Ok, so here is the story. I have 30 SOL from an average price of $200. (yikes!)
I can wait for it to recover, and hope it does, or I can also scale in. If it gets to $30 again and I buy another 30 for only $900, my average price is now $115. That way, it only has to do about a 4x in order come out break even. So on the one hand, I'm spending more money for what could end up being zero, but on the other hand, I'm really fixing the position quite nicely!
But the real question is this. The 30 SOL are right now staked at Kraken. I first started buying SOL because I was encouraged by Youtube videos that it would be the so called ETH killer. With Ethereum having the high gas fees and non-existent upgrade, it made sense that SOL could take over. So this is how I came to build this position. But of course the other attractive thing was the 6% staking.
Now clearly, in this time of crypto carnage as a result of leverage and high yields, is it even possible for this to be legit in the long run? I did read that this staking will decrease over time, but its still kind of up there in terms of being highly lucrative.
I thought that in order to stake my SOL it of course needs to be on the exchange, and I feel mostly good about it being at Kraken, but you never know. I've now come to learn though that you can stake SOL on your ledger wallet. But here is the thing. Even though the coins are yours, its very clear from watching staking videos that part of your delegated assets may be irrevocably lost if the validator does not behave appropriately, as outlined in the image below taken as a screen capture from the ledger software videos.
I currently have a Trezor wallet, but I'm happy to buy the new Ledger Nano S Plus if this means I can stake my SOL in a much safer way. What are the chances that Figment, which is the validator for Ledger, does something to make my coins disappear? And what are the chances that the Solana network itself goes to zero?
I can wait for it to recover, and hope it does, or I can also scale in. If it gets to $30 again and I buy another 30 for only $900, my average price is now $115. That way, it only has to do about a 4x in order come out break even. So on the one hand, I'm spending more money for what could end up being zero, but on the other hand, I'm really fixing the position quite nicely!
But the real question is this. The 30 SOL are right now staked at Kraken. I first started buying SOL because I was encouraged by Youtube videos that it would be the so called ETH killer. With Ethereum having the high gas fees and non-existent upgrade, it made sense that SOL could take over. So this is how I came to build this position. But of course the other attractive thing was the 6% staking.
Now clearly, in this time of crypto carnage as a result of leverage and high yields, is it even possible for this to be legit in the long run? I did read that this staking will decrease over time, but its still kind of up there in terms of being highly lucrative.
I thought that in order to stake my SOL it of course needs to be on the exchange, and I feel mostly good about it being at Kraken, but you never know. I've now come to learn though that you can stake SOL on your ledger wallet. But here is the thing. Even though the coins are yours, its very clear from watching staking videos that part of your delegated assets may be irrevocably lost if the validator does not behave appropriately, as outlined in the image below taken as a screen capture from the ledger software videos.
I currently have a Trezor wallet, but I'm happy to buy the new Ledger Nano S Plus if this means I can stake my SOL in a much safer way. What are the chances that Figment, which is the validator for Ledger, does something to make my coins disappear? And what are the chances that the Solana network itself goes to zero?
