The Difference Between Staking and Investing

[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.