In this episode of the Crypto Cousins, we are discussing a very important topic: why it’s a huge mistake to simply hold staking coins like MATIC.
Staking coins like MATIC both yield rewards and have potential for appreciation in price. It can be tempting to simply buy and hold them, but there are potential risks associated with this strategy.
In the case of MATIC, rewards are paid out in the form of ETH. This means that you have to pay gas fees to withdraw your rewards, or use a third-party service to do so. This can significantly reduce the amount of rewards you receive.
Furthermore, MATIC is a high-volatility asset. If the price of MATIC falls, your rewards will be worth less. If the price of ETH rises, the rewards you receive will be worth more. This means that you are subject to the fluctuations of the crypto markets.
Finally, staking rewards are not guaranteed. If the network is congested, you may not receive rewards for your staking, or you may receive significantly reduced rewards.
For these reasons, we don’t recommend simply holding staking coins like MATIC. Instead, we recommend actively trading MATIC and other staking coins in order to maximize your returns.