₿ Crypto & Web3
Staking Crypto: Rewards, Risks, and Realistic APY
Understand native staking, liquid staking, lockups, slashing, and smart-contract risk so your APY doesn't turn into permanent loss.
Staking Types
Native/Validator staking
(on L1 chain)
Delegated staking
(to validators, you keep custody)
Liquid staking tokens (LSTs)
for on-chain liquidity
Centralized staking
(exchange holds keys—be cautious)
Risks
Slashing for validator downtime/misbehavior.
Smart-contract risk (LST protocols).
Depeg/liquidity risk for LSTs.
Lockups & unbonding delays; price risk during exits.
APY Reality
APY varies with inflation, fees, validator performance, and compounding. Compare net yield after fees and potential depeg.
Frequently Asked Questions
Is liquid staking "safer"?
It's flexible but adds smart-contract and depeg risk.
Should I diversify validators?
Yes—reduces operator risk.
Tax impact?
Rewards may be taxable as income; check local rules.