Hey everyone! I’m completely new to cryptocurrency and just made my first purchase of TAO tokens through a centralized exchange. I keep reading everywhere that you should never leave your crypto on exchanges for security reasons, so I want to move my tokens to a safer place.
I’ve been looking into different storage methods and came across the option to stake my TAO while keeping it secure. I have a few questions about this:
- What kind of returns can I expect from staking TAO? Are we talking about daily, weekly, or monthly rewards?
- When I stake my tokens, do they get locked up for a specific time period, or can I withdraw both my original stake and any earned rewards whenever I want?
- Are there any risks I should know about when staking?
Any guidance would be really helpful since I want to make sure I’m making the right decisions with my investment. Thanks for your help!
welcome to crypto! i’ve been holding TAO for like 8 months now. staking gets u around 12-15% annually, but it bounces a lot. oh, and pick validators that actually perform well or ur rewards will be trash. keep some unstaked for trading bc that 7-day unlock period can really hurt when prices rocket.
Perfect timing on this question! I’ve been wondering about the same stuff. That 10-18% APY sounds solid compared to regular savings accounts, but I’m curious about something nobody else covered…
How do you pick validators? What should newbies look for? Is there a ranking system or do you research each one?
@Hugo_41Cook - maybe start by staking just part of your TAO first? Less stressful than going all-in, especially since you’re new to crypto.
Also, what exactly are “network conditions”? What makes APY fluctuate so much? Just supply and demand or other factors too?
Sorry for the question dump but staking’s way more complex than I thought!
Good call moving TAO off the exchange - way better for security. I’ve been staking TAO and usually see 10-18% APY depending on network conditions. Rewards come in daily, which is nice. Your tokens aren’t locked up, but there’s a 7-day unstaking period so plan ahead if you need liquidity. Make sure you pick solid validators since sketchy ones can hurt your rewards. And double-check those wallet addresses - one wrong character and your tokens are gone.