What Is Crypto Staking Risk. Well, hold your horses, staking does come with certain risks: With staking crypto, the risks are crypto volatility, slashing, losing your mnemonic or keys, and validators not paying your rewards.
Ethereum’s most promising upgrade has been delayed once again despite promises of a summer release. There can be no assurance that any cryptocurrency, or other digital asset is or will be viable, liquid, or solvent. Staking often requires a lockup or “vesting” period, where your crypto can’t be transferred for a certain period of time.
Under this context, crypto users purchase and hold crypto intending to lock it up to be rewarded.
The risk of being scammed by the staking platform The risk of losing value due to negative price movements. The token that gives its holders a 101% return a year according to staking rewards is livepeer (lpt), a cryptocurrency with two main trading pairs: When you stake, you lock.