Passive income : Bank interest vs staking

[CryptoPro909]

PASSIVE INCOME
(the article I found here: https://www.linkedin.com/feed/update/urn:li:activity:6917793863591993344/  One of the bigger experts in WEB3)

Banks VS Crypto : Interest vs Staking

Today, the most common way people seek to turn profit on their investments is with a savings account in a bank.

However, depending on where you are based and the options available to you, odds are that even the most generous savings account will only pay somewhere in the range of 1-2% yearly, if you are very lucky...This value is barely above the rate of inflation in most countries, and is actually a worthless return.

Luckily Crypto has an alternative for the Bank 's "interest":

#STAKING

If you're a crypto investor, staking is a concept you'll hear about often. Staking is the way many #cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings (aka the interest of cryptos). The interest a holder gets, depends a lot of the crypto itself. It can go from 5% till much higher returns.

One of the crypto's with interesting staking returns is #ICP¨, as it can give you uptill 28% APY (yearly).
Sounds better no?

HOW DO I STAKE ON ICP using NNS?

1. CREATE AN INTERNET IDENTITY

You will need to create an internet identity to login to the NNS app. This is easy to do if you have a fingerprint reader on your computer or phone or you have face id on your phone. (if you don't, you will need a physical key, for ex Yubikey or you will have to connect a wallet)

Create your Identity here:
https://identity.ic0.app/
(never forget to write down your seedphrase)

2. LOG IN THE Network Nervous System DAPP

The network nervous system is the way that the internet computer is governed, and staking ICP will allow you to participate in the community governance of the internet computer.

Connect here:
https://nns.ic0.app/v2/

After authorizing, you have successfully logged into the Network Nervous System (NNS )

3. TRANSFER YOUR ICP to your NNS Wallet

Once you login with internet identity you should see a “Main” wallet displayed. There is a long wallet address underneath the name. This is the ICP wallet address for your “Main” wallet. Now, go to Coinbase or Binance (or wherever your ICP is) and transfer your ICP to that wallet address. It should only take a few minutes (at the most) for the transfer to go through.

4. STAKE YOUR ICP IN YOUR NNS Wallet

Step 1: Click on the Neurons tab and click Stake Neuron.
Step 2: Enter the total number of ICP you want to stake, and click create.
Step 3: Set the dissolve delay to your preferred years of stake, and click update delay and confirm it.
Step 4: Next, select your topics of interest for the proposals you can vote for. As here, you actually own your currency (not banks holding it) and you can vote on topics for the governance of the ecosystem.

Enjoy your freedom and your real passive income

PS For more detailed explanation, follow the steps in the video and article here;
https://[Suspicious link removed]/exJNYdPy

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[Franctoshi]

Staking is far way more better than Bank interest. And the method should widely be encouraged by government.
Not only that, imagine a situation whereby a staked coin got appreciated in price you will realize higher returns than expected returns,  this is the most interesting part of staking in crypto when compared to Bank interest, Op, where the only benefit is only base on the percentage return.

[ChiBitCTy]

The best banking interest you can receive right now is roughly .5% and this is for only online only banking since they do not have the brick and mortar overhead costs that a physical location incurs so they are able to offer higher rates. Now comparing staking to bank interest rates it’s not a fair comparison. Staking involves MUCH MORE risk! These are really two entirely different things. 

[Renampun]

I admit, staking is more profitable than bank interest...

I'm not doing a promotion but right now I'm also staking $cake, the interest/reward I get is really big if I compare it to bank interest. the risk is indeed quite large, such as a decrease in the value of the asset or rugpull, but you must be more selective in choosing your staking platform, don't be easily fooled by a super large APY/ROI, it's better to choose one that only provides a small APY but the platform has a great reputation and good.

[kaya11]

Staking involves MUCH MORE risk! These are really two entirely different things. 

I guess you are right, however there are also disadvantages in bank savings, I do use banks in everyday life because online payments for our business gets through them. I do also stake in Defi Binance with 90 days maturity. It is in the person where he wants to put his money, and I prefer both of them. Investing in different fields is a good decision where in if the other fails, you still another to support and back you up.

[Leviathan.007]

The difference between these two is more like hold your money as fiat inside your pillow or to invest the money you got to earn some profit over it, by holding money in a bank in some countries they give a fixed or in some cased unfixed interest and the money you have seems like not changing and free of risk while you are actually losing money! imagine the interest rate is 10 percent per year but the inflation rate is 12 percent per year now if you had 100 dollars you will be happy to have 110 dollars but actually, you lose 2 percent, that's what people usually do not consider while holding money in the bank, while by staking you won't have such problems because you are actually investing on assets instead of just holding fiat.

[Bitstar_coin]

Why in the world would you make comparison of these two? The least apr of any staking platform is by far better than what any bank can offer for your fiat.
Bank will only use your money to profit and hand you peanuts to clear their conscience.
Crypto staking (stablecoins) gives decent profit depending on the amount staked. And if you staked coins which are not stable, you stand the chance to earn more, from the high Apr and from bull run high price in the process of staking.

[ethereumhunter]

If we compare bank interest and staking, it is better to choose to the stake because a staking program can give you long-term benefits, especially if you choose the right coin. We know that bank interest will not provide high returns and it will only cost us. Maybe we can get a decent return but that would cost a lot of money. But in contrast to staking, we can start with a small amount and hold it for some period. And if the price of the coin goes up while we have made a decent return on the coin, we can sell it while we still have another amount still running in the staking program.

[Eternad]

Staking is far way more better than Bank interest. And the method should widely be encouraged by government.
Not only that, imagine a situation whereby a staked coin got appreciated in price you will realize higher returns than expected returns,  this is the most interesting part of staking in crypto when compared to Bank interest, Op, where the only benefit is only base on the percentage return.

This is the advantage of decentralized over centralized since the interest rate being distribute to the stakers is high since there’s no much operating cost involved in running a DeFi system while on the other hand Banks need to pay there employee, tax and other miscellaneous plus the profit of owner which will be deducted on the supposed to be the interest of peoples money. We should not blame banks for low interest because they need to have profit in able to survive.

[Paul Pogba]

Staking is a very promising thing to make us get big earnings, I prefer staking to bank interest, especially if I staking at Pancakeswap which can get APY more than 60% whereas if relying on bank interest APY is not more than 8% per year.

[LeGaulois]

As some people here assume that banks make money with Saving Accounts: in most countries, the money deposited by individuals in savings accounts (which is what we're talking about here) is used to finance the real economy, whether it's building social housing, helping businesses, or other things. Your stuff with Defi doesn't do that.

If the point is to talk about interest rates, you're taking the wrong example by taking a savings account. There are plenty of other investment products and some with a better ROI than Defi and are more secure (and even more since some funds are insured by the government (up to 100 000€ in Europe))

You also fail to mention the risks of stacking, you only embellish it. You don't talk about what happens if the price drop significantly and the person will never hit the BEP and end up with a negative ROI. There is also the risk of illiquidity on the market, the loss of funds if the coins are not stored in cold storage (and it happens), etc

[m2017]

I don't like bank interest or staking.
Both options are similar in that in both cases you entrust your funds to complete strangers who pursue their own interests, but not yours. If in bank interest, you can receive a small profit, which partially compensates for inflation, then in staking, inflation is offset by an increase in crypto asset prices. Chasing a small percentage for staking can only lead to losses. You need to ask yourself: where do the % that the staking organizers charge you come from? They can't come out of thin air, right? I consider the use of staking unreasonable risks. There is no guarantee that your funds will be returned to you later.

[dunfida]

Bank interest here on my country do plays around 1-2% annually so its not really a good thing for you to mind off if you do really think about investment because it was never been worth but speaking with security then

you could count on that and speaking with Staking then APY do really looks appealing but of course you would really be needing to put up some risk on entrusting it out on a certain platform
for you to make out some gains.

So its up to your own choice on whether which one you would really be dealing off with.

[Markinzo]

If am to go by one, then staking is near better to savings. Cause with the appreciation of a coin one puts a stake on, the interest gotten at the end can't be compared to ordinary savings which interest is at about 1-3% annually in some countries.

Secondly, Savings is more of a longer term thing than stakes.

[yhiaali3]

Certainly, passive income is one of the best ways to earn online through cryptocurrencies, but what I prefer is a high-level currency such as Ethereum or BNB or other currencies that have a good market rank, what I also prefer is that the process be completely decentralized because I live in A country that is banned from many sites, especially the ones you mentioned here, I mean Coinbase and Binance, also I do not want to enter sites that require activation through KYC because they cause a lot of problems.

[stompix]

One of the crypto's with interesting staking returns is #ICP¨, as it can give you uptill 28% APY (yearly).
Sounds better no?

Of course, it does, wow,  28% APY, where do I get those tokens to earn billions?
Oh wait, did you say ICP?



ICP as in the thing that crashed from 424 to 17$?
So if I would have staked with ICP a year ago I would have put down 424$ of cons and got back 22$ with all the APY.
Sorry, 1% bank interest sounds better than losing 95%.

Wake up people, before you end up poor!

[Yogee]

...... what I also prefer is that the process be completely decentralized

Have you found any? What you maybe referring to is just non-custodial. I may not be familiar with every DeFi but I doubt there's a staking platform that's completely free of centralization. Developers can still exercise control over these platforms and we have seen this happen already. They can hit the pause button whenever there are attacks or exploits.

[Hydrogen]

The official number for inflation in the united states is 8%.

Basic finance says investors must place assets in accounts earning greater than 8% to turn a profit in the current economic environment.

I have seen US bank accounts offering as high as 5% APY. (Keyword search for accounts paying highest interest)

Celsius network used to offer as high as 8% to 20% on crypto but that option is now only available to accredited investors and closed to poor and middle class earners the way that ICOs are.

Real estate is another good option which can be leveraged by the non wealthy through the use of fractional real estate investment.

The key thing to remember is, 8% gains are needed to break even in an environment where inflation is 8%.

If inflation increases enough, even a million US dollars could someday be worthless.

[Scripture]

Banks interest are useless and should not be consider as your passive income because you still lose money with the banks considering the inflation. Staking on the other hand, is more profitable and can be consider as your passive income. Staking still needs analysis, and enough funds so you can have more profit. Do stake good coins only to ensure you still have your money at the end of the year and a possible capital appreciation by that time.

[livingfree]

Earning interest from the banks are regulated and assured.

In staking, it's also assured but it's being done through the speculative market of crypto and with the chosen coin to stake with. The hard part is that there are plenty of newbies that are being misled by those high interest rates of new projects, their APY are too good to be true and they're buying those coins and stake it.

The highest one that I see, the legit one is around 15%-16% and that's on exchange's staking platform for which we know the risk of not having the private key of your deposited coin to stake.