July 22, 2024

Investment strategies in the cryptocurrency market: staking, HODL, lending

Investment strategies in the cryptocurrency market: staking, HODL, lending

Staking, storage or lending — what strategy for working with cryptocurrency assets broughtmost profit in the last year?

There are several factors that need to betake into account, in particular, the capabilities of various cryptocurrencies depending on the protocol. For example, Bitcoin (BTC) allows for lending and gives good results when stored, but is not suitable for staking since its blockchain does not provide this feature.

So still, which of the three methods is the most profitable?

For an approximate calculation, we take certain crypto assets, platforms and the figure of $ 1000 for a period of 365 days, that is, the result will be the determination of profit for the year.


Let's take Binance as a guide since the cryptocurrency exchange offers a simple system that allows you to diversify your investments across different assets.

Here it is important for us to consider:

  • The% value given by Binance as the average for the year;
  • To find out only the amount of interest, we must multiply the number of tokens by the current value of the cryptocurrency;
  • The number of invested tokens, which is calculated by dividing $ 1000 by the value of cryptocurrencies (date December 9, 2018).

The most interesting asset, both in terms of interest rate and price, was Tezos (XTZ), which increased its initial investment by 4 times.


In the case of lending, let's also take for example Binance, or a system created using a complex and perhaps the most common protocol. The conditions for the amount and date have not changed.

  • For lending to Binance (USDT, BNB and BTC), let's take the platform rate;
  • For loans in other cryptocurrencies, let's take the Compound rate on December 9, 2019.

In this set, the investment that brought a threefold increase, — Binance Coin (BNB), it has even surpassed Bitcoin (BTC).


As for storage, the calculation is simpler:As expected, Bitcoin (BTC) established itself as the top asset for HODLers, followed by Bitcoin Cash (BCH), which doubled the initial investment, but Ripple (XRP) recorded a net loss, turning out to be a bad investment.

Analyzing the indicators of the most famous and popular crypto assets, we see that each type of profit making has its most suitable assets:

  • Tezos (XTZ) is suitable for staking,
  • Binance (BNB) for lending,
  • Bitcoin (BTC) — best store of value.

The profitability of the chosen strategy determines the dynamics of a particular cryptocurrency for the investment period.