Yield is the income an investment generates, expressed as a percentage of its price. It is a way of comparing the cash an asset throws off — a bond's interest, a coin's staking rewards — on a like-for-like basis regardless of the amount invested.
A higher yield is not automatically better. Yield generally compensates for risk, so an unusually high figure often means the market sees a greater chance the income will be cut or the capital lost. Chasing yield without asking why it is high is a common and costly mistake.
Yield also says nothing about whether the underlying asset will hold its value. A 10% staking yield is cold comfort if the coin falls 50%. Total return — income plus price change — is what ultimately matters.
Worked example
A coin offering a 6% staking yield still leaves you exposed to its price; that reward means little if the coin falls 30%.
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This definition is general education, not investment advice. Markets — especially crypto — are volatile and you can lose money. Please read our disclaimer and see our methodology.