Passive income : Bank interest vs staking

Abiky

legendary

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www.Crypto.Games: Multiple coins, multiple games

Quote from: stompix on January 18, 2023, 09:57:18 AM

I nearly forgot about this till somebody pointed it out.

Seems like it's time to see the result:
So you had $17
- putting it in a bank with 1% you would have $17.17
- despite the last pump, your investment is currently $5.4 and with an APY of 28% is $6.92.
So not only you haven't made a profit but you also lost $10.08 of your investment of $17$

Probably a lesson that earning more money by just buying money doesn't work always how some wish it would.

You'll end up losing more money with crypto due to extreme market volatility. But that only happens if you don't know what you're doing. I'd simply keep buying and staking coins, until the time comes to cash out my profits. The results are better than just saving money at a bank. But not everyone finds it easy enough to manage their crypto funds on their own.

Depending on your needs, would be the place you'd store your money for safekeeping. What's important is that you make it grow to help offset the negative effects of inflation. As long as you do that, nothing should stop you from becoming financially-independent in the future. With banks getting into the crypto/Blockchain craze, it shouldn't be long enough before people will be able to easily participate in staking without even knowing it. Who knows if you'll become the next millionaire? Just my thoughts Grin

stompix

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Blackjack.fun

Quote from: CryptoPro909 on April 14, 2022, 06:24:07 AM

Quote from: stompix on April 13, 2022, 05:37:35 PM

Quote from: CryptoPro909 on April 13, 2022, 05:37:55 AM

One of the crypto's with interesting staking returns is #ICP¨, as it can give you uptill 28% APY (yearly).
Sounds better no?

Wake up people, before you end up poor!

We will speak end 2022 if your 1% bank interest was better than investing with 28% APY at a low of 17 (in this example..., is not the only project I am staking)

Time will tell

I nearly forgot about this till somebody pointed it out.

Seems like it's time to see the result:
So you had $17
- putting it in a bank with 1% you would have $17.17
- despite the last pump, your investment is currently $5.4 and with an APY of 28% is $6.92.
So not only you haven't made a profit but you also lost $10.08 of your investment of $17$

Probably a lesson that earning more money by just buying money doesn't work always how some wish it would.

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: bakasabo on May 25, 2022, 04:16:08 AM

Just dont forget that in bank interest case you operate with fiat or lets say stable coins. What is the point of staking with 200% profit, when altcoins value has dropped by 300% ? When 1-3% in stable coins is always 1-3%. Doesnt bank interest gives more stability or feeling of safety? Chance that bank goes bankrupt is lower than altcoin going to a bottom.

What I like about banking interest is that it is totally passive. With staking, you still have to follow the market and follow project. Because you might miss moment when you should quickly close staking and sell.

The risks of staking coins are simply too high to bear. That's not the case with banks, as Fiat deposits are insured by the government (like in the US). The APR may be low, but the risk of loss is much lower than it's the case with PoS cryptocurrencies. You'd have to be quite agile to protect your purchasing power during high periods of volatility. If you play your cards right, staking may be a much more suitable option for reaching endless profits. It's all about balancing risks vs rewards. I'd do both staking and saving money at a bank to achieve complete peace of mind. Who knows if someday banks offer crypto staking services to customers in the future? Just my thoughts Grin

batang_bitcoin

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Eloncoin.org - Mars, here we come!

Quote from: Ultegra134 on May 07, 2022, 07:31:35 AM

Quote from: batang_bitcoin on May 06, 2022, 05:17:30 AM

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

There are quite a few instances of single asset vaults offering great APY, such as Cake, Stella, BIFI, however, you should always take into account impermanent loss, market crashes, such as the one we're experiencing now, BIFI has lost over $300 in value in the past week. You'll need to be extremely patient, especially in periods of depression, while choosing the correct project is a strenuous procedure.

That's why I'm avoiding them, I've done that and got a serious impermanent loss and I don't like it. It is what I'm trying to avoid and even they're likely promising you with better gains.
I'm not buying that anymore, it's better to have a little gain with little risk than to acquire that impermanent loss and you'll never know if that's going to take a recovery or else, that impermanent loss will become permanent.

bakasabo

legendary

Activity: 2296

Merit: 1176

Quote from: Sir Legend on May 24, 2022, 10:42:15 PM

Comparing passive income from staking vs bank interest is of course very different, staking is very profitable but has a high risk, but for now what I prefer is staking, with staking we have full control over assets, we can immediately sell when we get big profits while bank interest is very small and it takes at least a month to get bank interest.

Just dont forget that in bank interest case you operate with fiat or lets say stable coins. What is the point of staking with 200% profit, when altcoins value has dropped by 300% ? When 1-3% in stable coins is always 1-3%. Doesnt bank interest gives more stability or feeling of safety? Chance that bank goes bankrupt is lower than altcoin going to a bottom.

What I like about banking interest is that it is totally passive. With staking, you still have to follow the market and follow project. Because you might miss moment when you should quickly close staking and sell.

Sir Legend

sr. member

Activity: 1792

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Comparing passive income from staking vs bank interest is of course very different, staking is very profitable but has a high risk, but for now what I prefer is staking, with staking we have full control over assets, we can immediately sell when we get big profits while bank interest is very small and it takes at least a month to get bank interest.

CryptoPro909

newbie

Activity: 29

Merit: 8

Is totally correct.

19Nov16

sr. member

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APR offers that are very high in staking certainly cannot be compared to Apr from Bank Interest, this is like comparing elephants with ants, but we must be selective when staking because many new coins die because they cannot compete in the market.

Joshapat

sr. member

Activity: 1526

Merit: 255

Staking is certainly a good offer, what is high to hundreds of percent of percent makes us worthy of staking as an alternative for profit, but the thing we have to be aware of is if we are staking in dex which is usually connected to metamask because now there are so many hack cases, even me Also had hacked so that he lost my assets more than $ 2000.

CaVO32

full member

Activity: 1848

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Quote from: Bitcoin2009 on May 08, 2022, 11:08:36 AM

It is undeniable that staking is the best system so that we can get an APR or APY that is tens or even hundreds of times greater than the bank interest, is something wrong if we rely on the bank interest.

But remember there are pros and cons on both sides. Yes, you can possibly get high APY with these staking coins however, what is your security that the project will continue to distribute their dividends or how secure are you that their price will not plummet once you decide to sell your coins? Whereas, with banks, even if the interest is almost negligible, you are sure that you can still get you initial funds anytime you need it. The decision is very subjective as it depends on the specific coins you want to stake with.

Ultegra134

hero member

Activity: 1582

Merit: 758

Quote from: darewaller on May 08, 2022, 09:44:42 AM

Quote from: Ultegra134 on May 07, 2022, 07:31:35 AM

There are quite a few instances of single asset vaults offering great APY, such as Cake, Stella, BIFI, however, you should always take into account impermanent loss, market crashes, such as the one we're experiencing now, BIFI has lost over $300 in value in the past week. You'll need to be extremely patient, especially in periods of depression, while choosing the correct project is a strenuous procedure.

I would assume that the best case in that situation is "everything going alright without a problem". When the situation is good enough that you would be doing fine unless some unexpected thing happens then there is no problem.

I mean I would see Cake and BIFI and all that as a great investment because they should be making you a good amount of money and that shouldn't be going south anything more than the market to be fair. I mean yes there are chances that it could be going down more than what it normally does and that is a problem but at the end of the day what is the chance of that? Like what’s going to happen, cake gets hacked? Doubt that.

Depends on what you're staking, as we both mentioned, options such as Cake or BIFI are relatively safe, in terms of something unexpected coming up. Price volatility, like the one we're currently going through isn't something notable, since the whole market is pretty much a mess right now, thus, if you're believing in a platform, such as Pancakeswap, Beefy.Finance, StellaSwap, your investment will eventually pay off, in the long-term, providing that you're patient enough.

Bitcoin2009

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It is undeniable that staking is the best system so that we can get an APR or APY that is tens or even hundreds of times greater than the bank interest, is something wrong if we rely on the bank interest.

darewaller

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"CoinPoker.com"

Quote from: Ultegra134 on May 07, 2022, 07:31:35 AM

There are quite a few instances of single asset vaults offering great APY, such as Cake, Stella, BIFI, however, you should always take into account impermanent loss, market crashes, such as the one we're experiencing now, BIFI has lost over $300 in value in the past week. You'll need to be extremely patient, especially in periods of depression, while choosing the correct project is a strenuous procedure.

I would assume that the best case in that situation is "everything going alright without a problem". When the situation is good enough that you would be doing fine unless some unexpected thing happens then there is no problem.

I mean I would see Cake and BIFI and all that as a great investment because they should be making you a good amount of money and that shouldn't be going south anything more than the market to be fair. I mean yes there are chances that it could be going down more than what it normally does and that is a problem but at the end of the day what is the chance of that? Like what’s going to happen, cake gets hacked? Doubt that.

TheGreatPython

sr. member

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Quote from: batang_bitcoin on May 06, 2022, 05:17:30 AM

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

The "good" rate depends on the risk you are taking though. I mean yes 65% is great if we were talking about USD here, but when we are talking about cake, it could drop in price so much that maybe it will be 2 dollars next year by the time you get your 65% and you will be not so much in profit? Who knows what's going to happen, and that is why I believe that the higher rate of staking returns in crypto is because people do not have the same trust to it as they do with fiat.

I trust crypto even more, and that is why I am fine with staking and it is 100x better than bank interest, but at the end of the day I know my limits and won't put all of my money in it.

Serco

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Quote from: 19Nov16 on May 01, 2022, 05:29:18 AM

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

if our goal for long term and ignore market volatility, i guess staking on Cex or Dex was good reason. with more than 30% for its yearly return and also price growth, in three years our investment could be huge. we got double benefit by staking potential coins. with same amount in bank deposit, we will get bigger return by staking crypto currency.

Ultegra134

hero member

Activity: 1582

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Quote from: batang_bitcoin on May 06, 2022, 05:17:30 AM

Quote from: 19Nov16 on May 01, 2022, 05:29:18 AM

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

There are quite a few instances of single asset vaults offering great APY, such as Cake, Stella, BIFI, however, you should always take into account impermanent loss, market crashes, such as the one we're experiencing now, BIFI has lost over $300 in value in the past week. You'll need to be extremely patient, especially in periods of depression, while choosing the correct project is a strenuous procedure.

Crypto Library

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In my case, if I have to make a comparison, I will look at the two in two different contexts, then select the one that works best for me. In this case, the bank gives us direct fiat currency that is available in all places, On the other hand staking is just giving profit in cryptocurrency. One of our disadvantages is that the use of cryptocurrency is still not accepted in all parts of the world. Since I'm associated with cryptocurrency and by staking someone can not set a tax in my profit so I'll choose staking

batang_bitcoin

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Eloncoin.org - Mars, here we come!

Quote from: 19Nov16 on May 01, 2022, 05:29:18 AM

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

65% is actually high for a yearly interest but I've seen quite good projects that have almost the same rates. But the risk with that is you don't know if the same value will be made after a year or even half or a quarter of your stake.
What's better on staking is if you choose the flexible terms, you can get it anytime. The same with the banks, before it's hard to find those terms that are flexible but right now, I've been seeing offers that have flexible terms.

CryptoPro909

newbie

Activity: 29

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Quote from: andriarto on May 02, 2022, 05:37:39 AM

Quote from: 19Nov16 on May 01, 2022, 05:29:18 AM

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

nominal bank interest is not much, and the benchmark is inflation, even bank interest cannot cover the increase in inflation, but our nominal money will remain the same at any time, while staking will be very beneficial for the long term and the selection of coins that have the potential in the future, so that this is like an investment that has interest, but for that there is a risk, different from saving

Especially with the inflation rate now....

andriarto

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Quote from: 19Nov16 on May 01, 2022, 05:29:18 AM

Staking is very profitable and I have done it for 2 years in several Dex and Spot Exchanges, of course when compared to Bank Interest is very far, and in my opinion staking is more worth doing, for example I Autostaking in Pancakeswap and gets APY about 65% because I focus and make a coin What I stakes as a long -term investment.

nominal bank interest is not much, and the benchmark is inflation, even bank interest cannot cover the increase in inflation, but our nominal money will remain the same at any time, while staking will be very beneficial for the long term and the selection of coins that have the potential in the future, so that this is like an investment that has interest, but for that there is a risk, different from saving

Topic: Passive income : Bank interest vs staking (Read 957 times)