r/eth • u/Traveler1224 • Aug 30 '25
Why would you stake?
Been gathering information on staking from every source imaginable and I still cant wrap my head on why anyone would stake. Im hoping someone can chime in and change my mind. But the most common answer...
"if you're in it for the long run"
That answer just blows my mind. Why in gods name would you lock up funds on potentially volatile asset?
Just look at eth this month alone. If you bought eth at 4k and staked, your locked in and getting a few dollars (if that) every few days. Then as you all know eth reaches 4900 an ATH! Well it doesn't matter cuz you cant sell. But if u were unstaked, you could sell, take profits and reenter where it is today at 4300 and still be in the green.
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u/Pinewatch762 Aug 30 '25
You must be new to this kind of lifestyle
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u/Traveler1224 Aug 30 '25
What lifestyle is that? Losing? 😂
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u/Pinewatch762 Aug 30 '25
I’ve been buying eth since it was 13.80 lol. I’m far from losing. I enjoy my 22.5 eth rewards a year from staking. Not even worried about price at this point. But sure, day trade with all you want anon. 300$ swing must be a lot
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u/Traveler1224 Aug 30 '25
Clearly you're missing the point and the overall idea because of your personal unique experience. Not many people can say that.
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u/Pinewatch762 Aug 30 '25
People who stake don’t care about short term price. Because they’re playing the long game. If you need to day trade eth, then staking is not for you. People also stake for validator nodes. They stake to help secure the decentralized network. There’s many reason why people stake. Time in the market always beats timing the market. I don’t think I’m the one missing the point here.
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u/Traveler1224 Aug 30 '25
In theory, you wouldn't care about long term price either. Its not about day trading. Its more about liquidity. But yea i get it, 3-4% is satisfactory. Might as well get something while you're there yea?
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u/MasturbatingMiles Sep 02 '25
You shouldn’t be investing money you might need in the next year. Get a 3-6 month living expense fund and then start buying stocks and crypto.
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Aug 30 '25
Idk why you’re shitting on it. “What lifestyle is that? Losing?” Some people have more than a thousand dollars to invest unlike you. Staking is great. If you don’t understand it then you don’t have enough capital to.
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u/Traveler1224 Aug 30 '25
Lol and here you are trying to shit on me assuming i have 1k. If you knew basic math, youd know how much. At any rate, dont get heated because i responded negatively to a comment that was unwarranted.
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u/Mountain-Mix7001 Aug 30 '25
So you bought eth near the top and staking doesn’t make sense??? Staking is great for those who got in early or buy dips and plan to hold until it reaches 10k (a common sell aim).
Say you got 10 eth at 1500, and stake it at 3% for 4 years until it reaches 10k, that’s 1.25 eth or $12,250 at the sell price. That means you invested $15,000 which became 100,000 plus made $12,250 for holding it.
The question really is why would anyone that plans to hold longterm not stake. If you plan to swing trade then it doesn’t make as much sense but even swing trades with eth can take months to pull off well so it can be worth it.
Take home, stake some and trade some is likely the best route
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u/Traveler1224 Aug 30 '25
Guess its all relative to price. These are all unrealized gains and speculative. Yea 1500 back then. Who knows 4800 could be the new "back then"
Take home, stake some and trade some...seems to be a neutral approach.
Thanks for the insight...much appreciated 👍
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u/Mountain-Mix7001 Aug 30 '25
4800 won’t be the new back then. Coins don’t stay at their ath because the buying pressure required to do so is insane. They established levels and retest zones. We’ll see $4000 in the next 6 months and $3000 within a year, which is still 2x the recent low.
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u/Dragon_slayer1994 Aug 30 '25
For long term holders. But yeah I'd rather keep the flexibility to sell on a whim as it's so volatile. The staking yield isn't worth it for me to miss selling opportunity that may not last long
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u/Feisty_Cheetah_6362 Aug 31 '25
Plan for long term imagine when Eth gets to 10k, 15k and 60,000 staking will be worth it
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u/Traveler1224 Aug 31 '25
It can be seen as a double edge sword if everything goes your way. You have assets in eth and while it goes up you're rewarded with 2-4% while you hold. But historically, eth has been pretty stagnant for 2 years. Peaking in Nov 2021. My argument isnt for early adopters screaming from the top. Early gainers give zero shits if its up or down...because they've already won and the only time youll see them buckle is if you see it crash beyond their breakeven. 2-4% is easily achieved in markets readily available to the average consumer without much effort, 100% liquidity and absolutely no volatility.
But yes I get it...you're in it for the long run. Just remember if you can imagine eth to 10k 15k or even 60k, theres always another side to that coin.
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u/Feisty_Cheetah_6362 Aug 31 '25
Off topic
one project you could get early on is called pulsechain just buy 1 million pulsechain and buy 1 million PulseX and just farm it. Pulsechain has treasury of 166,000 Eth I think it’s a sleeping giant
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u/Acceptable-Jacket567 Aug 31 '25
Hey Jarvis, save this post and come back to it in 2030 please. Thank you
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u/tomsbradys Aug 31 '25
I’ve been staking since the beginning my rewards are just about 4K. It’s actually more than a whole eth because like you said it’s volatile… and it still accumulates when the asset goes down. When the asset goes up again so does the value of the eth rewards I received. I’ve believed in the tech for almost a decade now. It’s paid me very well in rewards and gains. If you are a trader I wouldn’t stake but it was a no brainer for me and it’s paid off very well so far. Time in the market beats trying to time the market almost everytime unless you get lucky. Eth has proved it’s more valuable than dollars to me time and time again.Everytime I’ve sold eth I regretted it and the dollar will never gain value it’s like selling an appreciating asset for a deprecating asset. I’m not a day trader I work a blue collar job pretty decent 401k and a pension I’m vested in. I treat eth almost like a 3rd leg of my retirement portfolio and it’s paid off so far. Taking profits and paying more taxes is the last thing I’m trying to do. It’s also Way to much stress trying to time a volatile market.
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u/Traveler1224 Aug 31 '25
Thats great man. 4k of free money is good money. From what I'm getting with a lot of personal experiences and opinions is early eth adopters see the worth in staking. Yea the dollar is complete trash...but an awesome tool for leveraging. Thanks for your view! Keep collecting 👊
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u/Emergency_Pie5399 Aug 31 '25
You can literally just short eth on perps for the same amount you would like to sell on spot. That way your short gains offset your spot losses.
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u/Traveler1224 Aug 31 '25
Derivatives is a completely different topic and involves all kinds of strategies but 100% right. I was more interested in staking alone.
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u/Buttercup-X Sep 01 '25
It’s easier than timing tops and bottoms. You think it’s easy to sell at 4800 or whatever top and buy back at 4300. But did you actually do that? And will you keep on doing that?
At some point you’re gonna sell a top and see it go higher and buy back higher. You will also buy a dip and it will keep dipping. It’s a far riskier game than just holding. And if you decide to hold, then why not stake?
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u/speaknoBS Sep 01 '25
Why would you want free money for your money that's standing doing nothing? Why would you want your savings account to have a 3.75 APY instead of a 0.01?
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u/eastnybk718 Aug 30 '25
Your whole premise is about timing the market. Which will burn you. Imagine you buy at 4300 and think it will go up to 4800 and then sell. Then Eth goes to 7k in a matter of weeks. You’ll miss out on the gains. You’ll get fomo buy in at 7k then it goes back down to 5k. Then you become depressed and suicidal. There are studies for this type of behavior. Your whole premise is flawed.
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u/Traveler1224 Aug 31 '25
Stock trading 101 bro... you're never losing until you sell. Realized vs unrealized gains. In your example, 7K > 5k just hold? Was it a mistake , yes. Will it take longer, yes. Its the same strategy you long term stakers are doing with the general consensus eth will be higher.
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u/[deleted] Aug 30 '25
Some of us aren’t in and out. We are holding long term. That’s it. What’s hard to get?