Quick Comparison: Staking vs Yield Farming
| Feature | Staking | Yield Farming |
|---|---|---|
| Risk | Lower | Higher |
| Complexity | Simple | Complex |
| Returns | 3-12% APY | 10-100%+ APY |
| Assets | PoS tokens | LP tokens |
What is Staking?
Staking is the simplest way to earn yield in crypto. You lock up PoS tokens (ETH, SOL, ADA) and earn rewards for helping secure the network. It's like a savings account but with better rates — currently ~4% on ETH.
Risks are manageable: your tokens are locked for a period, and you face slashing risk if validators misbehave (rare). For passive crypto income, staking is the go-to. Many exchanges offer one-click staking.
What is Yield Farming?
Yield farming is DeFi on hard mode. You provide liquidity to trading pools, earn fees, and often get bonus token rewards. Returns can be 50%, 100%, even 1,000% APY... at least temporarily.
The risks are real: impermanent loss, smart contract bugs, rug pulls, and token rewards that dump 90% in value. Those 1,000% APYs don't last. Yield farming can be profitable but requires serious knowledge and constant monitoring.
Key Differences
- Complexity: Staking is one-click, farming requires strategy
- Returns: Staking pays 3-12%, farming can hit 100%+
- Risks: Staking = low, farming = smart contracts + IL
- Time: Staking is set-and-forget, farming needs monitoring
- Capital: Both scale with investment size
- Gas: Staking = minimal, farming = frequent transactions
Which Should You Choose?
Choose Staking if: You want passive income with minimal risk. Stake ETH through Lido or a major exchange and earn 4%+ while you sleep.
Choose Yield Farming if: You understand DeFi deeply, can evaluate smart contract risk, and actively manage positions. Higher returns require higher involvement.
Track Both with Strykr
Stop juggling multiple apps. Strykr gives you unified access to crypto and stocks with AI-powered insights. Whether you choose Staking, Yield Farming, or both — monitor everything from one intelligent dashboard.