What is crypto staking? Is staking worth it?

[CoinMany6]

What is crypto staking and how does it work?

What is staking? Staking is a way to earn rewards via delegating your holdings of coins or tokens. It’s equivalent to storing money in a savings account & earning interest or buying company shares & share dividends.

Not all cryptocurrencies support staking. It only works in cryptocurrencies whose network consensus mechanism is Proof-of-Stake, such as Ethereum (ETH),  Solona (SOL), etc. The network chooses validators to add a new block and legitimate transactions on the chain in exchange for rewards. Whether or not you can become the validator depends on how many coins you stake, how long you have held them, etc.

Unlike Proof-of-Work, you don’t need highly-equipped computer hardware to race to solve a difficult math problem, which is called mining. Investors take part in staking through crypto exchanges, crypto wallets, or staking pools. It costs less energy and the transaction speed is faster.

Is staking worth it?

1. Earn passive income: You earn rewards after you are chosen as the validator to verify the new block and transaction. It’s suitable if you prefer a long-term investment and don’t want to look at the price changes from time to time even at night when you sleep.
2. Sense of satisfaction: You play a role in maintaining and securing the blockchain network.
3. Easy to start: You don't need special hardware equipment.

What are crypto staking risks?

- When you stake, your holdings are locked up for a certain amount of time. You cannot trade or sell them before you unstake your holdings. So it might decrease your profits if the price plummets.
- Depending on how you stake, you might need to entrust your cryptos to exchanges. It might bring security risks.

[Strongkored]

You have said it all so whether staking is profitable or not has been answered by your post. Staking was very profitable in the early days of altcoins because the market was not as volatile as it is today, moreover the altcoin can be staked in a wallet where the owner has access to the Private Key, the coin owner only needs to open his wallet every day to get interest. The emergence of Ethereum changed many things in the crypto world, one of which made crypto very centralized so that staking was carried out on exchanges that were at risk of being hacked or the exchange collapsed so that we lost coins.

[tech30338]

I think staking is profitable for those who have huge amount of holdings the bigger or the larger amount being stake the better, if you have small amount i think you better just do trading, and bump to a gem, the risk is also huge where the staking platform might get hack etc,

[Ucy]

Your participation in staking is meaningless and fraudulent if you do not run full node and take part in full network consensus. This is one of the main reasons the so called PoS is a massive scam and crypto abomination.

With Proof of Work you can immediately start participating in full network consensus once you run your node. And you can start mining/earning with a mere laptop, but due to its competitive nature, you will probably need powerful device for your reward to be significant.




Alot do not realize that you can mine with a laptop. It may also be possible to still win massive reward while mining with just a laptop... But the chance of this happening is very slim.

[jossiel]

I think staking is profitable for those who have huge amount of holdings the bigger or the larger amount being stake the better, if you have small amount i think you better just do trading, and bump to a gem, the risk is also huge where the staking platform might get hack etc,

No doubt that staking are much more profitable to those that have a lot to stake. Those that will stake like a few bucks even up to a thousand dollars, that won't give you much profit with realistic APY.

But as source is still a source of income, no matter how low they are, your money is working for you. It's good if you don't have plans for that coin that you're about to stake and just hold it there to at least earn a couple of bucks yearly.

[Jackl87]

What is crypto staking and how does it work?
What is staking? Staking is a way to earn rewards via delegating your holdings of coins or tokens. It’s equivalent to storing money in a savings account & earning interest or buying company shares & share dividends.

I know that there are quite a few people out their that really disliked the fact that Ethereum has switch is consensus mechanism from Proof-of-work to Proof-of-stake recently. Some of them are miners and some of them are people that are just really disliking Proof-of-stake for whatever reason. I personally have to say though, that i like the possibility to gain some interest on your holdings. I mean if you are planning to hodl your tokens or coins longterm anyway, why would you not stake it and gain a few % of interest on it every year. I also does not really matter how much you have 5% are 5% and a few bucks for free are better than nothing.

[el kaka22]

As with everything else in crypto, it all depends on how much you trust yourself and the investment. Just because something is staking doesn't mean it will be good or bad, just because it is not staking doesn't mean it's good or bad, staking doesn't suddenly change anything. Sure the system changes, but a bad one will be bad with or without staking, a good one will be good with or without staking.

I always had some cake, and staked it for example on pancakeswap, but that doesn't mean it didn't drop as much as others during this bear run, it did, but I still trust it and hold it and hope at it will do great when the bull run comes back in the future.

[blockman]

I always had some cake, and staked it for example on pancakeswap, but that doesn't mean it didn't drop as much as others during this bear run, it did, but I still trust it and hold it and hope at it will do great when the bull run comes back in the future.

I also got some cake and left it there. I can say that it's worth it if you're just doing nothing with your money but believes that someday in the future they'll be big.
The value will drop overtime but if you believe in the coin, there's a possibility that it will pump during or before the actual bull run just like what we've seen. But if it's just for the experience, it's not profitable with less coin to be staked.

[Oilacris]

I always had some cake, and staked it for example on pancakeswap, but that doesn't mean it didn't drop as much as others during this bear run, it did, but I still trust it and hold it and hope at it will do great when the bull run comes back in the future.

I also got some cake and left it there. I can say that it's worth it if you're just doing nothing with your money but believes that someday in the future they'll be big.
The value will drop overtime but if you believe in the coin, there's a possibility that it will pump during or before the actual bull run just like what we've seen. But if it's just for the experience, it's not profitable with less coin to be staked.

It do pertains about risk taking and this should be the main thing on the time you have decided to make out some investment or let your money park on something just to make out those gains

but of course its not really that an assured thing that you would make out money since it would really be depending or basing up on the overall market condition which is unknown.

If you do indeed believe on a project then it would really be your choice whether you would decide to park it there or not.It is really just cant really be
avoided for you not to check every now and then if you do know that you do have something been invested.

[Jaered]

Staking would be worth it if you have some loose coins or tokens which you are willing to put on the simmering stew. Because I found out that the more reliable staking platform the lower their APR, and the more juicier APRs are owned by riskier platforms

[blockman]

I also got some cake and left it there. I can say that it's worth it if you're just doing nothing with your money but believes that someday in the future they'll be big.
The value will drop overtime but if you believe in the coin, there's a possibility that it will pump during or before the actual bull run just like what we've seen. But if it's just for the experience, it's not profitable with less coin to be staked.

It do pertains about risk taking and this should be the main thing on the time you have decided to make out some investment or let your money park on something just to make out those gains

but of course its not really that an assured thing that you would make out money since it would really be depending or basing up on the overall market condition which is unknown.

If you do indeed believe on a project then it would really be your choice whether you would decide to park it there or not.It is really just cant really be
avoided for you not to check every now and then if you do know that you do have something been invested.

Yes, I'm checking it but unlike any other assets that I've got, it's like a very rare moment when I checked it. It's a normal thing to do when you've got some staked coins and you're just too excited to take them and sell them in a decent profit.
But as of the moment, it's not like that because we don't know when the next bull run will start so instead of checking the actual stake I have, I'm checking the price instead.

[goaldigger]

Staking would be worth it if you have some loose coins or tokens which you are willing to put on the simmering stew. Because I found out that the more reliable staking platform the lower their APR, and the more juicier APRs are owned by riskier platforms

This will also depend on how much you will stake since most of the APR are not that high, you should not expect big returns if you are going to stake small money, this will only good to those who are investing for long term and don’t have much time yet to trade in the market. Staking is not guaranteed as well, you should also consider the status of the market and in bear trend, it will be hard to place your holdings at stake.

[Kelvinid]

Is staking worth it?

1. Earn passive income: You earn rewards after you are chosen as the validator to verify the new block and transaction. It’s suitable if you prefer a long-term investment and don’t want to look at the price changes from time to time even at night when you sleep.
2. Sense of satisfaction: You play a role in maintaining and securing the blockchain network.
3. Easy to start: You don't need special hardware equipment.

Staking never gives you a passive income but just at least it gives you some money. Imagine making 3-5% APY, you are just like depositing your money in a bank and only just get a few dollars depending on how much you deposit. It is really to start and I would agree with that but if we think about satisfaction - that was no for me. 

What are crypto staking risks?

- When you stake, your holdings are locked up for a certain amount of time. You cannot trade or sell them before you unstake your holdings. So it might decrease your profits if the price plummets.
- Depending on how you stake, you might need to entrust your cryptos to exchanges. It might bring security risks.

That is a problem and it gives me worries especially if you are using non-reputable exchanges as the risk of freezing your account and not getting your money is possible. That is why we should be wise enough about where to stake and of course, the coins we choose.

[Psynthax]

I think it's worth it only if the circumstance of the cryptocurrency in general is quite good, the thing with staking as it is currently is that whatever the returns they offered is getting swallowed by the fluctuation, so many that stakes their coins ended up losing mainly because the recent luna and ftt token crashes, therefore sometimes staking long term seems like it will rarely brings profits whatsoever, but staking with coins like usdt will definitely brings  consistent returns even though it's rather low.

[alexandr1115]

Personally, I think this whole crypto-staking system is very much overrated! There are no normal conditions there! To some extent, you can find a coin or token based on the POS algorithm! And buy these coins or tokens! And it will be almost the same as crypto-staking, but only on more favorable terms! Another thing is that POS technology is not new at all and there is nothing so interesting in it, as it seems to me!

[DeathAngel]

It’s just about the worst thing you can do in crypto at the moment. Not your keys not your coins. Never, ever leave your money in the control of a third party crypto exchange. Recent & long term history suggests it’s a very risky thing to do. The returns on offer are just not worth the risk involved.

[albon]

The best thing about staking is that it is easier than mining, as it does not require the purchase of mining equipment as much as it needs to freeze your coins for a certain period of time for the purpose of documenting transactions, and in the end, you will get a reward. Staking rewards are determined as fixed percentages of inflation in the network, and although the staking rewards are not as large as before and vary according to the amounts of your currencies, in my opinion, staking is better than leaving your coins idle in the long term, so I advise whoever wants to do staking for his coins to choose the platform on which he will deposit his funds carefully and not be deceived by the platforms that publish huge returns and profit rewards on Staking coins.

[glendall]

Crypto staking is very profitable, of course, but with a note that you have large funds and staking results can be claimed / week so that it can be used as an investment for other altcoins,
staking in my opinion is the same as deposits in local banks, it's just that what makes it different is the result, if the bank can only make 1 month withdrawals when they keep interested away from our deposits

[Heulahee]

Staking depends on the person's holdings, if a user has a huge amount of holdings and he still wants to earn through these holdings then staking will be a good choice for him, because through staking he can earn a lot, as you mentioned the benefits of the staking in the upper section. And mostly staking could be beneficial at larger scales.

[hyudien]

Staking is my alternative to get some benefits, moreover, I'm currently optimizing the Atom network besides getting benefits. If you're lucky, there are certain events that do have conditions for stakers on the Atom network, who can only claim them. After all, so far staking in a bear market has left us with a lot to gain. But I did it all with the amount I was prepared to lose. This means that the risk at any time is that the third party where I stake coins disappears. So please note that staking requires doing research where you will drop your coins to a trusted party.