Does the APY really matter “to you” on staked assets when the prices of the assets move more than the APY most days/weeks?

I personally am a bit torn on either focusing on crypto that provides staking rewards (which is what I tend to do now), to maybe opening my horizons more to some of the other crypto. I initially figured the staking rewards is a curb against the price, but with such volatile swings, is it really?

At this point 90% of my portfolio is put into staked crypto. In most cases I use Kraken in order to not have it tied up for waiting periods (other than ethereum). It costs some % typically, but due to volatility in pricing I think it’s worth it.

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33 thoughts on “Does the APY really matter “to you” on staked assets when the prices of the assets move more than the APY most days/weeks?”

  1. APY can be a grift.

    A coin that inflates 5% and offers 5% APY, is the same as a coin that offers 0% APY, and inflates 0.

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  2. To me it’s just a bonus. I don’t specifically look for POS projects, but if I find one that I like it’s nice just accumulating more over time

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  3. If you are 100% going to hold regardless then sure. You should never hold something just for the APY. In vast mjority of cases APY doesn’t even come anywhere close to token inflation numbers.

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  4. Compound interest can gain you a lot of money over a long period of time because you’re earning staking gains on top of previously earnt gains. As long as you time your sell well then you’ll be laughing

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  6. Unless you are a whale and can benefit off high APY over very short periods, you are better just buying the assets you want rather than buying assets because they have an attractive staking yield

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  7. When I’m holding coins, if there is a native way for me to stake them and earn a few percent more then I would do it.

    It reduces the impulse to sell and more over, compound interest does make a noticeable difference over time

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  8. If I’m staking for a long haul i prefer the price of the asset drop in the short term. Lower price means more coins as i keep accumulating

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  9. I don’t concern myself with the daily price of staked tokens, but they’re long term holds. Getting 9% and having faith in a project is peace of mind enough for me. If you’re watching the price that closely, you might earn more scalping

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  10. Correct answer: It doesn’t matter.

    Say you hold for 1 year on a coin that earns 10%. If price stays flat, you made a 10% profit versus 0% on a coin with no APY. If price doubles, you make 120% versus the regular 100%. If the prices drops in half, you lose 45% versus the regular 50%.

    At the same time, any coin which is successful over time (of which there are very few, if any, aside from bitcoin) will gradually reduce or eliminate that API. 99.9% of coins offering an APY are going to zero. Therefore, the only way to make money from them is to actively trade them and catch the pumps. And it isn’t easy to both stake and actively trade at the same time.

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  11. It really depends on the inflation rate of the token. If you’re not staking a token with a high inflation rate, essentially your share of the total supply keeps shrinking.

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  12. If my staking rewards cover withdrawal costs and fees once I cash out on alts some time during the next bull run then I’m happy.

    Bonus if they also cover costs and fees of alts that can’t be staked.

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  13. Make sure that you calculate the effective APY from staking.

    Find out what the inflation of a specific coin is, then substract the staking reward. You’ll be surprised to find out how many low numbers you’ll be facing

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  14. Does it make sense to stake a coin for 10% APY when the coin appreciates by >100% in a year?
    Do you want to risk losing the coin due to hacks and bankruptcy?

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  15. LOL. It’s a tricky game. Personally, I stake just for the extra addition it’s got. I’m not going to dip in $1000 into a pool and expect to see $1800 at the end of one year, an 80% increase.

    If I held, I’ll prolly buy more on dips, sometimes, sell out tokens at certain resistant levels, and buy the dip for even more tokens.

    BTW, Beefy, DAFI Protocol, & Tetu have over time become one of my best go-to places. DAFI is quite easy to use and I just love the overall fundamentals of the project.

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  16. APY is like buying Crypto without spending money.
    Obviously it helps.
    It also helps to buy in at the bottom and have 12.5% APY 😉👍

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  17. Out of interest does anyone know the inflation rate of CRO?

    Because you can earn around 12% on the DeFi wallet.

    I’d love to know if it’s worth it or not.

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  18. most of the time, APY/APR’s means 0 real value, you’d get the same results holding bitcoin and doing nothing which atleast doesnt risk a hack

    99% apy stuff just makes it 99% inflationary(more or less depends) so you end up at 0 anywya

    Mining is a bit better, to mine you have to put resources and gotta get some profit so it equalizez itself, which is why BTC,KDA and ETH mining is a big thing, staking is just rentier-wannabe people

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  19. That’s why I think one of the best moves someone can make in a bear market is find coins that have good APR and also great long term utility, which will eventually drive up the price. My favorite these days is Evmos. Current APR 390% (down from 1600% two months ago) and annual inflation is 150%, and the price did fall a lot, but is holding reasonably well compared to what you’d expect from such immense numbers. I ran the numbers, and with compounding the daily rewards, price can go down 85% from my cost average, and I’d still be in the green, given my time frame of compounding for a full year.

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  20. I have had my matic for nearly 1.5 years and i am very satisfied with the apy that has been over 10% most of the time as i didnt intend to sell meanwhile

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  21. Not worth the risk, I rather own the coins myself and know they are safe.

    If it seems “real” and APY is low, then you gotta hold your coins long time to see some results and have higher chance to lose your coins when the company goes down.

    If the APY is high then… well we all know what happens then.

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  22. Any staking I do now is just because I want more of that coin in the future. I’m nowhere near the point where I’m trying to make a regular income from this. Today, it doesn’t matter to me how much prices denominated in dollars fluctuate. We’ll see how the future goes, but I expect that I’ll want to use crypto as collateral for a loan to buy assets that produce income in fiat long before I want an income denominated in crypto assets.

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  23. If you believe in the token future it matters a lot. You know that no matter what, you gonna keep receiving interest on your stake and you can cash out when better times come.

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