable coins for staking:
1. An option with low-risk and stable returns. This applies to staking Tether (USDT) or USD Coin (USDC). Both of these stablecoins are pegged to the US dollar, so they have low volatility. The typical APY for staking Tether and/or USDC ranges from 3% to 15%, depending on the platform.
2. Staking cryptocurrencies with strong long-term prospects. These include coins like Polygon (MATIC) and Cardano (ADA), which are infrastructure projects with strong development teams and growing ecosystems. With these cryptocurrencies, investors can:
- earn rewards from staking;
- benefit from potential price growth in the long term (if the market is bullish).
3. Promotional offers. These are often used to promote new projects and attract new users. For example, in May 2024, Huobi offered a chance to stake USDT for one week with a 100% APY. With such an APY, the income for one week would be about 1.38% (due to compound interest). Of course, users cannot just do this every week — the offer has its limitations. Another option: an exchange might offer its own tokens to make the offer more attractive. For instance, Gate often rewards users with GT (Gate Token) in addition to staking rewards for other tokens. For example, staking USDT with an APY of 9.88% could yield an additional 8.87% in GT tokens.
Which option to choose is up to you. But remember: the higher the potential return, the greater the risks.
