Post
Topic
Board Economics
Re: How to Maximize Your Passive Income from Cryptocurrency
by
uneng
on 28/06/2024, 17:05:48 UTC
Staking don't give you high return, they might offer 100%+ in the beginning, but they will lower the reward day by day.
Furthermore, as the interest rate paid is huge, you can be assured the price of this token is going to decrease severily along the time, as another investors cashout their interest made and sell for profit. Let's say they pay you 100% APY. It won't mean 100% profit, because the token will lose a lot of its price, sometimes reaching 90% of loss or more...

It happens because the market works by the supply and demand law. If supply is too high and there isn't demand to absorb it, prices crash. For prices to increase, there must be superior demand, and it rarely happens when the product is a token offering excessive interest rates at staking programs.

Sticking to a strong and solid cryptocurrency is better than risking money with unknown tokens promising huge returns which aren't feasible for real.