Topic: Passive income : Bank interest vs staking - page 7. (Read 1163 times)

You can invest in Binance as many people do and get a hefty return. As long as we can be careful in choosing the investment program, I think we can avoid scams that can come at any time. There are indeed good projects out there, but I suggest not having high hopes because we don't know how the project will turn out when it comes to new projects. It's best to go for a project that can give you a return on your investment and won't take your money without providing any return.

Its basically Savings Account Vs. Staking right?

There are pros and cons when it comes to Savings Account for me.
The pro that I'm seeing is the risk. Putting your money in a savings account has a very low risk of it to disappear. The con though is inflation because of the low interest of savings account (I'm not sure if there are countries that has banks who doesn't give interest in savings account but in my country and in my bank, I'm getting interest), inflation is eating your money thus the value of it throughout the years decreases.

On the other hand though, there are pros and cons when it comes to Staking.
One pro is the interest. We know how much staking coins give to holders. Cardano gives 5% on average, DOT gives 14% on average and so on and so forth. Point here is the interest that we can get from staking coins is far more than what we can get in the banks but the con here is the risk. The risk is higher since you are holding a coin that is very volatile therefore, you may lose money while you staking because the coin's price is going down.

As for the OP, you are basically promoting something with a suspicious link below. Good Luck with that. As for me, I don't want to hold a coin that went from 700$ all the way to 17$. I'd rather buy another staking coin than that .

Its undeniable that staking is much profitable that bank interest but the question there is does the platform which offer this service will last long? Since we know in crypto nothing is permanent and there's a huge risk in every decision we made here. But if the person is new to cryptocurrency and seek for more secure investment they should go on banks since this is much safety for our money although the return is so low but we can assure that we are in safe hands.

I started earning with crypto almost 5 years ago. And must tell you 99% of the world has been missing out on huge gains both from investmen ROI and passive income for that whole time  At the point where JPM, Morgan Stanley and Black Rock are proactively shilling it and creating digital assets departments, hell even Yellen made a real 180 turn on BTC, it's downright stupid/ignorant to call it a bubble/scam anymore. It's now 100% web3 and crypto are coming and will dominate both the tech and the investment world for the decades to come.

Now that's not to say it comes without the risk of it's own - the risk is high, but the returns could easily be astronomic. So the risk-reward ratio is awesome. I mean, I'm not satisfiedif I only make 10x a year. That's 1000% in the normal world, but we 'cryptoheads' don't even bother with percentages..

Having said that, it's all about your due diligence capabilities and your intuition. Invest dozens, hundreds of hours if needed into researching and deep diving into projects, then DCA and have patience. Psychology is probably the most important aspect in it all.

In case someone is interested and ready to deep-dive, here are the few suggestions I personally hold and can easily recommend:

- ICP - price-wise had a full prolonged retracement, seems to have reversed. On top of that boiling fundamentals, hundreds of new dapps popping up, the cheapest, fastest and largest blockchain out there - infinitely scalable. Offers anyting up to 30% APY, have to lock it for a long period tho https://www.stakingrewards.com/earn/dfinity/

- QNT - coin with 0 risk, because of it's AAA team and connections in the corporate world (from Mastercard, Big4 to almost all Central Banks). Hugely complex and hard but worth to research project. Will start offering staking sometime this year, and it will all come from the real world traffic, not crypto, so huge advantage

- ECC (Empire Coin) - very small, very promising, but with naturally higher risks involved. Will start offering the first Roundify app in the world in the next few weeks in the US, NZ, Australia and UK. Eg you buy coffe for $2.8, so the app will round it to $3.00 and will automatically use that $0.20 for investing in crypto once you set up your app. Doxxed hard-working, transparent team.

Bonne chance!

It is a fact that if you invest in scams, whatever you do, your money is gone.

Also, when something looks to good to be true, it probably is. There are some, but very very few, that will promise you 100% APY+, and are not scams.

Still, there are much more good projects out there than ETH (with all respect to them) or Stablecoins to stake, with higher APY then 5 or 10%.

ICP had the same pattern as a lot of projects last year...All for same reasons.
At a certain point big early investors take all profit out, as it first went x.., this creates panic in the market, and a snowball effect of sales start.
Combine this with a 50% correction in Bitcoin, and you have a sh*t storm.

You can also turn your point around. If you know a project had a all time high of 424 and went to 17, if you start staking at 17, your chances of bigger gains are much higher. Especially if you follow the fundamentals, the updates, the team,...you can clearly see we are not talking about a dead project.

That's how I think.
I don't know how long you have been in crypto, but corrections of 80 to 95% are noting new to me. Its exactly the time I start paying attention. I am not going to buy a crypto that went 10x, 20x, 50x,...no, I buy after a correction. If you check historical price graphs of the past of good crypto projects, check what happened after a correction of 95%...a new all time high....exactly.

And is also a fact, that if you want high returns, you need to take risks and time the market correctly to take positions and start holding.

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 already love the staking concept, as it makes you keep holding, instead of trying to day trade and burn your capital. If you hold in the right projects, you will be on the profit side for sure. WEB3 is THE booming market.

I think there is no unit answer for that situation. A lot depends on country origin of banks and stacked cryptocurrency. For example in my country, about 10 years ago, a person could get 5-10% monthly from bank interest (the more you invest, the less you get). Now banks offer 1-2% and in addition, a person must pay income tax from that (previously it wasnt counted). Compared to - today I have sent my MATIC to Binance Earn for 90 days with 21,54% APY, and I have stacked 300 NMX on Nomiswap and get 1$ a day. But that is my situation, yours can be completely different.

Even on a longer term, Bank Savings are not worth it at all. Staking are better if you can find a good token to stake, because they can also be bad; there are some coins that you would stake and their real value would drop which is a loss for you at the end, because if you are making 12% per annum and the asset is losing 20% at the end of the year in its true value, you are the one losing because the 12% is still not enough to cover up for what you have lost. You can avoid this by staking a stablecoin or maybe staking a really good asset that is more likely to maintain its growth through the year.

In my country the current maximum bank interest is 12% per year, even state banks only provide an 8% interest, this is what makes me not interested in saving large amounts of money to the bank, I'd better switch it to buying assets and crypto currently looks promising Besides holding, I also use it for staking and rebase so that I can get maximum profit.

This is not a good way to earn interest. Basically you need to own the underlying and what happens if it loses 99% of its value? There are way too many scam tokens out there which promise 100% APY to get people to buy them and then they lose all their value. Compared to the two I rather just keep it inside a bank earning nothing rather than lose 99% value.

If you want to stake do ETH or lend your stablecoins on a regulated exchange. Use 2fa and white listed addresses and be smart about security. Much better than the token he mentioned.

why you may agree to stake than willing to have bank interest is because staking is some thing you can on your leisure time monitor without having double thought of what will to the next time, for banking interest you don't have measure time to monitor your interest because is not in your condition to regulate, and the method is very difficult to be compromise if you are not too well know the condition's, i will agree with you with great explanation you made, if you stake with 100 dollars and coin rise the profit is higher than the profit of bank interest for one year

I agree. Well, if we're talking about passive income clearly we cant get it in banks knowing how low the annual interest. The advantage of keeping our money in bank is, we're certain that our money is still intact. But it depends on the banks where you're going to deposit your money. As you've said it depends on the reputation of the bank, thus its a must to choose what banks you'll entrust your money because worse case scenario can happen. Staking on the other side is not as reliable as it seems because there are many things to consider and its risky as well.

Profits from staking also depends on the coin itself. If the value of the coin happens to decline thru time, then, it is no good to put your funds to staking. The main advantage of putting your funds in the bank is that it is the same amount that you deposited on them plus the small interest. You are secure that your money will not disappear if you put it in a reputable bank of your choice. Whereas, with staking, it depends on the platform where you put your funds and the coin developments. The risk in staking is higher but if you got lucky, you can get higher roi.

This actually depends upon the person on which platform they are comfortable.

Preferably, bank investments have returns that are significantly low. Though this may be the case, you are assured that your money is earning inside a financial institution which is considered absolutely safe. You have that feeling of security where your funds are stored and earning at the same time but the downside is that the returns are much slower. This method is recommended for people who have a relatively large capital stored in banks and they do not need such for the meantime.

Staking, on the other hand, involves a similar scenario but it earns on large interest. While this also embraces the concept of investing, it is riskier in my opinion. Though both can yield good results, I still prefer bank investments due to its security to its users.

Earning interest from the banks are regulated and assured.

In staking, it's also assured but it's being done through the speculative market of crypto and with the chosen coin to stake with. The hard part is that there are plenty of newbies that are being misled by those high interest rates of new projects, their APY are too good to be true and they're buying those coins and stake it.

The highest one that I see, the legit one is around 15%-16% and that's on exchange's staking platform for which we know the risk of not having the private key of your deposited coin to stake.

Banks interest are useless and should not be consider as your passive income because you still lose money with the banks considering the inflation. Staking on the other hand, is more profitable and can be consider as your passive income. Staking still needs analysis, and enough funds so you can have more profit. Do stake good coins only to ensure you still have your money at the end of the year and a possible capital appreciation by that time.

The official number for inflation in the united states is 8%.

Basic finance says investors must place assets in accounts earning greater than 8% to turn a profit in the current economic environment.

I have seen US bank accounts offering as high as 5% APY. (Keyword search for accounts paying highest interest)

Celsius network used to offer as high as 8% to 20% on crypto but that option is now only available to accredited investors and closed to poor and middle class earners the way that ICOs are.

Real estate is another good option which can be leveraged by the non wealthy through the use of fractional real estate investment.

The key thing to remember is, 8% gains are needed to break even in an environment where inflation is 8%.

If inflation increases enough, even a million US dollars could someday be worthless.

Have you found any? What you maybe referring to is just non-custodial. I may not be familiar with every DeFi but I doubt there's a staking platform that's completely free of centralization. Developers can still exercise control over these platforms and we have seen this happen already. They can hit the pause button whenever there are attacks or exploits.

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!

Certainly, passive income is one of the best ways to earn online through cryptocurrencies, but what I prefer is a high-level currency such as Ethereum or BNB or other currencies that have a good market rank, what I also prefer is that the process be completely decentralized because I live in A country that is banned from many sites, especially the ones you mentioned here, I mean Coinbase and Binance, also I do not want to enter sites that require activation through KYC because they cause a lot of problems.