Passive income : Bank interest vs staking

[Ultegra134]

Of course, comparing interest banks with staking such as comparing ants and elephants, in my country, banks only give about 10%, whereas now many stakes are giving up to hundreds or even thousands of percent, and this is what makes me prefer to make staking as a top priority for Earning and farming money.

Really?? What kind of project does it gives a thousand or even hundreds of percent yearly return in staking?
Your bank is a very generous too, coz here in my country there is only 1% below interest rate on your savings account.
That's such ridiculous number. I don't know, I'm not a bank expert but If there is something that a bank gives 10% APY, I guess that falls under a specific term and that would be close to investing rather than savings.

Yes, I think that is pure exaggeration. Definitely when this whole staking began, those projects are offering huge APY to attract investors. But as soon as the market is saturated, then slowly bring it down.

So to be safe, anyone should go to a bank if they don't want to take a huge risk on this whole staking crypto games right now.

The higher APY, higher the risk. Beefy now provides you with an APY historical rate on the vault you're interested in, which is extremely useful. A few weeks back, I invested in a vault which looked promising, however, I didn't bother to look its history, only to find out that it was only experiencing a temporary spike in APY.

Certainly, newer vaults will yield a higher performance, till they get saturated by investors and start declining.

[ShowOff]

The higher APY, higher the risk.

You are right, but as long as the risk is worth the gain, then of course we can consider it.

Last year I tried to invest in a different way, namely by providing capital to gold traders in trusted jewelry stores with a profit-sharing system. For me it is quite profitable compared to risking less potential assets even though the APY is quite high. However I know what risks I will face when investing in this way but I feel lucky that it has made me a good return.

[Ultegra134]

The higher APY, higher the risk.

You are right, but as long as the risk is worth the gain, then of course we can consider it.

Last year I tried to invest in a different way, namely by providing capital to gold traders in trusted jewelry stores with a profit-sharing system. For me it is quite profitable compared to risking less potential assets even though the APY is quite high. However I know what risks I will face when investing in this way but I feel lucky that it has made me a good return.

Depends on the coin, how much the APY is, there are a lot of factors to consider, but yes, sometimes it's worth it. Back when I started interfering with DeFi projects, I invested into an algorithmic stablecoins, BoltDollar to be exact. The yield was great and it lasted more than a month, I earned two monthly salaries within a couple of weeks, I couldn't be happier. However, it suddenly crashed, losing great value. Fortunately, it had showed signs of failure and managed to withdraw just in time.

Anyway, I also forgot to mention the risk of impermanent loss, which features most of the available vaults now.

[dunfida]

The higher APY, higher the risk.

You are right, but as long as the risk is worth the gain, then of course we can consider it.

Last year I tried to invest in a different way, namely by providing capital to gold traders in trusted jewelry stores with a profit-sharing system. For me it is quite profitable compared to risking less potential assets even though the APY is quite high. However I know what risks I will face when investing in this way but I feel lucky that it has made me a good return.

We could really exclude out some businesses or investment which would be tending to be compared to crypto market or in related things because its understandable that there would be some significant differences

in terms of profitability and risk factor which i would always be preferring with those traditional ones in speaking with lesser risk but since there are times which we do really love the thrill on investing on

high risk ones then this is the time we do really make out such decisions in terms on touching crypto investments.

[Rasa nanas]

If we talk about staking we don't only talk about how much passive incom you get but also need to consider the price of the coin in the future.
the highest ICP price was around $450 and now the ICP price has dropped drastically to $15. if you invest in ICP at a price of $ 450 and do staking, can the passive income you get cover the losses you experience because the ICP price has dropped dramatically?

[Kadal Ijo]

I think staking is more promising big profits than bank interest, as we know that the bank interest is very small, even in my country the bank interest bank is no more than 10% per year, while with staking then we can choose what we want from tens of percent to thousands percent per year.

[Victorik]

Staking in crypto is far more rewarding than bank interest. However, there is inherent risk associated with cryptocurrency, so people tend to be scared about investing in Crypto because of volatility.
If I have my way, I won't use the bank to anything. They give you interest but the charges you incure might eat up the interest.

[Ultegra134]

I think staking is more promising big profits than bank interest, as we know that the bank interest is very small, even in my country the bank interest bank is no more than 10% per year, while with staking then we can choose what we want from tens of percent to thousands percent per year.

10% interest per year? I have plenty of reasons to doubt your statement. A bank, in the best case scenario, provide you with 1-2% interest per year. I get a euro or two every 3 months from my bank, with a relatively decent deposit (not $1-2k). On the other hand, in the worst case scenario, staking stablecoins would get you an average of 15-20% APY.

Personally, I had invested $1.000 in UST-BUSD, which is one of the lowest yielding vaults currently, and has already achieved a profit of a few dollars, within a week or two, something that's impossible with a bank.

[TribalBob]

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.

it's true that staking is more profitable than bank interest, and the risk of staking on an exchange that makes it a dilemma in crypto, bank interest is low but there is a guarantee when our money is lost or the bank said it was robbed if we have complete data we can claim it at a local bank

[NewRanger]

I think staking is more promising big profits than bank interest, as we know that the bank interest is very small, even in my country the bank interest bank is no more than 10% per year, while with staking then we can choose what we want from tens of percent to thousands percent per year.

staking also must calculate impermanent loss that maybe occur while our coins price drop, make sure our crypto assets that being stakes for good project which is alredy survive for many years in market. alot staking coins that provide high APY, but its new project which is not proven yet as good currency which is could survive for long time. alot traders now speculating their money for high APY project for short term goal.

[Mahanton]

I think staking is more promising big profits than bank interest, as we know that the bank interest is very small, even in my country the bank interest bank is no more than 10% per year, while with staking then we can choose what we want from tens of percent to thousands percent per year.

10% per year? Sounds impossible for a bank on giving out annual interest for your funds stored on them..So i dont really believe on what you have said on here.
Try to look on APY of these banks.
https://www.investopedia.com/personal-finance/banks-pay-highest-interest-rates-savings-accounts/

You could even barely see on surpassing 1% which basically shows that staking is worth but we know that risk taking decision
would really be that crucial.

[doomloop]

If we talk about staking we don't only talk about how much passive incom you get but also need to consider the price of the coin in the future.
the highest ICP price was around $450 and now the ICP price has dropped drastically to $15. if you invest in ICP at a price of $ 450 and do staking, can the passive income you get cover the losses you experience because the ICP price has dropped dramatically?

That is why it's not advised to buy the coin when its price is high but if ever you already buy the coin at a high price and then it dumps, the best thing that you can do is to strongly hold it and pray that the price will recover and rise soon.

You can get some returns in staking but that is not enough to recover what you have lost buying at highs. On staking I heard that stable coins can also be used, I think this is one is much better since there's no need to worry that the price will drop in the future. Many people considered this more than the volatile cryptos. It's nice that stable coins are now more useful than before. Now people won't hate stable coins anymore.

[Ultegra134]

I think staking is more promising big profits than bank interest, as we know that the bank interest is very small, even in my country the bank interest bank is no more than 10% per year, while with staking then we can choose what we want from tens of percent to thousands percent per year.

10% per year? Sounds impossible for a bank on giving out annual interest for your funds stored on them..So i dont really believe on what you have said on here.
Try to look on APY of these banks.
https://www.investopedia.com/personal-finance/banks-pay-highest-interest-rates-savings-accounts/

You could even barely see on surpassing 1% which basically shows that staking is worth but we know that risk taking decision
would really be that crucial.

It's astonishing that even the highest bank interest doesn't surpass 1% APY, while on the other hand, the minimum you could achieve with staking varies from 10-15%. I'm currently sitting at 11.50% (on Binance Smart Chain), which is quite low, if you take into account that there are options with way higher APY, over 20% on stablecoins, which is considered safe.

[19Nov16]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

[andriarto]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

nominal bank interest is not much, and the benchmark is inflation, even bank interest cannot cover the increase in inflation, but our nominal money will remain the same at any time, while staking will be very beneficial for the long term and the selection of coins that have the potential in the future, so that this is like an investment that has interest, but for that there is a risk, different from saving

[CryptoPro909]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

nominal bank interest is not much, and the benchmark is inflation, even bank interest cannot cover the increase in inflation, but our nominal money will remain the same at any time, while staking will be very beneficial for the long term and the selection of coins that have the potential in the future, so that this is like an investment that has interest, but for that there is a risk, different from saving

Especially with the inflation rate now....

[batang_bitcoin]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

[Crypto Library]

In my case, if I have to make a comparison, I will look at the two in two different contexts, then select the one that works best for me.  In this case, the bank gives us direct fiat currency that is available in all places, On the other hand staking is just giving profit in  cryptocurrency. One of our disadvantages is that the use of cryptocurrency is still not accepted in all parts of the world. Since I'm associated with cryptocurrency and by staking someone can not set a tax in my profit so I'll choose staking

[Ultegra134]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

There are quite a few instances of single asset vaults offering great APY, such as Cake, Stella, BIFI, however, you should always take into account impermanent loss, market crashes, such as the one we're experiencing now, BIFI has lost over $300 in value in the past week. You'll need to be extremely patient, especially in periods of depression, while choosing the correct project is a strenuous procedure.

[Serco]

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

if our goal for long term and ignore market volatility, i guess staking on Cex or Dex was good reason. with more than 30% for its yearly return and also price growth, in three years our investment could be huge. we got double benefit by staking potential coins. with same amount in bank deposit, we will get bigger return by staking crypto currency.