Why Investors Still Avoid Cryptocurrency Staking

A survey dedicated to the staking of cryptocurrencies was ordered by the platform for liquid staking ClayStack. They surveyed 999 respondents who actively invest in proof-of-stake cryptocurrencies and own assets worth $5,000 or more. Survey participants were from different regions of the world: Europe, Asia and the United States.

ClayStack CEO Mohak Agarwal said:

“The findings confirm our belief that in order for staking to become widespread, users should not be forced to block their cryptocurrencies to generate passive income from this type of asset accumulation. Steaking must evolve to provide users with its benefits, as well as allow them to participate in the DeFi ecosystem – this is where liquid staking comes in, which we believe is the future of the industry.”

To circumvent the token blocking period, 15% of respondents said they would prefer liquid staking. With this type of staking, investors can steak their cryptocurrency, but still have a steak amount freely available for any other purpose.

Key survey results

Investors who have no plans to steak digital assets will not change their minds due to lockdowns, hacks and technical risks.

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But 45% would change their mind and be willing to steak cryptocurrency. Under what condition? If only the yield was 15% or higher.

The most popular way to steak cryptocurrency? Set up your own validation node. There are others. These include using a third-party staking service or using an exchange for this purpose.

The main reason respondents don’t steak assets? Too long period of blocking assets.

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Others don’t steak cryptocurrency on the platform because they find higher returns in an alternative location. They are also concerned that they will not be able to sell assets if the market becomes volatile.

People would change their minds about staking if the minimum amount for staking was less. Investors also want clearer tax regulation of this type of earnings.

When it comes to staking, hacking is a major concern. Other problems relate to validator risk, market volatility risk, opportunity costs, and blockages or lack of liquidity.

Source

Also, 56% of respondents plan to steak cryptocurrency next year. This percentage includes people who have never been engaged in this type of earnings before. Most of them planned to steak between 20% and 30% of their portfolio. And they expected a 15% profit from the staking of digital currencies.

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