“Give a man a steak, and he will eat for a day. But teach a man to stake, and he will eat forever.”

This quote can’t be attributed to anyone in particular. But it has become popularized by the crypto community over the past year.

Staking enables crypto holders to earn rewards in exchange for their participation in proof-of-stake blockchain networks.

In short, by staking tokens, crypto investors are making protocols function and are getting huge yields simultaneously.

This is silencing criticism that income potential from cryptos is uncertain and has led many to change their perception toward cryptos as investments.

In fact, cryptos now beat dividend bonds and stocks in their ability to generate yield.

A Better Source of Income

Holding dividend stocks and bonds is starting to look unattractive in relation to staking cryptos.

The average annual reward rate for yield-bearing cryptos currently stands at 15%.

This dwarfs the average yield of U.S. investment-grade bonds and S&P 500 Index dividend-paying stocks.

crypto yields vs. bonds and stocks graph

(Sources: StakingRewards.com, Moody’s.)

Keep in mind, this is just the average yield. There are more than a handful of cryptos with annual rewards rates nearing 100%.

Grab Your Crypto Rewards Now

For investors seeking yield, or those that already hold cryptos, staking offers a new way to supercharge returns over the long term.

With staking, you can add an income stream while staying invested to capture more gains from potential price increases.

And there are plenty of rewards to be had. According to blockchain infrastructure company Staked, total staking rewards are expected to reach $18.9 billion this year, up 89% from 2020.

As crypto adoption accelerates, the amount of rewards should only increase. That’s one reason why it’s a great time to invest in cryptos.

My colleague Ian King is here to guide you through the crypto markets. You can check out his Next Wave Crypto Fortunes service by clicking here.


Steve Fernandez

Research Analyst, Strategic Fortunes