Risk/reward ratio

[crwth]

Aren't high APY coins subject to some regulations? For me, I see it as a Too good to be true type of thing that you just HODL, and then you would earn a lot.^{(depending on the amount of deposit you would have)}

Sometimes I thought about this yield stuff becoming more centralized, with the balance they own, and depending on the chain, they could dominate governance. There would be more power with the big validators. Just my thoughts.

[TastyChillySauce00]

Aren't high APY coins subject to some regulations? For me, I see it as a Too good to be true type of thing that you just HODL, and then you would earn a lot.^{(depending on the amount of deposit you would have)}

Yes it is regulated especially in the US, even stablecoin's passive yield is banned after the CLARITY Act, outside the US there are rules here and there about licensing, and so on especially in the EU with MiCA.
The key is to keep the coin from being classified as securities such as giving High APY with fixed returns and guaranteed yield. It's a lot of thing to talk to when it comes to regulation for a high APY coin.

Most sustaining staking activities are usually only giving 1% - 3.5% APY more or less the same as yield you'd get in traditional finance, the other offering higher APY comes with risk.
Some project just ignore the regulation by excluding certain region as far as I know to bypass the need for a complex legal drafting process.

[Abiky]

If you wish for a high risk, then you are doing it wrong. Bitcoin itself is risky enough, it has gone down in half already from just a few months ago, why would you want something that is even riskier?

You already have the golden ticket in your hands, buy bitcoin and wait for it to recover and you will make a lot of money, when you have that and you KNOW that is going to happen, why worry about some shitcoin that promises to get you 10x and more likely end up taking all of your money and crash instead?

Most people want quick results with their investment. They're impatient. So they will turn to "shitcoins" promising huge returns even if risk of loss is high. You can see why "meme" coins are still a thing these days, despite the fact that they serve no purpose in real life (lack of utility). If you choose a coin with a low risk/reward ratio, you'll end up waiting years (if not decades) to obtain a decent return in your investment. Especially when market prices of such a coin move at a slow and steady pace.

Ultimately, you decide what to do with your money. Just avoid investing more than what you can't afford to lose to play it safe.

[Webetcoins]

For me, stable stuff like bitcoin is better. I understand that we are seeing how things are giving out great rewards when they are very risky, but on the long run the better ones are better.

It's not even about just risk, it's about the fact that the bigger and better names are always bringing better money on the long run.

Surely there are people who invest into shitcoins, new tokens, launchpads and all of that just so that they could maybe make 10x return or whatever, but that to me has always been a bad move.