Post
Topic
Board Altcoin Discussion
Re: Staking Coins With Annual Returns - Good Idea
by
uneng
on 15/08/2023, 18:22:49 UTC
Some people will say what if the price of the coin drastically drops?
But you can say that about any coin you invest in.
Not really. You have to calculate the risks of each cryptocurrency before reaching the conclusion they can fall drastically or not. Take the history of each of them and you will reach to different conclusions. Example: brand new created tokens are more risky, because you don't have a previous history to analyze, while consolidated cryptocurrencies such as BTC and ETH give you all the necessary previous informations to reach a very optimistic prediction on long term.

In my opinion it's better to avoid staking tokens offering too high annual return. It's certain you their prices are going to drop once investors start receiving yield back. Early investors may make decent profit, but late ones will make tiny profit or no profit at all... Unless there is a benefit else when staking on those programs, I wouldn't go further.