The Difference Between Staking and Investing

[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.