Crypto Staking Beginners always ask: Can I Lost my staked crypto
When staking cryptocurrencies, there are a few key risks to be aware of:
Price Volatility Risk: The value of your staked crypto can fluctuate, so the fiat value of your staked holdings and rewards may go up or down.
Counterparty Risk: If you stake on a centralized exchange or platform like Lido, there is a risk that the platform could be hacked or mismanage your funds. You don't have direct control of your private keys.
Slashing Risk: Some blockchains like Cosmos and Polkadot can "slash" or fine validators and delegators for misbehavior. If your validator gets slashed, you could lose a portion of your staked assets.
However, if you stake directly from a non-custodial wallet like a hardware wallet, and the blockchain supports native staking, then you maintain full control of your private keys and there is no risk of losing your staked crypto. The worst that can happen is missing out on rewards if your validator underperforms.
So in summary, the risk of losing your staked crypto depends on the specific blockchain and staking method. Staking directly from a non-custodial wallet is the safest option to avoid counterparty risk. But price volatility and potential slashing are inherent risks of staking in general.