In part spider senses. Being a little more serious, in general POS is bad because it rewards holding rather than verifying transactions. That effectively creates bag-holders. Now the intent could be to discourage people from pumping and dumping as they do with so many shitcoins, but the thing is it doesn't work. People will still dump a coin when the price goes south. The problem is if people are having to hold their coins in staking wallets (usually not on exchanges) it means they can't move quickly if the market goes against them. It puts the whales at an advantage because they can dump their coins and people have less chance to get out before it crashes and burns.
So... Does that mean you prefer PoW coins that are ASIC resistant, like ETH?
Ultimately, nothing can ever be fully balanced. Some people will always have bigger bags than others, simply because some people have better money/risk management than others, meaning, they will grow and keep growing, while others will stay in the same place or lose money.
Secondly, good crypto doesn't build in a fucktonne of inflation. I do not like to hold crypto that isn't BTC for any length of time anyway - though if ETH and LTC are trending up vs BTC I'll usually happily punt some in that direction. However, inflation is a huge turn-off that makes me even more wary than normal. If a shitload of coins are being created all the time, if there's rewards of coin y for holding coin x, all these things have historically crashed and burned and I see no reason why that should suddenly and magically change. Often these sorts of schemes are simply exit scams and honestly I don't have any interest in being involved in those. Going back to an earlier post - someone correctly pointed out that yeah you might get 8% interest, but if the price drops 50% then it's no good to you. Profit comes from price movement, not staking, as price movement is more rapid than any staking income can be (and if the staking income is high enough that this is not the case [and I've seen coins promise 1000% returns which are now worthless] then it's a scam).
Well... You're not incorrect. For one, I staked my XRP for a fixed term higher APY for 3 months. When XRP reached 60 cents, I wanted to sell, because I knew it was overinflated, but couldn't. Then, the news came out of XRP's conflict with the SEC, and it dropped back to exactly where I bought it. Unfortunate? Yes. Lesson learned: Always use a flexible term if available.
It was also a relatively small part of my portfolio. Again, risk management.
Additionally, one has to decide for oneself what one wants to do. If you're investing, or if you're trading, are two completely different things. You can gain a lot more by trading, but the risk is also higher. If you're smart with your investments, you can dollar cost average during bear markets in the top 50 coins, and you'll pretty much be fine.
Re the latter part of your post - it's good that you were lucky but with shitcoins it's a casino. Sure you might get lucky, but it's throwing chips on a roulette wheel and hoping for the best. Crypto is a risky investment vs shares and currency trading, so I prefer to trend towards lower-risk crypto.
Honestly, I don't consider it luck. Havven was one of the first DeFi tokens. When I read the white paper it looked like a great idea and project. Could it have been a scam? Sure. That's why I only invested $50 in it and not $1000. I wouldn't miss that money if the project shut down.
WIZ on the other hand, it was supposed to be a broker, sort of like eToro, but focused on crypto. Ultimately the project stalled, got into legal issues and even then, I got to convert all my WIZ back to ETH, so, it's not a total loss.
All investments have risk. The thing is, picking random cheap coins is stupid. It's always important to read the white paper and see if it offers something unique in the space. There are indeed many scams and clones out there that offer nothing.
I'm thinking in investing in Solana right now, with a small amount. It's the only time-based PoS blockchain out there.
Two main things I have to add:
- The word delisting has been thrown around a lot lately, in regards to XRP. If it was delisted, you wouldn't be able to hold your coins on the exchange still. They are HALTING all trading pairs, not delisting. When the issues with the SEC get cleared up, the trading will resume again. With that being said, XRP is a shit coin but that doesn't mean you couldn't make money off it
I fully agree. And people forget that there's a world outside the US. Things are quite normal for XRP (outside of the price) everywhere else.
I honestly don't base my decisions on news. I look at price charts and that's it. I knew it was the time to sell XRP based on the chart, before the news came out. Not saying it's infallible, but this time, it worked, except for the fact that I was locked in for a higher APY lol. I expected this run to come later and for the term period to end just before I would have to sell. Oh well. I'll simply hold it and sell it when it rises again. If it dies, it's fine with me too. It's a mere 2% of my total investments.
- The other is in regards to DeFi and unsustainable APY's. Remember that if you are putting your coins into some DeFi protocol that is promising obscured annual return rates, you better have done your research and understand HOW they are actually pulling in this yield. Regardless, it generally ends in you needing to buy some Shitcoin to pool with your non-shit coin which is suspect.
They generally make money with the staked coin. The money you use to buy their coin will go to other investments, making the money grow before they have to return the coin/tokens to you. It's basically the same thing that banks do with fiat when they give you a higher interest on a fixed term deposit. But because different blockchains cannot work with each other (yet), they have to do create a separate token to differentiate themselves from other platforms or the main blockchain.
