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Avalanche (AVAX) Staking & Passive Income Guide — 2022 Guide
Avalanche and Solana exploded out of nowhere to become serious competitors to Ethereum during the DeFi season of 2021.
Solana has impressed with its outrageously high throughput of 720,000 TPS, but outages and perceived centralisation has polarised some in the community.
Avalanche balances a performance sweet spot between throughout and finality time. Moreover, Avalanche’s Snow family of consensus protocols is regarded by some as the biggest breakthrough since the Nakamoto consensus (proof-of-work + longest chain rule). It is seriously impressive technology.
Architecture-wise, Avalanche actually comprise a trio of blockchains.
- X-chain — a DAG used for transfers between Avalanche and exchanges.
- P-chain — used by validators & stakers and the creation of subnets.
- C-chain — an EVM-compatible blockchain for smart contracts and dApps.
Throughout 2021–22, Avalanche has continued to expand its crypto ecosystem and external collaborations, making it one of the most promising Layer 1s and compelling investments for long-term investors.
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In this article, I’m going to compare the different ways to earn a yield on your hard-earned AVAX.
This includes delegating your stake from a non-custodial Web3 wallet. On Avalanche, this will be the official Avalanche Wallet. Be in control of your own private keys!
You can also stake your AVAX on a centralised exchange. The best returns are on Binance.
Finally, you can save your AVAX in a crypto interest account. The main players here are Crypto.com, BlockFi, Celsius and Nexo. This isn’t staking, but you’ll get to earn a yield and grow your AVAX. Passive income, no less.
