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HYSA Cash vs. Staking Crypto

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by COINS NEWS 77 Views

There was a time during the peak chaos of covid that crypto staking was yielding outrageously high returns and simply parking cash in a savings account was worthless. Now in late 2023, as we've balanced out, staking on established platforms is generally 3-6%APY and you can find high yield savings accounts in that ballpark. Having done both I just wanted to present the experiences I've had within each.
HYSA - fairly straight forward, transferring cash in and out takes 3-5 business days. A lot of no fees, no minimums options and rewards if you deposit a certain amount and keep it there for 60-90 days.
Staking - I only staked with Lido stETH, but processing to withdraw generally takes 12 hours to a day, but you have to pay gas fees to withdraw and claim the funds. It is also not that straightforward for a lay person and would recommend someone doing test transactions and ensuring they have ETH on hand to pay the fees. You'll also want to make sure you have substantial enough money earning interest to even make this process worth it, otherwise you lose any gains you've had by paying fees.

In short, I am not sure staking is a great idea for someone with limited funds and the complexity factor and current interest environment probably makes it easier for the layperson to just hold cash in a HYSA.

submitted by /u/jedo89
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