Re: Passive income : Bank interest vs staking

Do people here put a ton of money staking stablecoins in sites like nexo, celsius, gemini etc?

Staking in my opinion is more promising than internest banks, and for almost a year I have been actively staking with several major coins such as BNB, MATIC, Stable coins and so on, and for stable coins I use for staking altcoins and from the list is Celsius, besides that I also use for staking new altcoins because it provides a large APR up to more than 100%.

There is some downside of staking in comparison to banks. If it is an altcoin you are staking the price of your initial investment will also surge with the whole market. That means you could gain additional altcoin but its price in USD could fall below your initial investment. This won't happen with banks because of stable fiat currency. Also if you are providing liquidity then you should know about impermanent loss too.

Staking does contain speculation as you have shown. So to do that, you have to understand the risks. if we can understand, then it is safe for us to stake on a trusted coin that is on the top board, even though when we get a staking coin the price drops, but one day it will come back again, it can even provide double profits. This is different from bank interest which is nominally small, and of course below the inflation that occurs

Does that matter if it's a trusted project or not when we are talking about speculation? In a bear market, every project goes down except a stable coin. If you just want to increase the number of your coin no matter what the price is then staking is profitable. It's suitable for long-term holders but for the short-term holders, this could be painful. Staking is much better than bank interest but you have to understand in which occasion.