The crypto industry is currently in a downtrend
For the community, there are no doubts that the whole crypto industry is experiencing a downtrend at the moment. During an uptrend, everyone gains profits and is ecstatic about the market and the whole DeFi space, but we as innovators, and also as investors, should be cautious and pragmatic. All innovations change the normal order of things, but DeFI breaks down the paradigm of centralized finance and has shown incredible yields on assets.
However, a lot of professional investors and individuals have lost their funds because of liquidations and bankruptcies of certain projects and funds, or simply because of liquidity outflow and impermanent loss. The market is a zero-sum game with only one winner — two players can’t win simultaneously, and we always should keep that in mind and follow risk management strategies.
The safest way to earn crypto is staking, but what is staking?
In a nutshell, staking is locking your tokens with a network’s validators in order to participate in producing new blocks (or mining) and get rewards for it. The mechanics, locking periods, and technical nuances may vary on different networks, but the whole idea is mostly the same: to lock your tokens in order to get rewards. However, it’s important to choose your staking strategy carefully, as not only locking or withdrawal periods may differ, but also annual percentage yield and income. After all, your money is at stake.
It’s almost impossible for the average user to carry out an in-depth analysis, as too many variables have to be considered.
However, Ever Surf has done a great job of analyzing staking APYs on different networks. Importantly, the analysis takes into account not only the stated APY, but also the speed of emission of new tokens (which affects the real APY), and the presence or absence of lockups.
Once APYs have been analyzed, you can move on to exchanging tokens you own for the tokens you plan to stake, or buying them on centralized or decentralized exchanges. If we consider the Everscale ecosystem, users are able to exchange tokens on the FlatQube DEX or use Octus Bridge to transfer tokens from different blockchains such as BNB Chain, Fantom, Polygon, Cardano, Avalanche, Ethereum, Solana, and, of course, Everscale.
Stay safe and follow a risk management strategy
To sum up, after all of us enter the crypto space, we have to keep grinding, educating each other and helping one another keep up-to-date, stay safe, and not forget about all the possible risks. Every user should have their own strategy that matches expectations, and risk management is essential as regards staking. Don’t be misled by wrong numbers for declared APYs, as these might not include inflation or lockup periods. Choose wisely!
