Is Liquid Crypto Staking Better than Regular Staking?

Liquid Staking is an approach to support the security and effectiveness of blockchain initiatives that users believe in.

Selling the investment at a higher price on the market is one approach to earning from cryptocurrencies. Staking is one more method of earning money with cryptocurrencies. Staking allows you to use your digital assets to generate passive income without having to sell them. There are certainly two types of staking, liquid staking and regular staking. Liquid staking is akin to regular staking. In Liquid staking investors deposit crypto assets in smart contracts to facilitate proof-of-stake transactions to secure it.  
Though Staking is great it freezes the assets, this is one main drawback.

For instance if an investor is depositing 3Ethereum on Rocketpool and in return obtain 3 rEthereum. Then on the Balancer (a software program runs on Ethereum) an investor can invest in liquidity pool to get additional 2.22% APY (annual returns). So, if investors are retrieving 3 Ethereum and 5% of staking rewards, he/she can gain 0.15 each year from the profit.
There are many instances which proves the companies employing Liquid cryto staking are ahead in the market. Lido Finance company who has been pioneer in liquid staking have brought Ethereum in 2020 December holding the major profit of market share. Presently the company holds the value of US14 billion and plus.
Many businesses have opened subsidiaries that provide liquid staking alternatives to their primary staking solutions as a result of Lido's success and the knowledge that the market is thirsty for liquidity.
Since then, many businesses have emerged to provide the retail market with their own liquid crypto staking solutions, including Rocket Pool, StakeHound, STAKE, Stake Wise, and Ankr. Other well-known businesses, such as the Canadian-based Figment, are presently getting on board, although they appear to have chosen against direct rivalry on the retail front and are choosing to target institutions and large-scale investors who are seeking a more upscale alternative. Based on the already-existing StakeWise infrastructure, Blockdaemon has teamed with Stakewise to create a comparable product.
In light of all these benefits that is incurring to investors and companies, Liquid staking seems better than normal staking. Liquid staking helps in adding the additional layer between the smart contract and the coin exchange.

The quick liquidity of liquid staking is its most evident benefit. Depending on the blockchain and liquid staking token in question, the size of the advantage varies. Staker requests to unstake on the Polkadot blockchain, for instance, are subject to a 28-day "unbonding time." A staker might be better off selling a liquid staking token than waiting to unstake if they wanted to respond to an unexpected market shift.

The flexibility to assemble return schemes is another benefit of liquid staking. On centralised or decentralised exchanges or lending pools, liquid staking tokens can be used as collateral. For instance, a staker might lend out their liquid staking token and earn interest on top of the staking yield. For the most part, this holds true for all yield techniques used in decentralised finance (DeFi). Depending on the platform, staked tokens on centralised platforms may be used as collateral for loans, margin, and derivative trading.