Topic: Passive income : Bank interest vs staking - page 5. (Read 975 times)
Almost 5 years I have never had a balance of more than $2000k because bank interest is very low, there is no benefit if I save money in the bank, maybe those who have more than $10k will feel the bank interest, moreover investment choices are very diverse today and in the android application we can trade forex, staking or crypto trading which is more profitable than bank interest,
Today, the most common way people seek to turn profit on their investments is with a savings account in a bank.
Only the ignorant will have his money saved in the bank in place of an investment, i still wonder if some are still operating such using fixed deposit, that is an opinion for open door to be invaded by inflation because the value will depreciate with time and can't overcome the influence of inflation by then, moreover the rate in investment (ROI) issued by banks is no where to be talked about and as little as peanut.
If you're a crypto investor, staking is a concept you'll hear about often. Staking is the way many #cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings (aka the interest of cryptos). The interest a holder gets, depends a lot of the crypto itself. It can go from 5% till much higher returns.
Don't be surprised that as sweet as the ROI on the cryptos has it corresponding risk attached, we have seen many with a good start but crashing along the way, there's no guarantee in them for a long term holding because the more it stays the riskier it becomes except for bitcoin.
if the choice is between staking and bank interest, then I will probably choose bank interest. the reason is, bank interest has a low risk, and a definite profit. Although staking also has definite, and even greater, benefits, the risks are very high. it could be that the price of the coin drops, or suddenly the project becomes a scam, or a rugpull. we never know. Personally, in terms of profit, I always choose low risk. Therefore, I may prefer bank interest. it can be a savings that gives us income every month if we continue to increase our savings.
The bank interest I get in my country is currently not more than 8% per year, the central bank provides low interest because it hopes that many entrepreneurs will invest by borrowing from banks, this is certainly not profitable if we save in banks and it is better to invest in cryptocurrencies then use for staking, some DEX provide very large APY up to hundreds of percent so that it looks promising and prospective.
Some of your statements make zero sense op. For example, I know many FIAT savings programs that guarantee 6-8 % interest per year depending on where you live, your age etc.
These savings programs are offered by extremely reliable banks which is why the risk factor is effectively zero. Staking is a great alternative, but the risk factor is definitely higher in comparison due to reasons like volatility etc.
If you are interested in staking, I would stick to reliable cryptocurrencies even though the interest per year is on the lower side to reduce the risk factor.
These savings programs are offered by extremely reliable banks which is why the risk factor is effectively zero. Staking is a great alternative, but the risk factor is definitely higher in comparison due to reasons like volatility etc.
If you are interested in staking, I would stick to reliable cryptocurrencies even though the interest per year is on the lower side to reduce the risk factor.
Staking if you are holding for long term. But you should keep in mind about the volatility. You might get a 10% APY, but if the price of the coin falls by 20%, you lose 10% (if you sell. You don't lose anything if you don't sell). Bank interest gives you flat interest and the fiat currency isn't volatile. So you don't have to worry about your money in short term. But don't forget about the inflation. Your savings account will give you an interest between 1% to at best 3%, but the inflation in the long run leaves you with no profit/interest. Instead you will be losing money if you keep your funds in the bank for a long period of time. Worse if your country is facing hyper inflation.
I agree with staking as well. Volatility is one thing to keep in mind when you are staking and that is a scary thing. However, the banks are even scarier because they offer you "usually" less than what the inflation rate is. Look at the inflation rate in your nation and look at what the interest rate is, I can 100%guarantee you that it is almost always lower.It means that even though your money goes up, that means your profit doesn't go up and even though the amount looks higher, the value of that amount is lower. This is why bank savings means that it has nothing to do with profiting, you are actually losing money when you think you are earning.
You have your security with your funds when you put it in banks. Whereas, with staking, it depends on the platform where you send your coins. How sure are you that they will not abandon the project? Good if for example, you are staking under binance. But with staking platforms offering high roi, I would doubt their longevity in the business. Also, you need to consider the coin you want to stake. Are they going to continue the increase of price or will its value decline after months and months of staking. There are pros and cons on both sides. Now, it is up to you how you will take those risks.
Both have advantages and disadvantages. The biggest risk of staking is choosing a reliable project to place an staking is not easy. Choosing a coin to stake it is like we have to research, screen and monitor a project for us to invest in. If that coin keeps falling in price, cannot even survive a period of development. It's quite normal for us to lose.
Bank savings obviously our money will be more secure but in the long run our money also depreciates because of inevitable inflation.
Yes, this makes perfect sense if you have exposure to this market. If bank interest rates are different in different localities, we can accept that we are satisfied with that understanding, but if we have a certain amount of financial knowledge, we can completely look for other ways to make sure. Secure assets as well as create better profits when we can completely stake and earn better profits. But each has its own limitations, and privacy issues in this market are still a barrier for newcomers to access, but at a basic level, I don't think there are any. There is nothing to worry about because I myself only have a small amount of money to participate in the market.
Passive income is increasingly popular in recent times, especially for cryptocurrencies. These staking investments usually offer a higher return than the bank rate if we have the knowledge, experience, time and research to bet on good stable coins. In my opinion, high returns always come with great risks, and if something is 100% safe it is not a good chance even if you deposit money in the bank.
Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?
Staking in my opinion is more promising than internest banks, and for almost a year I have been actively staking with several major coins such as BNB, MATIC, Stable coins and so on, and for stable coins I use for staking altcoins and from the list is Celsius, besides that I also use for staking new altcoins because it provides a large APR up to more than 100%.In staking it is not like that, like for example Cake staking means you are creating those coins, just like miners use equipment to mine bitcoin, you use your cake to create more cake. This is easier and the return makes sense because of it, BNB or stable ones are a bit more closer to banks.
Staking if you are holding for long term. But you should keep in mind about the volatility. You might get a 10% APY, but if the price of the coin falls by 20%, you lose 10% (if you sell. You don't lose anything if you don't sell). Bank interest gives you flat interest and the fiat currency isn't volatile. So you don't have to worry about your money in short term. But don't forget about the inflation. Your savings account will give you an interest between 1% to at best 3%, but the inflation in the long run leaves you with no profit/interest. Instead you will be losing money if you keep your funds in the bank for a long period of time. Worse if your country is facing hyper inflation.
I agree with staking as well. Volatility is one thing to keep in mind when you are staking and that is a scary thing. However, the banks are even scarier because they offer you "usually" less than what the inflation rate is. Look at the inflation rate in your nation and look at what the interest rate is, I can 100%guarantee you that it is almost always lower.It means that even though your money goes up, that means your profit doesn't go up and even though the amount looks higher, the value of that amount is lower. This is why bank savings means that it has nothing to do with profiting, you are actually losing money when you think you are earning.
You have your security with your funds when you put it in banks. Whereas, with staking, it depends on the platform where you send your coins. How sure are you that they will not abandon the project? Good if for example, you are staking under binance. But with staking platforms offering high roi, I would doubt their longevity in the business. Also, you need to consider the coin you want to stake. Are they going to continue the increase of price or will its value decline after months and months of staking. There are pros and cons on both sides. Now, it is up to you how you will take those risks.
Staking if you are holding for long term. But you should keep in mind about the volatility. You might get a 10% APY, but if the price of the coin falls by 20%, you lose 10% (if you sell. You don't lose anything if you don't sell). Bank interest gives you flat interest and the fiat currency isn't volatile. So you don't have to worry about your money in short term. But don't forget about the inflation. Your savings account will give you an interest between 1% to at best 3%, but the inflation in the long run leaves you with no profit/interest. Instead you will be losing money if you keep your funds in the bank for a long period of time. Worse if your country is facing hyper inflation.
I agree with staking as well. Volatility is one thing to keep in mind when you are staking and that is a scary thing. However, the banks are even scarier because they offer you "usually" less than what the inflation rate is. Look at the inflation rate in your nation and look at what the interest rate is, I can 100%guarantee you that it is almost always lower.It means that even though your money goes up, that means your profit doesn't go up and even though the amount looks higher, the value of that amount is lower. This is why bank savings means that it has nothing to do with profiting, you are actually losing money when you think you are earning.
for me staking is more profitable than bank interest. bank interest is focused on saving in fiat currency, where the interest rate is not proportional to the increase in inflation. This is different from staking, where we get coins and if the price goes up, the profit will exceed inflation in fiat currency, but it also carries a greater risk, because high fluctuations can make us lose money if we sell when the price drops.
Staking and Bank interest from my perspective for Stable Token is not that much different but I agree when it comes to a coin/token because when the price increase we will get double profit, I really enjoyed staking because I don't need much effort to earn more coin/token that I invested. If you want lower risk just go for a stable token because it's got a stable price with steady rewards.
for me staking is more profitable than bank interest. bank interest is focused on saving in fiat currency, where the interest rate is not proportional to the increase in inflation. This is different from staking, where we get coins and if the price goes up, the profit will exceed inflation in fiat currency, but it also carries a greater risk, because high fluctuations can make us lose money if we sell when the price drops.
Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?
Staking in my opinion is more promising than internest banks, and for almost a year I have been actively staking with several major coins such as BNB, MATIC, Stable coins and so on, and for stable coins I use for staking altcoins and from the list is Celsius, besides that I also use for staking new altcoins because it provides a large APR up to more than 100%.
banking and or government bonds. are safe the principle will never vanish.
As they are backed by the government. (this is in theory) we do known small governments have let banks default or bonds default.
But disregard that and 1000 bond at 3% is 1030 in a year then say 8% inflation so 1030 x .92 = 947.6
but lets agree it is a certain 947.60 value
any coin you stake I do not care what coin it is has 2 risks poof it is gone vanished due to the place holding the stake robs you. and the coin drops in value say 50% or 90%
so the 1000 in a coin get 20% it is 1200 but its price can drop so it is 700 or 500 or 300
or worse if an exchange was holding poof it is gone.
Every coin you stake has one or both of those risks. so what if it paid 20% if it was worth 1000 ssd and dropped in value to 100 usd you lost.
if the exchange gets hacked you lost.
anyone with bonds, bank accounts may not care about shrinkage.
IE give me 100 million usd in fed bonds getting 3% I do not care about the shrinkage .
My advice is you need both 'safe' that will shrink a bit and risky that who the fuck knows what will happen.
As they are backed by the government. (this is in theory) we do known small governments have let banks default or bonds default.
But disregard that and 1000 bond at 3% is 1030 in a year then say 8% inflation so 1030 x .92 = 947.6
but lets agree it is a certain 947.60 value
any coin you stake I do not care what coin it is has 2 risks poof it is gone vanished due to the place holding the stake robs you. and the coin drops in value say 50% or 90%
so the 1000 in a coin get 20% it is 1200 but its price can drop so it is 700 or 500 or 300
or worse if an exchange was holding poof it is gone.
Every coin you stake has one or both of those risks. so what if it paid 20% if it was worth 1000 ssd and dropped in value to 100 usd you lost.
if the exchange gets hacked you lost.
anyone with bonds, bank accounts may not care about shrinkage.
IE give me 100 million usd in fed bonds getting 3% I do not care about the shrinkage .
My advice is you need both 'safe' that will shrink a bit and risky that who the fuck knows what will happen.
Staking if you are holding for long term. But you should keep in mind about the volatility. You might get a 10% APY, but if the price of the coin falls by 20%, you lose 10% (if you sell. You don't lose anything if you don't sell). Bank interest gives you flat interest and the fiat currency isn't volatile. So you don't have to worry about your money in short term. But don't forget about the inflation. Your savings account will give you an interest between 1% to at best 3%, but the inflation in the long run leaves you with no profit/interest. Instead you will be losing money if you keep your funds in the bank for a long period of time. Worse if your country is facing hyper inflation.
For me, the answer is neither. The money I have in the bank uninvested I keep as an emergency fund. I don't care how little the bank gives me, and I know that if I discount inflation I lose money, but I take it as insurance.
As for the staking, it is true that it gives more interest than the bank, and I was about to remind you that the higher the profitability, the higher the risk when I read stompix's post:
I would see sense in staking with stablecoins, but there are other options, such as buying shares of good companies that pay growing dividends.
Keep in mind when investing: it is better to invest in something that does not give you passive income if the total return is higher.
If investing in a shitcoin that gives you a passive income results in a loss of more than 90% of your investment and on the other hand, having invested the same amount in Bitcoin that you keep with your private keys gives you more than 90% return, the latter is preferable.
Here you can clearly see the trade-off but it can also be applied to dividend paying stocks: if investing in a certain stock will give me a 3% dividend but only a 2% capital appreciation in the long term, I will do better investing in an index fund that does not give me dividends (passive income) but gives me a 10% return.
As for the staking, it is true that it gives more interest than the bank, and I was about to remind you that the higher the profitability, the higher the risk when I read stompix's post:
Of course, it does, wow, 28% APY, where do I get those tokens to earn billions?
Oh wait, did you say ICP?
ICP as in the thing that crashed from 424 to 17$?
So if I would have staked with ICP a year ago I would have put down 424$ of cons and got back 22$ with all the APY.
Sorry, 1% bank interest sounds better than losing 95%.
Wake up people, before you end up poor!
Oh wait, did you say ICP?
ICP as in the thing that crashed from 424 to 17$?
So if I would have staked with ICP a year ago I would have put down 424$ of cons and got back 22$ with all the APY.
Sorry, 1% bank interest sounds better than losing 95%.
Wake up people, before you end up poor!
I would see sense in staking with stablecoins, but there are other options, such as buying shares of good companies that pay growing dividends.
Keep in mind when investing: it is better to invest in something that does not give you passive income if the total return is higher.
If investing in a shitcoin that gives you a passive income results in a loss of more than 90% of your investment and on the other hand, having invested the same amount in Bitcoin that you keep with your private keys gives you more than 90% return, the latter is preferable.
Here you can clearly see the trade-off but it can also be applied to dividend paying stocks: if investing in a certain stock will give me a 3% dividend but only a 2% capital appreciation in the long term, I will do better investing in an index fund that does not give me dividends (passive income) but gives me a 10% return.
Staking is certainly more promising than bank interest, with staking we can get hundreds of percent APY, but bank interest only provides a maximum APY of 8% (current average rate in my country), it can't be denied that staking is worth choosing, of course we have to choose a platform & safe coins so that profit calculations can be accurate.
Well, those with hundreds of percent APY are pretty risky, mostly I like under 100... less profit but lower risk as well! Except for higher rates in crypto I wish to point out one other important thing, it's accessibility! It's easy to work with crypto, always available from wherever we are, with so many different staking options anyone can choose the best for them, from wallet or exchange!
I don't have money in the bank, but I stake a few coins! I have already chosen what's better for me, and I don't think I will ever go back to staking fiat in banks!
The best banking interest you can receive right now is roughly .5% and this is for only online only banking since they do not have the brick and mortar overhead costs that a physical location incurs so they are able to offer higher rates. Now comparing staking to bank interest rates it’s not a fair comparison. Staking involves MUCH MORE risk! These are really two entirely different things.
Exactly. The higher the risk, the higher the reward will be. While staking may seem to be profitable, the risks of doing such practice is much higher than saving your money at a bank. Where to put your money (crypto or banks) is entirely up to you. Believe me, there's nothing better than building passive income through the use of crypto/Blockchain tech. If you're able to manage the risks, staking works wonders.
Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts
of impression or mindset about that manner.Of course the risk is much higher which is understandable and you could really able to see that whenever you do experience both.
Interest in banks arent that good and as said by others 1-2% per year so i dont see on why people do really treat this way.
Exactly. The higher the risk, the higher the reward will be.
But not for non-potential random assets. I think it's not as simple as we think.While staking may seem to be profitable, the risks of doing such practice is much higher than saving your money at a bank. Where to put your money (crypto or banks) is entirely up to you. Believe me, there's nothing better than building passive income through the use of crypto/Blockchain tech. If you're able to manage the risks, staking works wonders.
Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts
We are never forever safe with investments regardless of whether it is in crypto or in banks. At the bank, the government may force us to pay income taxes which means the profits will not be better than we expected. Staking or crypto investing is a choice, so we must be really wise in choosing which asset is the best to own in the long term. Someone wise enough would simply rely on both banks and crypto in order to minimize risks as much as possible. By saving money at a bank and staking money on crypto, you'll be able to achieve peace of mind. As long as you "invest" your money wisely, there should be nothing to worry about. Just my thoughts
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