03-06-2020, 07:20 PM
Looking at expected annual staking yields, you may assume that these annual returns are fixed. However, that is not the case (in dollar terms) as the value of non-pegged digital assets fluctuates quite substantially.
It is, therefore, imperative to have a strong long-term conviction on the asset that you intend to stake because you will lose money if the value of the asset drops significantly and struggles to recover – even if you are earning “interest” in the form of new coins.
Don’ts
* Don’t choose assets purely on expected ROI (return on investment)
* Don’t lock up coins in staking that you need to be able to sell quickly
* Don’t invest more in staking that you can afford to lose
It is, therefore, imperative to have a strong long-term conviction on the asset that you intend to stake because you will lose money if the value of the asset drops significantly and struggles to recover – even if you are earning “interest” in the form of new coins.
Don’ts
* Don’t choose assets purely on expected ROI (return on investment)
* Don’t lock up coins in staking that you need to be able to sell quickly
* Don’t invest more in staking that you can afford to lose