The Difference Between Staking and Investing

[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?