Staking Coins With Annual Returns - Good Idea

[CupCakeHugs007]

I'm not sure where to put this in the forums. Since I am a beginner, I thought I would put it in the Beginner section.

I have Atomic Wallet.
It offers the highest percent annual return for staked coins.
There are other crypto wallets that offer higher returns but it's not available to US citizens.

Osmo-USD has been pretty steady for quite some time. It offers a 22% annual return if staked.
Some people will say but that won't last forever. No one knows when the percentage will drop.
If it drastically drops then I can move it to another coin that offers a 22% annual return.

Or I could put equal amounts into 4 different coins that offer high yields.
So if one drops I can move it to another coin.

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

Do you think it's a good idea to stake coins?
Please explain your opinion.

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Atomic wallet was hacked some months ago that led to loss of over $100 million. Is that the wallet you still prefer to use to stake coins? It is better you look for other wallet that you can use.

Atomic wallet is selfish. It only have one validators which is Atomic itself.

If you go to Trustwallet, you will know what I am talking about. Like the Osmosis that you talked about, you will see Atomic as a validators and you will see many other validators that you can choose from to stake the coin. Trustwallet is not an open source wallet and you should know that close source wallet are not trustworthy.

If you want to stake coins like Osmosis, the best wallet for it is still Keplr wallet. It does not fail like Trustwallet sometimes and having many options of validators.

Do you think it's a good idea to stake coins?
Please explain your opinion.

If you want to gamble with altcoins, you can also stake them in the process of holding them. But know that you will have to wait for some days before you will be able to have access to a coin after you unstake it. You will be notified that before you successfully stake your coin.

[dzungmobile]

Osmo-USD has been pretty steady for quite some time. It offers a 22% annual return if staked.
Some people will say but that won't last forever. No one knows when the percentage will drop.
If it drastically drops then I can move it to another coin that offers a 22% annual return.

22% APY is very risky and if you need examples, look Terra and Anchor projects.

Anatomy of a Run: The Terra Luna Crash. You can read this article which is your start to find more information about risk of projects that promise to provide too good to be true APY offers.

Terra crashes because of its bad design with algorithmic stable coin, bad management of Luna Foundation Guard and bank runs. Many factors contribute to that crash but bank run is what you will see with other collapses. Algorithmic stable coin and its depeg are not most important causes as with such high APY projects, whenever bank run happen, that project will collapse very quickly because the cash flow is broken.

[Jatiluhung]

I want to answer honestly about this and maybe many other people will also have the same answer as me. Or maybe someone will disagree with me. My answer about staking altcoins is that it is highly discouraged and too high a risk. Staking also means that we have to hold quite a long time on the altcoin we are betting on. And I've seen a lot of altcoins drop more than 50% in one year. In fact, many also experienced a decrease of up to 80-90% in one year. So a return of 22% would not be enough to cover the losses due to a decrease in the price of the staked coin.

I prefer to stay holding bitcoins. and if it's about altcoins then Ethereum is what I'll probably be holding for a year or so. For other altcoins I'm still not sure.

[aysg76]

This is how they convince newbies investors with lucrative offers and what's the guarantee you will get those returns as promised? I would say you are chance of losing the coins as well because there are many scam staking platforms also that usually give these offers so you deposit with them but at last turns out to be scam only.So better is to invest for long term holding without such hopes that can lead to sad path.

[vv181]

Do you think it's a good idea to stake coins?
Please explain your opinion.

No, it is a terrible idea. You are merely looking at the APY percentage, not the fundamentals of the pool you staked. You did now know the security of the platform, the impermanent losses possibility, essentially the foundation that the pool relies upon. Given that, there is no reasonable explanation that would conclude it is even a good idea.

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

Again, you are wrongfully concluded by the wrong thing. A coin has a fundamental and its own value, you merely judge by the price which is truly a bad thing. Also, a coin and a pool are incomparable.

[8rch7]

Did you miss with OSMO wallet update have been hack last several months? don' be tempted with annual return of coins staking because many coins have been scam when giving bigger return for their coin stake. I think 20% is bigger staking reward for annual and almost coins staking reward under 10% every year. You can check with UST or Luna Network Coin have been scam and price drop drastically depend on their staking reward above 20% and many people loss their fund with unlock coin staking get time more than one day.

Safety staking maybe on stable coins but reward return under 10%, there are risk waiting for with coins give offer for staking reward above 20% and can't exist for long term.

[Godday]

22%? Bro it's very risky. There's no such thing as a project. I'm sure it is a scam. You run the risk of losing your money if you keep staking there. The thing that can provide big profits is investment where there are buying and selling transactions and fluctuations in market prices. Giving fixed interest of more than 10% is something scammers usually do.

[Blitzboy]

Buying coins for a big return is short-term. Just scratching the surface of this decentralized world. Staking can be lucrative, but its dangerous.

The 22% annual return on Osmo-USD is appealing, but numbers change quickly. Jumping between coins like "musical chairs"? A waste of time. What makes you think one wont fall before the next?

Talking about 4 high-yield coins. The important word? High-yielding. High returns mean high dangers. A fundamental economic rule. Every coin has market risks, from technological vulnerabilities to regulatory crackdowns.

However, here is my best advice: hold Bitcoin. The gold standard and first cryptocurrency. It has a lengthy history, many users, and loyalty. Bitcoin is the place to invest in something valuable and growing. Don't use these rapid money-making methods. Bitcoin is the world's most significant asset. So, stake or hold? Answer is evident to all: HOLD BITCOIN

[Dr.Bitcoin_Strange]

The reason why some altcoin projects or centralised crypto platforms are able to deceive some crypto enthusiasts is because of those percentages of APY; some even offer up to 40% APY or more, and all those are just some means of attracting more customers, and they can end up being scammed. Atomic Wallet has closed-source code, and even if you want to Stake some coins, I think you should use other wallets that are open-source. Just be really knowledgeable about any investment you are making, because some Altcoins are not just worth buying to stake; it is better to buy and just hold for the short term, and when you make a little profit, you can sell and move on. There's a possibility that you can buy a coin and stake it, but after some time the token can be worthless, and even youe AYP, will not be able to save the day.

[jossiel]

It's good to stake coins as long as they're the top coins and unlikely to collapse. And it seems you're overwhelmed with the 22% APY that's shown to you by that token.

Remember that it's not always going to be at that range. The more people sees that and demand becomes higher on its staking, the lesser the APY you'll get eventually.

But, only stake with what you can afford to lose and always choose the flexible term  for you to withdraw it anytime if ever you got on a staking feature of any platform that requires you to lock your funds.

[@sriyan]

I'm not sure where to put this in the forums. Since I am a beginner, I thought I would put it in the Beginner section.

I have Atomic Wallet.
It offers the highest percent annual return for staked coins.
There are other crypto wallets that offer higher returns but it's not available to US citizens.

Osmo-USD has been pretty steady for quite some time. It offers a 22% annual return if staked.
Some people will say but that won't last forever. No one knows when the percentage will drop.
If it drastically drops then I can move it to another coin that offers a 22% annual return.

Or I could put equal amounts into 4 different coins that offer high yields.
So if one drops I can move it to another coin.

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

Do you think it's a good idea to stake coins?
Please explain your opinion.

Staking means you are giving tokens to block validity service and earn some block rewards. That is a passive income for the staking. But the problem is the atomic wallet. As I remembered it was hacked. You can try out the iopay wallet as well(If you are staking iotex tokens)

[iv4n]

I have some Atomic Wallet tokens, but it's a fiasco, I should dump them when they were over $1... they are on staking, but their value is down a lot, and I am not sure we will see it rising again after that hack and many negative reviews around.

Personally, I never had any problems with my Atomic wallet, but I didn't have a considerable amount there for the long term.

[gurunanakji777]

I avoid taking the risk of staking for minimal profit, although it may be suitable for certain investors. I choose not to rely on exchanges and wallets for staking instead, I securely store my coins in a hardware wallet. While the attractive staking returns are appealing, the inflexible staking terms pose a challenge. If the staking duration isn't completed, the benefits are forfeited, which can leave investors feeling trapped. If staking were to occur on a proportional or daily basis, it would be favorable. Otherwise, staking could become a commitment that restricts one's options.

[Xal0lex]

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

No, by investing in some ETH or BTC, the likelihood that the coin will plummet in value is minimal. Various obscure coins that have questionable fundamental properties have a much higher probability for rapid depreciation. Therefore, the claim that any coin can also depreciate like some obscure token offering 22% annualized returns is not true and is more like complacency to put your money into that 22% token. Risks are not equal and where they offer high interest rates, that place will always have higher risks than the rest.

[uneng]

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

Not really. You have to calculate the risks of each cryptocurrency before reaching the conclusion they can fall drastically or not. Take the history of each of them and you will reach to different conclusions. Example: brand new created tokens are more risky, because you don't have a previous history to analyze, while consolidated cryptocurrencies such as BTC and ETH give you all the necessary previous informations to reach a very optimistic prediction on long term.

In my opinion it's better to avoid staking tokens offering too high annual return. It's certain you their prices are going to drop once investors start receiving yield back. Early investors may make decent profit, but late ones will make tiny profit or no profit at all... Unless there is a benefit else when staking on those programs, I wouldn't go further.

[Heulahee]

I really think staking is not a good option, this is just my opinion because If we have to stake then there will always be some risk if the price of the coins falls or the project fails to deliver then what will happen? Someone will lost all his funds, but the good option is always trading.

[bittraffic]

I really think staking is not a good option, this is just my opinion because If we have to stake then there will always be some risk if the price of the coins falls or the project fails to deliver then what will happen? Someone will lost all his funds, but the good option is always trading.

With ETH I think it's going to make stakers a lot of money though and most institutions are going to be holding POS tokens for staking. I think that's what makes it tempting to stake ETH.

It's just not going to be worth using ATOMIC wallet though because it's not an opensource project. I remember there was an issue about it months ago so don't get attracted to wallets like that because of the high interest. You'd rather be using wallets used by the developer itself and are opensource to make sure you won't lose your funds.

[Furious 7]

Do you think it's a good idea to stake coins?
Please explain your opinion.

I still feel that it won't have much of an impact and it won't turn out well.
Even if it is not wrong to do such a thing but in the end we must realize that not all coins will last for a long time so in this case if you really want to try to bet coins especially for a long time like the annual context in your title then I think it will be risky if the coin you bet is ordinary.
Even though it may be good now, it doesn't necessarily last long because it could experience problems at any time and actually make losses in the end which makes me feel that something like this for altcoins is not worth it.

[ShinyStarPrincess]

I'm not sure where to put this in the forums. Since I am a beginner, I thought I would put it in the Beginner section.

I have Atomic Wallet.
It offers the highest percent annual return for staked coins.
There are other crypto wallets that offer higher returns but it's not available to US citizens.

Osmo-USD has been pretty steady for quite some time. It offers a 22% annual return if staked.
Some people will say but that won't last forever. No one knows when the percentage will drop.
If it drastically drops then I can move it to another coin that offers a 22% annual return.

Or I could put equal amounts into 4 different coins that offer high yields.
So if one drops I can move it to another coin.

Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.

Do you think it's a good idea to stake coins?
Please explain your opinion.

Atomic Wallet didn't fulfill my expectations at that moment and as others said above it has some security flaws.

This year I am operating with BItkeep (now rebranded as Bitget Wallet). Metamask and Trust were my mains in DeFI but I moved out to the other for having more integrations than the other two giants (89 between dAPPS and Chains). Now you can choose between a 12 seed phrase or a 24 one and has 6 chains added instantly (For me that I downloaded this to start testing ZksyncEra was a huge deal). Is pretty smooth and fair for beginners and is very used by defi Traders