Does staking pay interest?

The most significant risk that investors face when staking cryptocurrency is the possibility of a negative price movement in the asset(s) they are staking. If, for example, you earn 15% APY for staking an asset but it loses 50% of its value over the course of the year, you will still have lost money.

The depositor earns interest on their money while it’s in the bank, as a reward from the bank, who uses the money for other purposes (lending, etc.). Staking coins is, then, similar to earning interest .

Additionally, when comparing the startup time for either investment method, it is quite clear that staking is by far the quickest option . The cryptocurrency staking process usually takes just seconds, whereas it can take several days to open a savings account — and there’s still the possibility of being rejected.25 Haz 2020