Which is better, staking or investing?

[Ataiwo913]

Staking is the process of investing in a project which is built on the PoS~Proof of Stake algorithm. Your coins are locked on their specified wallet for a period of time and you earn a percentage of your holdings in time intervals. Proof of stake is an alternative to the Proof of work algorithm used by the Bitcoin network to reward miners.
Staking is similar to mining on the Bitcoin network

My most important question: Which is better, staking or investing?

Staking is a form of investing, you'd need to specify what form of investment to compare it with.

Staking and investing are two different ways to generate returns from cryptocurrencies. Here's how they compare:

Staking

- Staking involves locking up your cryptocurrency tokens to support network operations and receive rewards in return.

- You are essentially lending your tokens to the network to validate transactions and earn staking rewards as a result.

- Staking rewards tend to be higher than traditional investment returns, ranging from 5% to over 20% annually depending on the cryptocurrency.

- Staking generally has lower risk since your principal investment remains the same - you aren't actually investing it, just locking it up.

- You don't need to time the market since staking rewards are continuous as long as your tokens are staked.

Investing

- Investing involves buying and holding cryptocurrency tokens with the hope that their price will appreciate over time.

- You are speculating on the future price movements of the tokens based on market and technical factors.

- Investment returns depend on token price appreciation and can be volatile, with both large gains and losses possible.

- Investing carries higher risk since your principal investment fluctuates with the market. You could lose some or all of your capital.

- You need to time your entry and exit to maximize returns since cryptocurrency prices are constantly changing.

Overall, staking tends to offer more consistent, lower risk returns while investing offers the potential for higher returns but with more volatility and risk of loss. A mix of the two strategies - staking some of your holdings and investing others - can provide a good balance for generating cryptocurrency income.

Hope this helps! Let me know if you have any other questions.

[Lantind]

For me it is better to invest when compared to staking, because investing we have the freedom when to take our investment results without having to wait for a certain time that has been set by a project as happens in staking they lock our assets until the time they have set so we have a little doubt when staking, Because the certainty of profit is not guaranteed when the staking process ends.

Sometimes someone is aiming for freedom in managing their assets, so they will choose to invest instead of them choosing the staking option, because this staking has been locked within a specified time frame and this way freedom is not included in staking, even though both are equally good options, and maybe people will choose their own direction.

[Uruhara]

For me it is better to invest when compared to staking, because investing we have the freedom when to take our investment results without having to wait for a certain time that has been set by a project as happens in staking they lock our assets until the time they have set so we have a little doubt when staking, Because the certainty of profit is not guaranteed when the staking process ends.

Sometimes someone is aiming for freedom in managing their assets, so they will choose to invest instead of them choosing the staking option, because this staking has been locked within a specified time frame and this way freedom is not included in staking, even though both are equally good options, and maybe people will choose their own direction.

And actually from a security point of view, keeping our assets on the exchange and staking there is very risky when there is bankruptcy on the exchange. which can make us unable to withdraw our assets on the exchange. so for me investing by buying like bitcoin and withdrawing it to my personal wallet is the best and safest.

And if it's about staking Altcoins I would also prefer to avoid it. because take a look at some of the altcoins that offer staking profits that are even hundreds of percent per year. but try to calculate it with the decrease that occurred in the altcoin. it turned out that the profit we received could not cover the losses we experienced from the decrease in the price of the altcoin that we were staking.

so even though altcoins have prices that haven't decreased as much as ETH. still I prefer to keep it in my personal wallet and avoid keeping it on exchanges and staking in it.

[KennyR]

Staking gives good chance of making big fortune, but in the volatile market it is really hard to find the right cryptocurrency for the purpose of staking. Going with the top order will give the best, but the same being into locked position will sometimes eat the profit. So, it is kinda gamble.

With investment there'll be higher risk, and we were able to learn more about the cryptocurrencies. Whenever we prefer to stake or invest, the prime focus needs to be on the market as well as the security. Another important thing, one shouldn't be so greedy to go with some unknown cryptocurrency investment which could end up losing all the capital.

[Jatiluhung]

The open blockchain platform Harmony has announced that it will start supporting staking from now, in an effort to create a blockchain-based infrastructure.
source: https://www.harmony.one/
Of course, as I know, there are many exchanges that support staking.
I want to fully understand what is staking and what are the best coins and platforms that we can do staking and give good profits?

My most important question: Which is better, staking or investing?

Previously I did not understand much about anything about how to store our assets so that they remain safe. It was at the beginning that I started to know about crypto. At that time I had staked several altcoins and one of them was a stable coin. But it didn't take me long because later I learned about how to secure my crypto assets and avoid having to store them on centralized exchanges. so that I even canceled my assets that I staked and then withdrew them to Hot Wallet. I didn't know Cold wallet at that time. So since then I prefer to just invest and not really interested in staking. because I don't trust enough to keep my assets in a centralized exchange.

[Renampun]

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Sometimes someone is aiming for freedom in managing their assets, so they will choose to invest instead of them choosing the staking option, because this staking has been locked within a specified time frame and this way freedom is not included in staking, even though both are equally good options, and maybe people will choose their own direction.

both staking and investing can be profitable, but depending on the situation both are very good to be used, for example, I keep staking some of my assets and hold the rest in my wallet. I usually stake stablecoin assets as a precaution if in the future my investment experiences a significant decline.

because after all you need reserve assets to be able to take care of future situations or you need emergency funds for certain situations, for example funds for operations or various other needs. and usually I make these funds in the form of stablecoins and stake them on credible CEXs like Binance. even though they offer quite a small interest rate at least my assets can increase little by little.

[awik p]

I personally prefer investing rather than staking, this is because of my situation and condition, which I just want to think simple. by investing we buy crypto assets and store them in personal wallets, until it's time for us to sell. this is different from staking where our contract is within a certain timeframe and when we want to sell it while the staking period has not finished yet we can't do anything, so I don't want to be like that, on the other hand staking on new altcoins will also be a risk in itself, because fluctuations are very high, so it is not suitable for the long term

[Maidak]

I personally prefer investing rather than staking, this is because of my situation and condition, which I just want to think simple. by investing we buy crypto assets and store them in personal wallets, until it's time for us to sell. this is different from staking where our contract is within a certain timeframe and when we want to sell it while the staking period has not finished yet we can't do anything, so I don't want to be like that, on the other hand staking on new altcoins will also be a risk in itself, because fluctuations are very high, so it is not suitable for the long term

You can also stake with stablecoins, but the stake risk is very high while the profit is very low. Most staking platforms today are centralized, and leaving assets on a centralized exchange is already a huge risk. In addition to our assets being locked for a certain period for staking, these platforms can collapse at any time, and our assets will disappear. Don't forget what happened to centralized staking and lending platforms like Celsius, and blockFI...

[bayudndy]

Staking can be considered a form of investment, as it involves pledging funding to earn rewards or income from the cryptocurrency network. However, it has its own characteristics and risks compared to other investment strategies. Bets can be risky, especially when investing in projects without conducting proper research. Investing in low-quality or unreliable projects can lead to low returns or even capital losses. Furthermore, the security and custody of your staked coins should be carefully considered. So when engaging in staking or any form of investment, it is essential to conduct proper due diligence, diversify your investments, and manage risk carefully.

[Joshapat]

We could say almost all the top 10 rankings today are red, and bitcoin is also red again so the hope of touching $27k has not been achieved, this makes us have to be patient waiting, instead of storing bitcoin in a wallet it's better to use it for staking, even though the APR is higher we get small but this thing is better because staking on spot exchanges doesn't charge anything.

[Balmain]

Stake is a different investment method. Here, the coin you stake is very important and you will make proof of stake for which coin. In addition, you need to be as patient as the investment. Many criteria should be considered. I remember the first public sale of Harmony on Binance, a project with a long history and its origin Binance. I didn't look at stake rates etc. in full. But for me, staking is a good investment method, of course, the coins I stake should be free, but it makes me mentally tired to think that they are stuck when they are locked.

[Semar Mesem]

The current market which is red makes us have to move assets to staking types, lots of staking options without being bound by time and costs so when the price rises we can finish staking, by staking we can get additional income even if the nominal is large then we also get passive income.

[nlovric]

I personally prefer investing rather than staking, this is because of my situation and condition, which I just want to think simple. by investing we buy crypto assets and store them in personal wallets, until it's time for us to sell. this is different from staking where our contract is within a certain timeframe and when we want to sell it while the staking period has not finished yet we can't do anything, so I don't want to be like that, on the other hand staking on new altcoins will also be a risk in itself, because fluctuations are very high, so it is not suitable for the long term

I recognise your viewpoint. Personally I dislike staking because of the limited potential returns and the huge price volatility of altcoins which makes it rather hazardous. When you stake, you might get a respectable APR but there's no assurance that the price of those coins will be stable and your money is tied up for a certain amount of time. Personally I tried staking TRX but it did not result in a lot of money for me. Furthermore I staked ATOM tokens to qualify for the Airdrop but regrettably I was not eligible and lost money as a result of a substantial drop in ATOM's price. If someone is still interested in staking I would advise taking stable currencies into consideration because their prices typically hold steady over time ensuring possible gains.

[Fredomago]

I personally prefer investing rather than staking, this is because of my situation and condition, which I just want to think simple. by investing we buy crypto assets and store them in personal wallets, until it's time for us to sell. this is different from staking where our contract is within a certain timeframe and when we want to sell it while the staking period has not finished yet we can't do anything, so I don't want to be like that, on the other hand staking on new altcoins will also be a risk in itself, because fluctuations are very high, so it is not suitable for the long term

I recognise your viewpoint. Personally I dislike staking because of the limited potential returns and the huge price volatility of altcoins which makes it rather hazardous. When you stake, you might get a respectable APR but there's no assurance that the price of those coins will be stable and your money is tied up for a certain amount of time. Personally I tried staking TRX but it did not result in a lot of money for me. Furthermore I staked ATOM tokens to qualify for the Airdrop but regrettably I was not eligible and lost money as a result of a substantial drop in ATOM's price. If someone is still interested in staking I would advise taking stable currencies into consideration because their prices typically hold steady over time ensuring possible gains.

Passive even in a small profits that can be converted, unlike with decent to huge APR the volatility will hurt your investment once the value dropped massively. Most of the time the value had a hard time to pump back, your money will be stuck just like what you have said. It's really a decision to make that needed a deeper study and research to convince yourself with what are the possiblities and how you can embrace whatever the outcome might be.

[nlovric]

Snip...

I recognise your viewpoint. Personally I dislike staking because of the limited potential returns and the huge price volatility of altcoins which makes it rather hazardous. When you stake, you might get a respectable APR but there's no assurance that the price of those coins will be stable and your money is tied up for a certain amount of time. Personally I tried staking TRX but it did not result in a lot of money for me. Furthermore I staked ATOM tokens to qualify for the Airdrop but regrettably I was not eligible and lost money as a result of a substantial drop in ATOM's price. If someone is still interested in staking I would advise taking stable currencies into consideration because their prices typically hold steady over time ensuring possible gains.

Passive even in a small profits that can be converted, unlike with decent to huge APR the volatility will hurt your investment once the value dropped massively. Most of the time the value had a hard time to pump back, your money will be stuck just like what you have said. It's really a decision to make that needed a deeper study and research to convince yourself with what are the possiblities and how you can embrace whatever the outcome might be.

Brother, You have presented a convincing case for the dangers of betting on or investing in staking or other assets that are very volatile particularly when their value falls sharply. When this happens it could be difficult for the value to rebound leaving your investment momentarily helpless. Investment decisions should be carefully thought out with significant research and analysis to comprehend the possibilities and possible results. You shall be able to make better decisions and be more equipped to deal with any eventuality if you do this.

[Uruhara]

The current market which is red makes us have to move assets to staking types, lots of staking options without being bound by time and costs so when the price rises we can finish staking, by staking we can get additional income even if the nominal is large then we also get passive income.

As long as you trust that the exchange you are staking on is safe then maybe it can be done. But I personally prefer keeping my assets to a cold wallet if it's bitcoin. but if it's Altcoins then I buy more when the market is red because I think it's the right time to increase my investment amount in altcoins as well as bitcoins.

[S A KHAIR]

The current market which is red makes us have to move assets to staking types, lots of staking options without being bound by time and costs so when the price rises we can finish staking, by staking we can get additional income even if the nominal is large then we also get passive income.

As long as you trust that the exchange you are staking on is safe then maybe it can be done. But I personally prefer keeping my assets to a cold wallet if it's bitcoin. but if it's Altcoins then I buy more when the market is red because I think it's the right time to increase my investment amount in altcoins as well as bitcoins.

Altcoins are worth investing in as their returns are many times higher than bitcoin. But is investing in altcoins at this point really suitable? Especially with old altcoins, they have never been a good choice for investment. Don't forget what happened to old altcoins of the 2017 bull season. All of them were replaced in 2021, and I believe that during the upcoming bull season, altcoins in 2021 will also be replaced by newer altcoins.

[Mate2237]

My most important question: Which is better, staking or investing?

Other users have answered your question in different ways basically the staking and the investment. Everyone has their say. And my say is that you can't compare investment to staking.  You can read here for more information on staking.  Investment is much more longer in Profit than staking. Although the way I look at it. They are almost the same in content.

[Kadal Ijo]

Staking is the easiest way to get extra income while waiting for the price to go up, I've been staking a lot of coins like BNB, stable coin, MATIC and others on spot exchanges and when I left almost 6 months the results were very satisfying, the best thing right now when the market while red is staking and don't just hold coins.

[KiaKia]

This journey of staking most times have bad ending, and that's because most of those projects turned scam or they failed to survive through the bear market, if you really want to enjoy staking, start staking when we are just about to enter the next bull market.

If there is a new project on the block like Arbitrum or Aptos then those are good ones for long term staking because they will surely survive through any bear market, they have the money, and big institutional investors.

I only tried staking twice and I don't feel comfortable about it, you need to leave your assets in the hands of another, this is why staking is risky, I will rather just hold for long term instead.