Conclusion: The pros and cons of crypto staking at a glance
Crypto staking can be a great way to generate passive income from cryptocurrencies without much effort. In principle, you have to make the same considerations here as with a term deposit with FIAT currencies: how much money can you invest for how long to generate interest. Another great advantage of the PoS method is that it consumes less energy compared to crypto mining. This makes crypto staking cheaper and more sustainable than the PoW methodwhich Bitcoin, for example, is still betting on.
Crypto staking requires trust and planning
The two biggest drawbacks of crypto staking are probably the lack of availability and lending of the coins. You can hardly react to price fluctuations and, despite rewards, make a loss on the bottom line. In the end, you also have to trust crypto exchanges with your money, which can clearly be a risk, and the lack of regulation can make it difficult to enforce legal claims. However, if you stick to well-known providers, the risk of coin loss or reward payout denial should be manageable. Of course you can also perform crypto staking with your own computer system, but the technical and financial requirements for the average investor are very high.