Passive income : Bank interest vs staking

[qwertyup23]

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.

This actually depends upon the person on which platform they are comfortable.

Preferably, bank investments have returns that are significantly low. Though this may be the case, you are assured that your money is earning inside a financial institution which is considered absolutely safe. You have that feeling of security where your funds are stored and earning at the same time but the downside is that the returns are much slower. This method is recommended for people who have a relatively large capital stored in banks and they do not need such for the meantime.

Staking, on the other hand, involves a similar scenario but it earns on large interest. While this also embraces the concept of investing, it is riskier in my opinion. Though both can yield good results, I still prefer bank investments due to its security to its users.

[1714973825]

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[CaVO32]

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.

This actually depends upon the person on which platform they are comfortable.

Preferably, bank investments have returns that are significantly low. Though this may be the case, you are assured that your money is earning inside a financial institution which is considered absolutely safe. You have that feeling of security where your funds are stored and earning at the same time but the downside is that the returns are much slower. This method is recommended for people who have a relatively large capital stored in banks and they do not need such for the meantime.

Staking, on the other hand, involves a similar scenario but it earns on large interest. While this also embraces the concept of investing, it is riskier in my opinion. Though both can yield good results, I still prefer bank investments due to its security to its users.

Profits from staking also depends on the coin itself. If the value of the coin happens to decline thru time, then, it is no good to put your funds to staking. The main advantage of putting your funds in the bank is that it is the same amount that you deposited on them plus the small interest. You are secure that your money will not disappear if you put it in a reputable bank of your choice. Whereas, with staking, it depends on the platform where you put your funds and the coin developments. The risk in staking is higher but if you got lucky, you can get higher roi.

[lienfaye]

Profits from staking also depends on the coin itself. If the value of the coin happens to decline thru time, then, it is no good to put your funds to staking. The main advantage of putting your funds in the bank is that it is the same amount that you deposited on them plus the small interest. You are secure that your money will not disappear if you put it in a reputable bank of your choice. Whereas, with staking, it depends on the platform where you put your funds and the coin developments. The risk in staking is higher but if you got lucky, you can get higher roi.

I agree. Well, if we're talking about passive income clearly we cant get it in banks knowing how low the annual interest. The advantage of keeping our money in bank is, we're certain that our money is still intact. But it depends on the banks where you're going to deposit your money. As you've said it depends on the reputation of the bank, thus its a must to choose what banks you'll entrust your money because worse case scenario can happen. Staking on the other side is not as reliable as it seems because there are many things to consider and its risky as well.

[dataispower]

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.

why you may agree to stake than willing to have bank interest is because staking is some thing you can on your leisure time monitor without having double thought of what will to the next time, for banking interest you don't have measure time to monitor your interest because is not in your condition to regulate, and the method is very difficult to be compromise if you are not too well know the condition's, i will agree with you with great explanation you made, if you stake with 100 dollars and coin rise the profit is higher than the profit of bank interest for one year

[adaseb]

This is not a good way to earn interest. Basically you need to own the underlying and what happens if it loses 99% of its value? There are way too many scam tokens out there which promise 100% APY to get people to buy them and then they lose all their value. Compared to the two I rather just keep it inside a bank earning nothing rather than lose 99% value.

If you want to stake do ETH or lend your stablecoins on a regulated exchange. Use 2fa and white listed addresses and be smart about security. Much better than the token he mentioned.

[Sir Legend]

In my country the current maximum bank interest is 12% per year, even state banks only provide an 8% interest, this is what makes me not interested in saving large amounts of money to the bank, I'd better switch it to buying assets and crypto currently looks promising Besides holding, I also use it for staking and rebase so that I can get maximum profit.

[doomloop]

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.

Even on a longer term, Bank Savings are not worth it at all. Staking are better if you can find a good token to stake, because they can also be bad; there are some coins that you would stake and their real value would drop which is a loss for you at the end, because if you are making 12% per annum and the asset is losing 20% at the end of the year in its true value, you are the one losing because the 12% is still not enough to cover up for what you have lost. You can avoid this by staking a stablecoin or maybe staking a really good asset that is more likely to maintain its growth through the year.

[bakasabo]

I think there is no unit answer for that situation. A lot depends on country origin of banks and stacked cryptocurrency. For example in my country, about 10 years ago, a person could get 5-10% monthly from bank interest (the more you invest, the less you get). Now banks offer 1-2% and in addition, a person must pay income tax from that (previously it wasnt counted). Compared to - today I have sent my MATIC to Binance Earn for 90 days with 21,54% APY, and I have stacked 300 NMX on Nomiswap and get 1$ a day. But that is my situation, yours can be completely different.

[CryptoPro909]

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?

https://i.imgur.com/c3lXKYJ.png

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!

ICP had the same pattern as a lot of projects last year...All for same reasons.
At a certain point big early investors take all profit out, as it first went x.., this creates panic in the market, and a snowball effect of sales start.
Combine this with a 50% correction in Bitcoin, and you have a sh*t storm.

You can also turn your point around. If you know a project had a all time high of 424 and went to 17, if you start staking at 17, your chances of bigger gains are much higher. Especially if you follow the fundamentals, the updates, the team,...you can clearly see we are not talking about a dead project.

That's how I think.
I don't know how long you have been in crypto, but corrections of 80 to 95% are noting new to me. Its exactly the time I start paying attention. I am not going to buy a crypto that went 10x, 20x, 50x,...no, I buy after a correction. If you check historical price graphs of the past of good crypto projects, check what happened after a correction of 95%...a new all time high....exactly.

And is also a fact, that if you want high returns, you need to take risks and time the market correctly to take positions and start holding.

We will speak end 2022 if your 1% bank interest was better than investing with 28% APY at a low of 17 (in this example..., is not the only project I am staking)

Time will tell

I already love the staking concept, as it makes you keep holding, instead of trying to day trade and burn your capital. If you hold in the right projects, you will be on the profit side for sure. WEB3 is THE booming market.

[CryptoPro909]

This is not a good way to earn interest. Basically you need to own the underlying and what happens if it loses 99% of its value? There are way too many scam tokens out there which promise 100% APY to get people to buy them and then they lose all their value. Compared to the two I rather just keep it inside a bank earning nothing rather than lose 99% value.

If you want to stake do ETH or lend your stablecoins on a regulated exchange. Use 2fa and white listed addresses and be smart about security. Much better than the token he mentioned.

It is a fact that if you invest in scams, whatever you do, your money is gone.

Also, when something looks to good to be true, it probably is. There are some, but very very few, that will promise you 100% APY+, and are not scams.

Still, there are much more good projects out there than ETH (with all respect to them) or Stablecoins to stake, with higher APY then 5 or 10%.

[robbie_w]

I started earning with crypto almost 5 years ago. And must tell you 99% of the world has been missing out on huge gains both from investmen ROI and passive income for that whole time  At the point where JPM, Morgan Stanley and Black Rock are proactively shilling it and creating digital assets departments, hell even Yellen made a real 180 turn on BTC, it's downright stupid/ignorant to call it a bubble/scam anymore. It's now 100% web3 and crypto are coming and will dominate both the tech and the investment world for the decades to come.

Now that's not to say it comes without the risk of it's own - the risk is high, but the returns could easily be astronomic. So the risk-reward ratio is awesome. I mean, I'm not satisfiedif I only make 10x a year. That's 1000% in the normal world, but we 'cryptoheads' don't even bother with percentages..

Having said that, it's all about your due diligence capabilities and your intuition. Invest dozens, hundreds of hours if needed into researching and deep diving into projects, then DCA and have patience. Psychology is probably the most important aspect in it all.

In case someone is interested and ready to deep-dive, here are the few suggestions I personally hold and can easily recommend:

- ICP - price-wise had a full prolonged retracement, seems to have reversed. On top of that boiling fundamentals, hundreds of new dapps popping up, the cheapest, fastest and largest blockchain out there - infinitely scalable. Offers anyting up to 30% APY, have to lock it for a long period tho https://www.stakingrewards.com/earn/dfinity/

- QNT - coin with 0 risk, because of it's AAA team and connections in the corporate world (from Mastercard, Big4 to almost all Central Banks). Hugely complex and hard but worth to research project. Will start offering staking sometime this year, and it will all come from the real world traffic, not crypto, so huge advantage

- ECC (Empire Coin) - very small, very promising, but with naturally higher risks involved. Will start offering the first Roundify app in the world in the next few weeks in the US, NZ, Australia and UK. Eg you buy coffe for $2.8, so the app will round it to $3.00 and will automatically use that $0.20 for investing in crypto once you set up your app. Doxxed hard-working, transparent team.

Bonne chance!

[Taskford]

Its undeniable that staking is much profitable that bank interest but the question there is does the platform which offer this service will last long? Since we know in crypto nothing is permanent and there's a huge risk in every decision we made here. But if the person is new to cryptocurrency and seek for more secure investment they should go on banks since this is much safety for our money although the return is so low but we can assure that we are in safe hands.

[LogitechMouse]

Its basically Savings Account Vs. Staking right?

There are pros and cons when it comes to Savings Account for me.
The pro that I'm seeing is the risk. Putting your money in a savings account has a very low risk of it to disappear. The con though is inflation because of the low interest of savings account (I'm not sure if there are countries that has banks who doesn't give interest in savings account but in my country and in my bank, I'm getting interest), inflation is eating your money thus the value of it throughout the years decreases.

On the other hand though, there are pros and cons when it comes to Staking.
One pro is the interest. We know how much staking coins give to holders. Cardano gives 5% on average, DOT gives 14% on average and so on and so forth. Point here is the interest that we can get from staking coins is far more than what we can get in the banks but the con here is the risk. The risk is higher since you are holding a coin that is very volatile therefore, you may lose money while you staking because the coin's price is going down.

As for the OP, you are basically promoting something with a suspicious link below. Good Luck with that. As for me, I don't want to hold a coin that went from 700$ all the way to 17$. I'd rather buy another staking coin than that .

[ethereumhunter]

It is a fact that if you invest in scams, whatever you do, your money is gone.

Also, when something looks to good to be true, it probably is. There are some, but very very few, that will promise you 100% APY+, and are not scams.

Still, there are much more good projects out there than ETH (with all respect to them) or Stablecoins to stake, with higher APY then 5 or 10%.

You can invest in Binance as many people do and get a hefty return. As long as we can be careful in choosing the investment program, I think we can avoid scams that can come at any time. There are indeed good projects out there, but I suggest not having high hopes because we don't know how the project will turn out when it comes to new projects. It's best to go for a project that can give you a return on your investment and won't take your money without providing any return.

[Gozie51]

Its undeniable that staking is much profitable that bank interest but the question there is does the platform which offer this service will last long?

Binance is running staking for some coins and many investors are hodling their coin on binance staking platform that give some percentage of your staked coin depending on the duration of time of stake and for now I don't think there has been complaint about the platform.

Since we know in crypto nothing is permanent and there's a huge risk in every decision we made here. But if the person is new to cryptocurrency and seek for more secure investment they should go on banks since this is much safety for our money although the return is so low but we can assure that we are in safe hands.

Banks have played the role of third party for long and not every body enjoys that. This is why cryptocurrency is preferred for those that don't enjoy disclosure of information to third party, so it is a choice.

[CaptainCrapper]

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

I think passive income is better from bank sector depojit bank is fixed income their is no loss but profit is very low but investment of staking of farming system profit and loss both but profit ratio is better from Bank.

[el kaka22]

Depends on what you are staking. Everyone talks about how staking is better but the reality is that if you are staking something horrible then you are not earning enough money at all. You should consider the fact that crypto is not something you could really throw out of hand that easily, it is basically a two faced project that has both great stuff you could stake and terrible stuff that would hurt your finances.

If you stake something like uni or cake or eth then you will earn a good amount and it would be great, but if you are staking some shitcoin then you will lose it all and bank would be better in that situation. Basically, pick what you are staking properly.

[stompix]

You can also turn your point around. If you know a project had a all time high of 424 and went to 17, if you start staking at 17, your chances of bigger gains are much higher. Especially if you follow the fundamentals, the updates, the team,...you can clearly see we are not talking about a dead project.

Lol, fundamentals updates, team...all that crap.

I don't know how long you have been in crypto, but corrections of 80 to 95% are noting new to me. Its exactly the time I start paying attention. I am not going to buy a crypto that went 10x, 20x, 50x,...no, I buy after a correction. If you check historical price graphs of the past of good crypto projects, check what happened after a correction of 95%...a new all time high....exactly.

I've been long enough in crypto to understand that the whole roadmap team projects such much wow is pure garbage.
Once a coin is out of the hype bandwagon it dies, a slow and painful death.
Should I remind you that EOS got 4 billion in an ICO? That Dash was claiming to have millions of users and climbing about bitcoin in usage? Where are NEM, Decreed, Stroj, Chia, Dao?

Also, why should I check the graph when I'm just pointing you a graph, the one where this shit went down 95% and it's still going down.
So how do you know now is the time when you should be buying and it wasn't 30$ it wasn't 25$ and it's not 1$ or 7$.

The fact is:
- if you would have bought the coins at the start instead of 420$ you would have 22$.
- if I would have put my money in a bank I would have now 424$.

Also, I've been long enough on this forum to know you're shilling the shit out of this shit well before even checking your post history:
https://bitcointalk.org/index.php?topic=5390274.msg59562281#msg59562281
What a surprise /s

[xSkylarx]

Depends on what you are staking. Everyone talks about how staking is better but the reality is that if you are staking something horrible then you are not earning enough money at all. You should consider the fact that crypto is not something you could really throw out of hand that easily, it is basically a two faced project that has both great stuff you could stake and terrible stuff that would hurt your finances.

If you stake something like uni or cake or eth then you will earn a good amount and it would be great, but if you are staking some shitcoin then you will lose it all and bank would be better in that situation. Basically, pick what you are staking properly.

That's a great point, and you should also consider the volatility of it, right? it can just be adjusted unless it is a shitcoin that will die anyway. Well, speaking of profit, it is really profitable, but we don't know if it would be stable, unlike how stable banks are. Staking is good for a few more months unless it is a really established one with a lot of roadmaps ahead, which would be a good thing to invest in, but so far from what I have seen, it is best to stake for 3 months then get out and try again to a newer one.

[so98nn]

It's very unfortunate you only talking about savings account and interest earned on that. I think there are better ways like SIP, Mutual Funds, Stocks etc. If your money is going to sit in the banks then thats not gonna grow. But if your money is in MF's then I am pretty sure over the period of year you can easily get 15-21% on a good fund. There are many brokerage firms who has proper channeling to select these funds. The financial risk is there but its all about reducing it comparatively and growing your wealth slowly. For crypto's you may have high returns but you may have highest risk ever. Comparing to savings money, it's nothing in front of SIP & MF. Moreover, based on your locality and regulations, you are also entitled to get some tax exemption for holding these investments.

I used to think that Staking is good option when you have coin with 25% APY etc, but after reading @stompix explanation I am pretty sure that is not good idea. Just couple of days ago I posted it was, but after this example its best to invest in market with proper risk assessment.