Is Crypto Staking Viable In A Crypto Winter?
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Crypto World in a Turmoil
Sadly, it's not only crypto prices that are taking a beating. Right now, many cornerstone Web3 startups are illiquid, and others have simply been hacked into oblivion. The long and short of it is that things are not looking too good in the crypto-verse.
Of course, this raises an even more important question. What does one do in a crypto winter? For many, the solution is to cut their losses and lock their wounds. For others, the solution is to go even more in and wait for a crypto summer, as it were.
But there might be another solution. A solution that's halfway between selling all your crypto to avoid going into more losses and buying coins that may or may not appreciate.
Crypto Staking: The Hero We Need During the Crypto Winter
Staking your coins is probably the least adventurous thing you can do in a bull market. Staking your coins during a bull market is tantamount to taking out a huge ad in a national daily and announcing that you aren't interested in record profits for a while.
Even in normal market conditions, staking isn't something investors find attractive. That's because most of them prefer to have their financial destinies in their hands, and staking takes away that power. By staking coins for a while, they are also taking a huge risk. If the market suffers a shock and the value of the coins suffer a huge drop, the loss in value may outweigh whatever interest they earn on them.
Given these conditions, it's not difficult to see why crypto staking is not popular among institutions and traders. But all these conditions are only valid in a bull market. In a bear market, the promise of profits gets so slim that it changes everything. In that sort of market, even the so-called meager returns from staking may prove to be better than any other financial adventure.
Therefore, when everything else fails, crypto staking can be the most viable solution during a crypto winter.