As we all know, the crypto world is constantly changing, and figuring out the best ways to maximize returns is always on everyone's mind. With DeFi platforms booming and staking programs becoming more popular, a lot of us are wondering: Is staking or trading the better way to go? Which one will give you the best returns?
First let’s distinguish between the two types of trading we have, the first is the spot trading which is mostly regarded as investing, you simply buy the coin and withdraw to your wallet and then hodl for as long as you want, this to me is the safest form of crypto trading as you can be able to do what you want with the coins anytime and most importantly you’re in total possession of it rather than leaving it on exchanges.
Then we have the futures or derivatives or perpetual trading which involves trading with leverages, this to me seems the most risky of them all most especially if you lack proper knowledge, you can easily get liquidated in few minutes since it is mostly a thing of prediction and you still need to leave the coins on the exchange you’re trading on which is another security concern.
Then staking which is in the middle of the two above, it needs you to leave a certain coin for a certain period of time and then the coin will generate APR, this might sound the best because you are not going to do anything but will be earning, but to me it is not, it is very risky. First you need to hold the certain coin which itself has potential to dump and I am not a fan of holding to shitcoins so when it dumps even the returns wound be useless. Secondly is the risk of leaving your funds on centralized exchanges for some time, I don’t think the APR is actually worth the risk of holding the coin and leaving it on exchanges too.
If I have the ability of flexible stacking, then I lose nothing by it but in overall I prefer to trade. At the moment, I have the great opportunity to buy Matic because it's very undervalued and wait for a year to see how far it will grow. At the moment it costs 0.37$ and it's ATH was 3$. I believe that this coin will reach and surpass it's ATH again, so I'll make 10x profit at least. Is there any stacking program that will give me 1000% investment back? No, so I'll trade with the coin.
When you trade, you have to catch the best moments, not every moment. Stability comes with the lowest reward.
Matic might be a good buy but seriously I am skeptical of it reaching its ATH back again in this circle, the seem to be having trouble, first most people have begin to lose interest in this L2 blockchain which promises to scale the Ethereum blockchain as they aren’t leaving up to the hype most especially this polygon chain, they had a migration from the ticker POL to Matic and Now back to POL again, they need to focus on other areas than just Tickers, although I believe it will recover in the upcoming bullish period but for now I don’t want to over estimate so a $3 is looking high to me