Staking Or Liquidity Pools? Which Strategy Are You Using To Earn Passive Income In Crypto?

After more than a year of using both strategies and getting to know a decent amount about both i've been diving deeper into the world of staking and liquidity pools. I’m wondering what the majority of this sub thinks about these strategies

Staking: Staking involves locking up your crypto in a wallet to support a blockchain network's operations. In return, you earn rewards in the same cryptocurrency or tokens. It's like putting your money to work and watching it grow.

Pros: - Relatively low risk, especially in established projects. - Steady and predictable returns. - Can participate with a small amount of crypto.

Cons: - Locked-in funds, less liquidity. - Potential loss if the project faces issues. - Rewards might vary based on network conditions.

Liquidity Pools (LPs): Liquidity pools are used in decentralized exchanges (DEXs) like Uniswap or PancakeSwap. You provide liquidity by adding pairs of tokens to these pools, earning a share of the trading fees and sometimes additional tokens.

Pros: - High earning potential, especially in new projects. - Greater liquidity and flexibility. - Potential for high APY (Annual Percentage Yield).

Cons: - Higher risk, especially in new or low-cap tokens. - Impermanent loss can reduce your overall holdings. - Requires constant monitoring due to market volatility.

So, the question is, which strategy do you guys think is the best? Are there specific projects or platforms you would recommend for staking or liquidity pools? I would appreciate if you guys would share your experiences.