Passive income : Bank interest vs staking

[ShowOff]

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.

Yes, it is much better than the token the OP mentioned. I think it's a good idea to weigh the possible downsides instead of constantly thinking about the gains for tokens that never prove future potential. Stablecoins and some of the top altcoin right now are great options to staking on, but we also have to weigh the risks.

At the bank, of course we can do it with much less risk but also with small interest. So being smart is expected especially when it involves money in risky things.

[Emitdama]

There shouldn’t be any difficulties when it comes to picking one between these tow. Bank savings is probably a waste of time, if you’re expecting to make good returns then it shouldn’t be what you’re looking for. Bank savings are simply just for savings and nothing more than that, you shouldn’t be expecting anything.

Staking is a better option between these two and is something that should be worth considering. That is just it for me, I don’t see bank savings as a means to gain any form of income at all, because even before the end of the year there might be some charges that will cut off everything.

[jerry0]

Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?

[dunfida]

Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?

For sure there are people who are parking out their stable coins on these platforms.
Lets see for example on Nexo.
https://nexo.io/earn-crypto

Offering upto 17% APY looks interesting or appealing which is more than a bank could offer but speaking with security of those
coins then you cant really be sure of that.

[tabas]

Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?

Yes, I've seen a group of people that are into staking. They consider those interest rates to be like a steal to them rather than putting their money in the banks.
But the risk is that, they're a platform and they won't issue you your private keys so if you're up to that and good with it, it's your choice to stake with the percentage of APY they'll issue to you but you don't hold the keys.

[ivankoh]

, it's your choice to stake with the percentage of APY they'll issue to you but you don't hold the keys.

Not your keys / not your money .  That doesn't seem to be the situation I would expect with all the purported changes from governments in the not-too-distant future.  Find a hiding place first to keep the sovereignty and secure the assets, almost they will have to wait for some dex to become complete lending/farming/staking… lk
Bank interest rates are a bad thing when it comes to inflation and even so, the Fed continues to look for ways to increase the value of currencies that have been softened by the impact of the pandemic.  After all, I prefer APY of crypto, say no to banks.  Lol

[ttcsalam]

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 like passive income cause if i stake 10 or 20 project i can get an handsome feebback every month or every day so i agree with staking systum.

[el kaka22]

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.

I think volatility matters if you are looking into shitcoins. Normally when we are talking about big coins, the volatility is not "huge", it is huge compared to regular markets but it is not huge compared to shitcoins. Bitcoin moving 10% daily could be a big deal in stock markets, but there are alts moving 200% daily during the same period.

So when you are staking, focus on the trustable stuff and you will be getting something good in return. That is what I believe we should all be focusing on when staking, the idea that the you will get a return is awesome, but the fact that the price of the thing you are staking matters even more in that sense.

[Rupok]

Bank invest is so good and risk free.Staking it's possibility pumping and dumping and also the possibility basic money loss.So more then good bank invest because it's not possibility to loss your basic money.However, depending on your mind and what do you want and what do you think about more beneficial. I think bank it's really profitable, but we don't know if it would be stable, unlike how stable staking. 

[Wong Gendheng]

Passive income from banks is certainly very promising, but we have to save large amounts of maybe millions of dollars to be able to get APY 6% from banks, but with $15k and we activate staking on DEX which can provide APY up to more than 100%, especially when this is more and more projects that give APY up to thousands of percent.

[southerngentuk]

When I talked to some friends in the banking industry, I was also surprised that they had a team that used everyone's money to participate in savings investments in other fields. But in hindsight, I also have a little thought about the hierarchy of people's knowledge, and sometimes we should also understand that when we don't have enough knowledge to expose ourselves to different fields to make profits, it is also reasonable to save money and share profits. But for those who are familiar with this market, I firmly believe that staking is a great tool for maintaining value better than any other field that I know of right now.

[Pejoh Asu]

Staking is certainly more promising than bank interest, with staking we can get hundreds of percent APY, but bank interest only provides a maximum APY of 8% (current average rate in my country), it can't be denied that staking is worth choosing, of course we have to choose a platform & safe coins so that profit calculations can be accurate.

[tabas]

, it's your choice to stake with the percentage of APY they'll issue to you but you don't hold the keys.

Not your keys / not your money .  That doesn't seem to be the situation I would expect with all the purported changes from governments in the not-too-distant future.  Find a hiding place first to keep the sovereignty and secure the assets, almost they will have to wait for some dex to become complete lending/farming/staking… lk
Bank interest rates are a bad thing when it comes to inflation and even so, the Fed continues to look for ways to increase the value of currencies that have been softened by the impact of the pandemic.  After all, I prefer APY of crypto, say no to banks.  Lol

It's true  about bank interest and inflation, it barely cover you for the inflation that is about to come. That's why you need to have a place or source for your money to earn higher than the inflation rate that's about to come.
It's okay whether you prefer to put it on mostly to APY with staking than the banks and it's your preference. We all agree that it's more profitable if it's with the staking.

[Abiky]

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.

Exactly. The higher the risk, the higher the reward will be. While staking may seem to be profitable, the risks of doing such practice is much higher than saving your money at a bank. Where to put your money (crypto or banks) is entirely up to you. Believe me, there's nothing better than building passive income through the use of crypto/Blockchain tech. If you're able to manage the risks, staking works wonders.

Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts

[BITCOIN4X]

Exactly. The higher the risk, the higher the reward will be.

But not for non-potential random assets. I think it's not as simple as we think.

While staking may seem to be profitable, the risks of doing such practice is much higher than saving your money at a bank. Where to put your money (crypto or banks) is entirely up to you. Believe me, there's nothing better than building passive income through the use of crypto/Blockchain tech. If you're able to manage the risks, staking works wonders.

Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts

We are never forever safe with investments regardless of whether it is in crypto or in banks. At the bank, the government may force us to pay income taxes which means the profits will not be better than we expected. Staking or crypto investing is a choice, so we must be really wise in choosing which asset is the best to own in the long term.

[Hamphser]

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.

Exactly. The higher the risk, the higher the reward will be. While staking may seem to be profitable, the risks of doing such practice is much higher than saving your money at a bank. Where to put your money (crypto or banks) is entirely up to you. Believe me, there's nothing better than building passive income through the use of crypto/Blockchain tech. If you're able to manage the risks, staking works wonders.

Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts

Bank interest was never be considered to be an investment but rather to be some additional peanut amount for you to get of storing your fiat with them and it would really be that wrong for someone to have that kind

of impression or mindset about that manner.Of course the risk is much higher which is understandable and you could really able to see that whenever you do experience both.
Interest in banks arent that good and as said by others 1-2% per year so i dont see on why people do really treat this way.

[iv4n]

Staking is certainly more promising than bank interest, with staking we can get hundreds of percent APY, but bank interest only provides a maximum APY of 8% (current average rate in my country), it can't be denied that staking is worth choosing, of course we have to choose a platform & safe coins so that profit calculations can be accurate.

Well, those with hundreds of percent APY are pretty risky, mostly I like under 100... less profit but lower risk as well! Except for higher rates in crypto I wish to point out one other important thing, it's accessibility! It's easy to work with crypto, always available from wherever we are, with so many different staking options anyone can choose the best for them, from wallet or exchange!
I don't have money in the bank, but I stake a few coins! I have already chosen what's better for me, and I don't think I will ever go back to staking fiat in banks!

[Poker Player]

For me, the answer is neither. The money I have in the bank uninvested I keep as an emergency fund. I don't care how little the bank gives me, and I know that if I discount inflation I lose money, but I take it as insurance.

As for the staking, it is true that it gives more interest than the bank, and I was about to remind you that the higher the profitability, the higher the risk when I read stompix's post:

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!

I would see sense in staking with stablecoins, but there are other options, such as buying shares of good companies that pay growing dividends.

Keep in mind when investing: it is better to invest in something that does not give you passive income if the total return is higher.

If investing in a shitcoin that gives you a passive income results in a loss of more than 90% of your investment and on the other hand, having invested the same amount in Bitcoin that you keep with your private keys gives you more than 90% return, the latter is preferable.

Here you can clearly see the trade-off but it can also be applied to dividend paying stocks: if investing in a certain stock will give me a 3% dividend but only a 2% capital appreciation in the long term, I will do better investing in an index fund that does not give me dividends (passive income) but gives me a 10% return.

[adzino]

Staking if you are holding for long term. But you should keep in mind about the volatility. You might get a 10% APY, but if the price of the coin falls by 20%, you lose 10% (if you sell. You don't lose anything if you don't sell). Bank interest gives you flat interest and the fiat currency isn't volatile. So you don't have to worry about your money in short term. But don't forget about the inflation. Your savings account will give you an interest between 1% to at best 3%, but the inflation in the long run leaves you with no profit/interest. Instead you will be losing money if you keep your funds in the bank for a long period of time. Worse if your country is facing hyper inflation.

[philipma1957]

banking and or government bonds. are safe the principle will never vanish.

As they are backed by the government. (this is in theory) we do known small governments have let banks default or bonds default.

But disregard that and 1000 bond at 3% is 1030 in a year  then say 8% inflation so 1030 x .92 = 947.6

but lets agree it is a certain 947.60 value

any coin you stake I do not care what coin it is has 2 risks poof it is gone vanished due to the place holding the stake robs you.  and the coin drops in value say 50% or 90%

so the 1000 in a coin get 20% it is 1200 but its price can drop so it is 700 or 500 or 300

or worse if an exchange was holding poof it is gone.

Every coin you stake has one or both of those risks.  so what if it paid 20% if it was worth 1000 ssd and dropped in value to 100 usd you lost.
if the exchange gets hacked you lost.

anyone with bonds, bank accounts may not care about shrinkage.

IE give me 100 million usd in fed bonds getting 3% I do not care about the shrinkage .

My advice is you need both 'safe' that will shrink a bit and risky that who the fuck knows what will happen.