is stacking safe on exchanges?

Hi,

There are a number of exchanges which are now offering stacking, I wanted to know is it safe? as the saying goes "if you don't own the keys then you don't own them". With the recent hack of KuCoin do you think we should keep our funds there?

Let's assume, while staking if our funds get hacked will exchange be responsible for the funds? Lastly, do you think 5% Per Anum is a worthwhile rate for staking?

Thanks,
Anti_dote

There are a huge number of trustworthy exchanges that even if they will be hacked nothing gonna happen. For example Binance, they also have Binance Smart Chain where you can lock funds safely. Because binance is responsible for the returning of funds of their investors.

5% is more than a bank will give you.

As for safety .. it's a centralized exchange. Your funds depend on the insurance of the company. You trust them as much as you trust a bank.

Every exchange has been hacked in the past so it's only a matter of taking responsibility. Binance is better compared to others right now and provides a larger number of coins that can be staked there... If there is a platform of the native coin where you can stake then its good to go there... If not or you have fewer coins then better to stake on the exchange.

alurosu said:

5% is more than a bank will give you.

As for safety .. it's a centralized exchange. Your funds depend on the insurance of the company. You trust them as much as you trust a bank.

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In fact, it performs banking services without intermediaries.

you can stake yourself, not on exchange, and cut out the 3rd party risk.

for example, Cardano (ADA) has staking right from Yoroi/Deadalus wallet, no exchange needed.

jasonforrest said:

you can stake yourself, not on exchange, and cut out the 3rd party risk.

for example, Cardano (ADA) has staking right from Yoroi/Deadalus wallet, no exchange needed.

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I am more interested in ETH staking.

anti_dote said:

I am more interested in ETH staking.

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Which exchanges saying they have ETH staking? pretty sure ETH staking isn't available yet, correct me if i'm wrong pls i'd like to know too

jasonforrest said:

Which exchanges saying they have ETH staking? pretty sure ETH staking isn't available yet, correct me if i'm wrong pls i'd like to know too

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I downloaded this app called Crypto.com they are offering 5% Per anum on ETH. so just wanted to know how legit it is.

Crypto.com is legit.
I do have acct there will check it out too, thanks for the info

Staking using Binance, crypto.com etc (which is really just DeFi yield farming with an intermediary) is incredibly risky (as it is anywhere), and basically what you're doing is short changing yourself as well by using an exchange to do it.

You could go directly to any DeFi project, and start liquidity providing directly with them.. because that's all Binance and Crypto.com and a bunch of other platforms are doing.. they take your crypto that's "staked" with them, then to send it to liquidity pools, make double as much or more interest/yield and then keep the difference.

Now there's loads of risk in liquidity providing anywhere.. DeFi is super new and any of these projects could implode. If that happens you won't get shit back most likely, they say as much with a lot of their disclaimers.

So you're absorbing the same amount of risk as if you just went to Compound, Uniswap, Curve or YFI, and instead of at least getting the full whack of yield that you should, you're giving away some to Binance because they seem "safer".

If you're going to take the risk of staking ETH, then research yEarn.. it basically finds the best way to use your funds for yield farming to get the most back and does that for your algorithmically.. it's a good hands-off option, and using it is not hard either.

Your assets are never safe on any exchange. Stake coins yourself.

SuperKingCheese said:

Your assets are never safe on any exchange. Stake coins yourself.

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To be fair Binance has the SAFU fund, so it seems a lil safer than most others. But I do agree, stake yourself, not your keys not your crypto

Yes, depends on a trutflow

if you want to stake you can safely do outside of exchange using ledger or trezor

Coins are never 100% safe on any exchange.

If you are not an active trader do not keep coins on an exchange.