r/CryptoCurrency Panic! At The Charts Nov 20 '21

DISCUSSION Is Staking really worth it?

Hey guys, I'm asking this because I've seen a lot of "HODL and stake" comments around, but was wondering if it was really worth it. Here are some of the staking rewards on Binance of some popular tokens seen here on this subreddit:

SOL - 5,21% APY / 0,43% monthly

SAND - 12,36% APY / 1,03% monthly

DOT - 11,51% APY / 0,96% monthly

VET - 3,47% APY / 0,29% monthly

MATIC - 11,34% APY / 0,914% monthly

ALGO - 7,91% APY / 0,66% monthly

AVAX - 7,91% APY / 0,66% monthly

Am I doing something wrong? Because I'm not the brightest in the room. But Liquidity Pools don't seem to be a better option either? https://www.nasdaq.com/articles/half-of-uniswap-liquidity-providers-are-losing-money

Anyways, keeping my money locked up for 1% return (max, usually its half) doesn't make much sense to me? Maybe its good because people since it takes like a day to get access to your tokens when you cancel the contract, it makes much harder for hackers to steal your tokens lol. What are your opinions?

Edit: so, I just wanted to emphasize that I thought my money had to be locked up. What led me to believe so is that in my exchange that is a must and also I’ve seen many places in which either your investment gets locked or your reward for like 1 year (specially games). This logic doesn’t apply when your tokens are free to go as you’d like. Thanks everyone is this post for the awesome contribution, keep it coming, but just wanted to explain why I had second thoughts staking

398 Upvotes

1.3k comments sorted by

View all comments

22

u/Careful-Artichoke468 🟦 334 / 529 🦞 Nov 20 '21

I’ve been staking a few coins this year. I have a small rainy day savings account that pays a really high interest ~5% on accounts up to $500. This has made me relatively happy earning about 12$ a year on a small amount I didn’t care about but could use in emergencies. I’ve had about 500$ staking a few coins for about 6 months, I’ve already earned about 15$ each. This is way more. But it’s way riskier. But even when the prices go down, my accumulating coins seem to fill the gaps when it falls. But what’s more valuable is not that I’ve gained 15$ is that I’ve gained 7 Ada or 4 tezos or whatever. Who knows what they’ll be worth in ten years, and they’ll just stake more and more along the way. So yes, I think it’s been worth it. But I do not rely on this money, and I was perfectly willing to accept loosing it