Hello r/cc,
I’m looking into staking some coins to earn some passive income. I plan to hold my coins long term so having immediate access is not necessary.
I’m see several validators to choose from. Some offer a crazy amount of interest as high as 87% with some offering 1% plus a % as a fee.
I’m avoiding the “too good to be true” validators for obvious reasons, but I’d like to know how one can learn what to look for before I choose between them.
What are some of the pro’s and con’s of choosing a validator.
Also, is it wise to choose more than one validator to stake your coins with?
The old “putting all your eggs in one basket”.
Lastly, what are some of the risks involved in staking?
Any help in this area is appreciated.
Thanks
I guess it depends which coins you’re talking about, but my rules are don’t stake with top 10 or top 50 even, don’t stake with exchange validators, check uptime of validators, check % fees and % fee change in a day.
First you need to know which coin are you staking. Then you need to DYOR and figure out which validatilors have the most uptime (must be 100% uptime) and how much of their own money they have staked (the more the better). This info is usually available online depending on the coin. It’s good to avoid ‘too good to be true’ ones. Usually every chain has a subreddit you can look into and see what the community thinks.
If you’re not careful and choose bad validators and they mess up, the network may punish them with slashing.
Good questions. Am curious too.
My apologies in the formatting. I’m on mobile and this post looks atrocious.