Market appreciation of assets is one thing, but crypto that pays dividends is a whole new ballgame. Staking crypto assets is becoming increasingly popular, and investors are taking notice. Dapps like Compound and operations like Nexo make a big bold statement to consumers. Staking digital assets and mixing that business with loans and lines of credit has further solidified the crypto economy.

High Yield Staking

It’s no secret that the crypto market is extremely volatile. You can win big or lose big as a trader. The same goes for people buying and holding large amounts of various digital assets. The ability to stake coins in order to earn interest can both maximize returns and provide investors with insurance. Whether the price of the coin goes up or down, interest is earned. 

Compare that way of thinking to how a dividend investor approaches the stock market. And so far anyway, consumers have seen that companies are offering much higher yields for staking crypto assets than investors would see with most dividend stocks. 

Nexo Wallet

Nexo is much more than a wallet. It is one of the apps that you can use to compound certain digital assets. With Nexo, you stake stablecoins, and/or the Nexo coin. And get this: When staking Nexo, you are offered a whopping 30 percent interest rate! Of course, the value of the Nexo coin might or might not increase alongside that ton of interest you receive. 

That’s why staking stablecoins with this particular platform seems much more, well, stable. And it is an opportunity that you just don’t get with the traditional banking system. If you’re reading this as a crypto investor who doesn’t make a habit of holding stablecoins, you’re about to find out a reason why you want to do it now. 

You see, when staking stablecoins on the Nexo platform, your return is 8 percent. Not only that, but the company pays out the interest daily. I have personally tested this platform with a minimal investment, just to get my feet wet in a different corner of the crypto market. 

Upon depositing stablecoins to earn interest, you are also provided with a flexible line of credit that can be tapped at any time. Nexo is one of those platforms that shows consumers that full-scale decentralized banks are on the way. 

You can also deposit other major digital assets to Nexo. While you aren’t able to stake them currently like you can with the stablecoins, those deposits do increase your available line of credit. Can you see how the crypto credit economy is tied to the crypto investing world? That intertwined relationship creates a much more powerful crypto economy.

Nexo is also going to be offering a credit card soon at a 5.9 percent interest rate, allowing you to spend funds from your secured line of credit. If you think about it for a minute, this bypasses the traditional banking system altogether, save for the fact that you would be purchasing the crypto with cash to begin with. 

To be fair, there is still much room for improvement. Also to be fair, traditional banks have been around for centuries., and the growing crypto economy is still in its infancy. Everything related to the development of digital assets has been moving along rapidly. 

People talk about all of the coins that fizzle and the fact that there are scams out there. What naysayers tend not to look at is that there is a reason why people are heavily involved in trying to develop new coins. There is a reason for all of the “hype.” The crypto market is red hot. Its volatility is due to its increasing popularity and the fact that the crypto economy still has many growth spurts to go before it is more solid. 

Coins and companies need a strong track record before they get the full trust of consumers. But with each new development, like staking crypto and lines of credit, people are getting excited. Who wouldn’t be excited about staking stablecoins for an 8 percent return? You can’t expect that type of interest from a traditional bank. 

Sure, you’re purchasing stablecoins, but these coins are like digital dollars. It’s basically like you’re depositing cash with Nexo but getting an 8 percent return vs the .01 percent return you might get at a brick and mortar bank. Even the best high yield savings account is not even going to come close to giving you half the interest that Nexo would give you. And then there is again the fact that Nexo pays interest out to you daily. 

Staking Other Crypto Assets

There are an increasing number of other platforms that allow investors to stake other digital assets as well. If you’re going to hold crypto in a wallet, you might as well be earning interest on it, right? And if you find that some of your assets can’t be staked, just wait. Companies are making the staking process available for more and more assets, so it’s just a matter of time. 

Coinbase just recently announced its partnership with Tezos, allowing investors to stake Tezos after the coins have been in their wallets for a 45 day holding period. To boot, they added Tezos to Coinbase Earn, which enabled investors to make $6 worth of free Tezos coins. 

Let’s say that like me, you want to get your feet wet with staking, giving it a shot before you jump into the deep end. Coinbase allows you to do it for free. As for Nexo, I had to familiarize myself with a new company, Nexo. But I was already established with Coinbase. And believe you me, I have earned my free $6 worth of Tezos. It is in its holding period and already shows me how much I’m making with the 5.6 percent interest. 

I have been primarily holding my crypto assets in two wallets: Exodus and Trust. I have other wallets for coins that can’t be stored in either of those two wallets. I started with Coinbase originally, and I also have a Coinbase Pro account. I have yet to invest in a hardware wallet, partly because I have continued to be happy with my explorations of the digital alternatives. 

I do, however, like the idea of a hardware wallet. I think they are really cool, and my primary reason for holding off at the moment is the extra expense. I figure as I continue to learn more about all aspects of blockchain technology and consider myself a more seasoned investor in the crypto space, I will purchase a hardware wallet.  

Do Your Due Diligence

I have mentioned a little about my journey for a reason. I am a meticulous person, and after doing my own research, I found Nexo to be one of the best opportunities out there for staking crypto. While no company at this point is going to have a lengthy track record, Nexo presents itself well as an industry leader in this corner of the crypto economy. 

I did first try out staking Dai with the Dapp Compound. While the test went well, I wasn’t fascinated with the platform. I desired to participate in a more full-scale operation. The Nexo Wallet ticks that box for me. And I hope that by sharing this information, others take advantage of staking their crypto for a better ROI, too. 

Be sure to do your own due diligence. As I mentioned, there are quite a few companies out there right now offering staking opportunities. You can bet that a certain small percentage of them aren’t to be trusted. Look for companies and apps with great reputations and endorsements. 

And remember, if it sounds too good to be true.... Yet the 8 percent interest on stablecoins almost sounds too good to be true, doesn’t it? That’s the difference between the crypto economy and traditional banking. And if you think that interest rate seems high, look at what some of the other staking platforms are offering for certain types of digital assets. 

Just to make your eyes pop for a second, I’ll let you in on the fact that a platform called “Staked” currently offers a 123.6 percent interest rate on Livepeer coin. I also wanted to mention that Dash and Decred are also two coins that are popular when it comes to staking digital assets. 

Trying to trade the crypto market may or may not be your cup of tea. But to be sure, you have a great opportunity to make good money staking your crypto as well. Maybe you’ve already heard about this opportunity, but you haven’t tried out Nexo. Or perhaps you didn’t know about the new partnership between Coinbase and Nexo. 

It seems that news like this is coming out in daily press releases. The crypto economy is moving forward quickly, and who knows what’s next. Where you stake your coins is up to you, but familiarize yourself with the various platforms available and what they offer. Cheers to higher returns. Staking crypto sure makes this dividend investor happy.