Is crypto staking risky?

[Bobcrypto]

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.

[SmartGold01]

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.

[target]

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.

[gunhell16]

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.

[SmartGold01]

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.

[Stuart]

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.

[Cryptsafe]

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.

[BitMaxz]

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.

[Rruchi man]

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.

[sampoerna]

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.

[LogitechMouse]

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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.

[bhadz]

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.

[Alone055]

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.

[Blaze]

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.

[enwi]

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.