Is crypto staking risky?

[albon]

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.

[Bobcrypto]

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.

[Charles-Tim]

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.

[Vx1]

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.

[robelneo]

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.

[Legion]

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.

[snowpega]

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.

[Vx1]

~

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.

[Azharul]

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.

[Roseline492]

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.

[Faisal2202]

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.

[enwi]

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.

[Flydove]

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.

[Crwth]

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.

[Amug123]

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.