Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Manrich on April 21, 2025, 01:33:28 PM
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
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Speaking only about the stake in CEX
You run the risk of the exchange being hacked or becoming insolvent. It's a bit difficult to happen, but it's not uncommon
Which coinn would you like to stake? It depends on the coin to know which APR is best at the moment
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Assuming you stake SOL when it was $250 and now less than $140. It is 1.78x down. The staking is 5% APR but you are losing 1.78 times of your money already. Which means you are losing because the yield is little than the loss.
What if SOL still fall further.
But after massive bear market, you can gamble with staking.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
I agree with Charles-Tim as his point makes a sense. I have done staking a few times to experience things, as I don't want to earn money from staking, as I also found it risky, so, the one big reason he has already mentioned.
It can be risky, but if you are optimistic about Sol, or ETH, or whatever coin you choose, and think it can pump in the long run, then I think it's worth the chance, but TBH, many are considering ETH at the current momentum dead, so be wise, and if you come to think of staking BTC using some L2 or wrapping, that can work but not worth the risk.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
I agree with Charles-Tim as his point makes a sense. I have done staking a few times to experience things, as I don't want to earn money from staking, as I also found it risky, so, the one big reason he has already mentioned.
It can be risky, but if you are optimistic about Sol, or ETH, or whatever coin you choose, and think it can pump in the long run, then I think it's worth the chance, but TBH, many are considering ETH at the current momentum dead, so be wise, and if you come to think of staking BTC using some L2 or wrapping, that can work but not worth the risk.
it must have been worth it if he bought SOL when its less than $50.
so if there is a POS token that is very cheap for now and got a potential, it will be worth staking when the price is already flying high like $10. this will require a man to be very patient with all his time in the world to wait.
but i do agree about the risk involve in staking inside the CEX. there is one exchange that is worth doing, binance.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Staking means that your crypto is out of your control. When you stake, you will not be able to control your crypto as you wish. Then it will be locked. So of course there will be risk here. If that centralized platform somehow refuses to give you your crypto, then you will not be able to get your crypto back. So if the platform is not trustworthy, then you should not staking. No matter how big the APR offer is there
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Yeah, you gotta know when to stake and when to take it out. Some people are caught up with the APR and think it's going to last for a long time that's why they lock it for some period. Later on, they realize that the value of the coin has fallen a lot and they are still stuck.
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We have to be aware that almost all the things we are into in this cryptocurrency industry can be risky even just hodling one because an asset can go down and if you happen to got into a shitcoin it can be dead in its right time. Now, staking can be a good passive opportunity to make money using your asset in the process akin to the idea of using money to make money. But of course, there are risks involved. The asset you staked can go down in price anytime and the platform you are staking with may experience some problems later (so go into credible and solid CEXs). You need to balance these risks so that at the end you can be a big winner. I am not into staking and I am not aware of a good CEX we can rely on for staking.
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this is my question, what are the risk involved in staking cryptocurrencies?
If mentioning something that makes us uncomfortable when staking crypto is included in the risk, then of course there is...
The first is that staking means there is no other decision than holding... as much as possible a person who does staking will avoid selling his assets in order to get a reward.... therefore, you may miss the moment when the assets you stake experience a great bullish, you will have difficulty selling them, maybe because of certain regulations or restrictions related to this staking...
Then, every service provider platform can also experience hacking where we all certainly cannot control this hacking, it happens suddenly and we all will only realize it when we have become victims... so there is a possibility that we will experience this...Even looking for a very credible third-party platform will still have the possibility of being hacked...
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Yeah, you gotta know when to stake and when to take it out. Some people are caught up with the APR and think it's going to last for a long time that's why they lock it for some period. Later on, they realize that the value of the coin has fallen a lot and they are still stuck.
Staking should only be done during an uptrend, meaning prices keep rising and holders earn a little extra while waiting for the signal to take profits. Staking when the market is at its peak could cause investors to miss the best opportunity to exit the market with the highest profits. Protocols usually require 2-5 days for holders to get their tokens back.
Personally, I only use Flexible Savings on CEXs so I can get small rewards and not miss any profit-taking opportunities. I'm afraid that if I don't take profits, someone else will and drive the price down :)
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
I lost around $440 dollars in the year 2022 or 2023 to staking on cex, since then, I've sworn never to stake my crypto on any cex again..
I staked $440 worth renec tokens when they newly launched and got listed on Bkex exchange, the staking program was launched and was to run for 30 days with an APR of 180%, this was to celebrate the tokens successfully listing on the exchange, I thought this was a good opportunity to double the amount of renec tokens I help at that time, so I staked all my tokens worth $440 at the time. 17 days into the staking, the exchange stopped processing withdrawals, they promised they will fix the issue but 5 says before the Staking will expire, users could no longer be able to access their account on the exchange, soon after, the site went offline and that was how we all lost our money...
Staking on Cex is very risky, most especially for long term, anything happens to that exchange, your money will be gone forever.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
- Maybe you always read that most people here on the forum and even on other platforms say " Not your Key, Not your coins " there is almost no difference from a traditional bank. The only risk is that if it suddenly closes you will have nothing to claim.
Especially if you suddenly declare bankruptcy, so as a user of an exchange you will really decide whether you will entrust your funds to the cex platform that whatever happens and if there is a problem, are you willing to accept it without getting anything back from you. In short, you should really be a risk taker, or hold what you can afford to lose.
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If you decide to staking on CEX, you should at least take a few steps, such as:
A high APR is always a red flag, and the higher the percentage, the greater the risk of fraud.
The timing of the lock is important; if the lock period is longer than a month, the service should be avoided.
The possibility of withdrawing before the lock time and receiving a good return.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
High APR/APY or whatever it is would be useless at the time or moment that the price of a certain token/coins value had gone to the floor and this is something that do really happens out. So no matter how many coins that you've been that earning until the time rans out but still it wont really be that sufficient or wouldnt be giving out that kind of guarantee that you can make money in the end of the line not unlesss if you've been staking up some solid altcoins or projects on which the price do able to sustain or able to hold out then that would be a good thing but most of the time on which staking isnt bad as long it wont be some having some locked up or having no cliff period but in general on which i dont see for this to be that worth i should say.
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Staking is good to me, especially if you just have the token and you ain't using for trading or any other stuff. Instead of just leaving it hanging on the CEX, you can just stake it to earn the little percentage from the platform.
Otherwise, it is not quite advisable to just buy a token all for the reason of staking. Most people stake tokens that they place on HODL.
In conclusion, staking is not risky neither is it bad at all.
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In fact, your rewards may be affected by the volatility of cryptocurrency so when you staking carefully consider its risks, benefits, and duration. So you need to consider risks related to fluctuating liquidity, high asset volatility, credibility of the staking scheme, stability of the annual percentage result APY length of the lock up period and verification fees. Additionally, apy refers to the annual profit from staking. A high APY can be risky as it may indicate an unstable model or even fraudulent intent. Long time lock up periods increase the risk that you will not be able to respond to market changes. This could result in losses if market conditions worsen and you fail to take action.
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Assuming you stake SOL when it was $250 and now less than $140. It is 1.78x down. The staking is 5% APR but you are losing 1.78 times of your money already. Which means you are losing because the yield is little than the loss.
What if SOL still fall further.
But after massive bear market, you can gamble with staking.
You should also consider that the price will bounce back even above the his initial staking price, that is, the price of Sol when he engaged on the staking, and not only when prices continue to go down.
You see, staking is a mean of holding coins/token for a long term while earning little interest, whether price increase or decrease. The goal is probably holding for the near future irrespective of the price fluctuations. I think that those who planned to hold Sol, others tokens in the future, wouldn't mind the price up or down movements as much as the price will come back stronger in the future.
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You should also consider that the price will bounce back even above the his initial staking price, that is, the price of Sol when he engaged on the staking, and not only when prices continue to go down.
Did you read the OP at all? He asked of the risks and not the benefit. That should mean OP already know what APR is. Also from my explanation, he should easily be able to know the benefit if the coin rise. I see this post as unnecessary in relation to this thread.
You see, staking is a mean of holding coins/token for a long term while earning little interest, whether price increase or decrease. The goal is probably holding for the near future irrespective of the price fluctuations. I think that those who planned to hold Sol, others tokens in the future, wouldn't mind the price up or down movements as much as the price will come back stronger in the future.
Can you see that most of the coins are not getting to all-time high? Do not hold altcoins for long. Just wait and buy them at low price and sell them at high price. Even ETH was unable to get to all-time high.
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We must remain careful with all our actions in this cryptocurrency sphere, sometimes staking can also be problematic if suddenly it does not keep its promises.
Therefore, choosing a platform for staking is important, and I think the big platforms that are already well-known are safer than staking on new platforms.
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this is my question, what are the risk involved in staking cryptocurrencies?
I'm staking three coins, but its not on exchanges. the risks is on the price of the coin, the APR percentage and the lock in period. These should be considered when you are staking a coin. Make sure the coin will perform better in the market, whether its a bull or a bear, and the APR is attractive enough to absorb your losses in case there is a dip in the market.
Its better that you pick a short term lock in period so you can cut your losses. one of my coin was locked for 30 days and can't do anything while the price is crashing.
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We must remain careful with all our actions in this cryptocurrency sphere, sometimes staking can also be problematic if suddenly it does not keep its promises.
Therefore, choosing a platform for staking is important, and I think the big platforms that are already well-known are safer than staking on new platforms.
I would like to agree with you as to the fact that staking can be quite dangerous if we do not select the right platform. As much as many of them are new, they lack a history, and that is a risk if one day they deny their commitments. That is why large platforms are more secure because their previous infrastructure is more stable and audited to a greater extent. However, these are slightly more secure and yet there is much to research on their policies such as their fees, the reward system, and many other factors that one may come across. I believe knowledge of such imperfection in addition to being aware of avoiding big Illusion and checking other aspects will to a certain extent minimise possible losses.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Well, mate, it depends on which coin you are going to stake to earn a reward. Like, just for example, if you staked BNB, SOL, or any required coin to earn a reward, then firstly it depends on which coin you staked, like if you believe that staking any particular coin for earning a reward is worthy in case the staked coin dumps after unstaking, you can hold it for the long term so that you can recover your loss from it accordingly.
Other than that, I will never recommend staking, as in my point it has a big risk of losing funds. DYOR! As far as I know, your staked amount will be more, and the returning reward will be less, CMIIW! Besides this, I got an airdrop reward in the staked form, and I am currently in loss.
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I would like to agree with you as to the fact that staking can be quite dangerous if we do not select the right platform. As much as many of them are new, they lack a history, and that is a risk if one day they deny their commitments. That is why large platforms are more secure because their previous infrastructure is more stable and audited to a greater extent. However, these are slightly more secure and yet there is much to research on their policies such as their fees, the reward system, and many other factors that one may come across. I believe knowledge of such imperfection in addition to being aware of avoiding big Illusion and checking other aspects will to a certain extent minimise possible losses.
This is where we are required to remain careful in every action we take in the cryptocurrency space, be it Staking, Trading, Investing, participating in pre-sale and others. Because in Cryptocurreny there are so many things that are initially very interesting but the reality in the end is actually detrimental to us. Which in the end if we take the wrong step, then we will lose our money. The selection of platforms, Coin crypto in every action is very important.
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Assuming you stake SOL when it was $250 and now less than $140. It is 1.78x down. The staking is 5% APR but you are losing 1.78 times of your money already. Which means you are losing because the yield is little than the loss.
What if SOL still fall further.
But after massive bear market, you can gamble with staking.
You should also consider that the price will bounce back even above the his initial staking price, that is, the price of Sol when he engaged on the staking, and not only when prices continue to go down.
You see, staking is a mean of holding coins/token for a long term while earning little interest, whether price increase or decrease. The goal is probably holding for the near future irrespective of the price fluctuations. I think that those who planned to hold Sol, others tokens in the future, wouldn't mind the price up or down movements as much as the price will come back stronger in the future.
Your comment is very appropriate in this moment. I am also agree with your prefer comment, because we know that staking isn’t very risky for us. But we should trying to understand in cryptocurrency market carefully for best earn from here. Obviously if we want to hold sol or others crypto for future, i believe that it must be correct decision for us. Because i believe that gradually bitcoin price or cryptocurrency market will reach best position. So i think that if we want to hold any crypto in cryptocurrency market, i think that it Won't be risky for us.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
I don't usually follow up on staking because I don't no much about it besides I'm usually scared when they talk about it because is very risky and I have not even imagine myself using my Bitcoin I'm holding to invest on staking because if anything should happen then there will not be anybody to hold responsible and that's how all the hard work will be move away like a follow of water, however if is on the exchange you are doing the staking and it got hacked or any issues it could affect your funds on it so is just better investing normal on Bitcoin than staking.
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it must have been worth it if he bought SOL when its less than $50.
so if there is a POS token that is very cheap for now and got a potential, it will be worth staking when the price is already flying high like $10. this will require a man to be very patient with all his time in the world to wait.
but i do agree about the risk involve in staking inside the CEX. there is one exchange that is worth doing, binance.
You are right, Binance is the best exchange but for many APY there are not so interesting with the coins they want to stake, and for the coins they don't want to stake the APYs are good but that's no use to them.
Overall finding projects in the early stage and then hesitating to stake is the biggest mistake, although we don't have have to stake, if we have really find a good project in an early stage when its value would be lower then $10 or $50, we should just invest in them. Staking can be risky for new projects, as most of the projects nowadays not wokring on their security side. Their pools easily got hacked.
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I don't usually follow up on staking because I don't no much about it besides I'm usually scared when they talk about it because is very risky and I have not even imagine myself using my Bitcoin I'm holding to invest on staking because if anything should happen then there will not be anybody to hold responsible and that's how all the hard work will be move away like a follow of water, however if is on the exchange you are doing the staking and it got hacked or any issues it could affect your funds on it so is just better investing normal on Bitcoin than staking.
Your worries concerning staking are well grounded especially because staking comes with high risks such as hacking or any other factor that may affect your invested digital currency. However, it is with staking you part ways with your assets and have them entrusted to a third party, which is dangerous in case of vulnerabilities in the platform. I can also see your need for a less risky investment, such as just holding the Bitcoin that it is you own. Thus, while the process of avoiding staking does indeed reduce some revenues possible, it also decreases unnecessary risks. You have resolved to keep your investment safe and this is more advisable in view of the prevailing unstable conditions in the market.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
If for some reasons the staking services you choose to stake with crashes like FTX, you stand a chance of losing all your coins. The volatility of crypto prices is another uncertainty here. Let's assume you had a high percentage annual ROI, and all of a sudden, the value of the coin nosedive, that may automatically erase all your profits, and you end up losing it all, that seems like a risk to me. of a truth staking can enable one gain residual income but there're slight risks involved.
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If you use staking with your crypto in a centralized exchange, I think it’s a safe bet compared to other pools. If you have locked in a good APY, you have a good chance; otherwise, you must wait a year, depending on your lock-in period.
The risk involved is just the volatility of price and the amount you could lose or win. Of course, there are hacks, but you should be secured already.
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Crypto staking can come with several risk including price volatility because the value or worth of cryptocurrency staked can fluctuate and, also Entrusting assets to third-party can be dangerous if the platform has vulnerability. But on the other hand staking can provide a steady stream of income, regardless of price fluctuations.
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it must have been worth it if he bought SOL when its less than $50.
so if there is a POS token that is very cheap for now and got a potential, it will be worth staking when the price is already flying high like $10. this will require a man to be very patient with all his time in the world to wait.
but i do agree about the risk involve in staking inside the CEX. there is one exchange that is worth doing, binance.
You are right, Binance is the best exchange but for many APY there are not so interesting with the coins they want to stake, and for the coins they don't want to stake the APYs are good but that's no use to them.
Overall finding projects in the early stage and then hesitating to stake is the biggest mistake, although we don't have have to stake, if we have really find a good project in an early stage when its value would be lower then $10 or $50, we should just invest in them. Staking can be risky for new projects, as most of the projects nowadays not wokring on their security side. Their pools easily got hacked.
i use to stake ADA when it was just 0.02$. it would have been the safest asset i have if i kept them in a wallet and staking still. but then i sold them though.
for SOL, i think it will be safer still if you just have a lot of money to hold it when suddenly trend changes to bear market. your only going to have to wait for a long if the cycle still works. i hear this is a perpetual uptrend :-X
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If you use staking with your crypto in a centralized exchange, I think it’s a safe bet compared to other pools. If you have locked in a good APY, you have a good chance; otherwise, you must wait a year, depending on your lock-in period.
The risk involved is just the volatility of price and the amount you could lose or win. Of course, there are hacks, but you should be secured already.
It is good idea to think that putting your crypto in staking on big well known exchange. This is because these big exchanges usually have better security to protect your money. If you can lock in good interest rate you have good chance of earning nice amount of extra crypto. You are right that how long you have to keep your crypto locked up will decide when you can get those extra earnings.
Main risks you talked about price of crypto going up or down and whether you might lose or gain money because of these price changes are risks that come with investing in cryptocurrencies even when you are staking them. While security of exchange is important and hopefully it is strong like you said actual value of crypto you have staked can still change much and affect how much money you end up with both while it is locked up and after.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Always remind that NOT YOUR KEYS NOT YOUR COINS. That's mean where you have to put your own password that's mean the platform is not a decentralize platform and as well on the centralise platform just like that you are giving your fund access to the third party. If I say risk something about the risks risk then we have to just looked back to the previous incident like FTX, even there is also many other centralised exchanger who were also gave high APR to their customer Actually that's for attracting putting fund on their platform and then who is saw the scams and as well the exploiting and ultimately there is a huge number of users bear the losses.
So don't get much attract on only high apr on the cex.
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From my experience, I advise you to avoid CEX exchanges that offer high APR, as they are often scams. Large exchanges offer acceptable APR, but high APR may be a scam designed to attract investors.
In any case, staking is somewhat beneficial, but it is risky. You must choose your coin carefully, because if the coin declines over the long term, you will lose even if you receive a high APR due to the decline in the coin's price. Therefore, it is best to choose a suitable coin and not have a long lock-up period.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
The risk in staking cryptocurrency is when your maturity rate has been reached and you’re not getting the amount worth of what you’ve invested back after staking. Not getting back your initial capital from the staked amount when you’re about to remove your stake amount. This happens as a result of market not appreciating but depreciating, while your investment is locked and can’t be withdrawn until the maturity date of removing your stake amount is reached. The advantageous part of it is when you get to stake, while you’ve staked the amount and you’re collecting your APR while the token in the general market is still appreciating. Either ways, they’re both good way of investment as you can get benefits for what you’ve invested throughout the period of waiting.
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If you use staking with your crypto in a centralized exchange, I think it’s a safe bet compared to other pools. If you have locked in a good APY, you have a good chance; otherwise, you must wait a year, depending on your lock-in period.
The risk involved is just the volatility of price and the amount you could lose or win. Of course, there are hacks, but you should be secured already.
It is good idea to think that putting your crypto in staking on big well known exchange. This is because these big exchanges usually have better security to protect your money. If you can lock in good interest rate you have good chance of earning nice amount of extra crypto. You are right that how long you have to keep your crypto locked up will decide when you can get those extra earnings.
Main risks you talked about price of crypto going up or down and whether you might lose or gain money because of these price changes are risks that come with investing in cryptocurrencies even when you are staking them. While security of exchange is important and hopefully it is strong like you said actual value of crypto you have staked can still change much and affect how much money you end up with both while it is locked up and after.
I agree with you, staking on the largest exchange is safe and we don't need to worry about it. I also often stake on Binance, when deciding to hold for the long term because we can get results from staking while waiting for the market to become a bullish season. I usually do it from the bearish season while waiting for the bullish season for about 2-3 years
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I agree with you, staking on the largest exchange is safe and we don't need to worry about it. I also often stake on Binance, when deciding to hold for the long term because we can get results from staking while waiting for the market to become a bullish season. I usually do it from the bearish season while waiting for the bullish season for about 2-3 years
Using staking in the long term perspective is indeed one of the great opportunities to earn passive income. However, we must not forget that even the Binance as a huge platform is safe and secure, there are certain risks which could occur and it is very important to remember about it taking into consideration the volatility of crypto market. In case you decide to wait for the bull season which may take for instance a number of years, you should also determine if the earnings from stakes are worth the risk encountered. However, there may also be other differentiated investments that offer equally high returns but with lower risks; thus, it seems sanguineful to take into account.
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Yeah, you gotta know when to stake and when to take it out. Some people are caught up with the APR and think it's going to last for a long time that's why they lock it for some period. Later on, they realize that the value of the coin has fallen a lot and they are still stuck.
You always have such insightful perspectives, @Zed0X. You seem to understand what I've been going through in the last few cycles. I don't have issues with the reputation and security of CEXs, I just fall into my own psychological trap when staking a token.
Usually, if I just put my assets in Save for the very low APR and can sell the token anytime, I can stick to my investment discipline: act immediately when there's a signal. However, after participating in staking and receiving a higher APR, I tend to maintain an overly positive mindset. I don't want to unstake and lose all the previous rewards. Ultimately, I often miss the best profit-taking opportunity in the entire cycle.
Currently, I no longer stake any tokens on Binance. I keep them in Save or withdraw them to my personal wallet so I can act immediately when needed. I hope I've made the right decision this year to have more capital to DCA next year ^^
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Never tried staking crypto ever since I came across this industry. I am surely following this thread to get some insights from people who already have experiences in staking their crypto assets. All I know is that patience is needed in staking.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Well i don't staking on cex because it is centralize although it gives me high APR, staking on cex is mean we lost control for our crypto and i don't like it.
I like staking on Dex it will give big APR than staking on cex, in DEX i full control for my portofolio of crypto, and the risk of staking on cex or DEX is hacking. We can lost our funds and the other risk of staking, if the price of crypto going down but we can not unstaked our token will decrease our values of token.
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i use to stake ADA when it was just 0.02$. it would have been the safest asset i have if i kept them in a wallet and staking still. but then i sold them though.
for SOL, i think it will be safer still if you just have a lot of money to hold it when suddenly trend changes to bear market. your only going to have to wait for a long if the cycle still works. i hear this is a perpetual uptrend :-X
ADA is really the safest asset, I found it very attractive in Jan and November or in between, but never invested because I did not had funds as I already inveseted in other, but till the tweet of Trump where he said he will add ADA too in the reserve, I was so regretful but still not invested haha.
Speaking of SOl, if it is really perpetually rising, then it might dump, due to a number of reason, one can be overheated indicators, or narrative exhaustion, because, you know if meme coin narrative ends we might not see SOL pumping again.
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Staking, I must say, is very risky, as volatile as the crypto market itself. I have participated in a few staking exercises, and the outcome wasn't encouraging. The last staking I did was very disappointing and that was the Pyth network., Currently, the coin is very down in price value, and it has affected my staked coins. till this moment, I am not happy with the decision I took to stake my Pyth network, and that would be the last staking exercise I will ever do.
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Currently, the coin is very down in price value, and it has affected my staked coins. till this moment, I am not happy with the decision I took to stake my Pyth network, and that would be the last staking exercise I will ever do.
Can't you withdraw your staking if you think the price is no longer worth it anymore? I'm not familiar with how their staking mechanism works, but some alts and exchanges allow you to withdraw with a 1-day cooldown or so to prevent abuse. It sucks when things like this happens, but that's the risk you have to take. I'm not a fan of a quarterly lock or something similar, though, unless the coin has an incredible track record like BTC.
Ideally, we should plan based on the fact that the price will go down, so we'll have good measures to counter if our wealth decreases because of that. To be fair, though, people who are into staking should have a decent wealth before they utilize it. CMIIW.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Staking means that your crypto is out of your control. When you stake, you will not be able to control your crypto as you wish. Then it will be locked. So of course there will be risk here. If that centralized platform somehow refuses to give you your crypto, then you will not be able to get your crypto back. So if the platform is not trustworthy, then you should not staking. No matter how big the APR offer is there
Is there an incident where the exchange/CEX refuses to unstake? It would be very scary if there was a CEX like that.
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Main risks you talked about price of crypto going up or down and whether you might lose or gain money because of these price changes are risks that come with investing in cryptocurrencies even when you are staking them. While security of exchange is important and hopefully it is strong like you said actual value of crypto you have staked can still change much and affect how much money you end up with both while it is locked up and after.
I think there is a slight difference between your assets losing value when they are in your wallet and when they lose value, but they are staked with a platform or a protocol. The biggest reason why I don't like staking that much is that if you stake an asset, and then it starts losing value significantly, you won't have enough time to withdraw your funds and sell them to stay safe from the volatility, making you lose money.
If you have your funds in your wallet and the market starts dropping all of a sudden, if you want to, you can sell the assets and save yourself from losing value, but the same can't be done with assets that are staked, mostly because some packages or protocols that allow you staking doesn't allow you to unstake your assets all of a sudden, and if you do so, you might lose the accrued interest.
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
High APR/APY or whatever it is would be useless at the time or moment that the price of a certain token/coins value had gone to the floor and this is something that do really happens out. So no matter how many coins that you've been that earning until the time rans out but still it wont really be that sufficient or wouldnt be giving out that kind of guarantee that you can make money in the end of the line not unlesss if you've been staking up some solid altcoins or projects on which the price do able to sustain or able to hold out then that would be a good thing but most of the time on which staking isnt bad as long it wont be some having some locked up or having no cliff period but in general on which i dont see for this to be that worth i should say.
The reason for staking Bitcoin or some altcoin is not necessarily because of the high APR/APY rates in my opinion. There are people who may planned holding some notable altcoins for long term, these holders may stake their altcoins portfolio without paying attention to the market trends, that is, the market ups/down movements, or dumps. Long term Holders may stake their coin/tokens whether there are high or low APR/APY to enhance their investments and receive some passive income while holding.
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I don't really like cryptocurrency staking especially with some platforms although it could be beneficial but most times there are risk involved because especially when the platform aren't that trust worthy. I love doing investments myself and hold some BTC on my wallets than staking most times you can't make used of your money when needed.
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I don't really like cryptocurrency staking especially with some platforms although it could be beneficial but most times there are risk involved because especially when the platform aren't that trust worthy. I love doing investments myself and hold some BTC on my wallets than staking most times you can't make used of your money when needed.
Its just a way to make people earn from the platform while the stakers provide liquidity on it. If you are just like the rest of us who doesn't really stake cryptocurrency, just stake the stablecoins.
Staking stablecoins are much preferred because its less risky especially in a platform that's reputable. Very little to worry when it comes to staking USDT after all its value is just $1 still.
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Speaking only about the stake in CEX
You run the risk of the exchange being hacked or becoming insolvent. It's a bit difficult to happen, but it's not uncommon
Which coinn would you like to stake? It depends on the coin to know which APR is best at the moment
Even with Dex, there is still risk, the only difference is that we ourselves are the ones who hold our assets that we are doing the staking activity with. Compared to Cex, where we do not hold 100% of our assets, instead, the platform itself actually holds the password, it seems like they are just giving us authorization to log-in, because we have trusted them with the assets that we bought using their exchange.
The only problem with Dex is that if there is a problem or issue, we cannot contact or pursue the assets that are on the dex platform, unlike in cex,
our crypto assets can still be secured.
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I don't really like cryptocurrency staking especially with some platforms although it could be beneficial but most times there are risk involved because especially when the platform aren't that trust worthy. I love doing investments myself and hold some BTC on my wallets than staking most times you can't make used of your money when needed.
Its just a way to make people earn from the platform while the stakers provide liquidity on it. If you are just like the rest of us who doesn't really stake cryptocurrency, just stake the stablecoins.
Staking stablecoins are much preferred because its less risky especially in a platform that's reputable. Very little to worry when it comes to staking USDT after all its value is just $1 still.
At least I can still remember "not your key not your coin" so whatever that involves external platforms where I do not have general control about my funds are always termed to be risky for me which I wouldn't want to do that, even though it's that less volatile because is stablecoin I still do not prefer it because of the risk of losing complete access to the site.
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I think staking is good, but knowing when to stake is better, as I observe that there will or might be some point of the market where the yield or return might not be achieved, otherwise, those in charge of the staking process might find it difficult to keep to their own end of the bargain. Imaging when you stake with ETH at a high price for instance, and the market drops, so will the returns drop as well.
For me, I have not participated in staking process before, as I don't have many holdings worth staking on exchanges, knowing very well that the returns might not be very impressive, I just seat it out and buy some coins for holding.
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Currently, the coin is very down in price value, and it has affected my staked coins. till this moment, I am not happy with the decision I took to stake my Pyth network, and that would be the last staking exercise I will ever do.
Can't you withdraw your staking if you think the price is no longer worth it anymore? I'm not familiar with how their staking mechanism works, but some alts and exchanges allow you to withdraw with a 1-day cooldown or so to prevent abuse. It sucks when things like this happens, but that's the risk you have to take. I'm not a fan of a quarterly lock or something similar, though, unless the coin has an incredible track record like BTC.
Ideally, we should plan based on the fact that the price will go down, so we'll have good measures to counter if our wealth decreases because of that. To be fair, though, people who are into staking should have a decent wealth before they utilize it. CMIIW.
I made a very big mistake in not having checked it all these while, to be sincere, I didn't bother about it, but that is not an issue though as I have learnt many lessons from staking and this would be the last staking exercise I will participate in. I will just forget about it and leave it there till the staking exercise rounds up, as I will be closely monitoring it for further developments as it relates to the Pyth network project.
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The reason for staking Bitcoin or some altcoin is not necessarily because of the high APR/APY rates in my opinion. There are people who may planned holding some notable altcoins for long term, these holders may stake their altcoins portfolio without paying attention to the market trends, that is, the market ups/down movements, or dumps. Long term Holders may stake their coin/tokens whether there are high or low APR/APY to enhance their investments and receive some passive income while holding.
I don't know if there's staking in BTC exchanges that offer this, but these days, after the price surge, the rates are pretty low; it drops below 1%. Binance offers this staking with Bitcoin, but it's not worth it because you need to hold it for 3 months. We do not know what the price of BTC will be after 3 months, and since we're talking about 1% APY, it means in 3 months you can only get 0.25% of the amount you stake. The problem is if the price drops more than 0.25%, it's not worth it, and it's possible when you exchange your BTC that you stake, you could lose more than that when the current market condition is bearish.
Maybe staking in BTC is worth it if you know after 3 months or the end of the staking the price of BTC is higher than what you expected.
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this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
It is good that your question is to get acquainted with the risk and not an inquiry to know if it is risky or not, because then I would have said that there is no venture with a potential to make profit that does not come without a risk.
Having information about the risk will help you be better prepared for it.
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Maybe staking in BTC is worth it if you know after 3 months or the end of the staking the price of BTC is higher than what you expected.
Yes, the more the amount and the longer the time, the rewards from staking are certainly more tempting. However, this is also certainly in accordance with the potential risks. Because after all, before the staking is complete, we cannot withdraw the coins, regardless of the market conditions. This is what is being considered. And that's why staking is better in bearish times in my opinion. But once again, staking definitely involves risks, and how big or small the risk is, we manage it ourselves.
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this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
There are many risks when you're staking cryptocurrencies. Here are some of it:
1. Market volatility - we know how volatile altcoins can be and if you're staking a low marketcap altcoin, there's a chance that it can drop significantly that can lead you to more losses despite earning staking rewards.
2. Lock-up periods - This isn't a risk at all especially if you're holding the staking coin for long-term, but there are some who find this as a bad thing, but there are some coins that has a lock-up period so consider looking at it first before buying the coin.
3. Protocol or platform risk - If you're staking your coins though a third-party software such as exchanges, there's always a risk of hacking, and that could result in a loss of your funds.
As for which CEX offers higher APR, different exchanges offer different APR's to different coins. Don't be lazy to research it as well. :)
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Crypto staking has been beneficial, especially with CEX that offers high APR.
this is my question, what are the risk involved in staking cryptocurrencies?
which CEX offer more high APR?
Funds in the centralized exchange could be gone if they are hacked because you no control of your keys there. The same also with the volatility nature of the coins that you are holding there, you can suffer impermanent loss. But if you are staking stablecoins then there is no need to worry about impermanent losses. This is passive income but there are risks, pros and cons too that if anyone wants to try and test it too.
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I don't really like cryptocurrency staking especially with some platforms although it could be beneficial but most times there are risk involved because especially when the platform aren't that trust worthy. I love doing investments myself and hold some BTC on my wallets than staking most times you can't make used of your money when needed.
Even though security of the funds or the risks involved with funds getting scammed by platforms isn't that big of a concern for me, what you mentioned at the end is basically what makes me dislike crypto staking because I believe it's much better if you have all your assets available at all times instead of them being locked in a staking package or contract because if you ever decide to sell some of them maybe because the market is dropping or you just want to switch to another asset, you can do it without any problems if you have your assets in your wallet or in an exchange.
I also believe that it's more profitable if a person just uses the money for trading instead of staking it because you barely get more than 10% annual returns for staking your assets, and if you learn trading and do it properly, you can easily make that much within a month or even before that.
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Funds in the centralized exchange could be gone if they are hacked because you no control of your keys there. The same also with the volatility nature of the coins that you are holding there, you can suffer impermanent loss. But if you are staking stablecoins then there is no need to worry about impermanent losses. This is passive income but there are risks, pros and cons too that if anyone wants to try and test it too.
That is why, in my view, staking stablecoins are a great way for passive income generating without involving oneself with the daily volatility of cryptocurrencies. However, you should note that the aspect of security is the most sensitive and the most likely to be exploited in the platform throughout the entire programme. I understand there is always a risk but as you rightly pointed, it is prudent to select an option whose models are secure and which have a very clear collateral backup systems in place. In my own case, i only stake stablecoins to these centres which are certified by auditors and they display such information to the public on how they secure assets that are put under them. However, if you are lucky to observe these factors, I believe you can be able to get the best out of it though noticing some extent of safety to your managed assets.
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Even though security of the funds or the risks involved with funds getting scammed by platforms isn't that big of a concern for me, what you mentioned at the end is basically what makes me dislike crypto staking because I believe it's much better if you have all your assets available at all times instead of them being locked in a staking package or contract because if you ever decide to sell some of them maybe because the market is dropping or you just want to switch to another asset, you can do it without any problems if you have your assets in your wallet or in an exchange.
I also believe that it's more profitable if a person just uses the money for trading instead of staking it because you barely get more than 10% annual returns for staking your assets, and if you learn trading and do it properly, you can easily make that much within a month or even before that.
Full control of your assets is helpful at some point especially in situations where the market shifts a lot or if the investor has some compelling reason to move the portfolio around. It fixes your money for a specific period and this eliminates your chances to capitalise on some opportunities in the market. Although many active traders prefer staking due to the constant passive income, the potential in trading is much more appealing as you do not need to buy a significant amount of coins, you just need to live price them, and if you have good market timing, you will benefit immensely. This way you enjoy an opportunity to win more than once at a relatively shorter period of time than would be the case when staking.