Conclusion: The advantages and disadvantages 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 fixed-term deposit with FIAT currencies: How much money can you invest for how long in order to generate interest with it. Another major advantage of the PoS method is that it uses 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 disadvantages of crypto staking are probably the lack of availability and the lending of the coins. You can hardly react to price fluctuations and, despite rewards, make losses on the bottom line. Ultimately, you must trust the staking providers with your money. Due to ambiguous or missing regulations, it could be difficult to enforce legal claims if the worst comes to the worst. However, if you stick to well-known providers, the risk of a coin loss or the refusal of reward payouts should be manageable. Of course, you can also operate crypto staking using your own computing system, but the technical and financial requirements for the average investor are very high.