It's the weekend again, sharing some valuable insights with the bros 💰. This may be one of the differences between me, a crypto enthusiast, and other influencers. When the weekend comes, I share something valuable with the bros; teaching someone to fish is better than giving them fish.
Many bros actually provided feedback in the comments that although staking activities have high rewards, they are afraid to participate, fearing being 'rug pulled' and losing their principal, especially with high gas fees when staking on the Ethereum mainnet.
So, the bros wondered, doesn't Master Xia fear being 'rug pulled' or high gas fees? I also fear these things. So how do we avoid them? Let's start discussing this.
1. What to do if you're afraid of losing your principal when staking?
For instance, the METIS staking activity in the Binance wallet requires staking at least 1 METIS, which is actually quite expensive, costing $35. Many bros find the initial investment cost high and start to hesitate. If you ask for my advice, I would say it's still feasible.
(1) Take a look at the number of participants and calculate how much reward you can get.
The rules of this activity actually consider both small investors and large holders; for small investors, if you have a prize pool of 100,000 yuan, it's divided according to the number of people. Now I see there are over 5,000 participants, which means each account probably gets around $20 in rewards. On the other hand, a large holder can probably get about $1 to $2 in rewards, and if the number of participants increases, the final reward might be around $20.
(2) Also check the technical/fundamental aspects of the token to see if you are buying at the bottom or the top.
Next, let's take a look at the technical K-line of the METIS token. It's clearly showing a W-bottom trend, and it may oscillate for a while before breaking upward. METIS is also a layer 2 solution, and its market capitalization is considered low; combined with the macro fundamentals of Trump being in power, it is a long-term positive, and it shouldn't fall into a bear market during the staking period...
If you have a profit of $20, and if a loss occurs, it is still within a controllable range, then you can confidently stake; however, if the gas fee is $10 when you stake, that’s too expensive! (For example, in the previous Binance wallet Fluid activity, staking fusdc and Ethna activity)
2. What to do if the staking gas fees are too high?
If the gas fees are too high, then just wait for them to come down before staking! You can search for gas fees in your browser, and you'll notice a pattern. Usually, around noon or between 1-2 PM on weekends is when it’s the cheapest (about 2 Gwei), because at this time, Americans are asleep and people in China are taking a nap, resulting in the least on-chain activity and the lowest gas fees.
If staking rewards are not first-come, first-served, then this is the time when the staking gas fees are at their lowest, and the costs can be controlled.
Well, in the end, it's actually about calculating the input-output ratio of a staking activity. It's like opening a milk tea shop offline. If you invest 250,000 yuan, and you can earn 500,000 yuan in a year, then you will definitely go for it. But if it takes three years to break even, then you definitely can't do it.
Thank you for getting this far. I believe that those who clicked in are diligent and eager to learn crypto enthusiasts; I believe we will definitely succeed and make a lot of money! If this article is useful to you, feel free to follow Master Xia, like, and share. Finally, I wish the bros good luck in the Year of the Snake and may all your wishes come true!
