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You are looking to invest in crypto and are probably weighing your options from different ways to earn. Staking is one of the most lucrative investment options in the crypto world. It involves collateralizing assets in wallets, exchanges, or staking platforms for a predetermined period, after which you can earn incomes in the form of rewards.
There are many staking assets in the crypto and Defi world that offer excellent rewarding opportunities. However, identifying the right asset may be a problem for new investors. This guide will look into the top 5 Defi tokens to stake based on the rewards offered by each.
CAKE is the native token of a decentralized exchange called PancakeSwap. Due to its use in the PancakeSwap, this token has successfully gained vast demand, with its market cap standing at nearly $2 billion.
It has been an excellent staking asset for many investors, with some claiming to earn super high rewards. How can you successfully stake CAKE tokens to stand a chance of earning a reward? Here are a few steps to consider;
Transfer some CAKE and BNB to either Metamask, Trust, or other wallets supported by Pancakeswap and connect your wallet to the PancakeSwap DEX.
According to a staking pool reward calculator, the annualized APY's in staking cake currently stands at 75%.
Sushiswap is another platform offering excellent rewards on staking the native token SUSHI. This asset helps in the provision of DEX services and has garnered vast adoption. For instance, the current market cap of SUSHI, according to coinmarketcap, is $800 million. As a major alternative to UniSwap, Sushiswap has very high prospects for investors, and its token is a major beneficiary.
As a Defi asset, SUSHI is among the best tokens to stake and earn rewards based on its staking. According to some staking calculators, a user can earn an annualized APY of 17.61%, which translates into $176 if the investment is $1k. How can a user effectively stake a SUSHI token? Here is a short guide;
DYP is Defi Yield Protocol's native token, introduced with a vast array of opportunities to earn income. It's an excellent staking Defi token, and investors can benefit from the staking returns. DYP is paired with different assets in four pools: DYP-ETH, DYP-USDC, DYP-WBTC, and DYP-USDT.
The process of staking the coins is relatively simple and involves the following steps;
Note; As mentioned earlier, there are four staking options in each pool. The shortest is a three-day locking period with rewards starting from 30k DYP. The second is the 30 days locking period with 45k DYP as rewards. There is a 60 day locking for 75k DYP reward and 90 days locking for 100k DYP.
SNX is another profitable Defi tokens to stake and earn excellent rewards. SNX is a token powering the Synthetix network and providing options for investors to earn via investing in SYNTH tokens.
The Synthetix network leverages the PoS consensus when releasing new tokens. Generally, SNX is a good staking asset, with rewards standing at 23.57%. If you invest $1k, you earn $235 by the end of the year. But how can you effectively stake the SNX token? Here are a few steps;
Luna is another excellent Defi token providing ample passive income-earning opportunities for the average user. As a product of the Terra Defi network, this token helps in running the primary services within the network. Terra is a Defi network introduced to leverage fiat pegged stablecoins to power the global payment networks.
The tokens' rewarding rate is 12%, meaning, if a person stakes $1k of Luna tokens, they earn an average of $10 monthly. To stake Luna, you need to follow the following steps closely;
Identifying the right asset to stake and earn excellent rewards is hard for new investors. However, this guide has looked at the top assets you can consider when investing in crypto staking. These assets include CAKE, SUSHI, DYP, SNX, and Luna, all of which offer excellent APYs for the users. DYP is especially an interesting asset since it provides a vast array of options to make it easy for investors to stake.
Other assets are excellent tools for staking, including coins like Ethereum, Dot, and ADA, all of which can offer excellent rewards for investors. You must research the assets before making investment decisions.
DISCLAIMER: Nothing in this article constitutes professional investment advice and should be used for informational purposes only. Please do your own thorough research before making any investments.
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