Bitcoin Forum

I'm a beginner so I put it in the Beginners & Help section.

Coinbase offers "Cosmos" with a yearly annual return of 17.66%.
I did some research on Cosmos and its future looks bright.
On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

Cosmos is Atom. You can stake it directly on noncustodial wallet. You can use Keplr wallet for it. Or you can use Trustwallet to stake it.

Do not stake on exchanges. It is not your keys and it is not your coin.

17.66%? That is a scam. I checked it now, it is 19.12% if you stake it directly on your noncustodial wallet.

People stake to earn more profit.

Asking about whether one should advise people to stake is just like simply asking about advising people to gamble. Although staking is less risky but on centralized platform it seems same. So it is matter of choice, if you feel you can afford to lose the money then nothing bad about it.


I would say the major drawback is you trusting that since coinbase is big, it can never collapse. This is very wrong. Because any day coinbase gets compromised then your funds will go with it.

Also staking means your account been freezed for a certain period of time means you can’t sell whenever you want be it during bull run or during emergency period

According to my opinion, some platforms provide the staking feature because they need liquidity. It means that it will use that stored liquidity in exchange for annual returns to its owners.

The issue is that this program has a degree of danger because it is imperative for the user to have complete confidence in the platform, and the staking system encourages investing in the largest amount of money to ensure a greater percentage of returns.

17.66% sounds so tempting that I don't think it's true. Some platforms set attractive rates to attract the largest number of users and encourage them to invest more amounts. Therefore, we should not blindly trust any platform that offers very attractive offers.

Basing up on the numbers mentioned above, if these percentages been offered into those non-custodial wallet then we could really at least assure  that they are really offering slightly different in terms of percentage but

having that <2-3% Annual is already that big, similar on what _act_ have said above in speaking about differences and i do agree on the fact that not your keys then not your coins after all when you do tend to
store it up on exchange platforms. Its true that i dont really that like that idea on having that staking considering those tokens/coins would be locked on a certain time and there's no way that you could be
able to withdraw it out if its needed until it would be reaching out that timeframe. If you do, then there's unbonding period for you to wait up specially if you have decided to unstake it.

Its true that those returns annually is really that good looking or interesting but with the risks involved and the things attached to it which it do makes it not really that ideal at all
in the end.

i have quite different opinion, the annual rate is too much risky for coin thats really volatile, you see annual rate 17% might be interesting for some but you can see the chart that this coin have history of down more than 50% within a year. is it worth it for long term holding? depends. but then again as many have said you could simply stake it directly for better rates.

That's already a mistake. Do you know that staking on huge platforms like Coinbase still gives you a risk because you don't own the keys there?

It's because that APY changes over time, the more people that will start to stake then the rate drops. And that's why many just prefer to hold it and have it instant on their wallets if anything happens, they can sell it.

 Staking is another way to earn money from crypto by freezing your coin and leaving it for a particular time for you to get rewarded. This indeed help the project from having too much liquidity that can result into a bear market compensating holders for staking there token for as long as they want. At least it market the price of the coin to become stable and gradually going bullish as more investors buy the same coin and hold it for as long as they want. When a coin project start having sell off, the price will start depreciating and could get to zero with time.

this will only be profitable if the coin you are staking has the potential to increase its value in the market like btc. but if you happen to stake a coin that is declining its value, such 17% annual return is useless and you will find out that your initial investment is almost nothing. so if you venture the staking option, you always need to keep up with the progress of the coin you are staking. as much as possible, discard it when your instincts is saying that the dev is about to abandon the project. you can get some hints how they talk in their social media channels or how they respond when people ask about their developments.

I guess if you really fancy staking for long term where you don't even know whether you might lose opportunities of dumping when the rally comes in then you should go ahead.
though staking seems really a good way to grow the investment further it also carries disadvantage that is you're constrained with the time that the staking needed before you could do anything to your money.
if you're so sure that your coin aren't just gonna drop in value then you could try it, I always considers staking only suited for those that wanna hold for long term regardless of the market movements in general.
and I think that its only suited for long term holders more than 1 cycle of bullruns.

There are two possible risks.

1. You will be missing your capital due to the dump that happened with the price of your token.

2. Not your keys, not your coin. You shall remember when so many exchange sites experienced various hacks and the amounts drained from the hot wallet. This can happen with coinbase too but it has been approved by US regulator.
It gives it more guarantee for the staker for not to lose their money easily.


People are much more preferring to buy stable tokens and then stake it. Even though APR will be far smaller compared with using altcoins but you will not be affected by the dump except once the stable coin become depegged.
I think that there are so many considerations before you buy tokens that can be staked. The greater you stake, the more profit you get.

Remember that staking potentially banned by SEC too.

In fact, if it is possible is always better to invest through a non-custodial wallet, trust wallet, it is my favorite, you just need to pay attention to impermanent lose, i.e. the change in the price/value of cosmos, you need to monitor often

Stake where you have control of the keys. I believe that staking through exchanges is very risky. The staking percentage you mentioned for Cosmos is very enticing, but I also think it carries risks. When many people earn good coins through staking, some may sell at lower rates to secure their profits, which could lead to a drop in the coin's value. My advice is not to stake on any exchange, no matter how big it is. Having control is crucial, as we cannot trust anyone else. I believe staking stable currencies is a much better option as it reduces the risk of value loss significantly.

Nope.

Staking is definitely risking all of your coins, it doesn't matter where you stake it could be DEFI, centralized exchange, non custodial wallet etc, your coins would be staked in centralized pool.

Well the downside about staking is the coin price might decrease more than the coin you earn, but some people are choose to stake a stable coin where the price is relatively stable and you can still earn some interest.

That's why I don't suggest to stake for a beginners because there's always a risk for this and even if the top exchanges have this option and their percentage is very attractive, I'll still not suggest it, better for them to hold good coins while they are still learning about the market. Know that staking might not be worth it if you have a small capital, and you are just wasting your time doing it. If you're into trading, learn its concept so you can trade effectively. With this, I suggest to think again before staking, if you still insist then do it on a wallet where you have the control, exchanges are too risky.

You have it covered and you can stake on centralized platforms if you are fine with the risks that comes with it. What I would say is not to throw all or a significant amount of your money to these staking wallets. Diversify and keep most of your funds to wallets that you completely control.

In my opinion, the main disadvantage of staking is that you give crypto currencies for safekeeping to others, and this disadvantage overrides all the possible advantages of this option. I am ready to lose my annual income of 17.66%, if only I had crypto currencies in my custody. Although the same, bitcoin, in the future of several years, will more than overtake this figure of 17.66%.

Another disadvantage you mentioned is the freezing of your money. If you urgently need your assets, then you will not be able to pick them up. This limits your financial mobility. Also, I don't like being restricted from using my own money. This looks absurd.

I can assume that people use staking services, using the example of a Coinbase, because of banal greed and a desire to get more money. The side effect of this is most often lost money. Not 17.66% received as annual income, but all 100% of the amount in the stake.

Stake service is good for long time investors but you should justify a best old coin where they have rewards programme for investors. You shouldn’t stake in exchange wallet so be careful. Even you can stake there own wallet if they have. Afterall if i am a beginner then definitely i will avoid stake because it more risk for newborn and short time investors.

The last two investments i made into cryptos was Cosmos and NEAR. Both are coins that have native staking because like you i really like the idea of getting some nice extra rewards by just staking those coins because i plan to hold them for a long time anyway. One drawback is that for example Cosmos has an unlimited supply, which is obviously not a good thing for the price development of an asset but that is where those staking rewards are coming from. So if you are holding Cosmos then you should definitely stake them because otherwise you are diluting the value of your assets because the total supply is rising and therefore your share of the total supply automatically goes down.
Also you can stake Cosmos not only on Coinbase. You can also stake it on wallets like Atomic Wallet. There you are in control of the private key. When you stake on Coinbase then you are not in control of the private key. Don't forget that.

No staking is mostly a scam. I always advise against staking alts except for ETH because ETH is probably one of the best alts out there so staking it would be good for you financially.

The other alts are however simply scams so you are only wasting your time and money when you are staking them.

Why do that? Just buy bitcoin and hold. It worked before, it will work tomorrow.

If the user has a lot of ETH, why not. Institutions are also staking, he just has to figure out how many ETH he has so that he can already figure out how much he'd be earning for the whole year.

The Platform however is not very attractive with ETH staking. It's best that the user can sell when the bull run is closer to an end. This I guess is supposed to be learned. It's more reasonable to sell in the bull run in my opinion.   

First of all that's not real staking, exchanges are just calling that staking. Staking is you can do without depositing your coins to any CEX. Real staking is participating to secure the chain and you can do it in your own computer without moving your coins/tokens.

Not all people want to "stake" in exchanges because they don't trust CEXes. There are different methods to stake but in most cases you don't need a lot of know how to do it by yourself. Also some people prefer PoW over PoS so they dislike coins that use staking.

People are scared of staking because they feel staking are not productive because there has been false accusations that stake coins give low return because when they get unstaked that they get dump.by whales to manipulate the price and bring the price down so those that staked their coins won't get much profits. Staking has been one of the most profitable ways of investing .
Because when you stakes you're reducing the coins in circulation and giving the project more opportunities to give good return to their earlier investors. I'll always advise people to stake as it gives investor more opportunity to hold their tokens instead of if selling and this make room for future investors to profit instead of regretting of selling their investment very early.
Staking makes you become a diamond holder as you receive reward for holding so you'll always be interested in staking but just holding or trading makes you put yourself at risk of no profit. Anybody's that what to make big  profits from the cryptocurrency markets has to become a holder and a staker because, you don't lose when you stake instead you profit more profit.

i like the idea of diversifying staking just like diversifying investments, staking in various platform maybe could easily mitigate the risk involved with staking in general which is losing money because the staking failure.
it just seems makes more sense from my point of view. but then again only diversify staking in trusted platform like binance or the likes.

^ I respect your opinion because each of us has different preferences regarding staking.
Staking itself is not a scam, but caution is warranted when considering which projects to stake in. ETH has a strong reputation, but it is important to conduct due diligence for any investment, including cryptocurrencies. Diversification and risk management should be part of an individual's investment strategy and it is true that not all altcoins or cryptocurrencies are created equal. Some projects may lack substance, and transparency, or have questionable intentions, making them risky investments. It is very important for us as an investor to exercise caution and conduct thorough research before staking our funds in any project that you can entrust to hold your asset for a long period of time.

That's true, this is why we have to choose the best platform because the purpose of staking is to make some profit passively and not to be stressed with a shit wallet where you do the staking, even the top exchanges can be risky too so choose wisely. Staking is fine if you are still not capable of trading or investing on your own, this could be good for beginners who are taking their time to learn more about the market and still make some profit at the same time, staking is good fundamentally.

I agree with trusting your funds to huge platforms, and Coinbase for me is a good centralized platform. And I believe it is applicable in all aspects, even if you are using their exchange for trading, etc. Always trust huge platforms with got real volume and real users.

Being cryptocurrency is volatile with ups and downs. Some high APY/APR on staking are these cryptocurrencies are most volatile, so sometimes instead you are earning profits on staking, you are losing the value of your coin because the price is dropping.

Why go with Coinbase when they already have their own platform where you can stake your ATOM there.
I'm also staking some ATOM tokens in their own wallet called KEPLR. Currently, I'm on the node of Binance which gives 19.12% annually. I might un-stake it, and find another node since Binance node doesn't support airdrops from Cosmos. There is this feature of the project where those who are staking their ATOM tokens has the opportunity to get some free tokens thru airdrops.

Why they don't just buy cryptos that they can stake? I don't know the exact reason TBH, but maybe it's because they didn't do any research in any of these staking coins, and they with other projects. Most of the top 20 coins right now base on market cap offers staking, so TBH I don't know the main reason.

I would call myself a hypocrite if I will say no to it since I myself is also doing it.

The problems that I'm seeing with these staking coins is that, there is a chance that you might get an impermanent loss while staking it, and the amount of coins that you are getting for free isn't enough to cover your losses, and the other one is when the project turns out to be a scam project. I would advice to do it, but just be ready for the risks of staking.

Cosmos (atom) is the highly APR even you can deposit any amount because there has no minimum limit of deposit. Also there are many other good coins which are trustworthy and you can stake enough money if you want. Moreover, their rewards are comparatively good which will satisfy the investor.

Mostly people staked their tokens according to the project, because the staking option is not that much risky as we can say. Another thing with the staking option, they can gain much profit but for long term and another thing, if there is a flop in the price then there will also be a loss.

That's not necessarily true; Binance, for instance, offers a variety of earning methods, such as savings, yield mining, or staking through decentralized platforms. It's not truly decentralized, but my point is that actual staking can be conducted through exchanges without a lock-in period on some occasions.

In my personal opinion, staking is worth it if you're capable of finding the right coins and vaults to invest in and, more importantly, if you only deal with decentralized platforms, such as Beefy or Supra Finance, which usually offer greater APYs than centralized exchanges, and without a lock-in period, you're free to withdraw whenever you please.

Staking is somewhat reminiscent of pyramids during the hype. Now the reliability indicator is a small ROI. Usually it is a ratio to stablecoins. Of course, it is preferable to provide a stake on different platforms. If the portfolio is large enough, you can take a chance on a dubious couple in the staking.

We usually got fall into huge offers that encourage us to stake and deposit to their platform, and later on, we get nothing and even lose our funds.
Although staking is not a bad idea but must also know the risk that corresponds to that and sadly, many people neglect to see it as a reason why many people had to lose their money.

Of course, I won't stop someone from staking but yeah, they also consider the platform or site that they use, and the last one is that only use a small amount to avoid big losses.

In my personal view, the true altseason is likely to occur after the halving event and when Bitcoin surpasses its all-time high, which is expected to happen sometime after May 2024. Considering this projection, it appears reasonable to consider staking within the next year, as the coins will be securely held in a wallet and offer an attractive 17% return during this relatively safe period

Perhaps it was their decision, however, if they would do research and make clear what awaits them from staking, they will decide what to do next whether to ignore or accept the offer. Because base on my experience, staking won't really give us a huge return but of course, it was better than just holding and waiting. However, when talking about the risk and the possibility of losing our money is huge as we can't assure of getting our money back to whatever happen to the exchange we use. If we can take the risk, then that was your choice at least, they know and are aware of the things that possibly happen.

The concept of token has a number of benefits and drawbacks but for the purpose of your question, I would only list some of the drawbacks that I am aware of:

• Lock period: Staking locks your tokens for a period of time which means they're illiquid at that time and you can't use them for anything else. While this is just like holding tokens, the problem lies in the fact that in most projects, there's an unstaking period anywhere between 1-4 days. In that time, you will most likely earn zero rewards and tokens remain illiquid for that period. So in cases where you want to readily sell (if there's a bad PR for the token in question) you can't immediately sell.
• Supply increase and dilution: These staking rewards adds to the total supply and results in dilution of those rewards (in most cases, the token loses value).

That is what is called a risk when you want to collect funds on a platform, so you have to be careful and prepared when they are scammed and you will lose all the assets that you have deposited. Currently, it is difficult to make a profit in cryptocurrency, and many smart people take advantage of cryptocurrency loopholes to create good sites that end up being scams. The advice to consider before moving on is very appropriate.

Stake if you have the best chance and percentage that favours you otherwise you are just gambling with your funds and this is something that must be checked,  staking can earn you a perceived income but then also staking without the ownership and control of the assets means you are at risk of losing all the assets.

But recently,  there has been some development that points to the fact that one can now stake directly from your own custodial wallet where you have access to the private key to the wallet where the assets are staked.

your mindset is wrong, if you hold and the price of crypto goes down your asset estimate also goes down and you don't get anything. but if you stake and the price of crypto goes down your asset estimate also goes down but you will get compensation from the stake, and the compensation you receive keeps the asset estimate from dropping too far.
why people don't buy crypto and stake ? sometimes people prefer trading than staking.

well what if the reason for the value plummeting was the increase of the total supply through staking in the first place? imagine the unlocked supply will be 2 times current circulating supply and at the end of the staking period the price plummeted to half of its initial value just because many have anticipated the addition towards the circulating supply that'd be ironic since considering the fact that the staking will be kind of pointless.
when staking I think it will be better if we more focused towards the value instead of how much token we are holding because honestly thats pointless.
but then again thats just my take on staking in general, sometime staking could still retain the token value meanwhile having additional token as a rewards.

"If"

In short staking isn't always mean you will get profit, so it's really wrong to say staking is a passive income.

Not all people can trade, actually 90% of traders are lose especially if they're beginners. Just choose a coin that has a maximum supply and decentralized, hold it on your non custodial wallet. Since such coin can't be staked, the price will increase if the demand is high.

According to my experience is that if anyone Stake there crypto so be careful check project roadmap etc because some time anyone stake there crypto so the project started in down but they can't release there crypto because its stake so be carefully check!!

Choose a great project must you got profit on the basis of your stake amount..

Yes, but beware of the risk. Storing your tokens or coins on a centralised exchange is not usually a wise decision because you can't tell if the CEX can have any issues at any time, which can result in you losing your coins. If the exchange gets hacked, it might affect your coins. If there is a hack on your account, your funds will be stolen.
When you invest in Altcoins that allow you to stake their coin, there's also a possibility that the project might not even make it to success, and it will just be a waste of time for your long staking period.

Everybody would not buy staking coins or might not want to stake their coin because they are just waiting for a slight pump on the token price so they can sell off and earn some profit. Another reason could be that they don't want to risk their lives.

Staking is also risky . If you wanna stake on these centralised exchanger then you may have to very careful to choose the token. On the other hand if you wanna invest or I mean stake on any centralised changer then I think you also have to prepare to face any kind of losses. Like already a incident happened that  is ftx exchanger. In this case you may have good apr but risk is high. But you can take it try on good reported platform. But always keep in mind that they are will be high risk so stake as much as you can effort to lose.

Staking is a form of passive income. You're generating profit on a daily basis; how is that not a form of passive income? Yes, there's always the risk of impermanent loss, which occurs when the value of the staked token decreases, often in volatile market periods. However, if you're staking a trusted and reputable coin such as BNB or ETH, then your investment is quite safe-ish, although for this reason, your APY will be significantly lower than if you were staking some random token that appeared five days ago. Thus, no matter what happens, you'll still be generating a specific amount of the coin you're staking, which is likely to regain its value in the upcoming bull market.

Honestly, people don't take this staking option as the best thing to do because it was too risky in the first place. Whatever happens to the exchange where you stake your coin, you will also suffer possible losses. If you are very concerned about the safety of your funds, you will not do that but instead, just keep it in your personal wallet.

They offer a 17.66% annual return. It was big enough to consider but I'm not sure how reliable it was because based on my experience the usual offer won't go far above 5%.

Staking tokens from a project that is new and isn't trusted by the community yet is definitely risking your money because the profit that you can get from staking is the commission that you earn on the amount you've staked over the period you've chosen, and if a token that you are staking loses its value significantly, your stakes and the commissions you'll get will almost be worthless and that will only waste your time and resources if you keep holding.

That is the reason that even though I don't recommend staking, I believe people should only use coins and tokens that are already trusted by the community even if the commission percentage is relatively low but the risk is also lower, this way, one won't lose any money at all.

If they know how staking works, then ofcourse, especially if the platform they are engaging into has the reputation to be trusted in this industry. Problem most of the time are people choosing to stake but are not okay with holding their asset for a period of time. Also with staking, if you chose the wrong project and tokens wouldn't be pull out, expect for a loss. Downside of staking is not being able to pdecide for your holdings during that period. You'd be seeing how its market value is falling and you have no other choice but to endure it. So if you are planning to stake  make sure you still have the power to move out instantly.

It depends on the mentality of the hodler. The idea of leaving your coin inside a platform you'd want to stake is rather risky, regardless of the possible profits you could gain since they can simply run away with it. You could try Trusted platforms, but as I said, it's all in the mentality of it. Crypto is crypto in the first place because you can make your own bank, if you wanted to make passive profits there are other alternatives out there where there's less risks involved (in terms of exit scams).

Besides, there's also the market value of the coin itself to consider, and most coins out there have a rather volatile market.

Staking has several drawbacks, but it does yield a great annual return. However, you seem to be missing a key concept: "impermanent loss."

A staked coin's market price drops dramatically after being deposited in the pool, causing permanent loss. Despite staking benefits, you may have been better off holding the bitcoin in your wallet.

Staking may not be ideal for investors that need their money quickly. Some find the 'unbonding' time inconvenient.

Why arent more cryptos staked? Because not everyone wants their investments locked up, or because the risk of temporary loss weighs on their decisions. Financial strategies and risk tolerance determine the outcome.

Well in the past I was a fan of staking stablecoins. But I think it is too risky today. I do not even like to keep my coins on Binance and Coinbase. So having them tied up would just make me more nervous. The low percentage reward is not worth it for me.
I do not like knowing a exchange has all the control over my coins. I feel better about myself if I am knowing I hold the keys to my coins.

I honestly don't recommend this kind of making money from crypto because I had joined once a bounty where they offered staking and when lots of people bought their coins, they run away and sold a massive amount of coins also their social media are not active anymore, so it was clearly a pump and dump coin. There are lots of such coins offering staking and most of them offer high returns of percentage but you cannot distinguish the legit from scam because both are pretty active in their social media updates at first.

Better make some research with many coins have supported with stake and give annual return from 10% until 100% all project have been scam although their coins keep existing in exchange market but many of them price drop drastically. I don't recommended with altcoin for unusual staking because bigger risk when price dropping drastically and you loss much than with profitable earn from annual return above 19%.
Can't predicting at the future Cosmos coins stable price with first time investing until ended with staking time, possibility if price dropped under 20% you don't earn anything due one year staking because price have down and annual return 20% close for your price purchasing on the first time. Right now many people staking with stable coins only and they don't think worth when staking in another kinds of altcoin because have chance for going down.

It depends on where you're staking. I personally do the flexible savings on the exchange I use. Bitget flexible savings allows you to withdraw at any point in time.

No one will pay you such a rate after a year. For a project to have such profitability, there must be a constant inflow of new funds into the asset. Once LUNA offered staking at 19% per annum and we all know what happened to LUNA after that. In staking, the higher the annualized rate, the higher the chance you won't get paid. I would target 4 or 5% APR, it looks more realistic. Many well-known pools of well-known cryptocurrencies maintain just such rates. Exchange pools very often have dynamic interest rates and they change constantly.... downward.

There was a token named ATM, where many people staked their tokens but in return they got nothing. And that tokens were received by a bounty. Staking is although a good option for new users as they didn't have that much experience in trading at the beginning to choose what to do?

Wont really be that giving an assurance because on the time that you might consider on staking because the percentage was good but in midway on which you would really be get shocked on the time that these issues would
really be popping out like mushrooms and since pulling out those funds wont really be that immediate since of those unbonding period. Just like on what others been saying that there would be some factors on which it would really be affecting in overall advantage when you do stake. Honestly im not really that seeing this to be worth if we do speak on some altcoins but for top ones then i might seeing to be worth but
if you do really go for short term then it wont really be that a good idea or worth since it wont really be that profitable at all. Staking might that good looking on some people
but there would really be some exemptions.

With the recent happening across exchange closing down their services is not ideal we should encourage people to venture into staking. It is another trick ways to get you trapped knowing too well that during bull the market might increase exponentially and you could make a reasonable profits from your percentage of holdings after you might have sold.
Naturally I don't like to stake coin in other platform as the chances of losing your funds might be very high, project owners uses staking to control the circulating supply since the duration are always 3 months 1 years and above.

Well, the truth is that staking is just an option. People choose to stake their altcoins in order to earn a few bucks while holding but don't you know that there is a huge risk in regard to your fund security? Exactly, whatever happens to the exchange, if that will collapse or turn into a scam - you can no longer get your money back. And this is the mean reason why most of investors not preferred to stake but rather keep their coins in their wallets at least they can blame other people. And aside from that staking doesn't offer a huge percentage usually, it was just 3-5% annually.  

Just be mindful that whenever you deposit and stake on the exchanges, it doesn't really mean that you're staking there. But it means that your account and deposit are on an interest mode for which they're earning from your deposit and you have no custody over it because they do.

Most exchanges have this option to do it flexibly but even so, if the time comes that they're experiencing something that resulted in a bad turnover, they can still lock the withdrawals and delay it even how badly you want it. Again, that's not staking if that's in the feature of exchanges because that's only giving you interest rate at their own setting.

It's good for everybody that understands the concept of it. This is actually good for well established tokens but not for those that have been just launched in the market.

Yes, we could assume that those who decide to stake are aware of the situation they are taking.
It was tempting to see some exchange offers huge taking percentages and it really encourage investors to put their money at risk. Unfortunately, greedy people will closely fall into temptation and soon regret it. But that was good for them at least their experience will help them realize that staking is not good for all coins because many are false offers and a kind of scam trick.

I stake some coins in some places... why not? Crypto is full of good stuff and I think people should try it. Please don't go for some crazy high APY, it's usually some scam... but staking in some exchanges and wallets with some reasonable APY, and in my case in casinos too, is bringing some passive income and it's pretty safe, at least I didn't encounter any issues over the years. 

 

Non-significant high APY would indeed be an early indication of a scammer, but if you stake your crypto assets on a centralized exchange with reasonable APY it is indeed safer. But you also need to see how the exchange performs in payments and other transactions. If it gets recommended a lot like Binance, it's a good place. and if you haven't had any problems for years it's definitely a recommendation.

ETH isn't the only crypto that can't be staked but you are right that it requires a lot of ETH ( maybe over 10 ) for the user to start staking. Maybe institutions themselves are also doing it but they are mostly known as investors. It's important to calculate the rewards and the risk so that we will know if it's worth it or not.

We can still unstake our coins and then sell on the best times. It should give us a better profit than if we will do one activity only. There are indications if when will the bull run can possibly come. We only need to take note of those dates and stake in advance so that we can unstake easily and prepare for it once they are getting close.

Right now I don't think it's a good idea to advise others to stake, because there are several risks involved on this kind of investment:

The platform might disappear suddenly, scamming everyone;
The coin or token you are staking can lose price considerably;
Yield paid can be decreased any time by the platform.

If you advise someone staking, they will go after you once they face one of the issues mentioned above and they will want to play you guilty for their personal losses on the staking programs they joined. What I can tell you is to advise people to make their own research before staking and looking for the pros and cons of such investments.

if I have a platform to use to make stakes or Farming it is only Binance and Biswap, because I tried to stake Bitcoin using Binance for 90 days and based on my experienced it was good and I never encounter any such problems.
And in dex, biswap was one I trusted this platform never fails me it always satisfies me every time I made a staking here. it may not be good to others but for me it was good in my experience as well.

I won't say it's safe but it's worth the risks because you're getting some passive income instead of your coins just sitting in your wallets doing nothing. Its isn't safe because those platforms that allow staking are mostly centralized platforms and they're big target to hackers that knows alots of coins are on these platforms and if they get hacked you might loss all your coins.
Not every platforms will have the resources to pay their customers from their reserved and some platforms don't have emergency funds because most platform that looks successful to us aren't as successful as they look. They might not have the resource to cover for all the coins that were stolen just as we have seen with the defi projects getting hacked and just closed down.
We're taking risk leaving our coins on centralized platforms. The passive income feels good but please know what you're doing so you don't blame the industry when it isn't its fault but the fault of the platforms you want to trust. Don't invest all you money into staking on centralized platforms because there could be so many thing that could go wrong and hacking is just one of them.

My opinion is "No". You shouldnt stake. Landing might be a nice investment, but I mean stablecoins or some well known currencies like BTC, ETH, XRP or TRX. Well, landing USDT for 2-3% won't give you a big profit. But you get USDT, which is almost equal to $. There is no reason to get 1234550000% yearly from some token if its token price will fall to 0 ::).

The APY in some staking processes is way high to be true. Most of these turn out to be scams in a year or two. If people were getting rich just from staking we would have seen a decrease in poverty because everyone would have been trying it and it would be suggested by everyone on this forum too.

The truth is that many people have lost money through staking and most are not willing to reveal their mistakes on this forum because of guilty feeling and shame, although I never got my hands dirty with it. Hence I dont advice people to stake, or go for shitcoins and memecoins. Keep yourself limited to bitcoin and trading at the most.

In staking coins system has the rule with high risk get high return later, staking with unpopular coins seems interested actually first time launching to public they will give excited staking reward above 100%, but can't guarantee with stable price for few weeks later and its high risk when staking with new coins publishing. Many people loss their money after staking with new coins launching probably want to give more than 200 APY reward staking but after unlocking time arrive price drop drastically.

Its not moment for staking coins and have APY above 20% each years, many kinds of staking coins under 8% but still get risk with price not stable yet actually we need waiting until one year later. Be careful when finding new coins launching and brave with staking reward above 200% until 500% because not guarantee with price stable for long term.

Staking on centralized exchanges is dangerous because centralized exchanges have much more opportunities to take your coins away from you than if you were staking on decentralized exchanges. Decentralized exchanges have their own risks because smart contracts are often hacked, but they have fairer rates than centralized exchanges, whose pools very often lower interest rates as you hold your funds in those pools.

When a coin is staked on its own platform, the return is very low, but when staked on a third party platform, the interest is high, but it is high risk. because of this I don't advise anyone to stake because investing in cryptocurrency is already very risky but when it is staked the control of that currency is completely transferred to someone else. which is high risk and thus many people lose a lot of money. And this is why staking may not be a smart idea.  I always advise everyone to wait to buy a coin until they can profit from it.  And whenever he is in profit it should be sold immediately

Sure ,I would advise people to stake different Crypto-pairs including stable currencies especially during the bull market,staking is very profitable and one can easy make some money doing it.The only negative side is staking during the bear market which can easily results into a loss.

As for me, staking of alts is pretty risky thing. You can stake it for 17% apy in token but it may go down 25% for that year to btc/usd. And you will loose time and money at the end

I get your point, but can we say the same for saving in banks? Banks can decide to freeze any account as centralized exchanges can do... After mandatory KYC at Binance, I decided to not go through that and just move my funds. At the moment I have some BSW on staking at BiSwap, and in the past months (maybe more) I noticed that interest rates are lowered, as you explained, more than halved to be accurate. 

According to my experience is that anyone who wants to stake there fund so first they choose a strong and potential project and check there next move some time people stake there fund and they will loss because a price dump hardly..

Exactly, especially if you choose something with potential profit over 100% per year. It's probably either a scam or some sort of one-day token with so high volatility that you can lose everything.

thats the main reason they have such high APY because they want to attract attention to their coin because if its just ordinary APY rates its not gonna attract the attention of many.
the thing is, the volatility very frequently outweigh the rewards gained from staking as you stated that sometimes we should make analysis first before even staking these coins in general.
moreover the fact that sometimes the rewards given were coming from the vested coin only means that its almost guaranteed for the value of these coins in general gonna tank almost immediately after
the staking period ended and coin unlocked for rewards, which means massive waste of time which resulted in almost nothing beneficial.

The best time to stake should always be during crypto winter, it's always easy to buy coins at cheap price and stake them, you will enjoy the APY and the profit when there is pump in the market or when the bull run comes around. Staking coins or token should be discourage during bullrun because in this period, the crypto market can be extra voltile in which buying at the top might give loss and staking it again will add to it because staking contracts wouldn't allow you to unstake until the period of staking is finished and you will continue to have loss is possible and the APY profits wouln't be enough to compesate your loss.

For me, I don't like staking due to the security concerns in smart contracts and hack that always happen in the backend, many people have lost thousands of dollars because of this features in altcoins and don't have money to invest again, if the token stake are not teams or venture capitals that are always the ealry bird to avoid token price crash, I don't like staking a bit because the common investors don't gain anything from it, they are always the losers.

My personal observation is that centralized exchanges, while providing us with staking opportunities, very often change their initial terms and conditions. Exchanges can attract liquidity to their platforms in a similar way by luring customers with promises of high interest rate payouts. Then it turns out that the rate is floating and changes downward over time. Centralized exchanges dispose of your cryptocurrencies as if they already own them. Unreliable platforms.

Personally I always stake at the beginning of the year and withdraw in July so I can go on vacation with some extra money.This is what I have done with Zilliqa which I staked in the beginning and got the total of them plus the staked rewards before going to holiday in this upcoming August,it means a good amount of money that you make just for leaving the coins around and since you will hodl anyway the coins you want to have it is a great idea and implementation if you stake your coins.I strongly support the staking of the favorite coins which can in turn give you some nice benefits during the year.

I agree with you iv4n; I don't really see any downside on the staking and it is a source of passive income, so why not profit from it? But as you say, avoid the super high APY as that is never sustainable in the long end and it will most likely be a scam.

Staking of good coin always give the more profit,but you have to wait till get good profit.The staking of bitcoin,Ethereum and Usdt will give you good profit all the time.Don’t start to stake at the beginning,at first do trade with the good coin.Then get the profit from it,use that money to reinvest.Then increase your profit to the initial investment value.Now stage the profit money,then start to trade the money again.The staking must be made on the good coin and reputed project,then you get good returns.

I think if someone were asking me about staking I would ask them where the interest comes from. In 99% of the coins out there, they run a scheme where they inflate the price, then put in staking to get people to buy their coins at a high price in order to chase yield. In most cases though, the yield is a trap and your investment is the actual yield as original buyers cash out with huge gains.

Didn't you ever lose those "extra money" because the price of staked coins just fell?

Staking bears more risk than ordinarily buying and hodling. "More" is the operative word in my last comment and that doesn't absolve hodling from any type of risk. Late last year or so, I had a bitter taste of what the consequences of staking were as the KCLP and Gzilla tokens I staked using DApp on Trust Wallet disappeared when the projects collapsed. However, I didn't have any issue while I staked some tokens on Binance like Shiba. Before that incident happened to me I used to think staking was just free reward and profit, no serious implications. That's not so. Anyone who isn't strong hearted to stomach losses shouldn't stake. It's as simple as that.

It's a pretty good strategy if you buy a coin at the very beginning and immediately send it to staking. You get double income, both from token price growth and from staking. I like such staking, but I don't understand those stakers who buy coins of already released projects that have grown many times and try to steak them while these coins are in a bearish cycle. In such a case, the income from staking does not even cover the losses that the coin makes due to its decreasing value.

If they bought in bear market and then staked it. In the long run they can feel the gains of it especiallt if the one you bought is like - 90% down from its ATH. Im talkung about renounced project with a tendency to bounce back when bull market started again. Its a risk too but considering some % gain of them comparing to stablecoin which is quite below the inflation rate then its much more a chance to recover. Anyway I got your point about the potential decrease of value apparently, thats more better of staking than holding without gaining anything but hope when will it be going back to same value. Unlike while staking its technically holding while earning some and its helping you increase your asset bags.

Yes, this development has a place too, to buy a coin at the bottom of a bear market and then send it to staking until the next bull run. Except the problem is that after the bear market, most coins don't recover anymore and are forever left to trade at their bottom. Stakers are chasing high stakes, and well-known projects will never give such stakes. High rates are given by various new projects, which very often do not live more than 1 or 2 years on the market. After that their schedule resembles a descent down the mountain and oblivion at that point.

When the market conditions are bearish, the estimated value will decrease, but coin ownership will increase during staking. This means that when the coin's value returns to at least 50% towards its all-time high (ATH), the person will earn additional profit from the tokens/coins obtained through staking. Since staking is essentially passive income, even though the asset is currently down, with staking and the increase in assets, future profits will be as I explained.

NFA/DYOR/DWYOR

Because if the coin value is down to zero then no matter your APR is 18000%. Staking is good for coins/tokens that survive in the long run and hard market crashes. So please dyor when you stake new coins with higher interest rates always. 

Exchanges usually offer staking. If there are projects that you trust in the long term, you can also stake instead of increasing them by buying and selling, which is a good alternative. In the meantime, some coins can be staked in their own cold wallets and the reward amount can be a little higher, in addition, it is more comfortable because the wallet belongs to you anyway, it is useful to look at the coins you choose.

Not related to the coin you have mentioned in your topic, generally speaking a PoS its hard give strong/valuable dividend. At least for enough time to recover from initial investment.
Plus I have noted that once earned a percentage from staking, I lose the valute in the market like real inflation ::)
Well, I can suggest just to make a research and found coins with expensive ICO or just... expensive masternodes...its a never ending history

that's the dilemma of those stakers, the price of the coin when they bought may be higher and as time goes by, the value slowly decline. so whatever they earned from staking is usually worthless as it will only compensate with the declining value of the coin. hence, a lot already stopped staking most of these alts. lucky if you found a staking alt which is continuously increasing its value in the market. and that situation, rarely happens.
so i won't advise users to go to staking. way way back, this mode of earning coins was profitable, but today, very rare that a coin can be profitable in long term.