Staking Altcoins For Interest Questions?

cryptoroobot7

brand new

Activity: 0

Merit: 0

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

I know many coins out there, you could stake and get interest on it. The issue is if you buy that coin and say the coin drops in price, even if you earn money from staking, the price of the coin dropping means you would lose money. It seems the only safe staking is coinbase with usdc where you get 5% correct? However, is that still not safe like how gemini use to offer like 7% or more on their gusd?

On ledger live, it seems to show how certain coins you could earn interest in it like tezos which is 9%. ETH is like 3%. There are several other coins which is under 10%. Those are with 3rd party right? Are those safe?

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Staking stablecoins is the safest option, so I'd recommend that. But there are new projects who just started and have much less validators then Ethereum, for example, so they offer higher apr. For example, Waterfall Network launched less than 6 months ago and offer about 125% APR

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

I know many coins out there, you could stake and get interest on it. The issue is if you buy that coin and say the coin drops in price, even if you earn money from staking, the price of the coin dropping means you would lose money. It seems the only safe staking is coinbase with usdc where you get 5% correct? However, is that still not safe like how gemini use to offer like 7% or more on their gusd?

On ledger live, it seems to show how certain coins you could earn interest in it like tezos which is 9%. ETH is like 3%. There are several other coins which is under 10%. Those are with 3rd party right? Are those safe?

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Staking coins is definitely not worth the risk. Especially when we're talking about altcoins with unstable market prices. You can either win big or lose it all in an instant. When staking native PoS coins, you'd need to consider how much yield you'll get by holding long term (otherwise known as stake rate). A higher APY, means higher inflation, which equals to a lower price in the long term. A lower APY, means all of the contrary.

I'd avoid centralized staking platforms as they could easily go bankrupt or become a victim of hacks. Since they don't give you access to the keys or seeds associated with the wallet, you'd be nothing but doomed. For steady profits, it's recommended to "stake" (lend) stablecoins on a "De-Fi" platform. I'm talking about decentralized finance apps built on Ethereum and similar chains. Compound.Finance, and Aave are one of them. Just deposit your preferred stablecoin in one of those platforms, and you'll be good to go. As long as greed doesn't get in the way, there should be nothing to worry about.

itorai

member

Activity: 176

Merit: 34

SOL.BIOKRIPT.COM

Quote from: ekotyo24 on September 11, 2024, 09:19:21 AM

Staking crypto coins does have risks, especially related to price fluctuations of the coins. While you can gain profits from staking, if the coin value drops significantly, the losses from the price drop could be greater than the profits from staking itself. Regarding USDC (USD Coin) on platforms like Coinbase or Gemini, it is usually considered safer compared to staking crypto coins because USDC is a stablecoin that is pegged 1:1 to the US dollar. Therefore, price fluctuations are relatively small. However, there are still risks associated with the platform itself, such as the risk of bankruptcy or security issues that could affect your funds.

with the price changes that need to be observed from the price fluctuations, because staking has weaknesses that you need to think about before entering it, because it is considered risky to do and can lose value when the price falls, of course, profits are difficult to get, although opportunities are always there, the need to consider.

markm

legendary

Activity: 2940

Merit: 1090

Quote from: ekotyo24 on September 11, 2024, 09:19:21 AM

Staking crypto coins does have risks, especially related to price fluctuations of the coins. While you can gain profits from staking, if the coin value drops significantly, the losses from the price drop could be greater than the profits from staking itself. Regarding USDC (USD Coin) on platforms like Coinbase or Gemini, it is usually considered safer compared to staking crypto coins because USDC is a stablecoin that is pegged 1:1 to the US dollar. Therefore, price fluctuations are relatively small. However, there are still risks associated with the platform itself, such as the risk of bankruptcy or security issues that could affect your funds.

Stablecoins though might better be referred to as shrinkingcoins or downwards coins or somesuch, at least if referring to ones whose peg or algorithimically targeted valuation is a "fiat".

Since fiat is almost invariably intended, by design or by "monetary policy" or however, to lose value over time, referring to it or anything deliberately attempting to follow in its footsteps as "stable" seems like one of those ox-pulled carts characterised as moronic...

...Oh yeah, got it, "oxymoronic", thats the ticket... I mean word, term. Situation. Case. Etc.

-MarkM-

jaberwock

legendary

Activity: 2660

Merit: 1074

Quote from: ekotyo24 on September 23, 2024, 11:10:12 PM

Staking altcoins in platforms is different in concept and risk. If you hold an altcoin and are certain that you will not sell it in the near future, staking can be a profitable option. However, it is important to pay attention to potential risks related to liquidity, price volatility, and protocol security

The main difference would be is that the platform is holding our coin for us and they can give us an active incentive for it. About the risk, that is also the risk there because we don't know, what if they might collapse or turn into a scam one day and the assets that we stake on them will also be gone.

In investing or even in staking, one must be committed to it because this is the only way to earn decently but I think unexpected events won't also be avoided, so we can't help it but to touch what we put in sometimes. The only thing is that in staking we might not do it immediately because there is a lock-up period on the most of them if I am not mistaken.

fikrett

jr. member

Activity: 70

Merit: 1

Quote from: ekotyo24 on September 23, 2024, 11:10:12 PM

Staking altcoins in platforms is different in concept and risk. If you hold an altcoin and are certain that you will not sell it in the near future, staking can be a profitable option. However, it is important to pay attention to potential risks related to liquidity, price volatility, and protocol security

Yeah, it's quite risky if you don't hope for the coin to be right in the long run.
Also, you do have your signature not put properly, as I've seen other people with it look a bit different judging that you are talking about the same platform, probably.

Reatim

sr. member

Activity: 2828

Merit: 357

Eloncoin.org - Mars, here we come!

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

I know many coins out there, you could stake and get interest on it. The issue is if you buy that coin and say the coin drops in price, even if you earn money from staking, the price of the coin dropping means you would lose money. It seems the only safe staking is coinbase with usdc where you get 5% correct? However, is that still not safe like how gemini use to offer like 7% or more on their gusd?

That is one of the risks in staking. Regardless of how much the interest is in your staking, if the coin's price goes down so does the value of your interest. You are also right that staking stablecoins is far safer because it is less volatile than other coins however you can see that other coins can be more profitable when staked. If a coin gains in price, you can definitely gain more profit than staking stablecoins

Quote

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Staking on centralized platform possess certain risks such as the platform breaking down. The platform would need to be secure and functional all the time lest your funds be in danger.

ekotyo24

jr. member

Activity: 266

Merit: 1

Staking altcoins in platforms is different in concept and risk. If you hold an altcoin and are certain that you will not sell it in the near future, staking can be a profitable option. However, it is important to pay attention to potential risks related to liquidity, price volatility, and protocol security

mdzahed134

sr. member

Activity: 2226

Merit: 259

Buzz App - Spin wheel, farm rewards

Quote from: Tipstar on September 09, 2024, 05:48:24 PM

There are safety risk everywhere but provided you as a user and the platform too are doing good practices, there are defi staking or stable coin to stable coin liquidity pair that would earn you much higher in USD interest. I'm getting around 24% in USD staking. There are obvious risk of the platform being hacked in some way or your private key being compromised from your side but if we maintain security steps from our side and only choose the best ones, it's a good approach to beat bank and inflation.

I am looking to stake my altcoins though which is already converted altcoins to stable coins USDT, but i am really confused to choose high reputed platform, in centralized exchange will be high risk, but i trusted to keep on Binance because they have SAFU, if exchange will face any hack incident they will refund my money. Please suggest me, tell in details about stable coin staking where you staked your coins and how much APY.

tygeade

legendary

Activity: 2086

Merit: 1058

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Depends on the altcoin, if you are investing into an altcoin that has a future then you should not be worried about it and you could get a good result, but it will not be simple and you could end up losing a lot of money. I personally believe that we are going to end up with something much worse and if we deal with what we know then it is not going to be that easy neither.

We are going to see this changing for the long term and because of that we should consider this as a good thing. I know that we are not going to have something that changes much, but if we deal with it then we are going to be doing much better. Hopefully, staking for a good altcoin could give you a good return, like for example staking ETH would give you a good return.

justdimin

hero member

Activity: 3164

Merit: 675

www.Crypto.Games: Multiple coins, multiple games

Quote from: jaberwock on September 12, 2024, 02:26:03 PM

Stablecoin interests do not really appeal to me, if I wanted to do that then I would have just taken dollar out and put it in a bank and make money that way, I do not understand why people think that we could make much from it. I believe that it is not a good idea and we should stay away from it as much as we possibly could. I know that it is going to take some time but it can be done and we could make some money from it.

I feel like the best way to make money from staking would be to ETH, it has natural staking now and it brings in a good chunk of money while also going up in price as well. It allows you to gain from both sides and it is a great way to retire if you want to keep investing for long term as well. It could allow you to eventually have enough income to just live with the staking interest.

I agree with this, it doesn't make sense to me that we put stablecoins into interest, I mean if all I wanted to make money from is interest from dollar, then I would have kept myself in the fiat world, not get into crypto at all. I agree that staking in crypto is fine, but with cryptocurrencies, not with stablecoins, that doesn't make sense to me at all.

I feel like the best way to move forward would be just making sure that we deal with crypto itself and not stablecoins. Interest is something I do prefer to get if I can, because I am a long term holder and if I can make even just a small bit more then I would be happy with that, but it depends on the risk I am taking, if I am giving my money to some risky place, then I rather not do that.

ethereumhunter

hero member

Activity: 2912

Merit: 541

Leading Crypto Sports Betting & Casino Platform

If you check on some exchanges such as Binance, Bitget, Bybit and other exchages, you will see the percentage of each coins. You can choose any coin you want to join in the staking. But for the safety, that will depend on the exchanges security because as long as the exchanges can protect their site from the attacker, your fund will safe but the next thing that you should think is how long the exchange can online.

No one will force you to staking your coin especially if you are afraid with the risks of losing your coins in the 3rd party. You can still hold the coin in your private wallet like ledger, trezor and you can also use their staking feature.

TastyChillySauce00

legendary

Activity: 3010

Merit: 1028

Leading Crypto Sports Betting & Casino Platform

Quote from: Coyster on September 11, 2024, 11:06:31 AM

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

Those are with 3rd party right? Are those safe?

Safe is only when your coin is in your non-custodial wallet, if you stake your coins with any third party or you lend it out to any service, there is definitely risk in it; not your keys is not your coin. Thus if you are allured by the interest of staking or lending, you should understand the risks too.

Quote from: jerry0 on September 06, 2024, 12:50:59 AM

Are there any safe places to stake btc

You cannot stake bitcoin, it uses the proof of work consensus mechanism and not proof of stake.

We can stake BTC but using bitcoin layer 2 that enables staking for bitcoin, of course it also carries risk, much like wrapped BTC with the risk of depegging.
but I find bitcoin layer 2 to be able to compensate for the need of staking platform so i'm okay with it. there are also plenty of lending platform or dex in BTC layer 2 where we can become liquidity provider.
so I think staking BTC is as good as staking other coin.

alastantiger

sr. member

Activity: 574

Merit: 310

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Planning on holding altcoins for very long and you won't sell until it has reach a price that you think it'll get to. You can stake your altcoins to earn more rewards on them. Deciding not to stake is your own loss because you'll still have to hold that altcoins so why don't you stake it to earn some rewards and get a double win for yourself. Lots of hates are on staking because they tend to freeze your altcoins for sometime before they release it for you but the new staking method has it that you can release your coins and withdraw them anytime that you want hence staking is no longer a hostile program.

The only reason I won't stake my coin is because I have intention to sell them very soon but if I'm going to hodl for more than 1 months, I'll have to stake the coins for that time so I can.ewen more reward on my coins.

jaberwock

legendary

Activity: 2660

Merit: 1074

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

I know many coins out there, you could stake and get interest on it. The issue is if you buy that coin and say the coin drops in price, even if you earn money from staking, the price of the coin dropping means you would lose money. It seems the only safe staking is coinbase with usdc where you get 5% correct? However, is that still not safe like how gemini use to offer like 7% or more on their gusd?

On ledger live, it seems to show how certain coins you could earn interest in it like tezos which is 9%. ETH is like 3%. There are several other coins which is under 10%. Those are with 3rd party right? Are those safe?

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

Stablecoin interests do not really appeal to me, if I wanted to do that then I would have just taken dollar out and put it in a bank and make money that way, I do not understand why people think that we could make much from it. I believe that it is not a good idea and we should stay away from it as much as we possibly could. I know that it is going to take some time but it can be done and we could make some money from it.

I feel like the best way to make money from staking would be to ETH, it has natural staking now and it brings in a good chunk of money while also going up in price as well. It allows you to gain from both sides and it is a great way to retire if you want to keep investing for long term as well. It could allow you to eventually have enough income to just live with the staking interest.

moneystery

full member

Activity: 868

Merit: 202

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

I know many coins out there, you could stake and get interest on it. The issue is if you buy that coin and say the coin drops in price, even if you earn money from staking, the price of the coin dropping means you would lose money. It seems the only safe staking is coinbase with usdc where you get 5% correct? However, is that still not safe like how gemini use to offer like 7% or more on their gusd?

On ledger live, it seems to show how certain coins you could earn interest in it like tezos which is 9%. ETH is like 3%. There are several other coins which is under 10%. Those are with 3rd party right? Are those safe?

Now if someone is going to hold an altcoin and can stake it, is there any reason not to stake it? This is assuming you already bought that altcoin a while back and don't plan to sell it. Staking altcoins isn't similar to like how people staked with nexo and celsius a while back or it's the same?

there are many staking platforms out there and offer different interest rates, but usually the higher the interest they offer, the higher the risk, because the higher the interest, the greater the responsibility of the staking platform to pay its stakers. that's why popular staking platforms like binance, etc., don't offer such high interest rates, and they tend to be safe for stakers.

and usually stakers are people who plan to hold their altcoins for a long time, or those who don't really like the hustle and bustle of the market, so they prefer to stake their tokens because their goal is to hold them long term and in the process they stake tokens to get interest from it.

but it should be noted that not all long-term holders like to stake their tokens, some feel that they don't need staking interest and prefer to manage their own tokens, since staking tokens means that stakers entrust their tokens to third parties and they don't know whether it is safe or not.

Coyster

legendary

Activity: 2184

Merit: 1302

Quote from: jerry0 on September 05, 2024, 06:31:00 PM

Those are with 3rd party right? Are those safe?

Safe is only when your coin is in your non-custodial wallet, if you stake your coins with any third party or you lend it out to any service, there is definitely risk in it; not your keys is not your coin. Thus if you are allured by the interest of staking or lending, you should understand the risks too.

Quote from: jerry0 on September 06, 2024, 12:50:59 AM

Are there any safe places to stake btc

You cannot stake bitcoin, it uses the proof of work consensus mechanism and not proof of stake.

ekotyo24

jr. member

Activity: 266

Merit: 1

Staking crypto coins does have risks, especially related to price fluctuations of the coins. While you can gain profits from staking, if the coin value drops significantly, the losses from the price drop could be greater than the profits from staking itself. Regarding USDC (USD Coin) on platforms like Coinbase or Gemini, it is usually considered safer compared to staking crypto coins because USDC is a stablecoin that is pegged 1:1 to the US dollar. Therefore, price fluctuations are relatively small. However, there are still risks associated with the platform itself, such as the risk of bankruptcy or security issues that could affect your funds.

FortuneFollower

copper member

Activity: 168

Merit: 4

Quote from: nelson4lov on September 09, 2024, 05:54:29 PM

The only thing that justifies staking especially when the price of the said asset goes down is if you have zero plans to sell and want to hold long term. Staking will provide an opportunity for you to offset some of the asset value. if the value of the token goes down, the rewards from stakimg will go a long way to offset it. If the price goes up instead, that's even better.

The only crypto staking that doesn't pose any risks apart from infrastructure/protocol risks are stablecoins. The only risks with this is if the stablecoin project or say the firm handling the staking management (like coinbase) shutdowns.

Totally valid.
Stables are go-tos in terms of staking.
Otherwise - it's your responsibility to do the research if it's really worth it.

nelson4lov

hero member

Activity: 2212

Merit: 805

Top Crypto Casino

The only thing that justifies staking especially when the price of the said asset goes down is if you have zero plans to sell and want to hold long term. Staking will provide an opportunity for you to offset some of the asset value. if the value of the token goes down, the rewards from stakimg will go a long way to offset it. If the price goes up instead, that's even better.

The only crypto staking that doesn't pose any risks apart from infrastructure/protocol risks are stablecoins. The only risks with this is if the stablecoin project or say the firm handling the staking management (like coinbase) shutdowns.

Topic: Staking Altcoins For Interest Questions? (Read 388 times)