Topic: Do You Think Staking is the Perfect Passive Income Strategy in a Bull Market? (Read 385 times)

you don't need to unstake ADA. you can send the tokens right away and their system will figure itself how much you have unstake. but holding in the bear market is not profitable. you would rather be selling than unstaking tokens. selling and turning your tokens into USD will be the most advisable path to take in the bull market.

and you can just wait til prices are stable after a year. waiting for the cycle to happen again buy again and stake. therefore staking only when the price are getting stable.

There are different ways we can earn profits from this bull that is loading gradually. One of the ways we can earn profits is by staking. Staking is just a way we can accumulate the some tokens as we decide to stake our tokens since it's not in use. Although the APY maybe very small depending on the token and the amount or worth of the token we want to stake. Although for now, staking might not give us good money unless we are holding and ready to stake up to $100k worth of any token we want to stake or more. This is the way we can earn from staking but it is always advisable to stable in a good exchange or sure where our funds are secured.

I should've seen this message earlier.
Staking is not always positive because some coins are not making the expected boom. If you are in the right coin you will make profit. There are coins that I've been staking for years but I still cannot make a serious profit. Especially most of the staking coins on Coinlist have been disappointing.

The market doesn't go as plan most times, that's were the need for backup steps in and we become more aware of the prime and dangers of our decisions concerning the projects we choose. Spot good entries and leave the market, then focus on the main projects that would generates profits in the next 2-3 years. Everyone have aims and we ought to smile whenever we're dealing with the system. Staking our coins could become one of the easiest techniques to implement when it comes noting good spots for our profits, remember not all techniques become associatable in the system.

In time of bullish, and for a fully passive income, then I think staking is the best way to do it compared to just investing without staking, but in general if the market is bullish and we want to get the most profit we can get, then day trading is the answer, even we not really into trading and only has few simple strategy, but of course high profit has high risk.

If we're strictly speaking of passive income then yes it's probably the best strategy during a bullrun. I would not recommend doing this for that entire period though since those staked assets will soon lose a lot of value if left too long in liquidity pools. It's better to unstake during bullrun's final phase and sell all for fiat or stable coin. Leave the market and buyback one or two years after.

I guess the only nuance you should consider is if the coin actually has the potential to grow. I mean, staking it plus letting the coin price grow steadily seems like two positive factors already, I imagine there might be other positives you can get as well depending on what project it actually is. I wouldn't recommend starting during a bull run though since staking is something you'd generally do for the long run. I imagine you'd be put on the negative or barely equal once the coin stabilizes away from any ATH it reaches during the bull run.

Staking is not really a good idea for ROI, the only reason I recommend staking in better chains like Cosmos is for future airdrops. Any coin I staked now must be unstaked during bull run.

This is were a some input is required by the staker else such an investor would stake on the wrong coin and ended up losing hard earned money, some research would save an investor from staking on a or some shitcoins, some of those coins has low volatility in their price movement while some are overpriced these are some of the factors to be considered when staking, unfortunately many investors are after massive profits while staking blindly on any coin hoping to earned quick profits, personally I would prefer one or two coins for staking after a thorough analysis and research on them and having satisfied with their Price Action and Past price behavior, I would stake them.

and by the time withdrawal completed we'd lose half of our money, thats why sometime staking might be waste of time if it involves locking, imagine staking for period of 2 years and the price of coin went shit, that'd be massive waste of time and money certainy i'd be really pissed by that, the thing with staking is that the only staking that have high APY are those new tokens and shitcoin, and we all know how these tokens and coins gonna be in the future, reaching peak and then hitting all time low and never gets back up.
I think in bearish its wiser to just settle with holding not staking, unless in bearish where we just gonna wait anyway, but in bullish and decide to stake at this exact time doesn't really seem like a good decision.

I learnt something new today. I have never explored Cardano so I didn't know that details about their staking initiative. The unstaking delay that is associated with proof of stake networks is usually undesirable. I remember one-time: I own a token — let's say X and the price was falling rapidly due to a high impact negative news. So I tried to unstake and sell immediately. The bottom line was that I was only able to access the tokens after 48hours due to the unstaking delay and at that time, the price had already plummeted.

The same thing happened to everyone who staked UST on Anchor protocol during the UST depeg and Luna inevitable crash. Fascinating stuff, ADA's staking!

It gives you more if you are staking good coins but if you are staking shitcoins, you only get nothing and lose your money.
Staking is risky and we should have to know that first because at the time we put our money into a particular platform for staking, we are also losing control of it which means that if they take it or the exchange platform turns into a scam, you can never take it back.

You can say it is hitting 2 birds is one stone but sometimes you may hit it as well - your money and your time.

there are tokens like ADA where you can store them inside your self-custody wallet and at the same time staking. but i think you can max out only if you have invested in such a token from the very beginning where the coins are still less than 10 cents. you probably won't be tempted to dump them even in the bear market because you still can make money out of staking.

if an investor can make money out of it enough that he can live with just the passive income from staking, he surely has made the right choice from the beginning. let's say he has millions of ADA and can make $1000 a week as per epoch, then definitely a great investment.

That is what I actually did, for the last 2 years I have been staking during the bear period, and I have doubled my coin amount in many tokens as well, hoping that if the price goes up, that would also make it even more profitable as well.

Imagine getting 100 dollars worth of tokens at 1 dollar per token, you have 100 tokens, then the number of tokens doubles for staking, make it 200 tokens, but the price drops of course, then when the price goes over 1 dollar, make it 2 dollars, that is 400 dollars that you have, you invested just 100 dollars, and the price only doubled but you quadrupled your money because of staking. That is why I like doing this, it is a good idea and should be supported during the bear period for sure.

Not just during the bull run but also during the bear market. You can look at that moment when we're in the bear and it's like more accumulation due to staking.

What I just don't like on it if you're going to do it with exchanges. You will not be allowed to have control over your funds and mostly if you take the locked period of it which you have no option but to wait for the period you agree they will lock it.

Depends on the period, staking during the bear season awaiting the bull period can be very profitable especially if the project in question has yet to be listed in any exchange. On the other hand, locking your coins up pre- bull run is a big mistake, you will literally watch the rise and fall of your portfolio and not being able to sell if the staking period has not ended and you are not able to unstake. I think this among other reason are while most people prefer to hold their coins in their personal wallet to be able to sell when the market is at its peak.

Wouldn't one be able to get better returns if they simply held their coins in their wallets instead of staking them and buying and selling for small intervals?  Because staking will barely give you a 5% to 10% APY or APR and that can be earned in a few hours during a bull run, I believe it's better to simply keep your assets with you and make trades instead of locking them up in a staking contract that might not allow you to use your coins for selling when you might want to.

This is the first time I've heard that staking can be used as a way to earn guaranteed passive during the bull run while people usually prefer buying low and selling when the market is pretty high during the bull run and repeat the process for every small dip that might occur during those times.

But the problem with what you mean here is if suddenly while you are in time of staking and the price of your coin goes ATH then how can you gather them both? then you will need to took out your stake just to sell your coins? isn't disaster is what will happen.
Staking for me is much better while the market is dumping so if happen that after dumping you have taken your stake then chances that the bull will be waiting .

If it's not good then why it grows up like this? I mean many crypto wallets and platforms (e.g crypto exchanges) are now offering staking service and then many coins are still being created to support that kind of functionality. I guess that simply means they are getting a good demand from the public.

The lock-up mechanism is needed not only to prevent the people from selling so that the coin will not dump, but at the same time it can make the network secure or stronger. The best part is we can gain an incentive from doing this. You think it isn't great, maybe because you are only lacking in patience and you didn't choose the right platform and coin for you to do staking.

Staking for passive income in a bull market is smart. Its like getting two birds with one stone: staking incentives and asset appreciation. However, it may not be the 'ideal' method.

The reason is: First, cryptocurrency is dynamic, so what works today may not work tomorrow. Market circumstances and asset performance determine staking's effectiveness. You must be committed and understand the blockchain project you're investing in. Its about community and technology advancement, not just earning. This makes it a non-set-and-forget method.

Remember, bull runs offer several opportunities. Trading, yield farming, and crypto startup investing are alternatives to staking. They have different risk-reward profiles. Best strategy? Personal risk appetite, investment horizon, and crypto interest determine it. Diversify and pick what fits your goals and understanding.

It can be a good option but we can never be considered passive income. Why? Just to imagine how much you earn from staking, I'm referring to staking known and legit coins, not scam/shitcoins because the percentage that it gives to us is a very small amount, we can't live with that for sure. I'd say it was a good option for holders as we are making additional income while holding but if we think of gaining more from just staking, that is not the real thing happening.

It seems to me that staking can be the perfect passive income strategy in a bull market, but it is not a bull market strategy. As we know staking is the act of holding cryptocurrency or other assets for a predetermined period of time. Where staking is much easier than mining or trading. Coin selection is most important in staking. Ensuring proper access to the market for quality tokens or coins. If you are able to select the right coin for staking then you can earn a bit better. Setting financial goals and time limits makes it easier to take steps toward staking. It may come with risk, but the potential earnings and stability can be a significant advantage.

Staking was fine perhaps in the bear market but now with the bull market that is coming it is better to not block/freeze shitcoins because their value can change, grow suddenly for me day trading is more convenient in these moments

Higher the risk but the returns are uncertain so it can be high or low or even bust.

DYOR is important for any investment but how is it going to be helpful when it comes to staking an altcoin. Yes, it can be applied to bitcoin since we have a long history and few other altcoins which also have a long history but not as successful as bitcoin so staking altcoins holds higher risks that is why its not the best strategy to make passive income.

I don't know if there's any advantage derived from staking in a bull run over doing it in a bear season. In the not too distant past, I used to have this same mindset of yours until I tasted the bitterness that's occasioned by staking. K-Root, KCLP and one other token that I can't remember now, taught me a bitter lesson as they wound up their sites and all that I staked went with them. While the staking on those sites lasted, I enjoyed it. I got some profit but the manner it ended was heartbreaking for me. Yes, quite correct that one can earn passively but there's no guarantee that the site and the coins won't disappear into thin air overnight.

hitting 2 birds with one stone just like OP's view of it. it's a passive income if the bull run continues forever unfortunately it doesn't work that way and it's always going to end which is time to sell. if staking takes time, your dump may be delayed.

it's all up to the staker if he continues to stake but remember the regulators are not going to look at staking as it is.  i think there was a discussion about token stakers being taxed.

I agree that staking can be a smart strategy for passive income especially during a bull market. The ability to earn rewards from staking is also beneficial if value will rise of your staked assets can be a dual advantage.

But keep in mind one aspect to consider is the volatility of the market. While a bull market generally indicates a positive trend but there can be downturns too. That may impact the value of the staked assets.

But the specific cryptocurrency you choose to stake can also lift up the success of your strategy. And the staking rewards and potential returns can vary in different platforms.

I also use staking platform and currently I have invested in ATOM, Juno and Osmosis.

Two things i enjoy doing in this crypto space is either staking and copy trading, these two have really come handy for me over the years of being a crypto trader. Then ofcourse taking part in airdrops has also yielded me so good passive incomes ..

Higher risks but also higher rewards. Unless its both high risk and low reward, but staking in something like that is up to the people who don't understand the concept of DYOR.

People really should do their own research instead of asking strangers for bad financial advice. Which coins will make you rich? Who knows. It could be a completely unknown coin that you happened to stake because you liked the team behind the project.

But if you want to be realistic about your staking, then you really should DYOR.

I taught the op was emphasising on bitcoin aspects of investment,in which I did not find he or her concept or theory very correct, so therefore bitcoin is something I know that have to do with different kind of measures for investment, so what you said I think I acknowledged it.

I once wanted to do it on Binance. However, when looking at the results, it became quite a bit. ha ha
Or maybe because the number of staked coins is only small, it really doesn't seem worth it, right?
Meanwhile, if I do staking or something like that on another platform, I haven't done any research because I'm worried whether that platform is truly trustworthy or not. Because staking is usually done over a long period of time, this may also be risky. Unless the platform is trusted and reputable. Maybe it's time to try doing some more research on whether it's really worth it or not with the amount of assets you currently own. Because I read some members here do it and it's really profitable, right?

Not a passive or that huge income to simply answer you. But, making a good and wise choice of trying the best tokens or coins in the perfect platforms can really generate you decent profit and an extra income to help you.
I don’t believe that you can earn more than 10% of your total staking amount in less than a month for example. Knowing that staking also can be risky, if you stake a coin or a token even that you get the profit every week or month or even day and if that coin lost its value, you will lose and that depends on the market.
As it can the opposite, if the market was moving in the bull direction and you were staking good amount kf that token, you can really generate good money.

If it's altcoins, I'd say staking can increase the potential of more profits but this is only recommended for a user that wants to max out their potential earnings. Otherwise, it's best to just self-custody the tokens. For Bitcoin, there's no staking activity so I think OP was talking about altcoins specifically. If the next bull run plays out like the ones before it, staking would be the best route for anyone looking to max out gains in that you earn staking rewards while enjoying price gains on capital and staking rewards tokens as well.

It would be the perfect passive income strategy if you would stake or use the crypto that wouldn't easily drop down its price.
Staking could be the best for those who just wants to hold their investment for a long period of time, since they don't plan to sell it or trade it why not stake it to let their holdings earn more for them not just wait for the price to rise up.

Instead of you to stake while can't you buy and hold of bitcoin and later you sell when the price of bitcoin or any of the altcoins you purchased go higher, even though you buy any other coins and hold when theirs a bullrun it will also affect the coin you bought in your wallet, so we don't need to stake but everything is depend on your decision and understanding concerning cryptocurrency investment.

Actually to make a profit cryptocurrency investment you have to be calculative to know when the bull is about to manifest and when the bearish is about to manifest, so therefore theirs something we have to understand and their is something we have to practice to know when to hold a cryptocurrency and when not to buy and hold, because its not every time you can buy and expected to make a profit.

I actually talk a lot about crypto staking, nowadays almost all centralized exchange has feature of staking tho no doubt that Decentralized Exchange also has.

Fast chain and environmentally friendly coin is everywhere so Proof of Stake is at peak now even tho developer tweak it like DPos, Masternode, etc. So it gives a lot of opportunities for passive income strategy.

The best way to staking is at bear market in my opinion because the coin is at cheap rate you can continue DCA and stake it at the same time so when bull market you can sell some of it or just sell the earn from staking. Eth usually over 4% annual but there is ton out there more than 4% if you surf the DeFi world you can even earn more than that

Yes staking always yield a good amount of return by holding or locking it. Some have number of days required to locked it or unlock your tokens in a protocol but earning tokens at the same time. For bull run its good since the value also increases but if you think about it, on the opposite side it could also be a downer but since we are entering a good market then its really a good strategy.

Nah, it doesn't. Too volatile. I had a friend who staked $DOT during last bull market when it was trading around $50, thinking to have stable income with it. What happened? It's now trading at $5.

With $DOT's staking apr ~15%, he would have been better of selling his stash then at $50, and buying back later. He'd be having lot more $DOT this way compared to his staking earnings.

Staking is lock up mechanism to prevent people from selling, there is nothing good about it as I have experience in this market. Let us do some simple analysis:

An altcoin promises to give 9% APR for staking reward yearly. Now, you staked your coin to improve the security as they say and then all of a sudden, the coin start pump and this pump happen in just a week to a new all time high but you cannot sell because there is a penalty if you don't reach the agreed date and may even take 14 days to unlock just to prevent market dump. In the process, if you are a whale that unlock, it's going to inform traders that a load of coins will be unlock to the market in 14 days and smart money will sell their coins and exit before that day leaving you with loss from staking and loss of not been able to sell at all time high. What's the profit you get in staking?

The only time I think it's ideal for staking is in bear market. If you buy a coin, you can stake it when nothing good is happening at that time, you can be earning some good passive income but it's better to unlock immediately as bull run approaches so that when the coin hit all time high or have enough profit, you can simply sell your token and exit the market in peace. Staking in bull market is just a strategy team are using to avoid people from selling and reduce coins in circulation.

Certainly, staking is a powerful strategy for generating passive income, particularly due to upward trend in the market, the value of staking reward is enhanced, as well.

However, it is important to note that there are risks involved in staking, such as potential for impermanent loss, market fluctuation risk, securities vulnerabilities of network and necessity for compliance with regulatory standards in the region where a DEFI platform is registered.

Staking is a risky strategy. It means you are going to leave your funds at someone else's hands to take care the money for you. That is how many scams have happened in crypto industry in the recent years. Therefore, the perfect strategy is to hold your funds inside a wallet you have total control over your funds. And once you think the market has pumped enough to give you some sweet profit, you sell it. It's not passive income, in theory, but you are still making profit while sleeping, without any effort. So, in a determined sense, it's still passive income, though.

which translates to the fact that it depends on the coin you are staking here. i can understand if it is in the top alts like SOL but if you happen to stake short-lived tokens or coins, i guess you will regret going into staking mode.
if you will stake coins, better do your own assessment, and evaluate their potential. because if you stake a crappy coin, you would end up just wasting your resources. so such passive income will just go down the drain.

No, it's vice versa as staking your coin gives you a fixed return which gets accumulated in the same coin which you have staked hence it would be more helpful if you do it in bearish season, let's say we have staked Solano when it was trading around $8 during the bear run and now if the tie up period is over we will have solana with 7x profit along with the accumulated interest.

But if you stake during bullrun you will earn those interest but what if your time period for staking doesn't end during bull run and by the time it's over if the value of coins drop ? There are chances that you will end up losing on your capital even if you have the interest profit, then either you wait for one more bull run to sell or sell it at lesser price. I don't prefer staking especially during bull run but I have staked during bearish season snd it has been fruitful.

It does not guarantee that your assets are completely safe because there will still be risks, when no one is sure that any event will occur and cause serious losses.

Staking, or similar mortgage loans with or without conditions always come with different risks/returns, but if we have accepted them from the beginning, that also needs to be made clearer. I know that in a bullish market we can easily spend generously and make money easily through many different forms, but everything is only serious when the problem is as risky as those things. Like a few cases in the past from the XRP story, but anyone who falls into that situation will realize that nothing is absolutely safe in investment.

It can be if you take calculative risk measurement. In the bull market most of the projects usually go up so if the token you are staking is fundamentally strong, you can earn a good amount of passive income at the same time your token price will increase eventually. In the bull market even a stable coin can give you a good APR on the lending platform if you don't want to take unnecessary risks.

I wouldn’t say ”the perfect passive income strategy” but for a fact, it is a valid passive income source. And it doesn’t matter if you are staking during the bull run or not, because even if it was the bear market, the tokens you earn can still be of great value whenever the bull run comes. I’ve made some gains from staking and it’s something I would greatly recommend, however, you should DYOR as the token/coin matters a lot.

Staking is another way we can earn in the market while we are holding. since there had been speculations that the bull trend would be in a moment, it is important for us to keep holding our coins in our portfolio or transfer it to exchanges where we can be able to stake it and earn extra coin while we wait for the bull market to come. The only way we can make interesting profits from the market is buy taking the risk of buying and holding. Staking is a way of holding and earning at the same time putting our coins in use while we accumulate more coins for the bull market loading.

Yeah, Staking is the most efficient way to get passive income during bull run but only those flexible terms and doesn’t have have cooldown period because you might caught up unguarded when the market suddenly crash while you are still unstaking your token leaving you more losses than passive income.

Also, make sure to use reliable DeFi for your tokens or else you might suffer same fate with Celsius stakers that still didn’t recover their stake money that was supposed to be huge now that the market is already recovering.

No, because that will reduce the potential level of return that you might get.

When the market is bullish, of course the price of a token will increase, we should be able to get 2 benefits at once, an increase in the number of tokens and also an increase in price. Remember that every staking program has a time period (on-chain), I once had an unpleasant experience when I was staking $ROSE coins, because unstaking took a lot of time, I lost my selling moment, and that reduced the return I should received.

Staking should be done during a bearish market (case study on a token that you are sure of its fundamentals), which will make you stronger to become a diamond hand.

Perfect in the sense of guaranteed returns?

No, Staking shitcoins holds the highest risks due to the volatile nature of the assets so meanwhile you staked the funds the value of the crypto can reach zero too so how can you say this as best strategy? For USDT it can be considered but for staking, you need to lose ownership and trust a platform that can be hacked at any moment so it is not a goos strategy in my opinion.

Same case here. Staking Solana in the past months has been not just hitting two birds for me, but more because of the potential airdrop from several projects. I mainly stake it on Jito, then deposit those JitoSOL into margin.fi. Both protocols (Jito and Margin) have points system which likely is meant for their upcoming airdrop. So with that strategy I got:

• 7% SOL yield
• Rising SOL price
• Jito points
• Margin.fi points

That's four birds with one stone.

So I believe staking stands out as a smart strategy for passive income in this bull market, especially since it allows you to leverage your staked tokens effectively. But, does this make it the perfect passive income for you?

For me, staking during a bull run has been akin to hitting two birds with one stone as enjoying the rewards from staking and potentially benefiting from the rising value of the staked assets. This dual advantage has made it a successful strategy in my experience. More than just a means to earn, staking has also been a way for me to engage with and contribute to the growth and innovation of blockchain technology.

So what do you think guys? Is staking the perfect passive income strategy for the bull market, or are there nuances we should consider?