Subscribe Can you lose money staking crypto? Skip to main content


How the Saint Lucia Citizenship By Investment Program Can Benefit Crypto Investors Seeking a Tax Haven

  Photo by yousef alfuhigi on Unsplash Cryptocurrency investors are always on the lookout for tax-efficient solutions to minimize their tax liabilities. One option that is gaining popularity among investors is the Saint Lucia Citizenship By Investment Program. In this article, we'll explore how this program can benefit cryptocurrency investors looking for a tax haven country. Saint Lucia is a sovereign island country located in the Caribbean Sea. Its Citizenship By Investment Program (CIP) was established in 2015, allowing investors to obtain a second passport by making a qualifying investment in the country. Saint Lucia's CIP has become a popular choice for high-net-worth individuals and entrepreneurs seeking a safe haven to protect their assets and minimize their tax liabilities. Saint Lucia's second passport permits travel to 145+ global countries visa-free, including the United Kingdom, Singapore, Hong Kong, as well as the European Union countries. The Saint Lucia pass

Can you lose money staking crypto?

While investing, the first and most significant thing to consider is the danger implied. Things being what they are, is marking crypto safe? Of course, it is, yet there are certainly a couple of dangers implied.

As a rule, you can't "lose" cash from staking crypto essentially. What you need to pay special attention to are things like inflation and illiquidity, to give some examples. Considering how unpredictable cryptos are, there are chances that the coin you set ready for staking could fall. For instance, in the event that you stake your crypto and it loses value even after you acquired yields subsequent to staking, then, at that point, technically speaking, you could in any case lose cash.

What's more, assuming you're a day trader, you can't use the coins for quite some time or months and along these lines pass up on the chance to wager on opportunities. Therefore it's vital to be astute while picking which coins you need to stake.

Which crypto is ideal to stake?
Not all crypto is feasible for marking. Bitcoin (BTC), for instance, doesn't uphold staking since it utilizes an alternate strategy for approving transactions: proof-of-work. Generally, assuming a digital money is connected to a blockchain that utilizations proo-fof-stake as its  incentive mechanism, it very well may be qualified for staking.

Ethereum offers significant staking returns since it's one of the most well known altcoins in the market today. The normal pace of return for staking Ethereum is at 5-17% yearly.

Like Ethereum, Cardano is additionally a smart-contract platform. Cardano (ADA) is the computerized cash that drives the platforms proof-of-stake network. 

EOS is likewise used to help decentralized programs, similar as Ethereum. (EOS) can be staked to procure rewards averaging at 3.2%.

Cosmos permits different blockchains to execute with one another by means of interoperability. Different platforms support the staking of Cosmos (ATOM) including Coinbase, Kraken and Binance. Atom staking yields of 7% each year.

Tezos is an open-source network with Tezos (XTZ) as its local money. XTZ can be marked on different platforms like Kraken, Binance and Coinbase. The normal yield for staking XTZ is right now at 6%.

Polkadot, similar to Cosmos, supports interoperability between different blockchains. Being generally new, staking Polkadot (DOT) is upheld by a few platforms including Kraken, Fearless and Binance. The current normal yield for staking Polkadot is at 12% yearly.

#Digital currencies

Photo by Art Rachen on Unsplash