Is crypto staking risky?

[electronicash]

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 

[Themepen]

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.

[|MINER|]

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.

[yhiaali3]

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.

[Asiska02]

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.

[doc]

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

[Legion]

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.

[MrSpasybo]

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 ^^

[0t3p0t]

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.

[densuj]

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.

[Faisal2202]

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 

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.

[Cryptsafe]

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.

[joniboini]

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.

[MUGNIA]

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.

[Alone055]

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.