The Difference Between Staking and Investing

[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...