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Staking crypto is amazing investment strategy even if the price does not skyrocket.

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by COINS NEWS 98 Views

I feel like in this sub we always talk about price prediction and how different projects can make an easy 10x. And although I am pretty sure that will happen, staking is an investment strategy on its own and it is a great source of passive income and most of the time we don't even realise it.

When we talk about investment strategies, most people recommend investing in an index fund or ETF because in the long run they have always provided a good return. I am not saying that it is false but what is the purpose of it? To get a 5-7% anual return at best. I know I know, everyone will come saying that S&P 500 has had an amazing performance during the last 40 years, but here we are revolutionising the industry with cryptos.

My point here is the next one. There are many great projects that offer a simple 5-7% (or even much more) anual reward in exchange for contributing to the network's security. So even if the price drops a little or stays the same, I will happily keep investing for this stable return which is much better than investing in bonds or keeping the money in the bank. I will be investing in a project I believe in and get additional rewards.

Of course I expect my coins to increase in value as more money comes into the crypto space, but still I am very happy staking my coins and get juicy rewards, and obviously compounding it. Even though the project does not skyrocket like the others. :)

This is my point of view because I think we don't talk about how high the returns of staking actually are compared with other investment strategies.

Disclaimer: please diversify and have an emergency fund, like any other investment this carries its risks. Not financial advice

submitted by /u/Annon-20
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