A kind of interest for which you get more shares of the cryptocurrency.
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@Staatsmann Is there anything to consider when it comes to taxes?
Can you lose your cryptos as a result?
Any other risks? 😬
Can you lose your cryptos as a result?
Any other risks? 😬
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•@PiHu Taxes are again dependent on your tax liability.
The one-year holding period for staking is no longer applicable and is replaced by a ten-year holding period.
There is a risk of loss if the staking is carried out by a third-party provider and the provider screws up.
As far as I know, direct on-chain staking is risk-free, except for the tax issue.
If the staking is offered by a third party provider, there is the risk of loss due to insolvency. But I'm not exactly 100% sure.
@stefan_21 You probably know a lot more about this than I do.
The one-year holding period for staking is no longer applicable and is replaced by a ten-year holding period.
There is a risk of loss if the staking is carried out by a third-party provider and the provider screws up.
As far as I know, direct on-chain staking is risk-free, except for the tax issue.
If the staking is offered by a third party provider, there is the risk of loss due to insolvency. But I'm not exactly 100% sure.
@stefan_21 You probably know a lot more about this than I do.
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•Thank you very much for your information 🫶
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@Staatsmann absolutely no guarantee - so please check again yourself - but as far as I know, the 10-year holding period no longer exists due to staking. However, the staking profits must be taxed.
@PiHu I don't even know where to start. Roughly speaking, there are various consensus mechanisms (which means "how is it decided who is allowed to attach the next block to the blockchain"), the best known of which are probably Proof of Work and Proof of Stake.
Proof of Stake networks do not decide this with "work", i.e. energy and time spent by the network participants, but via a "stake". In simple terms, this means that you lock away your coins for x months, have no access to them in the meantime and, depending on the size of the stake, may be allowed to stake the next block and collect the block reward + transaction fees - this is the "interest".
As the requirements for staking yourself are very high (for ETH, for example, you need at least 32 ETH), there are service providers who take care of this for you. You then give your coins to a service provider, who stakes them and you then receive the interest from the service provider on a pro rata basis.
And yes, you no longer hold your coins yourself and are completely dependent on this service provider. You can think of it a bit like lending for interest :)
@PiHu I don't even know where to start. Roughly speaking, there are various consensus mechanisms (which means "how is it decided who is allowed to attach the next block to the blockchain"), the best known of which are probably Proof of Work and Proof of Stake.
Proof of Stake networks do not decide this with "work", i.e. energy and time spent by the network participants, but via a "stake". In simple terms, this means that you lock away your coins for x months, have no access to them in the meantime and, depending on the size of the stake, may be allowed to stake the next block and collect the block reward + transaction fees - this is the "interest".
As the requirements for staking yourself are very high (for ETH, for example, you need at least 32 ETH), there are service providers who take care of this for you. You then give your coins to a service provider, who stakes them and you then receive the interest from the service provider on a pro rata basis.
And yes, you no longer hold your coins yourself and are completely dependent on this service provider. You can think of it a bit like lending for interest :)
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@stefan_21 I would be interested in your opinion on the new offer from TR. TR claims to store the coins in cold wallets, but this is certainly not the same as having your own wallet. Could it still be an intermediate solution between storing coins online in the app, e.g. at Strike, and storing them securely in your own wallet?
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@PiHu yes, you could lose them through slashing bison, for example, has taken out an insurance policy with the reinsurers to protect the investor
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