Passive income : Bank interest vs staking

[DVlog]

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

Staking in my opinion is more promising than internest banks, and for almost a year I have been actively staking with several major coins such as BNB, MATIC, Stable coins and so on, and for stable coins I use for staking altcoins and from the list is Celsius, besides that I also use for staking new altcoins because it provides a large APR up to more than 100%.

There is some downside of staking in comparison to banks. If it is an altcoin you are staking the price of your initial investment will also surge with the whole market. That means you could gain additional altcoin but its price in USD could fall below your initial investment. This won't happen with banks because of stable fiat currency. Also if you are providing liquidity then you should know about impermanent loss too.

Staking does contain speculation as you have shown. So to do that, you have to understand the risks. if we can understand, then it is safe for us to stake on a trusted coin that is on the top board, even though when we get a staking coin the price drops, but one day it will come back again, it can even provide double profits. This is different from bank interest which is nominally small, and of course below the inflation that occurs

Does that matter if it's a trusted project or not when we are talking about speculation? In a bear market, every project goes down except a stable coin. If you just want to increase the number of your coin no matter what the price is then staking is profitable. It's suitable for long-term holders but for the short-term holders, this could be painful. Staking is much better than bank interest but you have to understand in which occasion.

[bitterguy28]

Yes  I still have Bank Savings till now but at least that is just a tip of the ice berg from how much i have in my crypto savings, Staking? yeah i am onto it but In Binance only , that is the only staking place where i trust more than anything.
i tried others in the past but I did not get what seems to be promised so i focus in staking in binance up to now.
Bank interest is far lower than what i can take in staking but at least I wanna make sure that I am ready in everything that would happen in the future.

[Mauser]

In my country saving money in a bank account is still very common even though it's not profitable. My grandmother and even my father have almost all his savings in a bank account that is paying 0.1% interest rate for the last 5 years. With inflation rates of above 2% they are losing money every year. I keep telling them that there are better alternatives to at least protect the money against the inflation, but they are not listening to me. The strange than is than they are complaining every month how much more expensive food and other things become. I don't see that interest rates will rise a lot any time soon. The higher inflation is a very good situation for all the indebted countries and helps them to reduce their refinancing costs. That is why I would expect to see a constant higher inflation in the future with only moderate interest. It just doesn't make sense to bring anymore money to the bank. I would recommend anybody to look into staking rather than saving to get at least some return after inflation.

[Drane007]

Depending on where you live and the options available to you, even the most generous savings account will most likely only offer 1–2 percent APR. In most countries, this figure is barely higher than the rate of inflation.

In comparison, even the least generous staking coins can generate a yield of more than 5%. Many, including Tezos (XTZ), Cosmos (ATOM), and Polkadot (DOT), currently generate yields of 5.69%, 7.82%, and 13.112%, respectively. Again, these figures and your exact yield will vary depending on a few factors, but they will almost certainly be higher than the best savings accounts can provide.

[Abiky]

The bank interest I get in my country is currently not more than 8% per year, the central bank provides low interest because it hopes that many entrepreneurs will invest by borrowing from banks, this is certainly not profitable if we save in banks and it is better to invest in cryptocurrencies then use for staking, some DEX provide very large APY up to hundreds of percent so that it looks promising and prospective.

DEXs provide attractive interest rates, but they're extremely risky as any vulnerability in the code or a drop in market prices could make you lose everything in an instant. As it's said in the real world, "the higher the risk, the higher the reward". Whenever you want to stake crypto or save money at a bank is entirely up to you. I'd focus more on using crypto directly for day-to-day payments than as a long-term investment. As long as you don't become greedy, you'll be on a road towards non-stop success. Just my opinion

[Marvell1]

In my country saving money in a bank account is still very common even though it's not profitable. My grandmother and even my father have almost all his savings in a bank account that is paying 0.1% interest rate for the last 5 years. With inflation rates of above 2% they are losing money every year. I keep telling them that there are better alternatives to at least protect the money against the inflation, but they are not listening to me. The strange than is than they are complaining every month how much more expensive food and other things become. I don't see that interest rates will rise a lot any time soon. The higher inflation is a very good situation for all the indebted countries and helps them to reduce their refinancing costs. That is why I would expect to see a constant higher inflation in the future with only moderate interest. It just doesn't make sense to bring anymore money to the bank. I would recommend anybody to look into staking rather than saving to get at least some return after inflation.

Saving money in the bank is not as profitable as staking but we cannot deny that it ensures the safety of our money.

It is the right choice for the elderly because they focus on safety, they are not like us who can take risks to get bigger rewards. Staking brings high rewards but also contains potential risks if we choose the wrong coin. Therefore, should allocate assets reasonably, should not invest all in one place.

[viananda2525]

Saving money in the bank is not as profitable as staking but we cannot deny that it ensures the safety of our money.

It is the right choice for the elderly because they focus on safety, they are not like us who can take risks to get bigger rewards. Staking brings high rewards but also contains potential risks if we choose the wrong coin. Therefore, should allocate assets reasonably, should not invest all in one place.

if we want safest way, maybe staking stable coin in any decentralized exchanges could be the solution.its annual rate still above deposit rate in several countries. maybe the problem is the exchanges security in future, there is no one it could avoided from hacking case . year by year hacking case in crypto market increase dramatically , and we must concern with this.

[CryptoPro909]

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

Its a point of view.
I would say what about Ethereum, Polygon, Sandbox, MANA,... So many examples of cryptos that have healthy corrections during their lifecycle, but have in a 5 year time a huge progress.

And yes, now a lot of projects went down hard, but I repeat, lets talk again end 2022.
When I stake I am not thinking short term, I am in for the long run.
DYOR, as it is indeed important to stake in good projects that have the potential to keep growing.

[DVlog]

There is some downside of staking in comparison to banks. If it is an altcoin you are staking the price of your initial investment will also surge with the whole market. That means you could gain additional altcoin but its price in USD could fall below your initial investment. This won't happen with banks because of stable fiat currency. Also if you are providing liquidity then you should know about impermanent loss too.

staking our altcoin maybe more suitable for long term purpose which is less volatility price and rise steadyly , maybe atleast 1 or 2years we will got two benefits from its APY and also price increase. moreover if there any stakedrop program that usually in cosmos ecosystem, more benefits we will got

What do you mean by our token? You are working on a project or you are the owner. It is not about the ecosystem because you can lose money in any project if they do not have any working product and well planned future roadmap but offer attractive APY to attract investors.

It can't be denied that staking is the most profitable technique today, with staking we can get big profits and even many projects that offer APY of up to thousands of percent, and bank interest is currently very unprofitable because it only earns interest of less than 1% per month.

you must also recgnized market volatility too, dont ever you get huge apy but in total amount impermanent loss due some reason.

Huge APY means rewards will be higher which will increase tokens in circulation. Because as soon as stakers get their rewards they will instantly sell to extract their initial investment.

[Fatunad]

Saving money in the bank is not as profitable as staking but we cannot deny that it ensures the safety of our money.

It is the right choice for the elderly because they focus on safety, they are not like us who can take risks to get bigger rewards. Staking brings high rewards but also contains potential risks if we choose the wrong coin. Therefore, should allocate assets reasonably, should not invest all in one place.

if we want safest way, maybe staking stable coin in any decentralized exchanges could be the solution.its annual rate still above deposit rate in several countries. maybe the problem is the exchanges security in future, there is no one it could avoided from hacking case . year by year hacking case in crypto market increase dramatically , and we must concern with this.

One of the biggest or main hindrance or reason on why we do really hesitate on making out such option due to security or scam or hacking involvement on where we cant really assure on a years time there
wont really be those kind of probability which we would really be thinking off on our investment for that long.Yes, we could possibly earn more than on what we could earn in banks but the risk involved
would really be still high and if you could able to bare it out then go ahead but im sure that most people wont really be that seeing this thing to be appealing.

[CryptoPro909]

Saving money in the bank is not as profitable as staking but we cannot deny that it ensures the safety of our money.

It is the right choice for the elderly because they focus on safety, they are not like us who can take risks to get bigger rewards. Staking brings high rewards but also contains potential risks if we choose the wrong coin. Therefore, should allocate assets reasonably, should not invest all in one place.

if we want safest way, maybe staking stable coin in any decentralized exchanges could be the solution.its annual rate still above deposit rate in several countries. maybe the problem is the exchanges security in future, there is no one it could avoided from hacking case . year by year hacking case in crypto market increase dramatically , and we must concern with this.

One of the biggest or main hindrance or reason on why we do really hesitate on making out such option due to security or scam or hacking involvement on where we cant really assure on a years time there
wont really be those kind of probability which we would really be thinking off on our investment for that long.Yes, we could possibly earn more than on what we could earn in banks but the risk involved
would really be still high and if you could able to bare it out then go ahead but im sure that most people wont really be that seeing this thing to be appealing.

That's why doing research is so important. If you know the team of projects and the roadmap + what is the possible utility for mainstream in the future...Can help a lot in making the right choices. DYOR

[lixer]

It can't be denied that staking is the most profitable technique today, with staking we can get big profits and even many projects that offer APY of up to thousands of percent, and bank interest is currently very unprofitable because it only earns interest of less than 1% per month.

Not the most profitable but one of the ways to make profit here in cryptos. Most profitable I believe is trading because there is no limit in trading. You can make unlimited money as long as you are a skilled trader. The next one would be is investing but just like in staking it requires patience since the goal to make better profits is by selling at higher price and that doesn't come easily but it takes time.

Be careful on projects that claims thousands of percent because they are good too good to be true and likely a scam. I better stick on lower percent because they tend to be more legit. We keep money in banks because it's safe and convenient but don't expect much that you can earn on them.

[DanWalker]

It can't be denied that staking is the most profitable technique today, with staking we can get big profits and even many projects that offer APY of up to thousands of percent, and bank interest is currently very unprofitable because it only earns interest of less than 1% per month.

Not the most profitable but one of the ways to make profit here in cryptos. Most profitable I believe is trading because there is no limit in trading. You can make unlimited money as long as you are a skilled trader. The next one would be is investing but just like in staking it requires patience since the goal to make better profits is by selling at higher price and that doesn't come easily but it takes time.

Be careful on projects that claims thousands of percent because they are good too good to be true and likely a scam. I better stick on lower percent because they tend to be more legit. We keep money in banks because it's safe and convenient but don't expect much that you can earn on them.

I almost do not believe in projects that provide APY up to thousands of percent, it really looks like a scam or it won't last more than a few months. this really brings too much risk, I would never staking such projects.

Should choose projects with a reasonable percentage and those that have been recognized as safe to invest and stake. Along with that, choosing a platform to stake is also extremely important, we should only stake reputable, leading platforms.

[Pujangga]

Of course staking, even for now staking is my biggest income in cryptocurrencies, I've been staking for almost 2 years on several DEX and spot exchanges and I think the results of staking are very satisfying, even I am also happy with staking to earn new coins because many are successful and can earn big profits .

[tvplus006]

DEXs provide attractive interest rates, but they're extremely risky as any vulnerability in the code or a drop in market prices could make you lose everything in an instant. As it's said in the real world, "the higher the risk, the higher the reward". ...

As a rule, scammers use vulnerabilities in DEX that have been recently launched. And as a rule, such new platforms offer the highest APY that cannot be compared with the interest rates of traditional banks. So everyone should decide for themselves what is more important for them, reliability with a small APY or risk with a large one.

[Serco]

Yes  I still have Bank Savings till now but at least that is just a tip of the ice berg from how much i have in my crypto savings, Staking? yeah i am onto it but In Binance only , that is the only staking place where i trust more than anything.
i tried others in the past but I did not get what seems to be promised so i focus in staking in binance up to now.
Bank interest is far lower than what i can take in staking but at least I wanna make sure that I am ready in everything that would happen in the future.

fiat saving still needed for emergency condition , maybe put some money into cyrpto and fiat saving will be ideal for us. staking in binance has best security layer and also our money here 100% guarantee . if any loss , their exchanges will replace it using SAFU fund. crypto staking has bigger APY if compared with bank saving or deposit. but we must also calculate the volatility in future.

[dunfida]

Yes  I still have Bank Savings till now but at least that is just a tip of the ice berg from how much i have in my crypto savings, Staking? yeah i am onto it but In Binance only , that is the only staking place where i trust more than anything.
i tried others in the past but I did not get what seems to be promised so i focus in staking in binance up to now.
Bank interest is far lower than what i can take in staking but at least I wanna make sure that I am ready in everything that would happen in the future.

fiat saving still needed for emergency condition , maybe put some money into cyrpto and fiat saving will be ideal for us. staking in binance has best security layer and also our money here 100% guarantee . if any loss , their exchanges will replace it using SAFU fund. crypto staking has bigger APY if compared with bank saving or deposit. but we must also calculate the volatility in future.

Why would really be need to choose one if you could choose both? When you are saving up some money for future or for some security and if you do like to venture out on some crypto investment then you could really

opt on staking but its not really that suggestible considering on the risk involved.Earnings per year might be that bigger than with Banks are offering but this isnt something that you could compare out in terms

of assurance or security of your money and with just common sense then you would able to identify out for yourself about main differences.

[wxa7115]

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.

While you are correct when you state that the costs of running a bank are higher and as such they can offer lower profits, we also need to be honest, banks were a monopoly and as we know a monopoly can get away with a lot of things when there is not a competitor forcing them to be more efficient.

Bitcoin has forced the hand of banks as now more people are interested in parking their savings there or in some other coins and obtain way better benefits, banks are finally realizing the problem, which is why we are seeing yet another round of FUD against bitcoin and the market in general.

[Ultegra134]

I have money allocated both in staking and in bank deposit, I'm not using the latter to take advantage of the interest, it's no use. Funds are certainly assured in a bank, however, if you're careful enough, staking stablecoins  is just as safe, while achieving a far greater yield, 10-20% in the worst case scenario. Deposits on the other hand, will yield less than 1-2% on a yearly basis. The reason I'm using them is solely for convenience and to receive salary.

[Pejoh Asu]

With APY no more than 10% per year then I think there is no interesting thing about Banks, it's better to invest in Crypto then we use it for staking, although binance gives APY 6% but we hope that a fantastic price increase is more important than the APY staking We get it.