Would You Advise People To Stake?

[cabron]

If the user has a lot of ETH, why not. Institutions are also staking, he just has to figure out how many ETH he has so that he can already figure out how much he'd be earning for the whole year.

The Platform however is not very attractive with ETH staking. It's best that the user can sell when the bull run is closer to an end. This I guess is supposed to be learned. It's more reasonable to sell in the bull run in my opinion.   

[o48o]

I'm a beginner so I put it in the Beginners & Help section.

Coinbase offers "Cosmos" with a yearly annual return of 17.66%.
I did some research on Cosmos and its future looks bright.
On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

First of all that's not real staking, exchanges are just calling that staking. Staking is you can do without depositing your coins to any CEX. Real staking is participating to secure the chain and you can do it in your own computer without moving your coins/tokens.

Not all people want to "stake" in exchanges because they don't trust CEXes. There are different methods to stake but in most cases you don't need a lot of know how to do it by yourself. Also some people prefer PoW over PoS so they dislike coins that use staking.

[QueenVera]

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

People are scared of staking because they feel staking are not productive because there has been false accusations that stake coins give low return because when they get unstaked that they get dump.by whales to manipulate the price and bring the price down so those that staked their coins won't get much profits. Staking has been one of the most profitable ways of investing .
Because when you stakes you're reducing the coins in circulation and giving the project more opportunities to give good return to their earlier investors. I'll always advise people to stake as it gives investor more opportunity to hold their tokens instead of if selling and this make room for future investors to profit instead of regretting of selling their investment very early.
Staking makes you become a diamond holder as you receive reward for holding so you'll always be interested in staking but just holding or trading makes you put yourself at risk of no profit. Anybody's that what to make big  profits from the cryptocurrency markets has to become a holder and a staker because, you don't lose when you stake instead you profit more profit.

[bitkanu]

You have it covered and you can stake on centralized platforms if you are fine with the risks that comes with it. What I would say is not to throw all or a significant amount of your money to these staking wallets. Diversify and keep most of your funds to wallets that you completely control.

i like the idea of diversifying staking just like diversifying investments, staking in various platform maybe could easily mitigate the risk involved with staking in general which is losing money because the staking failure.
it just seems makes more sense from my point of view. but then again only diversify staking in trusted platform like binance or the likes.

[DoublerHunter]

~snip~

No staking is mostly a scam. I always advise against staking alts except for ETH because ETH is probably one of the best alts out there so staking it would be good for you financially.

The other alts are however simply scams so you are only wasting your time and money when you are staking them.

Why do that? Just buy bitcoin and hold. It worked before, it will work tomorrow.

^ I respect your opinion because each of us has different preferences regarding staking.
Staking itself is not a scam, but caution is warranted when considering which projects to stake in. ETH has a strong reputation, but it is important to conduct due diligence for any investment, including cryptocurrencies. Diversification and risk management should be part of an individual's investment strategy and it is true that not all altcoins or cryptocurrencies are created equal. Some projects may lack substance, and transparency, or have questionable intentions, making them risky investments. It is very important for us as an investor to exercise caution and conduct thorough research before staking our funds in any project that you can entrust to hold your asset for a long period of time.

[samcrypto]

^ I respect your opinion because each of us has different preferences regarding staking.
Staking itself is not a scam, but caution is warranted when considering which projects to stake in. ETH has a strong reputation, but it is important to conduct due diligence for any investment, including cryptocurrencies. Diversification and risk management should be part of an individual's investment strategy and it is true that not all altcoins or cryptocurrencies are created equal. Some projects may lack substance, and transparency, or have questionable intentions, making them risky investments. It is very important for us as an investor to exercise caution and conduct thorough research before staking our funds in any project that you can entrust to hold your asset for a long period of time.

That's true, this is why we have to choose the best platform because the purpose of staking is to make some profit passively and not to be stressed with a shit wallet where you do the staking, even the top exchanges can be risky too so choose wisely. Staking is fine if you are still not capable of trading or investing on your own, this could be good for beginners who are taking their time to learn more about the market and still make some profit at the same time, staking is good fundamentally.

[GreatArkansas]

On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.
(....)

I agree with trusting your funds to huge platforms, and Coinbase for me is a good centralized platform. And I believe it is applicable in all aspects, even if you are using their exchange for trading, etc. Always trust huge platforms with got real volume and real users.

Being cryptocurrency is volatile with ups and downs. Some high APY/APR on staking are these cryptocurrencies are most volatile, so sometimes instead you are earning profits on staking, you are losing the value of your coin because the price is dropping.

[LogitechMouse]

~
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

Why go with Coinbase when they already have their own platform where you can stake your ATOM there.
I'm also staking some ATOM tokens in their own wallet called KEPLR. Currently, I'm on the node of Binance which gives 19.12% annually. I might un-stake it, and find another node since Binance node doesn't support airdrops from Cosmos. There is this feature of the project where those who are staking their ATOM tokens has the opportunity to get some free tokens thru airdrops.

Why they don't just buy cryptos that they can stake? I don't know the exact reason TBH, but maybe it's because they didn't do any research in any of these staking coins, and they with other projects. Most of the top 20 coins right now base on market cap offers staking, so TBH I don't know the main reason.

Re: Would You Advise People To Stake?

I would call myself a hypocrite if I will say no to it since I myself is also doing it.

The problems that I'm seeing with these staking coins is that, there is a chance that you might get an impermanent loss while staking it, and the amount of coins that you are getting for free isn't enough to cover your losses, and the other one is when the project turns out to be a scam project. I would advice to do it, but just be ready for the risks of staking.

[Jocuserious]

Cosmos (atom) is the highly APR even you can deposit any amount because there has no minimum limit of deposit. Also there are many other good coins which are trustworthy and you can stake enough money if you want. Moreover, their rewards are comparatively good which will satisfy the investor.

[JunkieMiner]

Mostly people staked their tokens according to the project, because the staking option is not that much risky as we can say. Another thing with the staking option, they can gain much profit but for long term and another thing, if there is a flop in the price then there will also be a loss.

[Ultegra134]

I'm a beginner so I put it in the Beginners & Help section.

Coinbase offers "Cosmos" with a yearly annual return of 17.66%.
I did some research on Cosmos and its future looks bright.
On my research, it says to only Stake on huge platforms, such as Coinbase.
I realize the drawback is you freeze your funds for a certain amount of time.
The other drawback is because of Crypto's ups and downs, you might lose money if it goes down. But that's true of any crypto, including BTC.

As far as I can tell, the annual return stays at 17.66% for the duration.
Is there any drawback I'm missing?
Why don't people just buy Cryptos that they can stake?

First of all that's not real staking, exchanges are just calling that staking. Staking is you can do without depositing your coins to any CEX. Real staking is participating to secure the chain and you can do it in your own computer without moving your coins/tokens.

Not all people want to "stake" in exchanges because they don't trust CEXes. There are different methods to stake but in most cases you don't need a lot of know how to do it by yourself. Also some people prefer PoW over PoS so they dislike coins that use staking.

That's not necessarily true; Binance, for instance, offers a variety of earning methods, such as savings, yield mining, or staking through decentralized platforms. It's not truly decentralized, but my point is that actual staking can be conducted through exchanges without a lock-in period on some occasions.

In my personal opinion, staking is worth it if you're capable of finding the right coins and vaults to invest in and, more importantly, if you only deal with decentralized platforms, such as Beefy or Supra Finance, which usually offer greater APYs than centralized exchanges, and without a lock-in period, you're free to withdraw whenever you please.

[timoshani]

You have it covered and you can stake on centralized platforms if you are fine with the risks that comes with it. What I would say is not to throw all or a significant amount of your money to these staking wallets. Diversify and keep most of your funds to wallets that you completely control.

i like the idea of diversifying staking just like diversifying investments, staking in various platform maybe could easily mitigate the risk involved with staking in general which is losing money because the staking failure.
it just seems makes more sense from my point of view. but then again only diversify staking in trusted platform like binance or the likes.

Staking is somewhat reminiscent of pyramids during the hype. Now the reliability indicator is a small ROI. Usually it is a ratio to stablecoins. Of course, it is preferable to provide a stake on different platforms. If the portfolio is large enough, you can take a chance on a dubious couple in the staking.

[Yamifoud]

We usually got fall into huge offers that encourage us to stake and deposit to their platform, and later on, we get nothing and even lose our funds.
Although staking is not a bad idea but must also know the risk that corresponds to that and sadly, many people neglect to see it as a reason why many people had to lose their money.

Of course, I won't stop someone from staking but yeah, they also consider the platform or site that they use, and the last one is that only use a small amount to avoid big losses.

[royalfestus]

In my personal view, the true altseason is likely to occur after the halving event and when Bitcoin surpasses its all-time high, which is expected to happen sometime after May 2024. Considering this projection, it appears reasonable to consider staking within the next year, as the coins will be securely held in a wallet and offer an attractive 17% return during this relatively safe period

[Ziskinberg]

Perhaps it was their decision, however, if they would do research and make clear what awaits them from staking, they will decide what to do next whether to ignore or accept the offer. Because base on my experience, staking won't really give us a huge return but of course, it was better than just holding and waiting. However, when talking about the risk and the possibility of losing our money is huge as we can't assure of getting our money back to whatever happen to the exchange we use. If we can take the risk, then that was your choice at least, they know and are aware of the things that possibly happen.

[nelson4lov]

~Snipped
Why don't people just buy Cryptos that they can stake?

The concept of token has a number of benefits and drawbacks but for the purpose of your question, I would only list some of the drawbacks that I am aware of:

• Lock period: Staking locks your tokens for a period of time which means they're illiquid at that time and you can't use them for anything else. While this is just like holding tokens, the problem lies in the fact that in most projects, there's an unstaking period anywhere between 1-4 days. In that time, you will most likely earn zero rewards and tokens remain illiquid for that period. So in cases where you want to readily sell (if there's a bad PR for the token in question) you can't immediately sell.
• Supply increase and dilution: These staking rewards adds to the total supply and results in dilution of those rewards (in most cases, the token loses value).

[TopT3ns]

We usually got fall into huge offers that encourage us to stake and deposit to their platform, and later on, we get nothing and even lose our funds.
Although staking is not a bad idea but must also know the risk that corresponds to that and sadly, many people neglect to see it as a reason why many people had to lose their money.

Of course, I won't stop someone from staking but yeah, they also consider the platform or site that they use, and the last one is that only use a small amount to avoid big losses.

That is what is called a risk when you want to collect funds on a platform, so you have to be careful and prepared when they are scammed and you will lose all the assets that you have deposited. Currently, it is difficult to make a profit in cryptocurrency, and many smart people take advantage of cryptocurrency loopholes to create good sites that end up being scams. The advice to consider before moving on is very appropriate.

[Wiwo]

Stake if you have the best chance and percentage that favours you otherwise you are just gambling with your funds and this is something that must be checked,  staking can earn you a perceived income but then also staking without the ownership and control of the assets means you are at risk of losing all the assets.

But recently,  there has been some development that points to the fact that one can now stake directly from your own custodial wallet where you have access to the private key to the wallet where the assets are staked.

[tengui]

your mindset is wrong, if you hold and the price of crypto goes down your asset estimate also goes down and you don't get anything. but if you stake and the price of crypto goes down your asset estimate also goes down but you will get compensation from the stake, and the compensation you receive keeps the asset estimate from dropping too far.
why people don't buy crypto and stake ? sometimes people prefer trading than staking.

[shinratensei_]

your mindset is wrong, if you hold and the price of crypto goes down your asset estimate also goes down and you don't get anything. but if you stake and the price of crypto goes down your asset estimate also goes down but you will get compensation from the stake, and the compensation you receive keeps the asset estimate from dropping too far.
why people don't buy crypto and stake ? sometimes people prefer trading than staking.

well what if the reason for the value plummeting was the increase of the total supply through staking in the first place? imagine the unlocked supply will be 2 times current circulating supply and at the end of the staking period the price plummeted to half of its initial value just because many have anticipated the addition towards the circulating supply that'd be ironic since considering the fact that the staking will be kind of pointless.
when staking I think it will be better if we more focused towards the value instead of how much token we are holding because honestly thats pointless.
but then again thats just my take on staking in general, sometime staking could still retain the token value meanwhile having additional token as a rewards.