Why it makes no sense to stake small amounts and why you can lose a lot on this. We are actually quite far from the real crypto adoption. Is it even necessary?

GM, friends) So, here's the story.

I live in Europe, all my accounts on exchanges are verified with my ID and I declare my income in cryptocurrencies.

When preparing the declaration for 2022, it turned out that I needed to filter and declare 1611 transactions that were done for staking crypto on exchanges. This is rough as hell and I had to purchase special software that helped me bring this mess into a suitable form to report it to my tax consultant. It cost me 260 euros, the package lasts for 2 years and includes 3000 transactions. P.S the price is already discounted!

Even if I had a software, it took me 4 days in total (my days off) to figure it out completely. I have a good job and if you transfer the time I spent on it into my working hours, you will get quite a lot.

Did staking compensate me for all these expenses? Of course not, I earned about 500 euros in total and now this amount is lower, so I have no choice but to wait for ATH and fix these coins at a better price. I could have better spent these 4 days either on work or rest :)

I have been staking about 20 different tokens at the same time, such as DOT, DASH, BNB, LINK. Sometimes it was approximately 25-30 daily transactions for me. Thousands of transactions can happen a year and you will go crazy if you declare it.

Staking makes sense only if:

1) You stake an amount of 1000 euros, although this is bullshit, I would start from 10000. Then it will be more or less a payback.

2) You do not declare these incomes. I’m happy for you if your country of residence allows you to do so :)

So what I see is that new financial institutions are not adapted to real life. CeFi and DeFi do not have necessary and simple tools to bridge the technologies with documentation. And staking now looks not user friendly and I suppose it can take years to make it a simple instrument for passive income like bank interest.