Flexible and Locked Staking

​​Article No: 3

Date: 09/10/22

Topic: Flexible and locked staking

Hi everyone Hope you are doing well today we are going to discuss about staking so,

💡 Staking is one of the ways to earn interest on Cryptocurrency and crypto platforms offer either flexible and locked staking options.

In flexible staking, although interest yield is usually low, users can withdraw their asset anytime. For locked staking, interests are usually higher but users can only withdraw their asset after a specific lock time has elapsed.

While some users prefer flexible staking because they can withdraw their assets anytime and can even sell them off before a major dump or reversal in performance, others prefer locked staking because it offer more rewards which can result in profit when the asset price rise reasonably by the time the unlock period is over. Also, many platforms offer additional add-ons incentive to users who commit to lock assets for longer period.

The strategy is simple if you are doing staking you see project tokens and its value in the long run.If the token price is good you can risk the value and stake it for long run which is locked staking.However, the staking token price should be an investment for long run not for scalping trade. If the token price reduces its value more than the benefits of staking and withdrawal fees , its still better to withdraw token immediately as such in bear market condition.

Both staking have benefits and limitations but for long term INVESTORS Locked staking is preferably the best moreso in the well known crypto

❔Flexible Vs locked staking: Which one do you think is better based on ROI, profit value of staked asset and interest generated when staking ends?

🤔 Will you be willing to lock up your asset in staking pool for higher APY or because you hope that the price would have risen by the time lock time elapses which could result in higher profit OR will you go for flexible option because of the possibility for staked asset value to depreciate and there may be need for emergency withdrawal?

Thanks for reading!