IS STAKING AND EARNIG NOT A GOOD INVESTMENT STRATEGY TOO?

[Oohio]

Bitcoin staking can be another holding/investment strategy for idle coins or upcoming traders. It can be done in two ways. Flexible and fixed. The flexible staking is one that can be unstaked at any time. While the fixed is staked for a shorter period but must be redeemed for it to be unstaked. This means that in flexible as the word implies, it is not rigid and you can terminate the staking any time you want but fixed is a rigid one that cannot be terminated and must reach the timeline of the staking. The rewards in staking is earnings. For freshers and even professional traders, staking appears to be a very viable investment opportunity for profits. The fixed staking has higher APR while and cannot be unstaked until the maturity/redemption time. While the APR for flexible is lower and can be terminated at any time.
Staking and earning is good for idle funds/coins and can really help upcoming traders that are always busy with other works or activities.

What do you think about this?

[Charles-Tim]

Not your key not your coins. What you are referring to is staking or saving and earning on centralized exchanges. Bitcoin is using proof of work (PoW) and not proof of stake (PoS). So you can not stake bitcoin except a centralized platform is offering you something like that.

But some people can go for altcoins staking, like wBTC which is not bitcoin but an altcoin that is backed by bitcoin price.

[hosemary]

I don't like using the term "Staking" for bitcoin. The term "stake" should be used for proof of stake cryptocurrencies.
Bitcoin is a proof of work cryptocurrency and there is no such thing as staking in bitcoin.


When you stake your bitcoin, you actually give a third party full control over your bitcoin and get some interest for that. That's not staking at all and I would never do that.
Not your keys, not your coins.

[Ruttoshi]

When you stake your bitcoin, it's no longer your own because you have given it to a third party, your bitcoin will be vulnerable to hack or an exit scam. It is not ideal to stake bitcoin when if you leave it in your noncustodial wallet, it will generate profits on its own whenever bitcoin price pumps.

Bitcoin is provides decentralization and security through PoW why using it in the opposite way. Just as the two posters above said not your keys not your funds.

[gunhell16]

Usually, as far as I know, the staking that other communities do is on the cex platform, though you only need to do it on trusted exchange platforms, but no matter how trusted and reputable it is, it still remains "not your coins not your key"

so you should know what the consequences of doing it on a centralized platform are, you should be prepared for unexpected things, it really depends on the trust you place on that matter.

[el kaka22]

I'm not a fan of staking personally. I would rather keep buying and selling to get some profits every now and then than staking my assets even if my initial plan was to keep holding. The reason is pretty simple, I believe that you don't get to sell your assets immediately if you have to, when you have them in staking, because some staking contracts in centralized exchanges or staking protocols don't let you withdraw your funds immediately based on an agreement you have agreed upon when staking your assets.

That's why, in case you need to sell your assets, or a portion of it, either because the price has gone up or maybe you are up against an emergency, you won't be able to do it. So it's better to have your assets free at all times so that you can do whatever you want with it instead of having to request a redeem and then wait for your own assets to get unlocked or released. Overall for me, trading is better than staking, and I'd prefer trading over staking any day.

[alani123]

Don't stake on centralized platforms.

Even in DeFi there are a few decent platforms like Beefy but options have become very limited outside of that. Everything else has gotten hacked or rugged.

Many tokens went to zero because of flaws in tokenomics etc. It's all a very weird landscape. Staking on centralized platforms has proved risky because of the bankruptcy risk like FTX and Celsius, similarly to MtGox. You could be getting peanuts back based on your initial deposit with the rest of the crypto gone forever.

Crypto exchanges aren't systemically protected like bank deposits so you'll have a very hard time getting your money back especially in many of the not so well known exchanges. Imagine a crypto exchange going bankrupt in Korea for instance. The restitution would take many years to cooperate with American authorities and be completed for international participants. It'd be a nightmare just like it was for MtGox creditors.

[Mrbluntzy]

@Oohio, believe what you read on the first comment.
It is recommended to hold your Bitcoin in your wallet and not on the exchange wallet. Don't stake your Bitcoin on centralized exchange and you will still make your profit during bull season. What gave you the impression that staking is a good investment? When you invest into Bitcoin and hold in a non centralized wallet, it's already a great investment but when you stake on centralized platforms, that's when you are making a mistake because the process does not give you total control on your asset.

[stadus]

When it comes to Bitcoin, the safest move is to hold it in your own wallet. If you have the keys, then it’s truly your Bitcoin.

The problem with staking is that you’re exposing yourself to extra risk for very minimal returns, and personally, I don’t think it’s worth it.

Maybe I’d consider staking with altcoins, but only to a limited extent, because staking doesn’t guarantee profit. At the end of the day, we still depend on the value of the asset we’re staking. But I’ll say it again - for Bitcoin, the best strategy is to just HODL.

[tvplus006]

...Staking and earning is good for idle funds/coins and can really help upcoming traders that are always busy with other works or activities.

Despite the fact that many consider stacking unacceptable, since you have to trust your coins to a third party and lose control over them, I still use ETH for staking, which I expect to sell when the price reaches 5-6 thousand dollars. The main thing to do is to choose an exchange that you can trust with your savings. For me, Binance is such an exchange at the moment.

[Bitcoin_Arena]

Despite the fact that many consider stacking unacceptable, since you have to trust your coins to a third party and lose control over them, I still use ETH for staking, which I expect to sell when the price reaches 5-6 thousand dollars. The main thing to do is to choose an exchange that you can trust with your savings. For me, Binance is such an exchange at the moment.

Anything could happen to Binance too, just like things went south for FTX which at one point was the second-largest exchange in terms of trading volume. You don't want to be in a situation where the exchange declares some sort of bankruptcy. I know people who lost money with platforms like Celsius network that they trust so much.

In terms of less risk. I think just buying ETH and keeping in a noncustodial wallet beats this, or stake in a noncustodial wallet if you can.

[LogitechMouse]

Bitcoin staking can be another holding/investment strategy for idle coins or upcoming traders.
---
Staking and earning is good for idle funds/coins and can really help upcoming traders that are always busy with other works or activities.

What do you think about this?

If it's on altcoins, it would be a good thing to try staking on their own platforms since you have your own keys and you have the control on it.
 
Now I bolded the word "Bitcoin" because the only way for you to stake or earn from your Bitcoins are when you store it on those exchanges out there that gives you around 1-2% annually just to store your assets there. Now it isn't recommendable to store huge amounts of assets on CEXes, but if you don't care about the possible hacks that could happen, and a possibility of you losing your assets or them freezing your account then put it on there.

Apparently, there's this token which primarily focuses on Bitcoin Staking which has a name of "Babylon", and I'm not that much familiar with it, and I don't know if it gained traction at all, but maybe you can try putting it there as well.

[nelson4lov]

There is no native staking for Bitcoin.

Bitcoin is a proof of work blockchain. Only proof of stake blockchains comes with staking mechanism that allows token on the network to be staked. Bitcoin doesn't have such feature/flexibility. While the idea of staking is interesting especially for an asset like bitcoin that is a global store od value, I don't think it's something Bitcoin needs.

Maybe that changes in the future but I have strong doubt about that.

[passwordnow]

Bitcoin staking can be another holding/investment strategy for idle coins or upcoming traders.

Bitcoin is not a PoS and so you cannot stake it as if it's part of its system or blockchain. The staking feature that's being told by these platforms and exchanges are wanting to deposit our BTCs on them and they will earn through lending it and they'll give a portion of that interest to us as our profits. I wouldn't 'stake' my Bitcoin to any of them, as you've said if it's another strategy that you trust, I'd rather hold it on my wallet and wait for the price to increase. Because that's safer and I hold my BTCs and can sell anytime I want to and even if you'd say that it's on a flexible term, you'll never know what might happen to the platform where you have deposited or staked it.

[2Pizza410000BTC]

I don't like staking very much, be it flexible staking or fixed staking. I have some Bitcoin and one Ethereum. I planned to stake that day that I would stake my one Ethereum but I went to my exchange platform and saw that the Ethereum staking APR was very low where the daily reward is 0.000038 ETH. Multiplying it by the current price of Ethereum, it comes to around 0.09 cents per day and if you stake it for a month, it is $2.96+. That's why I didn't stake and I don't like staking very much but I plan to keep my Ethereum for a long time without staking it. Also, I don't want to trade my Ethereum because trading information is risky and I can lose my Ethereum at any time.

[Odusko]

...Staking and earning is good for idle funds/coins and can really help upcoming traders that are always busy with other works or activities.

Despite the fact that many consider stacking unacceptable, since you have to trust your coins to a third party and lose control over them, I still use ETH for staking, which I expect to sell when the price reaches 5-6 thousand dollars. The main thing to do is to choose an exchange that you can trust with your savings. For me, Binance is such an exchange at the moment.

For me if I can trade on an exchange trusting them with my coins, then I can stake my coins with a third party staking platform, since my aim is to take the risk and earn the profits, so I will just give up my coin into the hands of another and just watch the whole thing as it goes, I know for sure that some staking platform could be scams but then among such we still have some prominent well established staking projects within the crypto community to choose from.

[GreatArkansas]

About staking - some people will not risk their assets for the very small APR/APY percentage.
But there are really huge platforms that have already been in the market for a long time, multiple bear/bull seasons, but there's no real incident like having security issues that lead to loss of customers' funds.

I personally stake in some DeFi platforms - altcoins only. For my Bitcoin - I don't.

[hd49728]

Bitcoin staking can be another holding/investment strategy for idle coins or upcoming traders. It can be done in two ways. Flexible and fixed.

You did not do enough research on Bitcoin that is Proof of Work, not Proof of Stake.

So initially by technical design, bitcoin is not for staking. You can only get bitcoin from Proof of Work mining and Bitcoin block rewards as well as Bitcoin transaction fees. Otherwise, you must do things beyond Bitcoin blockchain for staking rewards but it is risky.

You need to convert your bitcoin to Bitcoin Wrapped tokens that are not bitcoins. Those tokens are altcoins and peg to Bitcoin price, though those tokens can be depegged. Staking pools can be scam and you will lose your bitcoin in many ways by staking.

[michellee]

All things will have pros and cons. If you can accept the cons, you can stake the coin but you should find a reliable and trusty platforms. But as @Charles-Tim said, not your keys, not your coins, you need to be ready with all risks that can happen including if the platform close their business.

If you are afraid your Bitcoin may lose anytime, you don't have to stake but just store Bitcoin in your wallet. That will be more secure because you control the Bitcoin by yourself. But for other coins, you need to make sure the platforms is safe before you decide.

[joeperry]

Not your key not your coins.

This one, and let's say if you really do trust the platform and you really wanted to stake then I can say that staking is one of the best way you can do instead of idling your crypto (hodling) as it the quantity of your holding will increase along with the price of that coin (let's assume that it's bullish season) the only cons I can see here is if the platform where you stake it runs away with it or lock your account.

In Ledger I think they are offering a staking but not for Bitcoin, I think it's pretty safe to stake there, I haven't tried it though.