How to stake crypto profitably?

There is a ton of information on staking online; some are amazingly good while some can be terribly confusing. Here, we provide you with the perspective from an investor’s point of view and advise you on what to look for when researching and during your staking process.

Disclaimer: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own research and analysis before making any investment based on your personal circumstances.

What Is Staking?

Well, a stake is a form of voting right you earn after buying a certain amount of cryptocurrency coin which will allow you to vote. The size of your staking pool of coins will determine the power of your vote. Investors use this to push the companies to develop the areas they are interested in. The more coins you have in your staking pool, the more voting rights you get.
Secondly, stake investors earn annual or monthly or quarterly returns from the company which they have staked in.

7 Things You Must Know About Staking

1. Risk

Staking gives you an excellent deal of rewards as well as the risk of loss.

  • Price fluctuation: For example, you might stake on a coin, and its value drops dramatically. This means that your stake value will drop a similar percentage as the coin value drops.
  • Value Changes: Secondly, some companies tend to change staking rewards from time to time. They get away with these selfish acts since cryptocurrency is not as transparent as stock markets. A good example is Tron which changed their trading rewards from 7% to less than 4%.
  • Delisting of Coins: Another risk is the delisting of coins. If your coin platform holding your stake is delisted, it means that you will lose the amount of money staked. Companies that are not doing so well or violate the terms of service often get delisted.
  • Lack of solid backing of the staked coin: Coins without physical backing run the risk of getting blacklisted or traded out in the market. If this happens, you will lose your stake.
  • The lock-up period: The lock-up period is the time it takes to convert your coin stakes back into cash. Tron has a lock-up period of 3 days. The value of stakes can fall during the lock-up period since the crypto market fluctuates considerably.

2. Staking vs. Dividends

There are a lot of similarities between dividends and stakes. However, there are differences between investing in the two.
Firstly, dividends earn investors less money than a similar amount of stakes on cryptocurrency. This is because there is a physical backing to dividends on stocks. Furthermore, blue chip stocks follow strict regulations. This highly reduces the price fluctuations in the market.
Therefore, stock dividends are easier to get into than crypto stakes. Stock companies are also transparent on the risks and profit involved, which reduces the responsibility of the investor since there is less management.

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3. Staking Vs. SMART Bots

Firstly, SMART Bots are more profitable than staking. Secondly, there are fewer risks involved than staking since the market is less volatile than the cryptocurrency market.

Just like dividends, SMART Bots require less management in terms of research and education from investors. SMART Bots are more accessible to set up than staking.

Just like staking, investing in SMART Bots requires you to have a sum of capital when embarking on this journey .

4. Important Tools in Staking

Well, to manage your stake research and trading, you need some efficient tools to work with. Here are our top picks.

  • For comparison and analysis processes, it is advisable to use; 
  • You also need a tool to analyze the price history, and it is advisable to use, although there are a bunch of similar tools online.
  • Capital money; yes, you will need initial finance to buy stakes.
  • Any other information can be traced on Google, including how-to videos.

5. Staking gains: Is staking worth the effort?

Well. Let us have a look at TRX. In 2018, the yearly stake yield of TRX was 7.00% which dropped to 4.37% in 2019.

Its yearly prices changed from 63% in 2018 to 17% in 2019.

On the contrary, let’s have a look at the dividends in AAPL, which is a bullish stock in a less volatile market.

In 2018, the yearly dividend yield was 5.90% which dropped to 4.8% in 2019 one quarter to go.

Therefore, dividends are easy to manage, which, unlike crypto stakes, requires keen management due to volatility. However, when done correctly, stakes can earn you better returns in the short term than dividends.

6. The Upsides

There are several advantages to staking, dividends, and SMART Bots trading.

Firstly, it is an excellent source of passive income if you make it a side hustle. The investment also grows over time as it accumulates. This is ideal if you master the art of reading the market.

It requires little effort, unlike your 9 to 5 job. Lastly, it is the right way of saving your money since you cannot access your money when you own stakes. This reduces any tendency of overspending or wasting your money. Lastly, it gives you a money management mindset over the years.

7. General tips

Before you venture into staking, please have a look at these final tips.

  • Analyze your desired asset price history. This will help you predict the possible price movement in the future. Pay attention to the entire process in general and not the profit alone.
  • Create a solid ground to your decisions by conducting thorough research on the process of staking.
  • If staking is not working for you, please venture into other methods of earning passively other than staking. This can only be achieved if you stake in what you believe in and not out of peer pressure.


The old adage of “not putting all your eggs in one basket” rings true in crypto. While the general sentiment is that: staking is highly low risk and profitable, it would be unwise to expose your portfolio to just staking. 

Savvy investors have always split their stash; diversify and manage their risk to rewards. It is for this reason that we have developed the SMART Bots – to provide crypto traders and investors with a tool to add to your investment portfolio. Sure, you can mine, hold, stake, manual trade cryptos and the list goes on. But if you were to add the SMART Bots to your portfolio, it is likened to earning a passive income over time; and no wise investors would reject an additional stream of revenue. 

If you have not signed up for the SMART Bots 7 days free trial, we invite you to do so. With this, you can have the SMART Bots trade automatically on your behalf for 7 days for free, round the clock! Benefit from crypto trading without stress, emotions and experience with the SMART Bots!

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