Staking appears to be a no-brainer choice to put your crypto to work to earn extra $$. Most of us are enticed by 3%, 5%, 9%, or greater APY.  There are, however, a few key factors that complicate this decision: security, gas fees, and taxes implications.

1.  Security.  This varies with your method of staking.  Whether staked via CEX, liquid staking token, or otherwise..we all understand staking results in elevated security concerns.  Crypto is inherently risky, so in my opinion elevated security concerns do not concern me.

2. Gas fees.  Gas fees to stake can be prohibitive (especially on ethereum).  Staking on a CEX often don't have gas fees, making it an attractive option for small amounts.  Generally gas fees to stake are known upfront, quick maths can help one understand if this is prohibitive.

3. Tax implications.  This is why I will never stake on a CEX.  Rewards are taxed as income, and CEXs are not required to record cost bases or provide a 1099 for your interest, creating a tax nightmare.  Non-rebasing liquid staking tokens (such as RETH) capture staking within their price appreciating, meaning capital gains on sales are your only tax implications with this method.  Gas fees are associated with swapping to a liquid staking token, this can be mitigated by using a side chain or layer 2.  

All things considered, I chose to swap to a liquid staking token.  But once a ethereum spot ETF is approved, the increased security will warrant me forgoing the ~3% APY.