Most people will tell you that it's a bad idea and I would agree. Staking and earning interest on coins requires that you give up custody of those assets and put them in the hands of someone else.
Ultimately, the choice is yours. Do you think the interest rates are worth giving someone control over your bitcoin? History has shown us that many platforms have been hacked, or the owners have performed exit scams and rug pulls. There is no protection against that and it can happen at anytime if you are dealing with untrustworthy individuals.
Personally, If I had some altcoins that I would be willing to "gamble" with, I would stake them somewhere in return for a decent percentage. But I wouldn't do the same with my bitcoin.
Topic: For those holding BTC for the long haul, do you earn interest on your stash? - page 3. (Read 442 times)
November 29, 2021, 07:44:27 AM
November 29, 2021, 07:30:40 AM
As with what everyone else more or less said. It's a bad idea. At the moment there are too many risks for not enough rewards.
Now if a major financial institution did it, with a ton a regulations and insurance and security. I could see it being attractive.
*I* would not do it, but if there was no more risk then a CD or savings account then I would see it's appeal.
-Dave
Now if a major financial institution did it, with a ton a regulations and insurance and security. I could see it being attractive.
*I* would not do it, but if there was no more risk then a CD or savings account then I would see it's appeal.
-Dave
November 29, 2021, 06:49:53 AM
For Bitcoin I don't do that since the risk is bigger than the APY, trading is far better than staking Bitcoin.
For Altcoins the APY is worthy and most of altcoins itself is centralized, so staking isn't really bad here since holding the coins itself has a risk. Personally I don't recommend to buy altcoins since you need to take huge risk or can be defined like go big or go home.
For Altcoins the APY is worthy and most of altcoins itself is centralized, so staking isn't really bad here since holding the coins itself has a risk. Personally I don't recommend to buy altcoins since you need to take huge risk or can be defined like go big or go home.
November 29, 2021, 06:42:55 AM
I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.
What’s your take on this? Is this a good or bad idea?
What’s your take on this? Is this a good or bad idea?
Imho it's usually not a good idea.
You have to either put your coins into a custodian platform/website (this has risks "not your keys, not your coins"), either convert into an altcoin for PoS, LPoS or such (and altcoins are riskier than Bitcoin).
I am not into DeFi that much, maybe I've missed some case(s).
With Bitcoin price rising nicely against fiat, putting a good amount of coins at risk for some tiny APY it's not such a good deal.
November 29, 2021, 06:18:53 AM
What’s your take on this? Is this a good or bad idea?
From the perspective of what Bitcoin stands for, I think it's a bad idea - because each user should be their own bank and have exclusive access to their private keys. The risk taken by those who deposit BTC to earn interest is therefore always present, but I understand that it is acceptable to people when they see the interest offered to them compared to traditional banks.
One old faucet that is still active offers just one such option with an interest rate of 4% + per year, and since I have some active refs and that it is a BTC that I have not personally invested in, I use that option. However, if we are talking about a significant profit, less than 1 BTC deposit on such services makes no sense to me. The risk is simply too great for what I can gain from it.
November 29, 2021, 06:06:31 AM
I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.
What’s your take on this? Is this a good or bad idea?
What’s your take on this? Is this a good or bad idea?
Personally I don't stake/deposit my bitcoins to any platforms that offers interest payments against my deposit. There are couple of platforms available though like Celcius or Bitbns etc. But I have never used their service.
I believe bitcoin doesn't need such platforms because bitcoin itself is a super volatile asset which can fetch a big return if you can wait for the right time. So I will continue to avoid those interest payers.
November 29, 2021, 06:04:53 AM
The risk of leaving your coins or tokens on exchange is big but it is not biggest one. In fact, the biggest risk is unknown future price of coin or token you invest in and stake or yield it.
In theory, APY can be high but it does not make any sense in the end if after one year, price falls a lot, halves or lost more than that. When you choose a coin to yield, fundamentals are very important because such things can help price to be more strongly survive against volatility of general market.
So if a coin has a good APY in theory, what you need is only a stable price of that coin. Then you can end with good profit after a few months or one year.
In theory, APY can be high but it does not make any sense in the end if after one year, price falls a lot, halves or lost more than that. When you choose a coin to yield, fundamentals are very important because such things can help price to be more strongly survive against volatility of general market.
So if a coin has a good APY in theory, what you need is only a stable price of that coin. Then you can end with good profit after a few months or one year.
November 29, 2021, 05:25:55 AM
Platforms and exchanges usually offer very low rewards for BTC staking, but for most of the other altcoins, you can get quite decent % back if you decide to stake. Annual percentage yield (APY) goes from few % and up to 50 % in trustworthy websites. The downside is, that for majority of altcoins, you have to store them on exchange or other platform, which brings with it few risks.
November 29, 2021, 05:20:42 AM
I have been reading up on some interest accounts out there for BTC and Altcoins and the yields are really good especially when benchmarked against fdic insured fiat.
What’s your take on this? Is this a good or bad idea?
What’s your take on this? Is this a good or bad idea?
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