00:03If you are holding crypto for the long term, should you just expect its price to rise?
00:09Should I wait, or can I still earn annual rewards while holding some crypto?
00:16But wait, getting rewards does not mean that your risk ends here.
00:23Today we try to say it in easy language
00:27What is crypto staking, how does it earn rewards, and what are the biggest risks involved?
00:33And before I go any further, let me also tell you a disclaimer: I own some cryptocurrencies.
00:40Which I am holding as long term holding
00:44In this video, I am not recommending buying, selling, or staking any cryptocurrency.
00:52I have been
00:52I am just trying to explain this based on my learning and understanding.
00:58What exactly is crypto staking or how does it work and what could be its risks?
01:05Every individual's financial situation and risk capacity is different.
01:09Therefore, do your research and risk assessment before making any investment or staking decisions.
01:17What is crypto staking? First of all, understand one thing.
01:22Not every crypto can be staked at all
01:25Some blockchain networks operate on a system called proof of stake.
01:31These networks are used to verify transactions and keep the blockchain secure.
01:37People's participation is required
01:40This is where the concept of crypto staking comes in.
01:43If we understand in simple language
01:45By staking some crypto assets into the network
01:49You can participate in the security and validation process of that network.
01:54In some circumstances, you may also receive a staking reward.
01:59But an important point comes here.
02:02It is important to understand that crypto staking is not a fixed deposit.
02:08If someone says do crypto staking and get guaranteed income
02:12So you need to be careful there because the price of crypto can also go up.
02:19And its price may also come down.
02:22You may be rewarded in crypto, but the market value of that crypto may also fall.
02:28Let us understand this with an example
02:30Get the goods You have some crypto that you want to hold for the long term
02:36And you stake it.
02:39You also get a staking reward of some percentage annually.
02:43Now two things will be different.
02:46The first thing you can do is increase the amount of crypto you have.
02:50Because you can get a staking rewards
02:54Secondly, the market price of that crypto can go up or down.
02:59This means your coins can increase.
03:02But their rupee or dollar value may also fall.
03:06And this is where the most important risk lies.
03:09What is APY
03:11When you visit a crypto staking platform
03:15So you will often see APY written
03:18What does APY mean after all?
03:21annual percentage yield
03:23If we say in simple language
03:25It is an estimate based on the current circumstances.
03:29How much percent of reward can you get annually?
03:33But pay attention
03:34APY is not always fixed
03:37Network conditions are subject to change
03:40And rewards can also change.
03:42And the price of crypto can also change.
03:45So just by looking at the high APY
03:47Buying any crypto may not be the right approach
03:51Which cryptos can be staked?
03:54Some people prefer proof-of-stake networks
03:57Unstaking is available
03:59Like Ethereum, Solana, Cardano and some un-networks
04:06But just because a crypto
04:09Getting a staking reward
04:11This does not mean at all
04:13That crypto can automatically be a good investment
04:18First you have to understand that
04:20Do I want to hold this crypto for the long term?
04:23Do I understand its volatility?
04:26If its price drops significantly
04:29So can I handle it financially?
04:32And most importantly, Saba
04:34What happens if the price of crypto falls?
04:37Let's say you staked some crypto.
04:40You are also getting rewards.
04:43But suddenly the price of crypto fell by 30%, 40% or more
04:48In such a situation, the quantity of crypto you have may increase.
04:53But your total profile value may also drop.
04:56This means that a staking reward does not guarantee against losses due to price drops.
05:02Therefore, it may be wrong to consider a staking as risk-free income.
05:07The main risks of crypto staking
05:11The first price risk is that the market price of crypto may fall sharply.
05:15And a staking reward won't always cover that decline.
05:19Second low cup or withdrawal risk
05:22Some staking methods may not allow you to withdraw crypto immediately.
05:27Withdrawals can take time, so it's important to understand this before making a stake.
05:34How quickly can I withdraw my crypto if I must read it
05:38Third provider risk if you are staking through a third party provider
05:44So you need to understand the provider as well.
05:46It is important to look at its reputation, security, fees and staking method.
05:53Nachao tha smart contract
05:55Some staking methods use smart contracts.
05:59If there is a weakness or problem in the smart contract, there could be a risk.
06:05So, don't make hasty decisions based on high APY.
06:09The biggest mistake beginners can make
06:11Many people only see that they are getting a higher APY here.
06:16And fit immediately invest money
06:18But the right question should be
06:20How much reward will I get?
06:23Just first, what is my total risk?
06:26If an asset is giving 10% reward
06:30But its price falls by 50%
06:33So it would not be right to be happy just by looking at the APY.
06:36My simple approach
06:38If you are already investing in a crypto for the long term
06:42Want to be bold
06:44So you can problem solve his staking options
06:47But only to get a staking reward
06:50Buying an unknown crypto can increase the risk
06:55First understand the asset and then understand its risk.
07:00Only then understand a staking
07:03Now the most important
07:05You cannot control the price of crypto
07:08You also cannot control the volatility of the market.
07:12But you can control
07:14Your position size, secondly your risk
07:18Third, your research and fourth, your expectations
07:23And five mothers express their emotions
07:25Crypto a staking can give you additional crypto rewards
07:31But this is not a guaranteed income machine
07:35Your coins may increase.
07:38But their market value may also decrease.
07:41So first understand crypto
07:44Then understand its risks.
07:46And only then think about the rewards.
07:50Because in crypto, it is essential first of all
07:53Capital protection and subsequent returns
07:57If you want to understand crypto without hype and in simple language
08:01So do follow and subscribe to no chat finance now.
08:05Here we understand crypto not as a get rich scheme but with knowledge, discipline and risk management.
08:13No pretense, no empty promises, just real market learning
08:18Disclaimer: This video is only for educational purposes.
08:22I also have some crypto currencies
08:25Which I have kept as long term holding
08:28But this video is not a recommendation to buy, sell, or stake any crypto currencies.
08:36Crypto assets, Tali wallets, etc. can be high risk.
08:40There can be various types of risks in staking also.
08:43Do your own research and risk assessment before making any investment or staking decisions.
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