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Author Topic: Is it Better to Hodl or Stake your Tokens?  (Read 1069 times)
Psilocybin9 (OP)
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December 26, 2021, 07:34:10 PM
 #1

This is a pretty big question that people in this space have to consider. I personally like to do a bit of both in the sense that I stake the relatively stable tokens, and tend to just hodl the more volatile ones.

Hodling your tokens is definitely less risky than staking your tokens, but in all fairness staking doesn’t really seem like all that risky of an endeavor. Especially, when you consider the fact that a big part of staking just involves hodling your tokens. In fact, many of the risks associated with hodling your tokens are the exact same risks you will be exposed to whilst staking them, and that is the risk of downward price fluctuation.

The biggest additional risk stakers take on relative to hodlers is having their tokens locked into a liquidity pool for a certain period of time.. Usually no longer than a month, but for this extra risk stakers are given pretty decent rewards. Besides if you use a liquid staking DApp like pStake you could essentially avoid the risk of having your tokens locked up by simply minting a synthetic version of your staked tokens.

The synthetic tokens you mint can be used on DeFi applications just as you would use any other tokens.
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December 26, 2021, 09:08:11 PM
 #2

Do what makes you think is worthy of your time. The majority wants to have a passive income through staking but we're not all good with what it's requiring and that is to entrust our tokens to where you're going to stake. I'll just hold like any other and I don't have confidence much with those staking platforms. Even they're talking about the trust and many of them are safe, still, I'll just hold my private keys and I'm good with that even there's no % of APY.

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December 26, 2021, 09:11:29 PM
 #3

Depends what do you want.
Keep value than hodl. Choose your coins/exchanges wisely.  Sometimes a exchanges takes all your profit.

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December 26, 2021, 09:13:46 PM
 #4

In my own opinion is your game to call, if you want to Hodl or stake, but from personal experiences I would always prefer to hold than to stake, I think it's safer for me, and as an investor I have always believe in patient so if I maybe next year come across a good project I may just try my luck on alt-coins and Hodl some, it's very profitable as it is risky, if you buy and hold the wrong alt-coins it could be depressing, but staking may also be another person's choice mostly those who don't like to be patient so make your choice.

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December 26, 2021, 09:14:11 PM
 #5

I honestly think both have their own advantages and are a good option based on how frequently you are willing to look at some charts and plan your next take profit.

If you want to get defined profits without much uncertainty  for your time, you will need to go for staking otherwise if you are more of a hands on person and want to do everything by yourself holding is the best option here as your profits are unlimited.

 
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December 26, 2021, 09:23:03 PM
 #6

This is a pretty big question that people in this space have to consider. I personally like to do a bit of both in the sense that I stake the relatively stable tokens, and tend to just hodl the more volatile ones.


It is something like you feel we are safe. Like holding, you have your keys but if you were staking, you allow exchanges to take of your funds and it is possible it might get lost. Security is the main concern why people are preferred to just hold but as we aim for more profit we are able to take risks like some people do staking and even go for trading.
Personally, if I can do the risk, I certainly do both staking and holding. Of course, that really matters to us and besides, since we are in crypto already we are aware of the risk and the consequences that might happen someday.
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December 26, 2021, 09:34:08 PM
 #7


We are all ended up with a different result because our strategy and approach are different from each other. Why not test both and see the result for yourself? I see that you are not new to that kind of system making it easy for you to do some tests.

If you see someone getting profits from hodling or staking, that's because they are able to apply their strategy properly. The same result might not always happen in your case so create your own and see if it's effective in the long run.

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December 26, 2021, 10:49:34 PM
 #8


We are all ended up with a different result because our strategy and approach are different from each other. Why not test both and see the result for yourself? I see that you are not new to that kind of system making it easy for you to do some tests.

If you see someone getting profits from hodling or staking, that's because they are able to apply their strategy properly. The same result might not always happen in your case so create your own and see if it's effective in the long run.

the choice of coins or projects largely affect the outcome here. because they have different paths in terms of developments, the profit that you can get depends on how they will perform in the market. even if we say, you bought cheap coins for staking but its market is dying, then, that's useless for me. so this holding or staking depends on which coin you have. is it a promising coin or is the dev of the coin about to disappear?

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December 27, 2021, 05:03:07 AM
 #9

This is a pretty big question that people in this space have to consider. I personally like to do a bit of both in the sense that I stake the relatively stable tokens, and tend to just hodl the more volatile ones.

Hodling your tokens is definitely less risky than staking your tokens, but in all fairness staking doesn’t really seem like all that risky of an endeavor. Especially, when you consider the fact that a big part of staking just involves hodling your tokens. In fact, many of the risks associated with hodling your tokens are the exact same risks you will be exposed to whilst staking them, and that is the risk of downward price fluctuation.

The biggest additional risk stakers take on relative to hodlers is having their tokens locked into a liquidity pool for a certain period of time.. Usually no longer than a month, but for this extra risk stakers are given pretty decent rewards. Besides if you use a liquid staking DApp like pStake you could essentially avoid the risk of having your tokens locked up by simply minting a synthetic version of your staked tokens.

The synthetic tokens you mint can be used on DeFi applications just as you would use any other tokens.

In terms of long-term currencies such as Bitcoin and Ethereum that I am going to hodl for 5-10 days, I prefer holding, but not staking.
But what comes to the rest of altcoins, I would rather find a reliable platform (Uniswap, Pancake swap, Quick swap) with good interests and stake them so as to get additional rewards apart from the rise of price of this asset.

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December 27, 2021, 05:36:32 AM
 #10

I think hold and staking are pretty much the same. You still kept your tokens or coins similarly byy there is a difference, since on staking you earned while holding not like holding without any benefits. One thing you should seek is a platform that don't hold or locked their tokens when staking. It simply gives you profit while staking isn't it. So better answer and honest one is : Staking (single token staking and not LP)

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December 27, 2021, 05:59:51 AM
 #11

Unless you are planning on swing trading your tokens in the short term it is almost always better to stake any tokens you have as at least then you will be getting rewards in most cases for doing so. There are not many cases where it would be a bad idea to stake unless it locks up your tokens for a longer period of time than you are comfortable with.
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December 27, 2021, 07:56:05 AM
 #12

It actually depends on you. If you want to stake it to have more tokens or you can just hodl it so you will have any freedom to sell it anytime but if I have Bitcoin of course I want more Bitcoin rather than just hodl it. So staking is a good option.

To make it short if you are just going to hodl it then it is much better if you are just going to stake it since you will be earning more rather than just holding it.

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December 27, 2021, 08:05:38 AM
 #13

Crypto staking is very beneficial these days. It is upto you that you hold or stake your token. Think positively that if you hold coin you only your coin price when you sell but when you stake you will get some extra coin as well. But staking authority some times gives a definite time to unstake your coin this can cause downfall of coin price so think and do what you want. I have never stake any coin till now.
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December 27, 2021, 10:07:17 AM
 #14

I think stake will be good if you have a token from Defi as you can earn more rewards from the staking. If you do not want to stake, you can only hold without thinking about earning more. When you decide to stake your token, you need to think about the transaction fee because every time you harvest or do something with the pool, you need to pay the fee, even that is for a small amount.

All in all, I think staking is a good way for you to wait for a while until the price increase later. But whether staking or holding will have the risk so you need to realize.
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December 27, 2021, 10:33:54 AM
 #15

Staking is always good if you've got plans for long term holding. If you prefer making profit in short term never go for hodl. In my understanding there are potential tokens that can be preferred for staking. This will surely give good profit long term as well as helps with increase of portfolio value due to the dividend interest distribution.

My personal suggestion go invest something that you can afford to loss on potential Ido launchpad projects. This will get you different tokens additional to the respective tokens when something new launched through the platform.

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December 27, 2021, 10:52:55 AM
 #16

It depends on the investor.
There are some tokens that offers staking with their own platform like Cardano where they had Daedalus where you can stake your tokens there. There are some exchanges that offers annual percentage just by putting your tokens in their platform.

In general, if you are holding a particular token that is eligible for staking you have the decision to stake it for additional income so its like hitting 2 birds in one stone. You can gain from capital appreciation of that token and at the same time you can earn more tokens just by staking. As for me, I mostly hold coins that can be staked so that I can earn from both capital appreciation and staking at the same time. There is a risk to it though and it is when the price of the coin goes down.

 
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December 27, 2021, 10:55:53 AM
 #17

If staking is not "liquidity" mining, I think staking will make us calmer in the long run. Because, if we stake for liquidity mining, in the end if the allocation for mining runs out, we will not get rewards. Then, staking tokens/coins that do not have good development will also be in vain. It could be that when we want to stop staking, the project may die.

Choose tokens/coins with good development, don't staking new coins for your initial staking. Choosing a project that has lasted longer, will be much more efficient for staking than a new token that doesn't have services & products yet.

HOLD...
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December 27, 2021, 11:18:27 AM
 #18

If you can stake in order to increase number of your token, why do you not stake it?

There are multiple reasons to consider:
- Lock time: it means your coins will be locked in a specific period.
- General condition of market: if it is bullish and still have chance to continue growing, it's good for staking. If it is a beginning of bearish period, it's bad because you might receive with more tokens but total value will become less than your initial capital when you need to sell it. If you have 50% more tokens from staking but price is divided by 2, it does not make any profit from staking.

 
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December 27, 2021, 11:28:27 AM
 #19

bet is good. It also limits your negative thinking about the market. The longer you hold, the richer you will be.

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December 27, 2021, 12:21:07 PM
 #20

This is a pretty big question that people in this space have to consider. I personally like to do a bit of both in the sense that I stake the relatively stable tokens, and tend to just hodl the more volatile ones.

Hodling your tokens is definitely less risky than staking your tokens, but in all fairness staking doesn’t really seem like all that risky of an endeavor. Especially, when you consider the fact that a big part of staking just involves hodling your tokens. In fact, many of the risks associated with hodling your tokens are the exact same risks you will be exposed to whilst staking them, and that is the risk of downward price fluctuation.

The biggest additional risk stakers take on relative to hodlers is having their tokens locked into a liquidity pool for a certain period of time.. Usually no longer than a month, but for this extra risk stakers are given pretty decent rewards. Besides if you use a liquid staking DApp like pStake you could essentially avoid the risk of having your tokens locked up by simply minting a synthetic version of your staked tokens.

The synthetic tokens you mint can be used on DeFi applications just as you would use any other tokens.

I'd would advise you to HODL your tokens instead, simply because staking is extremely risky. There are some "De-Fi" apps with vulnerabilities, that would put your entire stake at risk. Hackers can easily steal all of your money if they discover such vulnerabilities. But if you HODL your coins in a hardware wallet or even a cold storage wallet, it would be almost impossible to do this. Cryptocurrency prices usually go up over time, so "hodling" tokens would leave you with lots of money in your pocket. Just don't put all of your eggs in one basket and you'll do fine in the long term. Just my thoughts Grin

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