By James Davis
Most crypto investors are always looking for investments that offer the highest yields. In this guide, we will explore some of the cryptocurrencies with the most lucrative returns, but first, let’s learn how a staking yield is calculated.
How to Calculate Staking Yields
It is important to know how to calculate cryptocurrency staking yields so you can estimate your potential returns. To accurately determine how much you stand to profit within a certain staking period, you need to consider aspects like annual percentage yield (APY) and staking fees.
Crypto Assets Offering Lucrative Yields in 2023
Injective Protocol (INJ)
Injective Protocol, a popular interoperable platform, allows users to trade cryptocurrencies on various blockchains like Cosmos and Ethereum. The protocol offers fast transactions at low costs. Holders of Injective Protocol’s native token INJ can stake their holdings to earn passive income. INJ generates an APY of 20%.
Where to Stake INJ
Trust Wallet: Besides offering crypto storage services, Trust Wallet comes with an in-app staking feature, allowing users to stake multiple cryptocurrencies, including INJ.
Keplr wallet: This is another wallet that supports INJ staking. It is available as a mobile app and browser extension.
Injective Hub: This platform lets you stake your INJ directly on the Injective Protocol.
Polkadot (DOT)
Polkadot is one of the few blockchains embracing interoperability. It allows developers to build mini-chains known as parachains, which have the ability to interact with each other. Polkadot’s native crypto asset, DOT, can be staked on various platforms, giving holders an APY of 14%.
Where to Stake DOT
Binance: Many know Binance as the largest crypto trading platform. But did you know it provides staking services as well? Through the exchange’s “Earn” functionality, you can stake DOT and other supported crypto assets.
Coinbase: Another trusted exchange supporting crypto staking is Coinbase. That said, you can stake your DOT tokens on this trading platform.
Kraken: What makes Kraken a perfect platform for staking DOT is that it is regulatory compliant in all the regions where it has a presence.
Kusama (KSM)
kusama serves as a testnet for Polkadot, allowing Web3 developers to test their projects before deploying them on Polkadot. While most testnets do not have native tokens, Kusama, on the other hand, has its KSM token, which holders can stake to receive an annual percentage rate of 12.8%.
Where to Stake KSM
Kraken: As mentioned, Kraken is a regulatory-compliant exchange, making it a safe platform for staking crypto assets, including KSM.
Trust Wallet: The Binance-owned crypto wallet lets you purchase KSM and stake it in exchange for passive income.
Coinbase: Being the largest crypto exchange in the United States, Coinbase offers various services such as staking. Besides DOT, you can also stake KSM.
Casper Network (CSPR)
Casper Network focuses on onboarding traditional institutions to blockchain. Its target customers are able to customize the blockchain to suit their specific needs. Holders of Casper Network’s native token, CSPR, can stake their holdings to earn an annual percentage yield of 9.4%.
Where to Stake CSPR
Uphold: This American exchange is perfect for staking CSPR since it has secured licenses with relevant authorities.
Casper website: If you wish to stake CSPR directly on Casper Network, then you can do it on the blockchain’s official website.
Avalanche (AVAX)
Avalanche has become popular among crypto users due to its ability to process transactions quickly and cheaply. Several decentralized apps already live on this blockchain, most of which run on Avalanche’s mini-chains known as subnets. Note that you can stake AVAX, the native token of Avalanche, to receive an APY of 8.7%.
Where to Stake AVAX
Avalanche Wallet: You don’t have to stake AVAX on a third-party platform. Instead, you can do it via Avalanche’s self-developed crypto wallet.
Ankr: This Web3 platform makes it easy for newbies to stake AVAX since its interface is user-friendly.
Conclusion
One of the advantages of crypto staking is that you are able to earn rewards without breaking a sweat. However, like any other crypto-related venture, staking comes with its own risks. So, do your research before investing.