Do you think volatility can affect your staked coins?

[tyrim88]

Whenever you want to stake your coins on an exchange are there is normally a projection on how much you can make. It is important that you should know that these figures can change depending on the market.

That is just the truth about the whole cryptocurency market,because the market trives onvolatility and that is what makes it very unique,an investor should understand this while he is putting his money into stake.

Yes in terms of value but if you are ok to hold for coins for longer term then you shouldn't be worry as you can easily cover some lose by gaining some shares in coin as some of them give 10% return so your cap will increase.

That is one of the thing about cryptocurency market,because those that do the staking approach will tend to recover some loss ground over time if the market fluctuate,compare to when you are just doing a short term trade.
The general market in itself thrive on volatility,and that is what has been making it to be a toast of investors,and also this trend is what can make investors to either gain huge returns or loss in the market.

 

[Laurentta]

I've always been aware of the risks associated with crypto currency as a whole but i didn't know staking of coins could also be very risky. One really ought to be careful when staking coins.

 

[Sotherefore]

I've always been aware of the risks associated with crypto currency as a whole but i didn't know staking of coins could also be very risky. One really ought to be careful when staking coins.

It is a risky investment in the sense that when you are staking a cryptocurrency , you are committing it to a particular platform. You won't have access to your cryptocurrency until the limited period of time is over. If the platform is not trusted they might run away with your coins.

 

[Sincerem]

This is going to depend a lot on the particular coin that you are stacking. Generally low volatility can affect the amount of money that you are supposed to earn at the end but not lower than your stake.

I think the coin you are staking are not being put into consideration . As long as the price of bitcoins is dropping we needs to understand that very soon every other cryptocurrency Will follow The Same. All coins dropped when bitcoins dropped

 

[Skysaint]

I don't know much about staking but what I do know is that volatility in the cryptocurrency market literally affects everything. That's actually something that investors should be careful about.

 

[Ronny_4son]

I understand that most users will be curious to see this, and some of them have been gearing up to get an answer to this topic.

The answer is yes, volatility can affect your staked coins, provided you staked on a volatile coin. It affects the coin's liquidity and price validation, and also the reward you'll be getting per duration of your staked coin.

If you stake a coin, and bearish run of high magnitude occurs like the one the coins are suffering from currently. It will surely bring your investment down, and your reward won't be the same from your initial proof of stake (I.P.O.S) when the bearish run never occurred.

For in stance you invested $50 into UNI coin with 23.53% APY interest rate when the coin "UNI is valued at $30. Then all of a sudden bearish run came and slashed down the price of UNI coin you staked to $20. That will bring your reward down, it won't be paid according to your initial coin staking.


Same thing occurs when you staked a coin, and bull run occurs, your initial staking will improve and your reward will go higher.

CONCLUSION;
So you should be wary of the risk involve in staking before you enter it, to avoid losing funds carelessly. Always read the terms and conditions for any ICO (initial coin offer) you're staking on. The FAQs is there for you to read and understand how staking works.

Cryptocurrency coins are liable to rise and fall in value, thus accounting for their volatility. In a bear run especially, this can be detrimental financially when you have staked coins for some time

 

[Sincerem]

Cryptocurrency coins are liable to rise and fall in value, thus accounting for their volatility. In a bear run especially, this can be detrimental financially when you have staked coins for some time

Stake coins will definitely be affected on a bearish season. The Bearish season indicate a season of low activities in the crypto space such as trading volume , a decrease in transaction level. When there is a decrease in this it will have to affect your stake coins.

 

[Ronny_4son]

Stake coins will definitely be affected on a bearish season. The Bearish season indicate a season of low activities in the crypto space such as trading volume , a decrease in transaction level. When there is a decrease in this it will have to affect your stake coins.

Stake coins will definitely be affected on a bearish season. The Bearish season indicate a season of low activities in the crypto space such as trading volume , a decrease in transaction level. When there is a decrease in this it will have to affect your stake coins.

This is an accurate contribution. The bear season affects the progress of several coins in a negative manner, and staked coins are no exception. The best solution is to have patience and try to see that dark period out

 

[Sincerem]

This is an accurate contribution. The bear season affects the progress of several coins in a negative manner, and staked coins are no exception. The best solution is to have patience and try to see that dark period out

Exactly , personally most of my cryptocurrency are in stable coins. I don't Just want to risk it anymore until I am very sure that the market will start moving in the desired direction.

 

[Ronny_4son]

Exactly , personally most of my cryptocurrency are in stable coins. I don't Just want to risk it anymore until I am very sure that the market will start moving in the desired direction.

This is quite a clever decision that you have taken in order to be fully financially prepared for the more favourable times. Is there a risk of rug pulling with the coins you have staked though?

 

[Sincerem]

This is quite a clever decision that you have taken in order to be fully financially prepared for the more favourable times. Is there a risk of rug pulling with the coins you have staked though?

It depends on the cryptocurrency you are staking. There are trusted cryptocurrency that offers such opportunity and there is no indication that such will likely rugpull Even in years to come. Research to know those that are trusted.

 

[Ronny_4son]

It depends on the cryptocurrency you are staking. There are trusted cryptocurrency that offers such opportunity and there is no indication that such will likely rugpull Even in years to come. Research to know those that are trusted.

This is a refreshing contribution. Could you just point me to some examples of cryptocurrency coins which are very stable and not in any danger of a rug pull? That would be really helpful

 

[Sincerem]

Usdt, Bnb, Ethereum Algo and you can choose to also add solana to the list. Those are the cryptocurrency I know and usdt is the best. You can check out more information about it.

 

[Sotherefore]

I don't know much about staking but what I do know is that volatility in the cryptocurrency market literally affects everything. That's actually something that investors should be careful about.

When there is a reduction in the price of cryptocurrency , there is likely to be a decrease in transaction and overall trading volume . This also contributes to decrease in your APY and as well as a normal devaluation in the price of the cryptocurrency you have stake. As long as the market is going down it will definitely affect everything related to cryptocurrency at that time.

 

[Skysaint]

When there is a reduction in the price of cryptocurrency , there is likely to be a decrease in transaction and overall trading volume . This also contributes to decrease in your APY and as well as a normal devaluation in the price of the cryptocurrency you have stake. As long as the market is going down it will definitely affect everything related to cryptocurrency at that time.

You are right about that. I have been trading in the market for sometime now and I can agree with you on that. I don't know about trading futures but it seems they can take advantage of such situations.

 

[Sotherefore]

You are right about that. I have been trading in the market for sometime now and I can agree with you on that. I don't know about trading futures but it seems they can take advantage of such situations.

That is true , but at the same time you just have to be very careful because you may not really understand when the market will be returning to bullish season you are looking for . you might invest and market still keep going down.

 

[Skysaint]

That is true , but at the same time you just have to be very careful because you may not really understand when the market will be returning to bullish season you are looking for . you might invest and market still keep going down.

I just went through the cryptocurrency market to see what's happening and I think the market is reviving. This is the best time to make investments because the truth is that there's never a time that you would have a hundred percent assurance on returns in investment.

 

[Sotherefore]

That is true , but at the same time you just have to be very careful because you may not really understand when the market will be returning to bullish season you are looking for . you might invest and market still keep going down.

Well , I wish I had the money I would have invested in cryptocurrency now. Ever since the beginning of the Year some cryptocurrency has been increasing very well. So we hope the bullish season return back soon .

 

[Skysaint]

Volatility is something that I strongly believe can affect the cryptocurrency market and anything related to it and there are people who even take advantage of that to earn more. I think people are able to earn and lose in the cryptocurrency market because of this.

 

[Planbizzle]

I understand that most users will be curious to see this, and some of them have been gearing up to get an answer to this topic.

The answer is yes, volatility can affect your staked coins, provided you staked on a volatile coin. It affects the coin's liquidity and price validation, and also the reward you'll be getting per duration of your staked coin.

If you stake a coin, and bearish run of high magnitude occurs like the one the coins are suffering from currently. It will surely bring your investment down, and your reward won't be the same from your initial proof of stake (I.P.O.S) when the bearish run never occurred.

For in stance you invested $50 into UNI coin with 23.53% APY interest rate when the coin "UNI is valued at $30. Then all of a sudden bearish run came and slashed down the price of UNI coin you staked to $20. That will bring your reward down, it won't be paid according to your initial coin staking.


Same thing occurs when you staked a coin, and bull run occurs, your initial staking will improve and your reward will go higher.

CONCLUSION;
So you should be wary of the risk involve in staking before you enter it, to avoid losing funds carelessly. Always read the terms and conditions for any ICO (initial coin offer) you're staking on. The FAQs is there for you to read and understand how staking works.

Volatility might have an impact on staked coins. Staking is the procedure by which investors lock up their coins in order to benefit from network rewards. Transaction fees and newly produced coins are used to generate the incentives. As a result, if the coin's price fluctuates, the value of the prizes may alter as well. Also, if the coin's price falls, investors may suffer losses because the staked coins are valued lower than the original quantity committed.