Quote from: pgbit on April 03, 2023, 01:06:01 PM

Quote from: S3300 on March 20, 2023, 07:47:20 AM

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 main risk associated with staking coins and tokens is inflation risk. Staking rewards can vary over time, and the amount of rewards you receive may not compensate for the inflation of the underlying asset. It is also important to consider the risk of a slashing event, which can occur when a validator is found to have violated the network's rules.
if you plan to hold tokens for the long-term, you should also consider the risk of a decrease in the value of the underlying asset, which could reduce the potential rewards you receive.

I would guess that it is an obvious mistake that many people make when they do not check it. You could make a profit when you do it like that but if the underlying asset is gone, then you are gone as well and all that staking was for nothing.

It is important for people to check all the trouble of the world, and when we are in a situation we are not entirely certain about, it wouldn't be a problem for any of us to just walk away, you may not earn but at least you won't be losing. But if you do not walk away, then you are going to end up with something that will either profit you but if you are wrong also make you lose money as well and that's a risk you shouldn't take if you are uncertain.