Okay to confirm there's no risk getting rewards through the ledger live app as I still have control over my keys?
Beginner question: what is a Validator and how does a validator misbehaves and is this misbehaving a risk to my coins on my ledger hardware wallet?
Great, Binance US is FDIC insured but its only insured for crypto deposits deposited into their wallets not for interest/savings rewards programs right?
This is what I've also thought of. You hold your keys and you earn from staking. You can also do your own research for other wallets that are offering the same.
I think there are many of them.
Okay Staking means you have control over your keys on your crypto and still get rewards like interest? Stupid question but POW coins like bitcoin cant be staked but only POS coins and which POS altcoins in the top 200 coinmarketcap ranking allow staking?
Lastly can anyone stake or do you have to become a Validator first to stake?
Finally does the Validator is required to put up collateral 1st?
Basically what you're looking is PoS-based cryptocurrency, currently the most popular option is ETH where you become validator (if you decide to stake 32 ETH) or use 3rd party who will stake with coin of multiple user (if you decide to stake less than 32 ETH).
See
https://ethereum.org/en/eth2/staking/ and
https://launchpad.ethereum.org/ if you're interested.
While the risk is smaller, the risk is still exist since tou need to choose other validator and trust them not to misbehave.
What benefits/rewards can only a Validator get over normal staking by any crypto bag holder?
When you say use 3rd party to stake then there's that counterparty risk as 3rd party will control the keys?
I like to know how does a Validator misbehave, is it like committing fraud so Validator benefits more?
It’s hard for me to understand that people still think they have to invest their Bitcoin to make some profit, and at the same time they can make the same just by holding coins in their non-custodial wallets. Just a few months ago the price of 1 BTC was around $10 000 (now it is almost 4 times more), and a little less than a year ago the price dropped below $5000 which is almost 8 times less than now.
Isn't that more than a great passive income without the risk of someone else owning your private keys?
For example I see ads everywhere like deposit your Bitcoins into so called platforms and earn up to 10% interest. For example if someone has 10 bitcoins worth $400k now and deposited their bitcoins into this service for $40k a year on interest return. Sounds great however what if the platform gets hacked or platform freeze your account or platform goes bankrupt or whatever counterparty risk it is, the depositor will lose their 10 bitcoins correct?
It's a risk you have to take if you want to invest that way - haven't you learned anything from the Mt.Gox example? Specifically as far as your example is concerned, do you think at this point that it would be wise to risk 10 BTC worth around $400 000 to earn only $40 000 after a year - and at the same time those 10 BTC can very easily increase their value by at least 100%?
Yes I totally agree! The Risk to Reward Ratio that is for example $40,000 annual yield return for $400,000 deposit is too high risk
unless of course its covered by Government FDIC or SPIC right?
You can do staking if you want, as long the coin or token is legit and not some kind of hype projects that would rug pull later on. Some tokens that are worth staking are ETH (if you can provide 32 ETH for launching the 2.0), NWC, IRIS, CORX, etc. You might not want to end up in those “guaranteed profits” opportunity like “Turning your 1 ETH into 30 ETH in 30 days” or so.
But the safest way is to buy and HODL until you are satisfied with the profits on whatever cryptocurrency you are holding.
Why with all this De-Fi hype we going through now (Decentralised Finance)?
I thought Decentralised Finance is suppose to eliminate these such risks mentioned on this thread because its decentralised right?
Is there no De-Fi projects or Dapps out right now or will be released soon that offer such services at no risk?
Otherwise what's up with all this De-Fi hype
[moderator's note: consecutive posts merged]