There is no miracle investment and maskThis means that freezing cryptocurrencies over a long period, despite its characteristics, is not without risks. What are they and how to guard against them when possible?
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[EN VIDÉO] Bitcoin, how does it work? SII Group and the School of Advanced Digital Technologies (ETNA) have developed an online broadcast called Blockchain Revolution. She details the phenomenon of blockchain and bitcoin, a much talked about cryptocurrency. Here, exclusively for Futura, is an entire episode dedicated to the practical aspects of Bitcoin.
at Theme of cryptocurrency mask It has a good reputation for promoting easy-to-practice passive income with predictable returns. We install a crypto-asset for a certain period, and at the end of this period, we redeem a pre-determined reward. This reward is not without logic: the currency that we are Period Thus, it improves capital and thus improves investor confidence. Similarly, exchange (platform) on any one Period Crypto assets will benefit from it at various levels, particularly through the fact that it has these assets to manage transactions. So mask At first glance, it appears to be a win-win situation. Does this mean there is no risk in doing so? Away from this.
Here are the main risks associated with this process:
- Our currency bet He might see his path collapse;
- Opportunities can be missed;
- The platform chosen for mask can be hacked
- The ” dismantling Not always instant.
Let’s look at each of these cases in detail.
Currency price can collapse
Sometimes interest offered to mask particularly high. Let’s take an example of the cryptocurrencies listed on the reference site Staking rewardsRowan Siftchain. This coin offers a bonus of a whopping amount: 117.26% per annum. In other words: if we Period Rowan, after one year, we’re back 117.6! However, be careful, in the end, what we recover is rowan. How do we know what the status of this coin will be after a year?
At the time of this writing, if we Period 100 roan (investment of 0.14 * $100 and therefore $14), we are supposed to get 11,700 roan back at the end of the year. Theoretically, if Rowan’s price does not move, it will represent $1,638. So we get a great added value. If Rowan sees his value double, we’ll even get $3,276. Yes, but… If Roan’s value was divided by 100 after a year, the refund would be only $16.38, or $2 of capital gains in total.
What do you remember? It’s better to run mask » With a currency you fully trust, even if it means preferring a lower return. And therefore , Solana It only offers a bonus of about 6%. However, during 2021, this coin experienced tremendous growth and this trend can be reasonably estimated hard The long-term.
Of course, some people recommend sticker from stablecoins such as UDST andUST Or DAI because the value of this is always $1. And therefore , Staking rewards tells us that if we Period From USDT, the reward after one year is 8.78%. Yes, but… Let’s imagine that the dollar has seen a sharp decline in its value against the euro over the course of a year. In this circumstance, the capital gains made in the number of dollars can be neutralized by the fall in the price of this currency.
Opportunities can be missed
Property mask, is that a person paralyzes his assets during a particular Musnad. Imagine, for example, that an Internet user Period Rouen in January. In April, this coin saw its value double by 100. Then, as of May, it is back on track in January. if roan bet for one Duration More than a year, the netizen will not be able to benefit from the rise in April.
The platform chosen for mask can be hacked
If you have chosen an exchange to host mask From cryptocurrencies, this platform can do Hacking target And there may be a risk of seeing their crypto assets disappear.
In December 2021, two exchanges were hacked: AscendEX, which saw the equivalent of $77.7 million, while BitMart for its part lost about $200 million. In both cases, these platforms claimed that they would fully compensate customers affected by this attack. However, there have been notorious cases like Canadian website QuadrigaCX or New Zealander Cryptopia where exchange clients stole crypto assets they had set.
Note that these risks are low on platforms that have proven themselves over the years such as Coinbase, Nexo, Swissborg, or Coinloan. Of course, these platforms charge for this reliability by charging commissions for mask It is often higher than if one works directly, for example, on Pocket wallet dedicated to Code Grant.
The ” dismantling » not always instant
When you want to unlock your assets, there may be a period” dismantling Which can be up to 7 days or more.
Here are some examples of durations dismantling January 2022 figures:
- 7 days for Fantom FTM;
- 10 days for the EGLD of Elrond;
- 21 days for Atom of Cosmos ;
- 28 days for Polkadot DOT.
If you have planned to use your money at a certain time, you should take this potential delay into account.
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