Know Where to Stake Your Crypto to Get the Best Passive Rewards

in hive-126009 •  24 days ago  (edited)

Recently, I came across an interesting and very informative post by @tomoyan where he talks about returns on staking ATOM and XTZ.

He rightly exposed Atomic wallet for incorrectly displaying RoI for ATOM & XTZ as 10% & 7% respectively; whereas he gets only 5% on XTZ and 8.33% on Cosmos ATOM in reality.

He also warns you of slashing risks on staking ATOM that can wipe off your entire stake.

With so many cryptocurrencies available for staking these days, it becomes a daunting task to decide where to invest to generate best passive income alongside accumulating a good appreciative asset.

Personally, I use the following tool to explore and compare staking potential of a crypto asset:

StakingRewards.com


StakingRewards is a free to use tool to compare and calculate your potential rewards on about 112 different crypto assets. The data is gathered from 318 qualified providers.

They track all these crypto assets for their current price, reward, RoI, total staked coins and several other related stats. It also tells you about the risks involved (like that of slashing risk for Cosmos ATOM), other related fee (of providers), etc.

image.png

It also gives you a graphical representation of reward rate.
This website also guide you on how to stake and provides a link to buy &/or stake an asset too.

But it's not easy for everyone to make sense from so much of data to arrive on a balanced and well vetted decision for investing in an asset. So it alsotries to make it easy by assigning a score to every asset. The score takes into account:

  1. Ease of Staking,
  2. Associated Risks and
  3. Reward Rates.

(To give you an idea,, ATOM's current score is 78.50% and XTZ is 80.67%)

Anomaly of Atomic Wallet Displayed Rates


It's my understanding that staking rewards depends on number of dynamic parameters including the total no. of coins staked, block time, total amount staked by an individual. (Sometimes different rates are applicable E.g. for AWC it's only 17% below 1000 AWC whereas it's 23% for overe 10,000 AWC).

For ATOM staking reward starts to decline over 66% of staked coin (I'll need to confirm this figure as I'm just putting up from my memory atm). Total ATOM staked at the time of writing is 71.46%. So this is a dynamic no. can go in either direction.

StakingRewards use its own predictive algorithm to display the potential reward but it's not guaranteed and only a probable RoI.

Secondly, ATOM staking rewards are distributed on a daily basis whereas Tezos distribute on a monthly basis. Check Staking Providers section on the website. There is a button at the top right to enable Compounding of reward rate.

After I enable compunding, I see some difference.
Stakin provides 8.98% rate for ATOM and that turns up to 9.36% on compunding.

For Tezos, Binance Staking gives 6.07% reward which becomes 6.25% on compunding.

image.png

The other thing to take note of is Adjusted Rewards.
Average staking reward for ATOM is 8.26%. Add to it the adjusted reward of 1.87%. (ATOM has an annual dilution of 6.39%)

Considering all these, I'd not say Atomic Wallet displayed rates to be deceptive but yes, they should certainly add some foot note to make users more aware about those figures.

Overall, just like the crypto market is very volatie in nature, so is the Staking returns too, in my opinion. And it's not easy to predict what exactly we'll get after staking our coins. We can only make some approximations on the basis of given data.

Choose wisely!

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He rightly exposed Atomic wallet for incorrectly displaying RoI for ATOM & XTZ as 10% & 7% respectively; whereas he gets only 5% on XTZ and 8.33% on Cosmos ATOM in reality.

Wow that sucks. Very interesting post and website to actually COMPARE what is available. As it is a new industry apps/people tend to overpromise and as you stated, if you check, you get less than they said you would.

Thanks @xyzashu.

Thanks for your more indept analysis here. There is even another staking platform i learnt from @belemo, Vite Tokens, interesting stuff, its hardly talked about though.

I like my Hive staking, the others can shift.

I cant wait for lending to become live on Hive

I haven't looked into Vite yet. But thanks for the heads up!

In fact, I'm still slightly reluctant towards DAG coins as I don't understand it fully. I had seen some of my friends losing their airdropped GBYTE after a year, due to confusion in wallet back up process. But yes, I should delve into it deeper.

that's cool, i'll have to check it out... i have some CRO and CEL but i'm concerned the price may crash after the staking incentives end. what's your take? ty

Well, you may be right but I don't see that coming soon. Although CRO & CEL are on their ATH levels these days but considering the aggressive marketing, I see Crypto.com Exchange evolving into the next big Crypto-Exchange, that will give a good competition to the biggies. So it will keep adding new coins to its platform and generating new interest towards its Syndicate discounts. This should at least maintain CRO prices at current levels. CRO may also see new use cases over time. (All these are my personal fantasies 😜).

Regarding CEL, I don't know much but there is qute a competition in De-Fi & Ce-Fi space these days. However, this field has an immense potential yet to be tapped, so everyone has a huge potential to grow in the short to mid term.

Personally, I'll exit from CRO in the month end, if prices are good ;)

I'm confused, i thought you were touting CRO, but you will leave? Well they are certainly holding up well this week (both CEL & CRO). I added some LINK and BAT today. peace

Well, I've different reasons for it. I don't have anough funds to stake CRO and also participate in Syndicate discount events. I saw Cardano was over-subscribed by over 58 times. So I anticipated Bitcoin event at the month end will be over-subscribed even more. Therefore, I don't expect much by investing $200 CRO to buy BTC. Therefore, I'll rather sell it a little before the event to reap the best I can.

But nothing bad in staking it. (However, MCO seems to be on a free fall perhaps because of Wirecard's missing 2.1 billion dollars).

Wirecard? thanks, i'll check it out, yeah i did stake some mco, which hasn't been good the last week, but we'll see. CEL has been strong up until a dip the past hour.
take care.

Im also staking AWC and Tezos on atomic wallet and loving it, these premiums wont last forever

Yeah, it's good that you're making the best of these opportunities.