PROBLEMS REGARDING CRYPTOCURRENCY ASSET STAKING

Hello to everyone in this wonderful community today and on this great platform at large. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

I welcome you all to yet another beautiful week here on this platform and I want to believe we all are doing absolutely fine today. I do hope we all had a great weekend with friends and family. If so we say praise be to the creator for the gift of life and good fortune.

Today I am here once again amidst you all to talk about an important aspect regarding the topic that was treated few days ago and this said topic talks about staking in cryptocurrency. Few days back we had a discussion regarding the said topic in which we we discuss about the merits that comes with staking cryptocurrency assets.

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We discussed how profitable and lucrative it is when a trader stakes digital assets for a long period of time and we on here also attest to the fact that it is quite beneficial but in all of that we didn't mention the demerits regarding staking our digital assets for too long and this is why I am here today to talk about the demerits regarding cryptocurrency staking.

On that note I urge us all to relax and stay put as I begin the discussion for today. I wish you a happy reading while I have at it as soon as possible.

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In no doubt, staking digital assets is a vital way of making profit in the digital market. Of a truth I have seen many digital currency holders make good profits just by staking their cryptocurrency assets for a long period of that.

These individuals tends to get more opportunities just by staking their digital assets and I spoke about the opportunities that comes with staking your digital assets.

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A few that I can mention is that an individual who often stake his or her digital assets can be eligible for certain airdrop distribution and this distribution can only occur when there is a partnership between the founders of the digital currency which has been staked and other new digital projects that are looking for collaboration in other to gain visibility through the community of various solid projects that are already doing well.

I also made another interesting point as touching to the price of the asset staked. When you stake an asset for a longer period of time you get to realize that the price of such asset tend to increase in price when you launch the trading market and this scenario is as a result of high demand of the asset in the market with less supply of the token.

So if the staking is carried out collectively we will eventually notice the price of the asset on a rising trend as supply is limited.

Now the above only captured the merits regarding cryptocurrency assets staking with the demerits being neglected. It is about that time we discussed intensively regarding the demerits of staking cryptocurrency assets.

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DISAVANTAGE REGARDING STAKING DIGITAL CURRENCY

Whatsoever that has advantages surely do have disadvantages. As interesting as staking digital assets sounds it also do have certain disadvantages and I will be highlighting a few of these disadvantages for more emphasis regarding the teaching for today.

THERE MAY BE HIGH DUMP

Yes we all know that many digital currency traders are spot traders and as such they hold digital currency in their wallets for a long period of time waiting to notice a rise in assets price and then sell afterwards. Now if you are staking your digital assets for a long period of time there is every tendency that the price may drop down drastically and this movement is determined by the strong hands in the market.

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For example, a trader may have staked his digital asset when the price was high and few days after the stake he or she may realize a fall regarding the price of the said asset as such the trader is already at loss. So staking cryptocurrency as much as it profits traders, it can also make traders to be at loss especially when the price value goes down as a result of the activity regarding the said asset in the market.

High dump of that asset can lead to loss of capital as a trader get to watch the fall of the asset which has been staked for a particular point in time. So when there is a high let off regarding the asset, the price is equally affected and this is no profit at all but a huge loss.

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CONCLUSION

Staking digital assets comes with a mindset and a decision with the knowledge that eventualities are inevitable in the market. With such understanding regarding the market a trader will have no fear whether there would be a fall regarding the asset during staking for he or she already knows the outcome when things go south.

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And if you are new to the staking system just have it in mind that anything can happen while your asset is being staked. So the purpose of staking your digital assets should be worth it at the long run and if it is not then it is advisable for you to not stake as the digital market is a business arena where everyone is out to make profits with minimal losses.

Thank you all for having me today. I look forward to seeing you when next I'm here.