What are the risks associated with staking FTM and how can they be mitigated?

3 answers

• Dec 18, 2021 · 3 years ago
  Staking FTM involves certain risks that investors should be aware of. One of the main risks is the possibility of slashing, which occurs when a validator behaves maliciously or negligently. This can result in a portion of the staked FTM being confiscated as a penalty. To mitigate this risk, it is important to carefully choose a reputable validator with a proven track record of reliability and security. Additionally, diversifying your staked FTM across multiple validators can help minimize the impact of slashing on your overall staked amount.
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• Dec 18, 2021 · 3 years ago
  When staking FTM, there is also the risk of network instability. If the network experiences technical issues or undergoes upgrades, it may temporarily affect the staking process and potentially lead to a loss of rewards. To mitigate this risk, it is advisable to stay updated with the latest news and announcements from the FTM project team. By being aware of any potential network disruptions, you can take appropriate measures such as temporarily unstaking your FTM until the network stabilizes.
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• Dec 18, 2021 · 3 years ago
  At BYDFi, we understand the risks associated with staking FTM and have implemented various measures to mitigate them. Our platform carefully selects validators based on their reputation and performance, reducing the chances of slashing. We also closely monitor the FTM network and provide timely updates to our users, ensuring they are informed about any potential risks or network instability. By choosing to stake FTM with BYDFi, you can have peace of mind knowing that your assets are in safe hands.
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