The risk you should be aware of with staking ATOM, DOT and AVAX

I will start off by saying that I currently only hold ATOM and it's all staked earning staking rewards but I do see a risk with this strategy if I decided I wanted to sell at some point.

Staking is basically you providing your crypto to help secure the blockchain, some chains offer liquid staking were you can simply move your coins around and lose any future staking rewards other offer a soft lock that still allow you to move your assets but causing you to lose your rewards. Then we have a third type of staking the one with a lock up periods, in these you can't move your coins until the lock up or un-staking period is over.

The biggest risk with this is the volatility of crypto prices. Lets say you wanted to sell some or all of your bag during the last bull run, deciding very close to the top to sell.

ATOM - 21 day un-staking period

ATH price - $42.89 (start un-staking)

Available to sell - $31.51 (25% loss of potential profit)

https://preview.redd.it/auw34ljhouda1.png?2550&format=png&auto=webp&s=82212bc6f9ad9bc7cac0e2e4ebf4e483e163944f

Polkadot - 28 day un-staking period

ATH price $53.34 (start un-staking)

Available to sell - $36.78 (33% loss of potential profit)

https://preview.redd.it/2y56adjrouda1.png?2550&format=png&auto=webp&s=7ebfd7031da10fe8331af8ad25afe6fdaf083d6c

Avalanche - minimum 14 day staking period (can lock up for up to one year)

with AVAX you set the length you are committing your AVAX for when you set it up, the minimum is 14 day but can be up to one year, for this example I'm assuming you committed at the top thinking it was going to continue going up.

ATH price $134.87

unlocked - $89.69 (32% loss of potential profit)

If you had a lot of confidence in AVAX and decided to commit for one year on 7/21/21 before the bull run with a price of $10.43 it wouldn't have unlocked until 7/21/22 with a price of $25.04 and you would have missed the entire bull run.

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https://preview.redd.it/avleerrcpuda1.png?2550&format=png&auto=webp&s=064cb1427e723c1aa02b4330a900afdede76bac6

I'm not saying don't stake your crypto since with high inflation coins it's pretty much necessary to not lose value due to the inflation but be aware of the potential risk.