Is it Better to Hodl or Stake your Tokens?

[Emitdama]

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.

Staking is a good thing to do. If you’re going to be buying a coin and leaving it your wallet for a year or so without touching it, maybe it would be best to stake it and then make some extra profit from it, instead of just holding it like that, although you can still make profit by just holding, but staking brings in extra profit. There are coins you would stake and you would be making as high as 10% to 20% profit from it. The thing with staking is just the lockup period and the fact that liquidity would still affect your coin during staking. If the value of the coin is dropping, you know it’s still a loss for you.

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[atjiat]

At least for me, the moment where I can send funds to the liquidity pool, Farming, and also to staking is very positive, receiving a fairly good passive income.  An example is the CRATD2C project, which will provide an opportunity not only to keep your asset, but also to increase it through additional income.

[yayayo]

If you are planning to hold it for a long time I think it is better to stake it where you would be able to generate more of that token like Ethereum staking I think they were offering 20% or 30% APY? I think that was a decent investment and staking while your holding your Ethereum you would be able to generate more Ethereum right. However there's a time lock before you withdraw it but I remember some website like binance you would be able to withdraw it anytime you like.

ya.ya.yo!

[bhadz]

Impermanen loss is the risk of staking, if you do not want to experience greater risk, maybe waiting until the price rises again is the right choice. Here the risk of staking will be higher if the price of the asset falls.

That's for being a liquidity provider. In staking, I don't think that you'll be getting impermanent loss. Only if you're staking with a locked-in the period.
But with many platforms that are available there, you're free and flexible whenever you want to withdraw it and that's why in staking, there's really no impermanent loss.

[carlisle1]

Impermanen loss is the risk of staking, if you do not want to experience greater risk, maybe waiting until the price rises again is the right choice. Here the risk of staking will be higher if the price of the asset falls.

That's for being a liquidity provider. In staking, I don't think that you'll be getting impermanent loss. Only if you're staking with a locked-in the period.
But with many platforms that are available there, you're free and flexible whenever you want to withdraw it and that's why in staking, there's really no impermanent loss.

There are good option to stake without lock-in period, you won't need to wait for long time to withdraw and collect your profits,

Staking gives you a good chance to increase your assets, though it's tough at first choosing which asset or project to invest

your money.

All depends on how you perceive and understand the project that you are going to support and invest your money.

[Henrobakkara]

Staking is more profitable because even though we are in market conditions that make our assets minus far. Staking is a good solution in my opinion while waiting for the market to recover. Holding back is great, but I'm sure we're all always tired of waiting.

I agree. I believe staking is an option to consider at times like this or when you intend to HODL your coins or tokens for a long time and get some passive profits on them too. They are all generally HODL to me but by staking, you just have the advantage of getting some additional tokens.

[justdimin]

Impermanen loss is the risk of staking, if you do not want to experience greater risk, maybe waiting until the price rises again is the right choice. Here the risk of staking will be higher if the price of the asset falls.

That's for being a liquidity provider. In staking, I don't think that you'll be getting impermanent loss. Only if you're staking with a locked-in the period.
But with many platforms that are available there, you're free and flexible whenever you want to withdraw it and that's why in staking, there's really no impermanent loss.

That is true, staking doesn't have any "loss" in token, the value of it could drop but no matter what you do, you will end up with a bigger token amount when you are done. It could be locked, unlocked it could be for 1 day or could be for 1 year no matter what you do, it will always be more tokens. So, the "profit" we talk about here is the profit in crypto that you are staking and not just profit in dollar value.

Obviously if we are talking about something in LP then there is a chance of losing, even though it says "impermanent" loss, you could lose it completely, imagine doing LP for a coin that keeps going down more and more and more? In that case it wouldn't be impermanent loss, in order for it to be impermanent, there needs to be a stabilization at some point, I have invested into plenty of them before and I have lost money permanently there.

[Oilacris]

Staking is more profitable because even though we are in market conditions that make our assets minus far. Staking is a good solution in my opinion while waiting for the market to recover. Holding back is great, but I'm sure we're all always tired of waiting.

The beauty of staking is that you do really earn interest or rewards on daily basis and there are even platforms do offer on having that investment of yours could be pull out anytime which is great

but there are some who do have lock in period which i dont really recommend at all and we must know that staking rewards do become more lesser and lesser when more people do make out deposits

and also one of the risks you should mind off is that you are entrusting up your funds into others hands which im not really that confident to do so.

[Jaered]

Staking is profitable but I prefer providing a liquidity token, that way I get rewarded more by getting a share of the trading fees and a piece of the LP token reward. And I only stake or do LP of profitable tokens, and not just any token I see

[jaberwock]

Staking is more profitable because even though we are in market conditions that make our assets minus far. Staking is a good solution in my opinion while waiting for the market to recover. Holding back is great, but I'm sure we're all always tired of waiting.

Yes, that would he the best decision to make, rather than just letting the coin in the wallet and you are waiting for the market to start being bullish again for you to make profit. By the end of the year or some months you would have made some good profit from staking. The thing is to make sure you’re selecting a good cryptocurrency to stake, that is very important.

Staking the wrong coin would be a mistake anyone wouldn’t like to make. I think the reason some people don’t consider staking is because in most exchanges or platforms, you will have to lock for a particular period.

[SlimShadyMmp]

If APY is great and you are not going to be using your money for a month or two then why not just stake it and get some returns Is like having your money work for you while you sleep Some coins that you farm can pump and have like 10X growth or more So basically you might get more depending on the coin potential

[bhadz]

Impermanen loss is the risk of staking, if you do not want to experience greater risk, maybe waiting until the price rises again is the right choice. Here the risk of staking will be higher if the price of the asset falls.

That's for being a liquidity provider. In staking, I don't think that you'll be getting impermanent loss. Only if you're staking with a locked-in the period.
But with many platforms that are available there, you're free and flexible whenever you want to withdraw it and that's why in staking, there's really no impermanent loss.

There are good option to stake without lock-in period, you won't need to wait for long time to withdraw and collect your profits,

Staking gives you a good chance to increase your assets, though it's tough at first choosing which asset or project to invest

your money.

All depends on how you perceive and understand the project that you are going to support and invest your money.

Yes, just choose those that don't have a locked in period so that you can withdraw your stake or funds anytime as you wish. That's just the risk for the others to check.
And if they know that there are platforms that allows them to stake without any locked in period then that's what they're going to choose as it's the ideal to avoid risk of being held by a centralized platform.

[QueenVera]

If APY is great and you are not going to be using your money for a month or two then why not just stake it and get some returns Is like having your money work for you while you sleep Some coins that you farm can pump and have like 10X growth or more So basically you might get more depending on the coin potential

Do not aways go after the high APY, they usually as scam project that drops drastically on price and you might not recover your capital again. Only projects you have research on and believe to have a good future should be stakes. Never stake because of hype. We have seems many projects decrease their APY as the months go by.

Project uses those high APY to attract investors and immediately they have that, they rush to reduce the rewards which makes the investors angry and can make project lose value which many do not recover from..

[perfect999]

It seems to me that there is nothing wrong with keeping the tokens of a project on the platform of, say, the same project. You can just stake for a short time and understand how it works and what income from it. And so the good old hold also brings good bonuses.

It is like your saying a bnb is owned by binance. Both projects are the same and we are going to put the bnb inside the binance to stake them there but there are other uses too for bnb like we can use it to deduct the fee when we do a trade in binance. This is another way for us to increase our profit.

Staking coins is not only limited to the coins that are under the same roof but its also possible to stake another brand of coin let say on binance but as long as binance support this coin. If not then you can look for other exchanges if they support the coin that you are willing to stake but it would be better if we learn staking first than stake first and learn from the outcome so that no funds are going to get wasted.

[pushups44]

It depends on the token and your time horizon, but as a general rule it's best to stake when given the opportunity, as not doing so prevents you from maximizing your gains (and beating inflation). With Ethereum, however, there is an undefined lockup period where you will not have access to your tokens until the ETH 2.0 "merge," so traders with a shorter time horizon may wish to forgo staking it.

[tygeade]

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.

Maybe doing a bit of both of them would be good. One thing you have to know is that it depends on the decision of the investor. If you have plans of holding your coins for a long time, then maybe it might be worth staking it to make extra profit on top of it that would come from that staking.

Because if you look at it this way: when you are holding, there is still the possibility that the coin can lose its value and drop, and when you are staking there is still that same possibility of that coin losing its value, and if you have plan of holding that coin for a year without minding whether it drops or not, then the best option might be to stake it so that you would get extra profit on top, which can go as high as 20% and even more than that.

[letyouearn]

I seldom use staking, don't know why - maybe I think more about the price growth and don't trust DeFi platforms...
I use BNB vault on Binance to stake my BNB and CRO staking on Crypto com platform. Sometimes I stake my stable coins on a bear market - if I have some, heh

[Westant]

I seldom use staking, don't know why - maybe I think more about the price growth and don't trust DeFi platforms...
I use BNB vault on Binance to stake my BNB and CRO staking on Crypto com platform. Sometimes I stake my stable coins on a bear market - if I have some, heh

If the project are from bigger companies then maybe staking giving benefit but mostly I also do not stake because I think that the staking reward will be low and the locking time period for staking also is a problem.

[Wewe Gombel]

Of course, stakes are better than just holding, this is because we can get additional assets, for example I stake CAKE with the auto staking option and get an APR of around 63%, and the most important thing is that we can withdraw it at any time without being bound by a time contract.

[andriarto]

I seldom use staking, don't know why - maybe I think more about the price growth and don't trust DeFi platforms...
I use BNB vault on Binance to stake my BNB and CRO staking on Crypto com platform. Sometimes I stake my stable coins on a bear market - if I have some, heh

If the project are from bigger companies then maybe staking giving benefit but mostly I also do not stake because I think that the staking reward will be low and the locking time period for staking also is a problem.

But with staking there are risks too. if we believe in the analysis of the coins that we stake on a particular platform, I don't think there will be a problem, because we have to freeze our coins for a certain period and get coin rewards, so we can't sell our coins at high prices, but must complete the contract first. then consider it carefully