The Difference Between Staking and Investing

[Kez1817]

As I read some post here, I found out that many people in crypto space are still confused between the staking and investing. I just want to give some insight about the difference between this two so that you can decide what to choose. You can add more about it so that it can give knowledge to others.

As what I have read and searched:

Investing is a way to potentially increase the amount of money you have. The goal is to buy financial products, also called investments, and hopefully sell them at a higher price than what you initially paid. .
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.

While;
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards. In most cases, you'll be able to stake your coins directly from your crypto wallet, such as Trust Wallet.

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

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[goaldigger]

Investing are more effective compare to staking especially if you have a good trading skills and know when to buy and sell while staking is just fully depending on how the network work and you are stuck into one project only which can be more risky. You don't need a huge capital just to be more profitable, you need to learn and more experience about the market and you can increase that capital thru your earnings over time, choose wisely always.

[BIT-BENDER]

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

What I am see here is "PROFITABLE, EARN" in investing and staking, am not nimble in staking but I know about investments and investing and for long I have thought that explain it is technical/sensitive, same should be applicable to staking, that PROFITABILITY, GAINS in the two goes with loses, thats right, you may not acknowledge this if you a freak to optimism, but the possibilities are eminent.

[bL4nkcode]

both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks

Profit doesn't depend on capital.

Staking does not mean profit, the coin your staking may increase by number but that doesn't mean profit. Investment, on the other hand, is different it requires broader knowledge, skills (a bit), and analysis.

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

[Tytanowy Janusz]

Basic knowledge ... your post is below this.

1 - staking involve investing. they should never be considered separately
2- here we come to quantitative and qualitative ROI - you may get 20% from stacking and still be on loss when your coin dump 50%
3 - investing does not give much higher/lower percentage of profit. It is completely different.
4 - you should also write something about gross/net profit from stacking. If you have 10% annual from stacking while coin supply grow 8% annually than your net profit is equal to 2%. Whats better? stacking a coin with 10% annually with 8 % supply grow (2% net profit) or holding coin without stacking that is deflationary (burn 7% of supply annually)

And maaaany more that should be added to call your post valuable knowledge.

[laredo7mm]

As I read some post here, I found out that many people in crypto space are still confused between the staking and investing. I just want to give some insight about the difference between this two so that you can decide what to choose. You can add more about it so that it can give knowledge to others.

As what I have read and searched:

Investing is a way to potentially increase the amount of money you have. The goal is to buy financial products, also called investments, and hopefully sell them at a higher price than what you initially paid. .
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.

While;
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards. In most cases, you'll be able to stake your coins directly from your crypto wallet, such as Trust Wallet.

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

I think staking is better than investing. By staking a token you will get rewards in that token which means it will increase your portfolio slowly. Also staking is also a kind of investment because you need to buy those assets before you stake it in any place. So by staking you can invest in any project for the long term and at the same time, you can increase that token only by holding it. Whcih one is more profitable?

[sunsilk]

Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

IMHO, then staking = investing.

Based from your description of investing:

Investing is a way to potentially increase the amount of money you have. The goal is to buy financial products, also called investments, and hopefully sell them at a higher price than what you initially paid. .

For example, someone is about to join the staking for Ethereum because it's upcoming and been announced. Then that guy will start to buy at least 32 ETH or not that much if he has already ETH on his stash.

And as he stake, he'll get interest which is considerably a way to increase his money which will be paid in ETH.

[Jawhead999]

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

You're missed the one major thing, it's called the token value.

Let's say you're staking 5 ETH (it's worth for $400/ETH) and earn 10% APY, after 1 year you will get 5,5 ETH. It's sound good since you're generating 0,5 ETH just by staking and not doing anything, but let's say the ETH only worth for $350/ETH since the price is high fluctuation.

Your beginning capital 5 x $400 = $2,000
Your ending capital 5,5 x $350 = $1,925

You'll only end up loss money $75 after staking for 1 years. It's not worth to stake POS, better to HOLD Bitcoin.

[deisik]

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn

The difference depends on your goals

If your single goal is to earn income (i.e. you are not looking for supporting network, community governance, etc), then it is six of one and half a dozen of the other. In that case, staking is just a specific investment vehicle, i.e. a certain type of investment instruments like cryptos (on their own), stocks, bonds, mutual funds, and so on. In this vein, it works pretty much like a saving account where you are guaranteed a fixed return in nominal terms

[fiulpro]

Staking is something that people might earn high amount of profits from since it's just holding your coins plus it doesn't take much work and active involvement. But at the same time it's highly recommend to stake only regarding those coins which are very well known and always do your research since I have seen many ICO's getting down the line in a couple of months.

Therefore if you decide to invest in some new crypto or some new ICO , you have to think about all the risks and rewards. It can give you more profits as compared to even Trading , but it's risky if done without proper knowledge and many people have also lost a lot in scams and fake ICO's Makin superfluous promises.

I think we do discuss about Trading much but not staking.

_*_ 

But I think staking also helps to support the network in a way since if you invest in an ICO at it's starting stage it generally means a lot, plus you hold in for a long time.

[Twentyonepaylots]

Staking is a type of investment, everything that you need capital to gain or make profit is investment, business is investment for example. I know most of projects now are considering staking, which might be the reason why you started this thread, and Imma tell you why most of projects do staking. Staking is making a certain crypto ecosystem sustainable, this means that the project will work even the team does not watch it.

[slapper]

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

According to the oxford dictionary:

Investing: expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.

There is nothing mentioning a period of time in this explanation. Therefore, personally, I think that trading is a type of trading in which we take profit and expectation in a shorter amount of time. What do we call people who are swing traders or long-order trader? From my perspective, they are all the same. And if you trade (or invest) blindly without learning or having knowledge, I can consider that type of person as a gambler. There will be no difference in this particular situation

[bL4nkcode]

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

According to the oxford dictionary:

Investing: expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.

There is nothing mentioning a period of time in this explanation. Therefore, personally, I think that trading is a type of trading in which we take profit and expectation in a shorter amount of time. What do we call people who are swing traders or long-order trader? From my perspective, they are all the same. And if you trade (or invest) blindly without learning or having knowledge, I can consider that type of person as a gambler. There will be no difference in this particular situation

Don't be confused trading from investing, they two are different things. While trading is short-term strategies, investment holds long-term approach. That's why I argue of OP's "short period of time" in investing.

[slapper]

Don't be confused trading from investing, they two are different things. While trading is short-term strategies, investment holds long-term approach. That's why I argue of OP's "short period of time" in investing.

Only accept a half. They are the same thing from some perspectives, including mine. As I trader, I understand the market well and it is certain that if you consider trading as investing, there is nothing wrong. In forex trading, small traders like short-term orders, while bankers, corporations, firms are likely to put a long trade which can exist for several months.

There are two types of analysis. First, the technical analysis which you use to analyze charts, candlesticks, trends, etc. Fundamental is where you look at the overall strength such as statistics, news, politics, and evermore (for example when you analyze a project, you can look at the dev teams, the concept of the idea, the whitepaper, etc). Ironically, Both can be used in trading or investing. And wise investors (or traders) tend to make analysis so as to anticipate the outcome profit and risk.


There is nothing wrong if you differentiate trading from investing. But try to open your mind and you will observe the perspective where trading is the same as investing

[The Sceptical Chymist]

both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks

Profit doesn't depend on capital.

Eh, I don't know about that.  I think what OP means is that an investment of $50 in some PoS coin is going to earn you fewer total coins than if you'd invested $50,000.  Therefore I think that total profit might indeed depend on how much money you've sunk into a particular coin--if that's your definition of "capital" anyway.

As far as that statement above saying that staking is like having a bank account, I'd disagree with that.  Yes, the "interest" part of it is just like a savings account, but there's also the potential for capital gains, and that's something missing entirely from savings accounts.  To me, it's like buying a stock that pays a dividend vs. one that doesn't.

Also, as far as OP's question goes: Staking is a form of investment.  They're not different things.

[CarnagexD]

Investing may be more profitable than staking, but you gotta take into consideration the capabilities of the person who wanted to jump on the cryotocurrency hype. Most of us here are still working their regular 9-5 and wouldn't be able to afford to put too much money on the line, that's where staking platforms shine the brightest. And they are also great entry-level strategy for people who are just starting with cryptocurrency investment.

[aesma]

Like others have said, staking is a "cherry on top" of investing, you need to invest in a staking coin to get staking rewards.

Now the issue is the money supply. If there are high staking rewards, fuelled by monetary expansion (new coins created) then it can lead to your investment losing value, which is counterproductive.

[celot]

very clear the difference between staking and investing, for staking you will be bound by the contract coins you want to stake, almost all coins apply the staking contract system for a whole month, if not until one month you sell the coins you will not get any coins from staking, however, in staking there will be an investment because generally the investment holds coins for a long time. but for investing they can sell coin anytime without waiting staking ended, they have not contract must hold coin for one month and investing give easy why if price have raise to higher they can sell without care with contract system like staking.

[Strongkored]

The end goal is the same to get profit, staking needs to invest a certain amount of funds as well to buy coins/tokens that will be staked.
If investing ins Altcoin, then both of them are very risky, even though staking can make a coin increase but if the price down then the increase in the coin is meaningless because it becomes a loss.

[Kopetunto]

It's easy to tell the difference, before I would suggest staking and investing, instead of choosing one, choose both!,
because Staking will give you coins for a certain period, making your investment increase, this is good for investors.
Staking is now favored by many traders and investors, especially with this program we don't have to worry about a reduced portfolio.

[error08]

both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks

Profit doesn't depend on capital.

Staking does not mean profit, the coin your staking may increase by number but that doesn't mean profit. Investment, on the other hand, is different it requires broader knowledge, skills (a bit), and analysis.

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

Divide it into 3 subjects, investing, staking, and trading > depends on the way it is and time frame.
However, it's safe to say all of it requires someone to spend capital in the hope to gain profit, that's why many people consider all of it as part of investment but in different ways/methods to achieve the goal.

[yhiaali3]

Thank you for this comparison between investing and Staking, I wrote a topic a while ago here and asked members which is the best investment or Staking? I have had a lot of good answers and I have a good knowledge of the difference between them.
It can said that investment and Staking have both positive and negative aspects, and this differs from one person to another, so each person can choose which is better for him, investing or Staking.

[fullhdpixel]

The end goal is the same to get profit, staking needs to invest a certain amount of funds as well to buy coins/tokens that will be staked.
If investing ins Altcoin, then both of them are very risky, even though staking can make a coin increase but if the price down then the increase in the coin is meaningless because it becomes a loss.

indeed that is the goal but you must know that investing and staking still have differences, even the profit you can get can be more from investing than staking, because staking depends on the existing token capital after that the staking organizer will only give a few percent, while when investing in coins that have the potential to be like bitcoin, you can get more profit because there is no limit to the profits that can be obtained.

Nicely mentioned but I would like to add a point that staking is meant to get regular income while investing means you are not going to earn profit regularly but you are going to have a better chance of having overall profit. It is similar to gambling - Lottery vs Dice. You get big profits in lottery while you get small wins in games like dice.

I believe if you need recurring profits then one should chose staking because it would give you coins every time you stake and invest if you have extra funds which you can risk losing but looking to get big profits, people who invested in BTC initially took a big risk and now it is paying off big time.

[Kez1817]

both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks

Profit doesn't depend on capital.

Eh, I don't know about that.  I think what OP means is that an investment of $50 in some PoS coin is going to earn you fewer total coins than if you'd invested $50,000.  Therefore I think that total profit might indeed depend on how much money you've sunk into a particular coin--if that's your definition of "capital" anyway.

As far as that statement above saying that staking is like having a bank account, I'd disagree with that.  Yes, the "interest" part of it is just like a savings account, but there's also the potential for capital gains, and that's something missing entirely from savings accounts.  To me, it's like buying a stock that pays a dividend vs. one that doesn't.

Also, as far as OP's question goes: Staking is a form of investment.  They're not different things.

You got it sir, if what I mean about the profit depends on the capital. Sorry if I didn't elaborate it very well. Anyway thank you and to all who added more knowledge about this topic.I really appreciate everyone giving more explanation and to better understand my topic.

[SirLancelot]

It's easy to tell the difference, before I would suggest staking and investing, instead of choosing one, choose both!,
because Staking will give you coins for a certain period, making your investment increase, this is good for investors.
Staking is now favored by many traders and investors, especially with this program we don't have to worry about a reduced portfolio.

Staking can be tricky though because with staking comes minor dumps and it is hard to maintain the price of the token. There must be a good reason to believe that the coin will have use case and will grow in future because POS is good and saves al the power we waste in POW but it comes at the cost of the logic "rich gets richer".

I personally don't like staking as much as I do investing and by investing a lot of people believe we must invest for years and decades which is not true. You can invest in a coin for few months and when the value of the coins reaches a significant number you can always sell them.

[bitgolden]

Staking doesn't exclude investing that is the problem with people who try to calculate their own income from only staking and not from the investing part.

If you buy 32 eth and make profit from staking (soon coming) that doesn't mean that the only money you make will be from staking, the price of ETH could still go up, and I believe it could go up even more because right now people are mining it with their rigs and they have a cost of doing it which means they sell some of their ETH in order to cover the costs whereas staking has almost no cost at all which means they could just hold it which could increase the price a lot more. So, as you can see staking doesn't mean no investment, it is still investing and that is the biggest difference, at least you get to stake on top of your stakes.

[Peanutswar]

Still one of the best for me is having an investment and staking.

In investment, there is a higher risk to your asset that may decrease or increase and by that, you need to keep an eye to prevent losing your asset. In that case, this requires you to keep knowledgeable about different things related to your investment so at the same time you are learning and earning with the use of your capabilities.

Having staking too is one and a good idea because you are saying your money and preventing this may lose it looks like emergency funds you could use any time.

Always having this both kinds of earning and storing of funds may help you.

[Yatsan]

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

Your fate on crypto industry does not specifically dependent on the range or amount of your capital you are starting with. Yes, having a decent capital is a must have and an important thing to have but still skill and being able to manage your funds is a need so prior knowledge is the main key you do also need to have to be able to manage dealing with the market to earn profit.

Instead of choosing one side, you better have both if you can for those are both profitable and a lot more efficient having both at the same time instead of choosing only one between staking and investing.

[wiss19]

Both, anyone that you think is going to work, you should just do that and know if you’re going to benefit.
I have not tried this staking of a thing before, but the way I thought that it worked before was that when you stake your coins, you’re still going to be making profit if the token or coin you’re staking is increasing in value , alongside that you will also be getting the normal rewards maybe for confirming transactions and things like that. Then as for investment you invest and wait for the profit right?

Or am I missing something on that staking part? Investment is a better option for me depending on what kind of investment.

[electronicash]

Both, anyone that you think is going to work, you should just do that and know if you’re going to benefit.
I have not tried this staking of a thing before, but the way I thought that it worked before was that when you stake your coins, you’re still going to be making profit if the token or coin you’re staking is increasing in value , alongside that you will also be getting the normal rewards maybe for confirming transactions and things like that. Then as for investment you invest and wait for the profit right?

Or am I missing something on that staking part? Investment is a better option for me depending on what kind of investment.

its the same thing since it just keep you waiting.  i suppose you already know coins that are for staking like DASH. sadly, it will only matter for some of us when the token already have a high value such as DASH.  but when the token is just cents like ADA, it will just be disregarded. this is true actually. right now you may not even look at ADA as good token to keep because its growth is slow and its was the situation of NEO too when it was starting.

isn't investing just like Staking as its like hodling for a long time and wait for ATH?

[Dragonfund]

It's easy to tell the difference, before I would suggest staking and investing, instead of choosing one, choose both!,
because Staking will give you coins for a certain period, making your investment increase, this is good for investors.
Staking is now favored by many traders and investors, especially with this program we don't have to worry about a reduced portfolio.

Staking isn't just how they used to be in the past. Unlike now, then you can just stake your bought tokens on any accredited platforms and wait for it to mature with profits but usually they are relatively small in ROI but the recent hype in DeFi has change the game. You hardly see a project that usually done the traditional system but providing them in ratio of 1:1 in form of liquidity and Yield farming, though the rewards are astonishung.
I'm not just cool with staking, there are situations you stake your tokens and they are required to be locked for a time frame before one can have access to them. I really love the Idea of holding my tokens to myself.

[AmoreJaz]

It's easy to tell the difference, before I would suggest staking and investing, instead of choosing one, choose both!,
because Staking will give you coins for a certain period, making your investment increase, this is good for investors.
Staking is now favored by many traders and investors, especially with this program we don't have to worry about a reduced portfolio.

Staking isn't juts how they used to be in the past. Unlike now, then you can just stake your bought tokens on any accredited platforms and wait for it to mature with profits but usually they are relatively small in ROI but the recent hype in DeFi has change the game. You hardly see a project that usually done the traditional system but providing them in ratio of 1:1 in form of liquidity and Yield farming, though the rewards are astonishung.
I'm not just cool with staking, there are situations you stake your tokens and they are required to be locked for a time frame before one can have access to them. I really love the Idea of holding my tokens to myself.

staking will only be profitable if the coin or token that you selected has real value in the market. because if youre staking those coins, and there's actually no use case for that coin, then dont expect that they will be worth something.
 it is only true for few coins or tokens. and remember, check also if the value is driven by hype surrounding it, because with hollow foundation, their failure is imminent!
investing on the other hand, is also the same. depends on what coin you are buying. better buy a coin with working platform rather than those seemingly promising plans but never got into execution.

[Eco_111]

Investing is more effective than staking coins, you can decide to take profit when market grows better while holding your coins in your wallet or you can even trade too but staking is limited, you can't do anything with your token since it's locked away in the staking address till the period is over. 

[Lorence.xD]

Investing is more effective than staking coins, you can decide to take profit when market grows better while holding your coins in your wallet or you can even trade too but staking is limited, you can't do anything with your token since it's locked away in the staking address till the period is over. 

Investing takes a long time too, the key difference for me is that, there is a trickle of profit for investment from time to time. Staking is like a time deposit on the other hand, the benefit will only be once but it will be big depending on the performance of the product you are staking.

[KaratX]

Staking is waiting game, the staking period have to be over before you get paid and there are few risks in this,

1. If the coin staked surge higher you can't sell
2. Stake coins can dump in value and that will affect your Staking reward

This is why I think investment is better, you can trade and make more quantities of the coin or take advantage of market surge, buy low and sell high, get more coins or Profit in the process

[bittick]

Investing are more effective compare to staking especially if you have a good trading skills and know when to buy and sell while staking is just fully depending on how the network work and you are stuck into one project only which can be more risky. You don't need a huge capital just to be more profitable, you need to learn and more experience about the market and you can increase that capital thru your earnings over time, choose wisely always.

But by staking you can stake & invest at the same time so you get double the profit. Investing in crypto you just let the money sitting there waiting for the price increase opportunity meanwhile by staking your money earns money for you and bonus if the price happens to be increasing aswell.
I'd say if I can do both I'd prefer doing both. It also reduces risk of losing when the price gets dumped as well since the coin you owns increases.

[Ucy]

While;
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Staking involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards. In most cases, you'll be able to stake your coins directly from your crypto wallet, such as Trust Wallet.

I think staking is still part of Investing/investment.

Anyway, better to call the first "Staking" Proof of Stake consensus mechanism to avoid future confusion. There are multiple ways people Stake coins/things without participating in consensus, like with your second definition of Staking.
Staking in PoS is used for limiting participation in Network consensus to only "stakeholders" or coinholders... some or alot of the PoS crypto Networks make participating in Network Consensus strictly for people with lots of coins...
The second Staking is actually better in a Crypto Network because it's not tied to consensus.

[mu_enrico]

I will offer a different view (as always). In general terms, these words both fundamentally the same since you are risking (or staking) something to get profits.
However, in the crypto space, staking is one of many ways of investing your money (a subset of investment). You invest your fiat money by buying the coins and then lock it for some period of time, with the hope of getting profits.

[deisik]

I will offer a different view (as always). In general terms, these words both fundamentally the same since you are risking (or staking) something to get profits

In gambling you are also staking, quite literally staking your money

But does it mean that they are the same? I guess that would be an instance of overgeneralization, i.e. drawing too broad conclusions, broader than required by the context. Indeed, there are risks involved in both gambling and staking (the latter as it is understood in this thread), but then we could say that virtually any activity entails certain risks. But does it make gambling and staking the same for any practical purpose?

[mu_enrico]

But does it make gambling and staking the same for any practical purpose?

Well, these words are too general and can be used in different contexts/circumstances anyway. So what about HYIP, holding altcoins, setup masternodes, etc.? Are these a form of gambling or investment?

If you ask me about how to draw the line between investing and gambling:
The difference between the term "staking" in gambling vs investing has to do with the expected value (EV). In gambling, especially in chance games, players will get a sure negative expected value (-EV) if they decide to stake their money. It's not investing but more like spending. Conversely, if investors decide to stake their money on the house bankroll side (+EV), it's an investment.

Investing is when you expect some profits, i.e., positive expected value (+EV) over some risk level.

[deisik]

The difference between the term "staking" in gambling vs investing has to do with the expected value (EV). In gambling, especially in chance games, players will get a sure negative expected value (-EV) if they decide to stake their money. It's not investing but more like spending. Conversely, if investors decide to stake their money on the house bankroll side (+EV), it's an investment.

Investing is when you expect some profits, i.e., positive expected value (+EV) over some risk level.

In that case, your distinction, well, similarity, simply doesn't hold

At first you say that staking and investing are fundamentally the same. Now you proceed to say that "investing is when you expect some profits". I'm okay with that, so let's stick to this definition of yours. However, staking cannot be investing because you don't know how profitable this activity will turn out to be, and, most importantly, you can't even expect profits. If you rake in some monies, good for you, you have invested wisely (in hindsight). But if you booked only losses, then it is not investing, and therefore you can't say that they (investing and staking) are the same thing

[BuNga_cute]

Staking is the act of locking coins in a wallet to get a reward, and staking is mostly done on exchanges. because usually you can get
rewards in the form of certain coins. Many exchanges do this to promote certain coins, and usually staking is done to generate profit
for the long term. Therefore, those who want short-term profits will definitely choose investing.

[OasisDre]

Stacking is locking your coins away for monthly or annual rewards and investing is buying the coin or token and hold for any future market surge, they aren't same thing and investing gives you complete control over your coins and tokens, it's different with staking, you imprisoned your coins for a limited period of time for rewards and sometimes the staking coin loses values while you locked them away

[iv4n]

Stacking is locking your coins away for monthly or annual rewards and investing is buying the coin or token and hold for any future market surge, they aren't same thing and investing gives you complete control over your coins and tokens, it's different with staking, you imprisoned your coins for a limited period of time for rewards and sometimes the staking coin loses values while you locked them away

You can invest in staking coin, you will get dividends and its nice passive income, and in case of the price rise your profit will be greater, your coins + received coins. Now is it better to invest in staking coin or in coin with other purpose is up to you, I personally like staking coins and I have few. Now staking with some wallets or on exchanges is easier than ever before. Of course rewards varies from coin to coin and from place where you plan to hold your coins.
Nothing is risk free, and we need to risk to make profit. I think there are good coins for staking on various places but always DYOR before you decide anything.

[passwordnow]

Stacking is locking your coins away for monthly or annual rewards and investing is buying the coin or token and hold for any future market surge, they aren't same thing and investing gives you complete control over your coins and tokens, it's different with staking, you imprisoned your coins for a limited period of time for rewards and sometimes the staking coin loses values while you locked them away

You can invest in staking coin, you will get dividends and its nice passive income, and in case of the price rise your profit will be greater, your coins + received coins. Now is it better to invest in staking coin or in coin with other purpose is up to you, I personally like staking coins and I have few. Now staking with some wallets or on exchanges is easier than ever before. Of course rewards varies from coin to coin and from place where you plan to hold your coins.
Nothing is risk free, and we need to risk to make profit. I think there are good coins for staking on various places but always DYOR before you decide anything.

It does give passive income but this varies to the coin you choose for staking. Not all of the staking coins will give the profit that we're expecting to come. So if someone is focusing on staking, there's more risk on it if you have chosen a bad coin. There are websites that are giving calculation for every staking coin that you might want to choose and those numbers are varying depending on the performance of a coin. And, not all the time those coins will have the same projection as those calculators give and that's why I've said that there is a bigger risk on it. @oasisdre, there are staking coins that you don't actually need to 'imprison'. You only need to deposit it to the supported wallets like ledger wallet.

[ampu]

It looks like you are complicating the concept of investing. In any market spending money to get a profit is considered an investment. In my understanding, betting in crypto is a high-risk investment similar to holding crypto because the market is so new and there are risks when regulations are not clear. Take a look at DEFI, betting and holding crypto is equally risky as liquidity pools may be taken up by attacks. In this case, DEFI token holders and liquidity pool participants both gain losses alike.

[BTCappu]

Investing is more effective than staking coins, you can decide to take profit when market grows better while holding your coins in your wallet or you can even trade too but staking is limited, you can't do anything with your token since it's locked away in the staking address till the period is over. 

That’s correct, and it’s why I have never had interest in staking or whatsoever. It will only be good if the cryptocurrency you’re holding is a stablecoin, since they are not volatile like Bitcoin and are pegged to the USD, which means they won’t be getting you profit, it would be best to stake them and make a few percentage annually or so, but as for Bitcoin, staking it doesn’t make any sense to me.

I would prefer to just leave it in my wallet and when the price goes up I can decide to sell it later and get the profit, and that wouldn’t take a lot of time to do.

[Xxmodded]

Staking hold your assets in some exchange market and you make contract with them minimum one month without cash out your money how ever your staking coin price if you wanna earn with your coin staking, investing is hold your coin without have contract and you can sell coin any time do you want but you will not get any coin. In staking you will receive several percent depend with coin do you choose and depend the rule of exchange market, I think Binance have staking coin for BNB and you should hold minimum one month to get staking coin about 4% or 5% from your coin staking, if you cash out before staking time coming you will qualify and not received any more with your staking coin, I think better staking than holding only because holding or investing just waiting when coin have higher price without get commission from exchange market.

[wiss19]

It will only be good if the cryptocurrency you’re holding is a stablecoin, since they are not volatile like Bitcoin and are pegged to the USD, which means they won’t be getting you profit, it would be best to stake them and make a few percentage annually or so, but as for Bitcoin, staking it doesn’t make any sense to me.

I would prefer to just leave it in my wallet and when the price goes up I can decide to sell it later and get the profit, and that wouldn’t take a lot of time to do.

Well, the lock period for staking is not a big problem because I don't know for other coins but I stake TRX and they only lock coins for 3 days which means if I stake my TRX coins today I will only have to face a lock period of 3 days after which I can spend the coins. If you don't believe the coin will even retain it's value for 3 days then it is actually not worth investing in first place for that coin.

I agree though in some cases hodling can be better than staking and maybe for coins where lock period is longer and the volatility is high in those cases it is indeed best to just hold your coins and wait for the right time.

[lixer]

Many exchanges do this to promote certain coins, and usually staking is done to generate profit for the long term. Therefore, those who want short-term profits will definitely choose investing.

Yeah but you can divest your coins from staking once you feel you want to sell them. I mean you can stake as long as you want and you are only going to earn free coins and once you feel it is right time to sell you can divest from staking and sell them.

I have not tried and tested staking much because I never had too many coins but really sounds like a good idea to get free coins by just staking them so I might try in future when I have some good amount.

it's different with staking, you imprisoned your coins for a limited period of time for rewards and sometimes the staking coin loses values while you locked them away

For how long the coins are locked please can you tell me? I am seriously considering staking of coins in future so having some information is good because so far it feels like staking is a really cool thing to do if you have good money.

[TitanGEL]

Stacking is locking your coins away for monthly or annual rewards and investing is buying the coin or token and hold for any future market surge, they aren't same thing and investing gives you complete control over your coins and tokens, it's different with staking, you imprisoned your coins for a limited period of time for rewards and sometimes the staking coin loses values while you locked them away

You can invest in staking coin, you will get dividends and its nice passive income, and in case of the price rise your profit will be greater, your coins + received coins. Now is it better to invest in staking coin or in coin with other purpose is up to you, I personally like staking coins and I have few. Now staking with some wallets or on exchanges is easier than ever before. Of course rewards varies from coin to coin and from place where you plan to hold your coins.
Nothing is risk free, and we need to risk to make profit. I think there are good coins for staking on various places but always DYOR before you decide anything.

For me it depends on the criteria of staking, there are projects out there who are offering staking but your coins will be lock in specific time period and it is what I do not like. I want to study and make a research first before I do staking or investing. Staking is good because you can earn passive income but what if you stake a coin that have no potential where it experienced huge dump and it has a lock time period? how can you able to regain the losses that you incurred if you cannot withdraw it. That is the downside of some staking and for me investing is more good especially if you have an access on your token where you can able to sell it whenever you want.

[AicecreaME]

It's just the same for me, in my opinion.

As you have said already, staking means locking your coins to receive rewards, in short, you'll hold your coins before you sell it. The term Staking is only use in terms of cryptocurrency.

While Investment is a term that's being use in the real world. Investment shares the same meaning because you'll invest your money in certain coins in which you'll also hold when you're still not happy about the current price after you bought it.

The two terms means Hodling gives you profits especially if the coins you are hodling happened to have soft fork or hard fork.

[BTCappu]

I think better staking than holding only because holding or investing just waiting when coin have higher price without get commission from exchange market.

The problem with this theory is that you cannot stake all the coins for example Proof of work algorithm based coins cannot be staked and not all the POS coins are good because while POS saves energy and power but the coin's value drops as people sell the coins they earn from staking. Rich guys buy huge amount of coins and then earn staking rewards and sell them. I believe and consider as a modern way of earning interest for your money.

Investing or holding is good and better than staking when the coin is not based on POS but if it based on POS algorithm then better and obviously good to take the rewards by staking while also holding.

[wxxyrqa]

One way or another, staking is first of all an investment in a certain cryptocurrency, and then these coins bring you passive income. Today, investments in cryptocurrencies are very popular, which provide the user with the opportunity to participate in a liquidity pool, as well as in farming. In other words, this is an investment that brings you a constant income and at the same time maintains the liquidity of a particular cryptocurrency.

[redsun114]

The reason why staking got this much famous wasn't the idea of staking, there has been a ton of places that was staking way before today and you could have done it for the past few years without a problem. The reason why staking got famous is the fact that decentralization happened and nowadays you could stake without having to worry about anyone else and know what you are getting, just put your money into something and just lock it until it is available to cash out and that is the end of it.

Plus, when other huge companies and projects got involved with it, they made a huge marketing with it using airdrops and bounties to get interest from the world, previous ones didn't had this type of free marketing budget so they didn't get heard as much as the recent ones did.

[Twentyonepaylots]

One way or another, staking is first of all an investment in a certain cryptocurrency, and then these coins bring you passive income.

"first of all an investment" seems like you're too expose to DeFi projects that has this staking platform features that generates too much eth fees of course due to the heavy traffic in network lol it'll be passive income if you're staking a decent amount of their tokens, not unstaking every day, pooled tokens is huge and not rug pulling.

Today, investments in cryptocurrencies are very popular, which provide the user with the opportunity to participate in a liquidity pool, as well as in farming. In other words, this is an investment that brings you a constant income and at the same time maintains the liquidity of a particular cryptocurrency.

I've seen a lot of staking platforms failing due to network errors, developers and some members of the team disappears or resigns after the staking platform is launched, they know you guys will maintain the currency and they could just create another project. lmao.

[ice098]

I think better staking than holding only because holding or investing just waiting when coin have higher price without get commission from exchange market.

The problem with this theory is that you cannot stake all the coins for example Proof of work algorithm based coins cannot be staked and not all the POS coins are good because while POS saves energy and power but the coin's value drops as people sell the coins they earn from staking. Rich guys buy huge amount of coins and then earn staking rewards and sell them. I believe and consider as a modern way of earning interest for your money.

Investing or holding is good and better than staking when the coin is not based on POS but if it based on POS algorithm then better and obviously good to take the rewards by staking while also holding.

Correct! but for me they don't have any difference at all except that in staking there will be a passive income everyday, but the price might change if the team want to lower the amount of percentage, and of course its trading value, while im investment only, you sometimes need to day trade or long trade, there is no additional token each day, you need to monitor it very well.

[lienfaye]

Staking is also popular in crypto and similar to investing. But there's a minimum required amount for a specific crypto in order to earn a rewards, the problem is not everyone are capable to have such amount thus unable for them to participate.

Investing on the other side is good even you're a newbie. Basic knowedge is fine as long as you understand the risk and the nature of it.

Nevertheless regardless of what you choose between investing or staking, your goal is to gain from the money you use as capital. So its up to us on where we think we can maximize our profit.

[NavI_027]

Today, investments in cryptocurrencies are very popular, which provide the user with the opportunity to participate in a liquidity pool, as well as in farming. In other words, this is an investment that brings you a constant income and at the same time maintains the liquidity of a particular cryptocurrency.

I've seen a lot of staking platforms failing due to network errors, developers and some members of the team disappears or resigns after the staking platform is launched, they know you guys will maintain the currency and they could just create another project. lmao.

Why would you choose the new and untrusted staking platform in the first place? Don't settle for less, you are already gambling your money so you should make sure that you are putting it in the right place for you to less the chances of losing. There are still good exchanges out there where you can invest. Kucoin, Coinbase and the best among the rest which is Binance. If you choose such names then your money will be secured.

I am now learning to appreciate staking unlike before. I thought simply investing of coins is good because you manipulate your own assets etc. But as I am getting busy, I realized that I won't have enough time to do trading so I think staking (which could give you a passive income) is not bad as others what think of. Avoid comparing the two and you will realize that they are profitable in their own ways .

[Vispilio]

The fundamental difference is the inflationary supply model inherent to most staking functions.

If you are staking a crypto-currency, the traditional expectation is you will get paid in the same unit as the currency that you staked, therefore inevitably diluting the existing or at least circulating supply, which is counter intuitive to principles of investing.

When you are making an investment, the initial assumption is that your gains will be a net profit and will not serve to directly dilute your starting capital in any way...

[Durgesh728]

Article is well explained but i want to add some points of my own, investment is more about securing your principal and getting a expected return, and anything over and above that is bonus. But, Staking doesn't directly deal with money, here you get extra cryptocurrency for keeping the threshold amount of it. But, the price of Cryptocurrency increases with time, you get bonus, i.e. more cryptocurrency with better capital gain. (I haven't included the block-chain's technical part)

[marcous]

Quite interesting explanation, maybe staking can be an option besides trading.  although the staking value is not much.  staking and investing both have to spend capital.  Staking in a wallet is a bit risky I guess.  I prefer to invest in coin on exchanges like Binance for example.

[Gunday_07]

I can't sleep well if I'm staking my coins for monthly gains because it's no more in my care, to stake coins you need to move the coins out of your wallet to another stake activated wallet which you have no control over since you aren't holding it's private key, you are on your own lok

[Squezzi55]

I can't sleep well if I'm staking my coins for monthly gains because it's no more in my care, to stake coins you need to move the coins out of your wallet to another stake activated wallet which you have no control over since you aren't holding it's private key, you are on your own lok

I stake through top exchanges like binance, even if something bad happens like hacks binance will refund, you don't have to be this worried about staking unless you use the wrong staking platform, stick with top exchange for staking and you will get good results back, many have been staking on binance exchange since 2018 now

[bounceback]

Quite interesting explanation, maybe staking can be an option besides trading.  although the staking value is not much.  staking and investing both have to spend capital.  Staking in a wallet is a bit risky I guess.  I prefer to invest in coin on exchanges like Binance for example.

For long term holding staking is good option because they can earn more during waiting for his holding coin growing up, just few coin have support for staking like BNB, TRX, XRP and ATOM, all coin above have different percent for staking and depend which exchange market for your coin staking, maybe Binance have many option coin for staking from BNB until ATOM could staking there but maximum earning above 6% each months and have lower than 6% depend which one coin do you wanna staking, maybe you have double chance when you trying for staking not only get effect after coin raise to higher price but you get income with staking reward is enough time for staking before you sell.

[Mauser]

Quite interesting explanation, maybe staking can be an option besides trading.  although the staking value is not much.  staking and investing both have to spend capital.  Staking in a wallet is a bit risky I guess.  I prefer to invest in coin on exchanges like Binance for example.

For long term holding staking is good option because they can earn more during waiting for his holding coin growing up, just few coin have support for staking like BNB, TRX, XRP and ATOM, all coin above have different percent for staking and depend which exchange market for your coin staking, maybe Binance have many option coin for staking from BNB until ATOM could staking there but maximum earning above 6% each months and have lower than 6% depend which one coin do you wanna staking, maybe you have double chance when you trying for staking not only get effect after coin raise to higher price but you get income with staking reward is enough time for staking before you sell.

Isn't it cheaper to just hold the coins yourself instead of staking someone else to hold the coins for you? I am not an expert in staking and usually just do it for trading. But if you stake someone to just buy one time the coins and hold, I would assume the fees are lower than for constant trading. However, you probably still have to pay a monthly staking fee, whereas when you would buy the coins yourself and just hold them. You should have the cheapest solution.

[doomloop]

In the case of making a choice between these two options I think it will depend on what I am actually buying, whether it’s a stablecoin or a volatile coin. If it’s a stablecoin, staking it would be a good thing to do so that you don’t just keep it idle for nothing, especially if you have plans to just leave it their for long time, with the staking you’re going to be getting some profit rather than having the same $1 worth of coin remain same $1.

As for volatile coins, staking them wouldn’t be a good idea, since they fluctuate from one position to another, the price can go down while it’s still locked and you will lose more than you will get from rewards. It’s best to just buy and keep in your wallet where you have full control.

[tygeade]

You do not have to stake with another wallet if you do not want to? Obviously there are those choices if you want to or you could literally just give your money and lock it somewhere and they would pay you a staking fee for doing that, these are all valid options and you can do that.

However if you want to, you could always pick coins that are proof of stake, download the wallet, put your money into your wallet, and let it run as well. That way it would your own PC, your own wallet, your own coins and you would be still staking without giving the rights of your coins to anyone else. So staking doesn't have to be something you do with big risks, it would be something you do literally all by yourself without anyone's help and you would be safe to sleep without any problems.

[tbterryboy]

I can't sleep well if I'm staking my coins for monthly gains because it's no more in my care, to stake coins you need to move the coins out of your wallet to another stake activated wallet which you have no control over since you aren't holding it's private key, you are on your own lok

That is the primary concern for many but there are trusted and well known exchanges like Binance which offer staking so you can try them. People often say never keep balance on exchanges so if you apply that logic you must never stake your coins but if you ask me, I don't have a single doubt against Binance and would gladly stake my coins there but unfortunately I do not stake because I trade them actively and earn better profits.

As for volatile coins, staking them wouldn’t be a good idea, since they fluctuate from one position to another, the price can go down while it’s still locked and you will lose more than you will get from rewards. It’s best to just buy and keep in your wallet where you have full control.

That's pure luck because the vice versa can happen too, like you could have sold the coins had you got the keys and control but because they were locked you could not sell and the market moved in your favor.

[Traderbtcc]

I think staking is better than investing. By staking a token you will get rewards in that token which means it will increase your portfolio slowly. Also staking is also a kind of investment because you need to buy those assets before you stake it in any place. So by staking you can invest in any project for the long term and at the same time, you can increase that token only by holding it. Whcih one is more profitable?

Both are profitable depending on where you invested or staked your crypto, but I find investing more attractive and more rewarding than staking, cause in staking it will take quite a while to earn a huge amount of money, even when you staked a huge amount of crypto, it doesn't give you huge return faster than investment does, investment is more profitable as it has been proven back then in 2017 when almost all coins were mooning, cause after investing and the coin gets listed on exchanges some of those coins were doing x3+, that's means they triple your initial capital, the only drawback to investing is that it's risky, with little or no knowledge you will lose everything.

[Jojiru10]

staking is the act of  locking cryptocurrencies to receive rewards. In most cases  you'll be able to stake your coins directly to your wallet, while investing (in cryptocurrency) is similar to exchanging your money in a new country.

[zasad@]

I don't see the difference if you don't stake your coins in Ethereum 2.0. In this case, you do not know when you can take your coins back
If the staking procedure does not impose additional restrictions on the withdrawal of funds (for example, you can withdraw coins only after 1-12 months), then this is also an investment.
But as practice shows, this is a very risky investment, because the higher the profit from staking, the faster the coin loses its value.

[TimeTeller]

staking is the act of  locking cryptocurrencies to receive rewards. In most cases  you'll be able to stake your coins directly to your wallet, while investing (in cryptocurrency) is similar to exchanging your money in a new country.

That's simple way to put it.
And with both cases, you need to do your part in terms of assessment of the coins you want to stake with or invest with.
Both have no guarantee of earning what you expected as it depends on their market and developments.
It is always better to have in depth information with the coins you are venturing with to know their potential future in the market.

[Ladyvirgo]

   staking is the process of actively participating in transaction validation(similar to mining on a proof-of-stake (PoS) blockchain.on these blockchains,anyone with a minimum-recquired balance of a specific cryptocurrency can validate transactions and earn staking rewards.
   investing..expand money with the expectation of achieving a profit or material result by putting into financial plans,shares,on property,or by using it to develop a comercial venture..

[vaultman]

I don't really like the idea of staking, because funds are frozen for a certain period and in general it looks like a financial pyramid. While investing is simpler and more straightforward. Investing is more predictable if you have the right information.

[shinratensei_]

I don't really like the idea of staking, because funds are frozen for a certain period and in general it looks like a financial pyramid. While investing is simpler and more straightforward. Investing is more predictable if you have the right information.

It's not but that depends the configuration of the code. You will able to find the coin that will let the stakers to withdraw their coins anytime. Did you see the tron? You can stake your coin through exchange site and the exchange site itself will let you to withdraw your money anytime. It's more likely as an incentive to the supporters who are believing in the project.
Staking and investing are having the same risk. Both were getting affected by the capital loos and gain.

[LogitechMouse]

How can you differentiate these 2 when staking a coin is considered investing too??

At the end, both are profitable but it depends on your capital.

Staking isn't always profitable like the OP has posted. Lets see this example.

You invested to a coin and staked it with a 10% annual profit. You bought a token for around $3 lets say and you bought 1000 of them so that is $3000 already. Unfortunately, the coin went down to around $1. Even you will add the additional 100 tokens you got from staking, the total amount of the tokens you've held for a year will just be $1100 which is less than half than your initial capital.

What I'm trying to say is staking always that profitable and staking is also a form of investment so differentiating these 2 is just useless for me. Staking still needs research in order to gain profit.

[FinneysTrueVision]

Staking is a form of investing. You are using the money that you have in order to make a profit. If you want to diversify your portfolio holding some staking coins might not be such a bad idea. You can earn some passive income so even if the price of the coin goes down you will still be earning some profit that can compensate for those losses.

[BTCappu]

Staking is a form of investing. You are using the money that you have in order to make a profit. If you want to diversify your portfolio holding some staking coins might not be such a bad idea. You can earn some passive income so even if the price of the coin goes down you will still be earning some profit that can compensate for those losses.

Staking is a different kind of investment though because when you stake a coin you not just trust the price to stay but also the longevity of the price to remain. You don't want to invest into a token or a coin which would keep dropping and the staking rewards are only compensating the price drop instead of getting our profits for you.

Personally as much as I like the proof of stake consensus, I hate to see the value of the token going down because of that and yes proof of work is consuming too much power and wasting power is not the ideal scenario but it is still better than staking in my opinion.

[angrynerd88]

I would suggest that staking is superior than contributing. By staking a token you'll get rewards in that token which suggests it'll increment your portfolio gradually. Too staking is additionally a kind of venture since you wish to purchase those resources some time recently you stake it in any place. So by staking you'll be able contribute in any extend for the long term and at the same time, you'll be able increment that token as it were by HODL.To minimize the risk i would suggest must stake with stable coins ike,DAI,USDT to ensure get real profit at the end of maturity.

[Willitivity]

At the end, both are profitable but it depends on your capital. Staking just provide small yearly interest like in a traditional banks but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest. You can also choose both if you want to earn more. Everything is up to you, if what you prefer to do to earn.

In terms of high returns investment is way better than staking, judging by the the current APY on popular coins these days, there's not much you can earn annually and besides you will need to stake a huge amount of tokens to be able to get something tangible in return, you still need a huge capital for investment tho but it might not be as much as staking, for me I will go with investment although it's risky but it's worth it if the project you invested in turns out to be a success.

[Alucard1]

I never tried staking before so I don't have enough knowledge about it, but as far as I know it is somehow related to investing on which you still need money as your capital, I prefer to invest because I think I have already enough knowledge about it especially investing for a long term, just simply wait for the value to rise and then pull it out, just consider how much profit you will get for that long term.

[nomenclatur]

Staking is actually very profitable if a project is able to maintain the price of tokens on the exchange, but most projects are unable to survive to strengthen the price so that it has a much higher selling value, many projects are unable to increase prices, but some projects actually fall and experience more. This decline has made staking less attractive to investors at this time.

[Ladyvirgo]

    The difference between staking and investing.in staking you depend on the contract coins you want to bet,almost all coins apply the staking contract system for a full one month you buy the coin.You will not get any coins.From staking,you will have an investment that holds coins for a long time .But for investment they can sell coins at any time without waiting for the staking to finish,they have no contract to have coins.If the price rises to the higher they can sell without care of the contract system such as staking.

[Vishnu.Reang]

I don't want to indulge in PoW vs PoS debate once again.. but from what I have seen over the years, PoS coins have been disastrous for the investors. The only exception would be Cardano (ADA), but let's not forget the fact that even Cardano went down by almost 98%-99% in 2018. PoW coins on the other hand has returned good amounts of profit to the investors. There can be exceptions, but in the majority of cases this is what happened in 2017-18 period.

[henmark]

I don't want to indulge in PoW vs PoS debate once again.. but from what I have seen over the years, PoS coins have been disastrous for the investors. The only exception would be Cardano (ADA), but let's not forget the fact that even Cardano went down by almost 98%-99% in 2018. PoW coins on the other hand has returned good amounts of profit to the investors. There can be exceptions, but in the majority of cases this is what happened in 2017-18 period.

Proof-Of-Stake coins are not ideal for investment that's true and that is because they make the rich even richer while the Proof-Of-work coins are a comparatively better option because there are resources used and it actually costs for the miners to mine them so it is a more tiring process. The reason why POS is popular is that it saves energy but I am still in favor of POW if someone asks me.

Investing is just a different aspect altogether because while POS & POW don't have direct risks involved, investment is all about taking calculated risks and can't really be compared to staking. I think if still one has to compare then investing is a much better option than staking because the value of most coins that are based on POS will drop down since people who stake those coins will keep dumping the coins to the market.

[int03h]

I think the above two forms are just holding and staking brings more dividends than holding. We should not complicate matters because I believe that as long as it gives good returns, it is the result of the investment.
Distinguishing the concepts will not change the result of seeking profit.

[TheGreatPython]

Staking is actually very profitable if a project is able to maintain the price of tokens on the exchange, but most projects are unable to survive to strengthen the price so that it has a much higher selling value, many projects are unable to increase prices, but some projects actually fall and experience more. This decline has made staking less attractive to investors at this time.

That is why you will often see that coins which work on staking (PoS) are not so popular among investors like TRX which is rather used for quick payments but I haven't seen many investors holding Tron. On the other hand coins like BTC and Ethereum (I know ETH might switch but right now they are PoW) are often seen as a good investment.

I am not someone who stakes coins because I rather want to trade them and earn. Plus with staking coming locking your coins and hence a risk of not being able to sell if you see a market jump. Staking is a good option for people who are holding coins that work on PoS because there is no harm in earning some extra coins by doing nothing new.

[Argoo]

I think the above two forms are just holding and staking brings more dividends than holding. We should not complicate matters because I believe that as long as it gives good returns, it is the result of the investment.
Distinguishing the concepts will not change the result of seeking profit.

From this point of view, you are right. If we send a promising coin to staking, then at the end of a certain period we will have staking income and at the same time income due to the growth in the price of this cryptocurrency. If we only held this cryptocurrency, we would only have a profit from the growth of its price. However, staking is still relatively small in revenue today. However, this is also not bad if the project will exist for many years.

[Fatunad]

Staking is a type of investment, everything that you need capital to gain or make profit is investment, business is investment for example. I know most of projects now are considering staking, which might be the reason why you started this thread, and Imma tell you why most of projects do staking. Staking is making a certain crypto ecosystem sustainable, this means that the project will work even the team does not watch it.

Staking stood out in this present cycle, it is a major characteristics of Defi project (an improved financial system for cryptocurrency similar to services offer by banks), which is applicable to top coin like Bitcoin, Ethereum, BNB etc. Its a better step-up in investment which should last, where the asset increases and gain value in price at the same time but I dont know how sustainable it is until the bear comes

When it comes to staking then I don't see for it to be worth because you do just let those coins sit on a platform which you do make earn small percentage APY.
Is it really worth? No its not and it would be much better if you do make out those coins simply on your wallet which would earn more than you can earn with staking.
Its up to someones choice and trust throughout the platform because there are some whom doesn't really care about returns as long they can make out some passive income and I don't know on where they do get those self realizations.

[jambul_kribo]

I never tried staking before so I don't have enough knowledge about it, but as far as I know it is somehow related to investing on which you still need money as your capital, I prefer to invest because I think I have already enough knowledge about it especially investing for a long term, just simply wait for the value to rise and then pull it out, just consider how much profit you will get for that long term.

its very easy mate, you just put our crypto assets into platfrom that provide this feature. you may stake in wallet or exchnages. some exchanges already support for staking and its rate for a year is good enough for us. moreover if we hold good  project, staking will give us double advantages , first from its return and then we got price gain when it soar. it just like a deposito in conventional bank.

[jaberwock]

I've heard that stacking can be considered a financial investment. Is it right? I still don't understand the difference between investing and stacking, but I probably prefer investing between the two.

If you stake your crypto currency on an exchange, it will still increase in value as bitcoins price increases. The value of your cryptocurrency doesn’t get locked to a particular amount just like that; as the market is increasing, the value is also increasing.

So, if you have plans of just leaving your cryptocurrency in your wallet and doing nothing with it for a long time, maybe staking it would be a better option, as that way you will get to make extra income from what you would get from the exchange. The both of them are really good, it’s just up to you as the investor to decide what would be best for you, if you think staking is a good idea, then you should go ahead and do it.

[Lubang Bawah]

Now staking is a trend of many projects, with staking hence devs. can know the interests and trust of investors with their projects so that they can focus and be serious about continuing to develop projects, the difference between staking and investing is that our staking is like saving or depositing by getting a reward according to calculations, while investing we only buy and hold and hope the price goes up so profit.

[Snappycoco]

Some projects offers staking that can be unstake anytime you want with no fees. By this, I think the two can both be done at the same time which makes it more profitable. You can unstake and sell your investment coins once it gets your desired amount and also sell your staking rewards. By that, it increases your investment return not just by upward price momentum but also by staking rewards you have.

[cute nmp]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

[Ultegra134]

I don't get how you differentiate staking from investing. From my point of view, staking is a form of investment, similarly to stocks, real estate and so on. I've been staking for the past few months, I'm putting capital at risk by staking my coins, on platforms or contracts that may be hacked or conduct a rug pull in the near future, while the rewards vary depending on how risky the smart contract is (Impermanent loss, scam coins etc.). It is a form of investing, however, we might perceive the definition of investment differently.

[dezoel]

I would say staking is improved version of investment if you ask me. I mean this is something that we have talked about before, if you know what you are doing then you should be investing into the future of the token you are buying and not the today of it. I do not care if it is undervalued or overvalued right now, I care about how much it could be in the future and why. If I can find a reason for it to be 10x in the future than I will buy it.

This doesn't change with staking but only enhances it, meaning if I believe that there is a valid reason why it should be 10x in the future (not caring when) then with staking you would be making a lot more profit.

[Lanatsa]

I would say staking is improved version of investment if you ask me. I mean this is something that we have talked about before, if you know what you are doing then you should be investing into the future of the token you are buying and not the today of it. I do not care if it is undervalued or overvalued right now, I care about how much it could be in the future and why. If I can find a reason for it to be 10x in the future than I will buy it.

This doesn't change with staking but only enhances it, meaning if I believe that there is a valid reason why it should be 10x in the future (not caring when) then with staking you would be making a lot more profit.

Im not really seeing some improved way of investing because it is really just the same because staking is something you do put through on some risk for you to get some APY's which I don't see for it to

be worth honestly because given profits is way too small and not really that worth as I said earlier.So its a matter of choice if you could bare out that risk just to earn some peanuts.

but mentioning about their difference is that the level of risk specially on dealing with volatility plus the risk on getting scammed with those platforms offers staking aside from self wallet staking.

[ice18]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

Lets not make things so complicated, Staking is also same as investing but the return depends on the APY rates offered by the staking sites like Binance, example when you just buy BNB and you plan to hold it for a long time you just invest your money in BNB and wait for a profit if price increase, but if you decided to stake it you can also earn BNB as an earned interest from staking.  

[Anguwa]

This two words are really confusing, up till now I can't find the exact difference between staking and investing. But in my little understanding, staking and investing are similar, all of them are way of earning profit after some period of time. Like if I stake coin, it is base on agreement on the percentage I will be earning for some limited period of time, while if I invest, I will be the one to decide when to live the investment and when to take my profit. To my own understanding, that's the difference. But I am still hoping to listen to others for more explanation.

[carlfebz2]

This two words are really confusing, up till now I can't find the exact difference between staking and investing. But in my little understanding, staking and investing are similar, all of them are way of earning profit after some period of time. Like if I stake coin, it is base on agreement on the percentage I will be earning for some limited period of time, while if I invest, I will be the one to decide when to live the investment and when to take my profit. To my own understanding, that's the difference. But I am still hoping to listen to others for more explanation.

Confusing on the sense that you are really that making staking which is really just the same with investing which is actually true and i do mind on the same thing too because you had put or risk out money then

it is considered to be one which i dont really see any difference but well op did really make out such question in regard with this but most of people here had been saying the same sentiments.

Investing is something that can be called on making out some risk with your funds by means of putting up money into something which could potentially make out some profits.

[livingfree]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

Staking is a form of investment.

As you stake then you're an investor, you buy crypto and hold it then you're investing but you're not staking. It's confusing for others to understand.

But investment is a general term.

[doomloop]

Lets not make things so complicated, Staking is also same as investing but the return depends on the APY rates offered by the staking sites like Binance, example when you just buy BNB and you plan to hold it for a long time you just invest your money in BNB and wait for a profit if price increase, but if you decided to stake it you can also earn BNB as an earned interest from staking.  

The difference is that not all staking is like that. For example BNB is not a proof of stake currency, neither has a defi directly that pays in BNB neither, not that I am aware, so there are just places that pay you savings account interest for your BNB and that is wildly different. For example if you have UNI or CAKE tokens and you stake with it, that's different versus what BNB is getting.

This is why I believe that you may think BNB investing and BNB staking are similar, but BNB investing and UNI staking are wildly different. Things are not really as close to each other as you might imagine, staking is definitely a lot more riskier than long term investing into things like BTC or ETH, the reason for that is the fact that proof of stake coins has inflation based on staking rewards and if the inflation gets too high then the price of that token will fall.

[xSkylarx]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

Staking is a form of investment.

As you stake then you're an investor, you buy crypto and hold it then you're investing but you're not staking. It's confusing for others to understand.

But investment is a general term.

Staking is one of the methods of investing, which is a term that is used universally. If we say investing, we are referring to the expenditure of money in the hope of making a profit or incurring a loss. Staking is a type of investment in and of itself, but it is only one method of investing among many others available in the world of finance. I believe that when people talk about investing, they are referring to holding bitcoins, which they are most likely referring to investing bitcoins, or staking, which I do invest in this coin, which he is referring to staking.

[bitzizzix]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

Staking is a form of investment.

As you stake then you're an investor, you buy crypto and hold it then you're investing but you're not staking. It's confusing for others to understand.

But investment is a general term.

Staking is one of the methods of investing, which is a term that is used universally. If we say investing, we are referring to the expenditure of money in the hope of making a profit or incurring a loss. Staking is a type of investment in and of itself, but it is only one method of investing among many others available in the world of finance. I believe that when people talk about investing, they are referring to holding bitcoins, which they are most likely referring to investing bitcoins, or staking, which I do invest in this coin, which he is referring to staking.

In simple terms, staking is almost the same as deposit, where you only need to deposit a nominal amount of money and the bank manages it and you will earn interest.
and investment is the activity of saving or placing our money for a certain period of time with the hope that these deposits will generate profits or increase the value of the investment and someone who invests his capital is called an investor.

[Zanab247]

The difference is that staking is more secure and profitable than investing on a particular project you don't know how good it is and how quick you can start earning money from it. Staking in other ways, it help careful to watch the price of the market to know when to sell your coins and make suitable income and when to hold not to regret in future.
Investing is the act of preparing for tomorrow or future to be part of those that will experience positive impact at the end of their investment.
Many customers prefer staking than investing because staking will help you to know if the market is good for anyone to sell for profit making. Those investors that stake during the pandemic really make a lot of income when the price of the market change positively.

[finaleshot2016]

The difference is that staking is more secure and profitable than investing on a particular project you don't know how good it is and how quick you can start earning money from it. Staking in other ways, it help careful to watch the price of the market to know when to sell your coins and make suitable income and when to hold not to regret in future.
Investing is the act of preparing for tomorrow or future to be part of those that will experience positive impact at the end of their investment.
Many customers prefer staking than investing because staking will help you to know if the market is good for anyone to sell for profit making. Those investors that stake during the pandemic really make a lot of income when the price of the market change positively.

Staking is profitable if the currency has genuine potential; nevertheless, staking a coin that isn't really a utility coin is a waste of time because you're investing and staking for nothing. Staking is far better than investing since you will gain a lot of money while the coin is surging. Staking is when you really believe the coin and want to make money. Investing is simply holding or it depends on what gain you actually want.

[Ultegra134]

The difference is that staking is more secure and profitable than investing on a particular project you don't know how good it is and how quick you can start earning money from it. Staking in other ways, it help careful to watch the price of the market to know when to sell your coins and make suitable income and when to hold not to regret in future.
Investing is the act of preparing for tomorrow or future to be part of those that will experience positive impact at the end of their investment.
Many customers prefer staking than investing because staking will help you to know if the market is good for anyone to sell for profit making. Those investors that stake during the pandemic really make a lot of income when the price of the market change positively.

Staking is profitable if the currency has genuine potential; nevertheless, staking a coin that isn't really a utility coin is a waste of time because you're investing and staking for nothing. Staking is far better than investing since you will gain a lot of money while the coin is surging. Staking is when you really believe the coin and want to make money. Investing is simply holding or it depends on what gain you actually want.

It depends on what you're staking. I used to stake algorithmic stablecoins (Bolt Dollar and Monster Slayer were the ones I used), and managed to earn a pretty decent amount in a sort period of time. They crashed shortly after I withdrew my funds, though. There are quite a few Stable LP contracts now, that are considerably safe to stake, depending on the platform of course, however, the daily yield is usually on the low side. Consider it a long-term bank deposit, with a higher interest and a daily compound.

I'm typically on the safe side and mostly stake on Stable LPs, I don't have much time to do my own research on some random new coin being staked, nor am I willing to take such risks.

[Fredomago]

I really can't get the difference between staking and investing despite been in crytocurrency for almost four years.To me both are simply a form of in investment in a project with the hope of making profits.To other it can mean an entirely different thing.

Staking is a form of investment.

As you stake then you're an investor, you buy crypto and hold it then you're investing but you're not staking. It's confusing for others to understand.

But investment is a general term.

Different in the such way that when you are investing alone, you just buy and hold, hoping for the price increase, while with staking
you buy and hold and expect additional staking rewards that you will going to receive as compensation by holding the coin or token.
It's good to understand the benefits of staking and how to sort good project from those hypes asset.

with staking, you have good opportunities to earn a bigger amount of profits. Most of those who stake their investment enjoy
a lot when the value rises high.

[savetheFORUM]

In simple terms, staking is almost the same as deposit, where you only need to deposit a nominal amount of money and the bank manages it and you will earn interest.
and investment is the activity of saving or placing our money for a certain period of time with the hope that these deposits will generate profits or increase the value of the investment and someone who invests his capital is called an investor.

Not really exactly the same as a savings account you could find in banks. Is it remotely similar? Sure in a sense it is but you are the one creating that token here. With you staking that means all the new tokens minted will be going to you. This is more like being part owner of a central bank instead of having a savings account there.

The logic of earning interest is quite similar, but here you do not have a fixed rate, you have what your share of the pool is, so if there is 100 tokens per minute and you have 1% of all invested then you will get 1 token per second, if you have 50% then you get 50 and if you have less then less. It is why it is changing constantly, and yes remotely similar but quite different in many aspects.

[Pejoh Asu]

I think investing is buying crypto and then we hold it in the wallet, while staking is buying crypto and then we staking on the staking provider site by getting paid according to our choice, automatic staking investing so that it is more promising because it has the opportunity to get profit when the price goes up and get paid for the staking we make do.

[LUCKMCFLY]

I think investing is buying crypto and then we hold it in the wallet, while staking is buying crypto and then we staking on the staking provider site by getting paid according to our choice, automatic staking investing so that it is more promising because it has the opportunity to get profit when the price goes up and get paid for the staking we make do.

I have the vision and the same criteria, to invest I understand that it is to choose the safest action or currency so that in the long term of good profit, some say it as a bet, perhaps the meaning can be dissuaded according to the understanding. or whatever you want to say OP, but betting is basically Betting, and I think that many traders enter the market betting, that is, they start trading trying to guess the movements or do what they think is going to happen and that is a bet, at least For me it is, but it is something very dangerous, because you can lose a lot of money if you leave everything to chance. And cryptocurrency staking I understand that it is through another cryptocurrency to generate more as you have in Hodl mode, something like some casinos do.

[Smartvirus]

Investing is a way to potentially increase the amount of money you have. The goal is to buy financial products, also called investments, and hopefully sell them at a higher price than what you initially paid. .
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.

If I'm to go by this definition you've attached to investing, are you saying in actual that striking isn't investing? Becuase, I actually don't agree with that definition myself. Mind you, in staking, your asset gets the chance to appreciate both in quantity and value too. Do you agree or perhaps have got some views to this too.

Well, staking is a type of investing. In staking, you provide securities by virtue of the liquidity your valued coins, tokens or commodity gets to provide for the project for which your patterning with. Staking, is investing!

[DOH!]

In fact, these types of models all have different advantages and disadvantages for interest-returning, with no exception regarding capital compared to other models. I am quite biased for staking or creating LPs, borrowing or lending is also quite attractive. Staking relies heavily on LP liquidity provided, additional levels will be limited based on the deflationary model on the majority of existing projects. I think It will be better if we actively combine these models to optimize advantages for the end purpose. It is also a lesson in diversification.
Staking is creating a great advantage and is a tool that is mass applied on defi or gamefi.

[lixer]

I have the vision and the same criteria, to invest I understand that it is to choose the safest action or currency so that in the long term of good profit, some say it as a bet, perhaps the meaning can be dissuaded according to the understanding. or whatever you want to say OP, but betting is basically Betting, and I think that many traders enter the market betting, that is, they start trading trying to guess the movements or do what they think is going to happen and that is a bet, at least For me it is, but it is something very dangerous, because you can lose a lot of money if you leave everything to chance. And cryptocurrency staking I understand that it is through another cryptocurrency to generate more as you have in Hodl mode, something like some casinos do.

It is normally a "bet" for sure, because you are investing into something that is unsure what will happen. Look at bitcoin, in the long run it is as guaranteed as anything could be and that is why we do not see it as betting, because we know that if you hold bitcoin long enough then you are going to make a profit. However, reality is that crypto could crumble tomorrow and we may not be aware of it.

I get that bitcoin doesn't look like that right now but it could be something we are unaware of right now so that means it may not be something that we can predict neither. This is why it is a "bet" and investment is always risky no matter what you are getting into.

[ShowOff]

I know that these two things may differ in principle and how they work even though in reality they are both done for profit. I don't like staking although people benefit a lot from it and because of that I'm not used to reading and knowing much about it. I am only interested in making my usual investment in bitcoin or altcoin of my choice, this allows me to store them safely in my personal wallet.

Regardless of which is better between the two, I think it's still quite comfortable with my choice to invest. I just think that these two things will not be risk free, but when we have complete control over our wallet and asset then we only manage to minimize the risk.

[omone1]

Before you can ever stake any coin, you must invest. Staking is a form of investing, only that you earn interest on your holding while staking. Both come with risk of market falling or the positive news of rising in the market. In a case wherein your staked coins or tokens are not conditionally locked, you can unstake at any time and sell off to catch the profit taking.

[dunfida]

Before you can ever stake any coin, you must invest. Staking is a form of investing, only that you earn interest on your holding while staking. Both come with risk of market falling or the positive news of rising in the market. In a case wherein your staked coins or tokens are not conditionally locked, you can unstake at any time and sell off to catch the profit taking.

You would need to invest or put up those coins you do have if ever you do see some staking feature but does it really worth? No its not if we do talk about the risk involved.

Staking is basically investing because you do really need to invest before  you could gain interest and time frame would really be depending
on the duration whether you do go for short term or long term.

[Sayeds56]

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

According to the oxford dictionary:

Investing: expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.

There is nothing mentioning a period of time in this explanation. Therefore, personally, I think that trading is a type of trading in which we take profit and expectation in a shorter amount of time. What do we call people who are swing traders or long-order trader? From my perspective, they are all the same. And if you trade (or invest) blindly without learning or having knowledge, I can consider that type of person as a gambler. There will be no difference in this particular situation

Don't be confused trading from investing, they two are different things. While trading is short-term strategies, investment holds long-term approach. That's why I argue of OP's "short period of time" in investing.

Absolutely right. Trading is entirely different from Investing. We invest funds in any project with long term vision whereas trading is done for short term period and it could be on hour, one day or one week. Staking in DeFi projects in crypto space has attracted huge investment in 2020 because it generates passive income and it continues to grow despite the fact that there were many Fake projects in this sectors.

[Alisha-k]

You can not stake without investing can you??
Staking is a form of investment because you have to invest in a coin before staking it, I think the major difference between both is that in investment, you just purchase the coin of your choice and hodl while hoping that it appreciates in the nearest future, this isnt a short term investment like you said in your post because most coin do not appreciate on a short term basis.
While in staking, you buy the coin and stake it, this one could be on a long or short term basis.
I've gone through the entire post and my question is, in investment, we all know one can run at a lose like when there's a dip right, does dip also affect staking??
And if a coin is depreciating, what's the fate of the person who staked the coin, do they still get paid?
Are the risk for hodling a coin the same as when they're staked?

[habebe]

Staking is the concept means often in the way of more cryptocurrencies verity transactions to get rewards to crypto asset holders to support a blockchain network and staking can be a great way to passive.

investing is the frontier of a traditional and provides only the best as well as personalized solutions for our investors and means owning an asset or an item with the goal of generating income.

[Wipeout2097]

It can be simple to form distinction between staking and contributing, for staking you'll be bound by the contract coins you need to stake, nearly all coins apply the staking contract framework for a entire month, if not until one month you offer the coins you'll not get any coins from staking, in any case, in staking there will be an speculation since for the most part the venture holds coins for a long time.Other hand contributing they can offer coin anytime without holding up staking finished, they have not contract must hold coin for one month and contributing allow simple way and can offer at their possess assent at any time.

[terrorJR]

Absolutely right. Trading is entirely different from Investing. We invest funds in any project with long term vision whereas trading is done for short term period and it could be on hour, one day or one week. Staking in DeFi projects in crypto space has attracted huge investment in 2020 because it generates passive income and it continues to grow despite the fact that there were many Fake projects in this sectors.

the difference is clear regarding the time period they have seen clearly that they are completely different, so why bother with that because the two have significant differences.
and sometimes some people like to make the wrong move and think that investments can be made in the near future, even though this is a very big mistake.

[irsykes]

There are some people who not really good in trading, staking can be alternative for it. Although maybe profit not high as when we are doing trading, but risk can be less too. Nowadays there are a lot of platforms that allow us to stake our crypto in their site, for example like when we stake USDT in Binance, beside on a reputable exchange, USDT as we knows as stablecoins, means we don't need to worry about volatile.

[Shasha80]

There are some people who not really good in trading, staking can be alternative for it. Although maybe profit not high as when we are doing trading, but risk can be less too. Nowadays there are a lot of platforms that allow us to stake our crypto in their site, for example like when we stake USDT in Binance, beside on a reputable exchange, USDT as we knows as stablecoins, means we don't need to worry about volatile.

Staking is another option for passive income besides trading and investing. Especially if we are busy people and do not have much time to monitor
price movements in the market. Staking is a profitable solution, we only need to lock our assets on platforms that provide staking services.
The most important thing when staking is to choose a trusted platform, so we will not lose our assets locked on those platforms. The drawback of
staking may be that the interest given is very small, in contrast to trading and investing which can take advantage of  the moment when crypto
prices rise. So the choice is in the hands of each of us, if we want to be safe with low risk, staking is indeed a good choice to try.

[19Nov16]

Staking is a better thing than investing, if we invest then we only hold coins or tokens in the wallet, but staking is we deposit coins or tokens to service providers and we can get profit, even we can get profit up to 80%, and when I'm staking at Pancake and can earn around $6 per day from 3600 CAKE (auto).

[sarmrakib]

but investing give much higher percentage of profit in just a short period of time but it depends on how much, what or where did you invest.

Maybe you're referring to trading not investing? there's no "short period of time" in investment, there is a short-term investment, but "short period of time"? maybe it's day trading or so.

According to the oxford dictionary:

Investing: expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.

There is nothing mentioning a period of time in this explanation. Therefore, personally, I think that trading is a type of trading in which we take profit and expectation in a shorter amount of time. What do we call people who are swing traders or long-order trader? From my perspective, they are all the same. And if you trade (or invest) blindly without learning or having knowledge, I can consider that type of person as a gambler. There will be no difference in this particular situation

Don't be confused trading from investing, they two are different things. While trading is short-term strategies, investment holds long-term approach. That's why I argue of OP's "short period of time" in investing.

Absolutely right. Trading is entirely different from Investing. We invest funds in any project with long term vision whereas trading is done for short term period and it could be on hour, one day or one week. Staking in DeFi projects in crypto space has attracted huge investment in 2020 because it generates passive income and it continues to grow despite the fact that there were many Fake projects in this sectors.

From the strategies used between trading and investing, they are already different,
so from that I think it's quite clear that the two are different even though the goal of course remains the same to seek profit

Its not really for only earning from both staking and investing but the fact is how much we can earn from this two. We all know that staking is a easy way to earn whuch the return percentage provided from the project team and its really almost fixed or flexible if they want. On the other hand investing is your choice and you have to find the good project  where you have the believe that you can get a good return . So this is clearly showing us to all that its really two way of earning and i think its more better to invest except putting your capital into one can with a fixed ratio.

[24Kt]

Staking is a better thing than investing, if we invest then we only hold coins or tokens in the wallet, but staking is we deposit coins or tokens to service providers and we can get profit, even we can get profit up to 80%, and when I'm staking at Pancake and can earn around $6 per day from 3600 CAKE (auto).

It really depends on what you are staking or investing here. Lucky for you if the token or coin is increasing its value, but what will happen if in case the cake's price is decreasing. So even if you are earning cake, the profit is still less if its market price is going down. So staking or investing is a very subjective matter as it depends on the coin/s that you are involved with. Some for example are investing in btc, and they are just waiting for the bullish season before they sell. And they are pretty much happy with their profits. So  these 2 possible ways of earning crypto depends on the coin itself and how the user will strategize to optimize his profits.

[globalpain]

There are some people who not really good in trading, staking can be alternative for it. Although maybe profit not high as when we are doing trading, but risk can be less too. Nowadays there are a lot of platforms that allow us to stake our crypto in their site, for example like when we stake USDT in Binance, beside on a reputable exchange, USDT as we knows as stablecoins, means we don't need to worry about volatile.

In the exchange there are various features for making profit and everyone has their own preferences,
Yes, the smaller the risk, the profit we can get is also small and that applies to the opposite as well

[Quidat]

There are some people who not really good in trading, staking can be alternative for it. Although maybe profit not high as when we are doing trading, but risk can be less too. Nowadays there are a lot of platforms that allow us to stake our crypto in their site, for example like when we stake USDT in Binance, beside on a reputable exchange, USDT as we knows as stablecoins, means we don't need to worry about volatile.

In the exchange there are various features for making profit and everyone has their own preferences,
Yes, the smaller the risk, the profit we can get is also small and that applies to the opposite as well

And this is where choice do make out whether you could take out those risk and play with it or simply skip out and would stay up on lesser
ones for you to have the chance on earning big but of course the risk would be something higher compared when you are just simply
holding your coins or assets.We do have our own preferences and not all would really be that risk takers and does love to hodl instead.
Preference is depending on someones decision.

[horrifiedx1]

There are some people who not really good in trading, staking can be alternative for it. Although maybe profit not high as when we are doing trading, but risk can be less too. Nowadays there are a lot of platforms that allow us to stake our crypto in their site, for example like when we stake USDT in Binance, beside on a reputable exchange, USDT as we knows as stablecoins, means we don't need to worry about volatile.

In the exchange there are various features for making profit and everyone has their own preferences,
Yes, the smaller the risk, the profit we can get is also small and that applies to the opposite as well

And this is where choice do make out whether you could take out those risk and play with it or simply skip out and would stay up on lesser
ones for you to have the chance on earning big but of course the risk would be something higher compared when you are just simply
holding your coins or assets.We do have our own preferences and not all would really be that risk takers and does love to hodl instead.
Preference is depending on someones decision.

As a holder, I think that's what I do the most, because it's easy to do and there's no risk to our assets because it's in a personal wallet. although it also contains risks, but as long as we can anticipate it, I think it will be much safer, and we can sell anytime when the profit is enough.

[ChiBitCTy]

I think you have a good bit of this right, but I don’t agree with the part of investing being able to make you more money faster. Some staking, like with many DeFi coins have extremely high daily interest rates..now these are often and mostly scams and unsustainable but it’s however the case.

[LUCKMCFLY]

I have the vision and the same criteria, to invest I understand that it is to choose the safest action or currency so that in the long term of good profit, some say it as a bet, perhaps the meaning can be dissuaded according to the understanding. or whatever you want to say OP, but betting is basically Betting, and I think that many traders enter the market betting, that is, they start trading trying to guess the movements or do what they think is going to happen and that is a bet, at least For me it is, but it is something very dangerous, because you can lose a lot of money if you leave everything to chance. And cryptocurrency staking I understand that it is through another cryptocurrency to generate more as you have in Hodl mode, something like some casinos do.

It is normally a "bet" for sure, because you are investing into something that is unsure what will happen. Look at bitcoin, in the long run it is as guaranteed as anything could be and that is why we do not see it as betting, because we know that if you hold bitcoin long enough then you are going to make a profit. However, reality is that crypto could crumble tomorrow and we may not be aware of it.

I get that bitcoin doesn't look like that right now but it could be something we are unaware of right now so that means it may not be something that we can predict neither. This is why it is a "bet" and investment is always risky no matter what you are getting into.

You are right, in fact when we buy BTC and leave it in the long term if it is a bet, but it is similar when a person decides to invest in the stock market, to invest you need to choose the strongest action and in this case in the crypto world it is The strongest stock is BTC, and it is the safest stock or currency there is to put your money in long-term.

This is the way that most investment books recommend, always looking for the safest action and that can obtain long-term benefits, that is why in the stock market they do a series of studies to choose the strongest action, in crypto is not necessary to choose it, but to put money in and that's it.

[TheGreatPython]

Some staking, like with many DeFi coins have extremely high daily interest rates..now these are often and mostly scams and unsustainable but it’s however the case.

Yeah, at this point staking became something so huge in the crypto world with the rise of decentralized economies that people are putting their money into plenty of staking operations in order to keep having passive income. Lets be honest passive income is something every single human dreams about, that is the path to riches according to many people because if your money earns you money while you sleep, that is something you should not forget ever in your life.

This is why I would have to say that the greatest thing we could do is keep making money while we sleep in any way possible. What do we have in crypto that is like that? Staking. Of course investing could make you money as well if the price goes up but staking makes you crypto no matter what the price is because you know have more crypto to begin with.

[BearMonster17]

Indeed investing is more profitable than staking, but again, it depends on everyone's wallet. Nowadays, as you see, crypto is going down sharply enough, so this means that lots of people who invested considerable amounts and bought crypto at a higher currency now found themselves at a loss. I'm a bit afraid of dealing with crypto, so that's why I'm usually reaching for an advisory company like hensoncrisp.com when I'm looking to invest a significant amount. Moreover, after the events in Kazakhstan, which led to the closure of lots of mining farms, I wouldn't deal with crypto for an undetermined period.

[dunfida]

Indeed investing is more profitable than staking, but again, it depends on everyone's wallet.

This does really depend on how deep your wallet is because majority of us would be thinking about diversifying when we are financially capable and wont matter whether its staking or totally in talks about investment.

Staking is still considered as an investment since you had put up some funds into it to earn some profits or interest on yearly basis or in some duration.It might be passive but it would still fit out

into that investing criteria but it seems people does have different views and impressions towards it.

[lumbanrang]

Both of them provide profit or loss to their users, whether it's investment or staking. For now I choose to invest in several companies and at the same time stake tokens to get passive income.

I can't say that staking gives more profit than investment or vice versa. Both have the potential to provide more profit to its users. But I can say that for me (now), staking provides a bigger profit. Besides getting rewards, I also get profit from increasing the price of the tokens I hold.

The difference between the two only lies in the investment instrument, staking can also be regarded as a form of investment because the purpose of investment is to get profit from the investment instrument we choose.

[livingfree]

Both of them provide profit or loss to their users, whether it's investment or staking. For now I choose to invest in several companies and at the same time stake tokens to get passive income.

In staking, even if you're in loss for the value of your staked assets, you're still going to have some gains based on how much it projects with an annual rate.

Whether the token goes on a bearish trend still you get to earn passive income and adds to the quantity of your staked assets.

I can't say that staking gives more profit than investment or vice versa. Both have the potential to provide more profit to its users. But I can say that for me (now), staking provides a bigger profit. Besides getting rewards, I also get profit from increasing the price of the tokens I hold.

The advantage in staking is you get to earn additional coin you stake. But I still prefer the investing and holding way, I don't have to rely with those small percentage of gain.

[savetheFORUM]

Indeed investing is more profitable than staking, but again, it depends on everyone's wallet.

This does really depend on how deep your wallet is because majority of us would be thinking about diversifying when we are financially capable and wont matter whether its staking or totally in talks about investment.

Staking is still considered as an investment since you had put up some funds into it to earn some profits or interest on yearly basis or in some duration.It might be passive but it would still fit out

into that investing criteria but it seems people does have different views and impressions towards it.

Oh, so he was talking about the amount everyone's wallet have? I thought what he mean by depending on the wallet is if the wallet is custodial or not, like that but no doubt that its hard to start diversifying if you only have a limited funds inside your wallet and if you insist to, it will only lessen the income that you will be getting on one asset. Everything is considered as an investment as long as there is a money involved.

Staking and investing are often compared to each other because both can provide passive income. The longer we hold and stake the better the outcome but choosing a right coin is also important. Choosing a platform or a wallet to hodl and stake is a must too.

[ShowOff]

Staking and investing are often compared to each other because both can provide passive income. The longer we hold and stake the better the outcome but choosing a right coin is also important. Choosing a platform or a wallet to hodl and stake is a must too.

The comparison is good to know which is better in terms of security and profit. I believe investing is safer than staking because we can store investment assets safely in our own wallets, while with staking we have to entrust the security of our assets 100% on the platform. I personally don't like doing it, it puts me at greater security risk even though the platform promises it is secure.

Investing is safer than snooping in my opinion, but both of these can be profitable for those who do. Remember that not your key then not your crypto/ bitcoin. This means we have to be very careful about entrusting our assets to the platform.

[Zilon]

I like the last definition of staking locking your coin to get rewarded. It's self explained even to a layman. Outside having huge capital your active participation in validating transaction as proof of stake will be much demanding. I would rather prefer sticking to investment while I patiently wait for a rise in value.

[adzino]

-snip-
staking is mostly done on exchanges. because usually you can get rewards in the form of certain coins. Many exchanges do this to promote certain coins, and usually staking is done to generate profit
for the long term.
-snip-

Staking isn't done on exchanges. If you are staking in an exchange, you are actually not staking. You are lending the coins to the exchange and they stake it, not you. They just give you a small percentage of profit from the stake rewards. And haven't you noticed that exchanges even allow you to "stake" coins that aren't even PoS coins? They take your coin, use it for different purposes to generate profit and gives you a share. If you want to stake, stake using your own wallet. This will help the network you support make it more decentralized.

[Webetcoins]

Staking isn't done on exchanges. If you are staking in an exchange, you are actually not staking. You are lending the coins to the exchange and they stake it, not you. They just give you a small percentage of profit from the stake rewards. And haven't you noticed that exchanges even allow you to "stake" coins that aren't even PoS coins? They take your coin, use it for different purposes to generate profit and gives you a share. If you want to stake, stake using your own wallet. This will help the network you support make it more decentralized.

Staking pools are a thing nowadays when you consider how it is quite expensive for some of the staking in some coins could be expensive. Like ETH has 32 ETH start value for example, which means that not everyone can pay for it, but 32 people could get together and pay 1 ETH each and do it, or 320 people with 0.1.

So, all in all it is quite easy to decide on why some places are not that bad, it is definitely something we could see happening and it is something that people could simply just ignore if they want to, it all depends on the person. Yes, you are "lending" it to someone to stake it for you, but exchanges are great staking pools that can work for you.