Post
Topic
Board Altcoin Discussion
Re: Staking advice needed
by
Abiky
on 27/03/2023, 10:40:19 UTC
For a long term holder / investor, what are the risks available with staking coins and tokens that you plan to hold for a long period of time? I want to know if its safe to keep your coins in staking instead of just holding them in a wallet when your ultimate plan is to hold for long term.

The risk of holding PoS coins is market uncertainty. They're often subject to wild fluctuations in price, especially if they have high inflation rates. Most of the PoS coins you see on the top ranks in market cap, have a system where you "delegate" coins to validators or third-parties. It makes them centralized and subject to failure in the long run. Old PoS coins like Blackcoin, Diamond (DMD), and Peercoin are much more decentralized as they allow you to stake your coins in your own wallet. But the downside is that you need to leave the wallet open 24/7 if you want to increase your chances of earning from your stake.

If you want to play it safe, just stake ETH at a decentralized staking pool (eg: Rocket Pool or Lido.fi) and you're good to go. You can also stake tokens if you want by making a deposit in a liquidity pool. As long as you don't invest more than what you can't afford to lose, there should be nothing to worry about. Just my two cents Wink