4. To make reasonable money from staking it requires higher amount of money, you can build rig and make money cheaper than staking
Even using a high amount of money on coins to stake isn't worth it. 7% APY is very low for one to risk let say $1M locked up for a year. You are better of using 1/10th of that amount spot trading Bitcoin and some alts and you could even earn way more than someone staking 
Topic: Staking a better option over mining? (Read 185 times)
Miners are not interested in staking for 6-10% per annum. They will always look for new coins or mine something promising to sell in the future.
Large investors will prevent users from making big staking profits.
And maintaining your node without programming experience is very difficult.
Large investors will prevent users from making big staking profits.
And maintaining your node without programming experience is very difficult.
With the way things are going with crypto adoption is it still reasonable to go for mining instead of staking? To be honest it looks like staking very very good altcoins like solana avalanche among others are better way of earning incomes than mining, what do you guys think?
no. the money need to buy the coin is quite large same as mining, but if you thinking alt staking if the coin goes down, you lost moneyonly stable coin staking are profitable but only 6%apy which is not much different deposit on bank, and risk to hack you will lost everything
It's better to do both if you have the money, this way you will be able to know which one is better, I've done both and I can say that mining is better option because
1. You are in control of your machine and money
2. You can switch from one coin to another if profitability is lower
3. Profitability wise mining is more profitable
4. To make reasonable money from staking it requires higher amount of money, you can build rig and make money cheaper than staking
1. You are in control of your machine and money
2. You can switch from one coin to another if profitability is lower
3. Profitability wise mining is more profitable
4. To make reasonable money from staking it requires higher amount of money, you can build rig and make money cheaper than staking
With the way things are going with crypto adoption is it still reasonable to go for mining instead of staking? To be honest it looks like staking very very good altcoins like solana avalanche among others are better way of earning incomes than mining, what do you guys think?
My honest opinion regarding this is:Staking - You have to pledge those coins to someone to earn the profit and it remain as long as that coin is "trendy". Once the hype dies down or the owners wish to scam their investors, then you lose your investments. There needs to be the market to sell your earnings too and if the earning is in the same coin, there will be monthly dumps happening and it would be difficult to reach a break even ROI. Might not be true for all coins, but this has usually been the timeline for every staking coin. The only explanation of why some people take part in their is either they know when to exit or they are newbies and are jumping into everything. Staking to me is more similar to ponzis.
Mining - In order to mine, you need mining equipment and they are costly, but they are re-sell worthy too because they are hardware. With mining too the "trendy" altcoins get the higher attention and when they bust their bubble they become worthless, so it is also a rat race. But in the end you at least have some hardware to sell in case it did not work out or mine another coin, in other words jump into another rat race.
The better thing is to buy the altcoin low and sell it high. But doing so is another ballgame.
Staking?
Let's do the math.
What's the point of staking a coin like Solana (currently at $212) at 6.7% APY which is the current rate on some platforms, only for the coin to drop by 80% to a price of $42 which is very possible in crypto.
Lets say you locked 10 SOL for a year, you would earn only 0.68 SOL ($144 at the current price of Solana). After a freakin year, you get only $144.
If the price dropped to $42 during the course of the year, that would just be $28.56 with other condition remaining constant.
Your SOL which was worth $2,120 becomes worth $420
Let's do the math.
What's the point of staking a coin like Solana (currently at $212) at 6.7% APY which is the current rate on some platforms, only for the coin to drop by 80% to a price of $42 which is very possible in crypto.
Lets say you locked 10 SOL for a year, you would earn only 0.68 SOL ($144 at the current price of Solana). After a freakin year, you get only $144.
If the price dropped to $42 during the course of the year, that would just be $28.56 with other condition remaining constant.
Your SOL which was worth $2,120 becomes worth $420
Staking is only better in bull market, assuming youve been staking since 2020 you would have made incredible gains but staking is pretty bad in bear market unless you stake stable coin on binance exchange for example
That is not true, actually that is the opposite, staking is very good on bear market, because you buy for 99.99% discount and stake the coins till you think bull market is coming and then you stop staking and prepare to sell, in bull market staking is bad cause you never know when it will crash and then if your coins are staked then you lose the opportunity to sell high and then buy cheap on bear market.
You trolls need to be very careful when staking, for example eth staking is suicide cause people will only get back their eth once the merge to eth 2.0 is complete, meaning, they will lose the opportunity to sell high this cycle because their coins are locked. Most coins are from 6 to 12 months staking, very dangerous, that is a long time in crypto.
Staking is only better in bull market, assuming youve been staking since 2020 you would have made incredible gains but staking is pretty bad in bear market unless you stake stable coin on binance exchange for example
With the way things are going with crypto adoption is it still reasonable to go for mining instead of staking? To be honest it looks like staking very very good altcoins like solana avalanche among others are better way of earning incomes than mining, what do you guys think?
I made a google request about solana stakinghttps://www.rbc.ru/crypto/news/618e64419a79477d10dfb8da
"Most crypto investors know Solana as a project that has shown phenomenal growth (over 9000% in 2021), a network with a throughput of 40 thousand transactions per second."
Profit no more than 10% per annum.
What happens if the price of the coin falls?
If you have to stake coins make sure you stake popular coins like BTC ETH or even USDT, I know the returns won't be much but they are safer than all those APY LP staking that can bring 2000% gains, it's better to play safe and avoid greediness
What do you guys think of sites like Celsius? I have matic staked there currently.
There are different ways to stake. The highest paying is usually by those yield farms but there is a huge risk and it’s called impermanent loss, read up about it. Then there is the worry that one day some bug is discovered on the Defi platform and you lose everything.
The safest way is by lending your USD, especially in a bull market. You can make 10% on average and much better than keeping it in the bank. Keep in mind there is still some counterparty risk like your exchange going bankrupt or your account getting hacked. But it’s much safer than yield farms.
The safest way is by lending your USD, especially in a bull market. You can make 10% on average and much better than keeping it in the bank. Keep in mind there is still some counterparty risk like your exchange going bankrupt or your account getting hacked. But it’s much safer than yield farms.
With the way things are going with crypto adoption is it still reasonable to go for mining instead of staking? To be honest it looks like staking very very good altcoins like solana avalanche among others are better way of earning incomes than mining, what do you guys think?
USDC or any other stable coin that is constantly audited yeah, however stable coins can't be staked, only lent to whoever wants to gamble in the market but I would not risk it, many exchanges may die overnight or hacked so better just to leave it idle and safe till it can be used to buy coins in the bear market.
Staking coins like you stated no, this can crash overnight and then you must sell it fast and maybe you can't remove them from staking and if hehell crash happens you will lose 95% to 99.99% the value of it, best thing to do is do nothing with the money, like I said before wait bear market and buy good coins up to 99.99% discount hehe, patience young padwan.
With the way things are going with crypto adoption is it still reasonable to go for mining instead of staking? To be honest it looks like staking very very good altcoins like solana avalanche among others are better way of earning incomes than mining, what do you guys think?
Jump to: