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.