Staking and giving away custody of your coins seems profitable on paper and looks like a good idea at first, but if the company/service provider goes bankrupt or gets hacked, suddenly it's not your coins anymore and you lose them. Bitcoin's purchasing power always increases long-term, and we aren't talking about 5% or 10%. It's much more, just for holding. I don't see why I would take the risk and gamble with 100% of my staked coins to maybe earn 10% APY if everything goes as advertised.
Don't focus on potential rewards, but think about potential disasters and worst-case scenarios. How many stories of hacks, mismanagement, vulnerabilities in code/smart contracts, and bad safety practices have we heard coming from custodial services? And the biggest rewards come from custodial platforms.
Topic: Staking or savings: Which is better? - page 2. (Read 325 times)
I hope that by "aside from trading" you don't mean it's another way of making passive income. Because it isn't.
Savings could give you passive income but it doesn't really make you grow whatever you have. There isn't growth in savings. I'm referring to hodling, of course. But I generally prefer it because Bitcoin's value is rising quite fast. That to me is sufficient, so far at least. Other than that, there's the factor of full control and ownership. However attractive staking may seem, the absence of full control and ownership is too much of a risk to bear.
How I wish, however, I have much crypto in my portfolio that I can risk some to staking without worrying too much.
Savings could give you passive income but it doesn't really make you grow whatever you have. There isn't growth in savings. I'm referring to hodling, of course. But I generally prefer it because Bitcoin's value is rising quite fast. That to me is sufficient, so far at least. Other than that, there's the factor of full control and ownership. However attractive staking may seem, the absence of full control and ownership is too much of a risk to bear.
How I wish, however, I have much crypto in my portfolio that I can risk some to staking without worrying too much.
I'm going to go ahead and ask you, why not both? I'm both saving Bitcoin and staking a smaller amount of money on Binance through stablecoins, USDC to be precise.
I used to do both in the past but decided to stop staking simply because it takes too much time for me and I got lazy after that. I think capital is another reason why people can't do both. It doesn't sound worth it to risk your $100 to get $10 on a smart contract that can be hacked at any time. Personally, I hardly make anything after staking for 3 years on Pancake, although you can argue the fault lies on me because I'm not staking stablecoins or something similar. 
My experience is quite limited, thus, I'm not too familiar with what @Charles-Tim already mentioned regarding the available options through non-custodial and custodial services. I've staked a few algorithmic stablecoins a few years ago through Metamask, on the Beefy.finance platform, I never faced any issues and was perfectly satisfied. However, in the recent few years I've switched to Binance, after the UST scandal, it seemd as the fastest and safest option back then, and due to lack of motive, have stayed there till now.
I'm going to go ahead and ask you, why not both? I'm both saving Bitcoin and staking a smaller amount of money on Binance through stablecoins, USDC to be precise. You're not going to make a fortune, but it's better than having your money sit around, on the plus side, if you do a little research, you'll find plenty of opportunities with APYs of over 10%.
I'm going to go ahead and ask you, why not both? I'm both saving Bitcoin and staking a smaller amount of money on Binance through stablecoins, USDC to be precise. You're not going to make a fortune, but it's better than having your money sit around, on the plus side, if you do a little research, you'll find plenty of opportunities with APYs of over 10%.
I was a fan of staking before but most of the platforms that I am seeing that offer good rates of APYs are from the centralized exchanges. While there's a way to do it with noncustodial wallets, I just chose to hold most of my assets that can be staked.
That's why for me, it's best just to hold or save it. For example with Bitcoin, there is no staking for it but the value of it increases over time by just holding it.
The same with the altcoins that can be staked as well, their value and price grow eventually if you're holding a good one so I'll also choose to hold/save them even they are stakable.
That's why for me, it's best just to hold or save it. For example with Bitcoin, there is no staking for it but the value of it increases over time by just holding it.
The same with the altcoins that can be staked as well, their value and price grow eventually if you're holding a good one so I'll also choose to hold/save them even they are stakable.
The second option is better in my opinion as you only have to trust the smart contract, but it has privacy risks and is used regularly by scammers.
I better put investment against staking rather than staking. For a speculative asset that changes in value and I've done my research on the fundamentals I'll rather invest it while I maintain self custody of the asset than to stake with a service that holds custody of my assets.
You can stake on noncustodial wallet through validators. I think you can stake in a noncustodial way by providing liquidity.You can stake on custodial platforms to earn. You can also save on custodial platforms to earn. Both are truly not recommended at all.
Saving can be up to holding bitcoin on a noncustodial wallet.
Chose the one that you want. But know that if you stake those altcoins on noncustodial wallet, it has a period of time your coin will not be available for your to withdraw after you unstake it.
Also know that if you earn from staking but the price of coins are falling, the coin may fall in a way that you may still finally be losing significantly.
isnt really that those numbers would really be going the same as stakers numbers will really be increasing then those APY would really be that decreasing, plus having those decreasing coin/tokens price
on which its one of the important factors needs up to look upon because it will really be pointless or useless on earning more coins while the price or value is declining then there's no way that you could be able to
end up on a good result. So if you do really that trying out to make profits then holding Bitcoin and accumulating it on your non custodial wallet would really be the best shot. Any form or actions that leads in storing up your coins/tokens on a centralized exchange is really that risky on which we know that it could possibly be closed or having some issues. Same goes into those validators on which it do really sucks when you do tend to unstake then there's a lock up period and it would be pointless if you cant be able to sell out immediately those coins on the moment that you do unstake.
I don't do any staking, i only buy BTC and store it in a self custodial, open source wallet, i believe this is what you meant by 'savings'. You also did not make mention of the coin or coins you have in your possession, that you want to either stake or hold. Staking on custodial platforms is not recommended for obvious reasons, not your keys, not your coins. If you want to be in control of your funds, keep it only in your possession.
Personally, Im more into just saving my bitcoins instead of staking it. Staking can get you better returns, yeah, but you gotta lock up your funds for a while, and the platform or the coin itself could tank leaving you high and dry.
Savings feels safer to me. I can get my money back whenever, and Im not as worried about losing what I put in in the first place. More peace of mind.
Savings feels safer to me. I can get my money back whenever, and Im not as worried about losing what I put in in the first place. More peace of mind.
Providing liquidity means you give proof of funds without having to lock it or you're referring to liquid staking?
I do not know much about altcoins but I am referring to: first, staking on noncustodial wallet directly and second staking after you connect to those Web3 exchanges that called themselves decentralized exchanges. You can stake on noncustodial wallet through validators. I think you can also stake in a noncustodial way by providing liquidity. I do not really understand how the later is but I know about the former.
I read a thing or two about validators some months back but quickly forgot about it, maybe cause I wasn't interested in staking to start with so had no desire to do more research on it. Anyone with good knowledge on how it works and the security it provides them can definitely give it a try.Providing liquidity means you give proof of funds without having to lock it or you're referring to liquid staking?
I better put investment against staking rather than staking. For a speculative asset that changes in value and I've done my research on the fundamentals I'll rather invest it while I maintain self custody of the asset than to stake with a service that holds custody of my assets.
You can stake on noncustodial wallet through validators. I think you can stake in a noncustodial way by providing liquidity.You can stake on custodial platforms to earn. You can also save on custodial platforms to earn. Both are truly not recommended at all.
Saving can be up to holding bitcoin on a noncustodial wallet.
Chose the one that you want. But know that if you stake those altcoins on noncustodial wallet, it has a period of time your coin will not be available for your to withdraw after you unstake it.
Also know that if you earn from staking but the price of coins are falling, the coin may fall in a way that you may still finally be losing significantly.
So, which do you think is better—savings or staking?
I better put investment against staking rather than staking. For a speculative asset that changes in value and I've done my research on the fundamentals I'll rather invest it while I maintain self custody of the asset than to stake with a service that holds custody of my assets.If you're willing to take the risk and can do your due research on which staking service to use, that can be a good option for you over investing.
Savings should always hold a certain amount of your worth and that should not be substituted.
We all know there are many ways to earn passive income in crypto aside from trading (spot/futures). One of these methods is savings or staking. However, here's the catch: many platforms offer diverse APRs, whether in USDT or altcoins. So, which do you think is better—savings or staking?
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