Staking and providing liquidity without technicalities

 


Hi, everybody!


Staking and providing liquidity have become very popular lately, so let’s see what that means for you.


 


In general, both of the options give you the opportunity to put your tokens somewhere and earn interest for just hodling them.


However, there are some differences between the two.


 


The more common way – staking, requires you to lock a minimum amount of a given cryptocurrency, for a predetermined period of time.


In many cases, if you withdraw your stake earlier, not only you will not get any rewards, but you will be penalized for violating the agreement between you and the service provider.


On top of that, you have to wait for your tokens to be returned to your wallet.


 


The more profitable and efficient way, but also the riskier one – providing liquidity, may be a bit more complicated, but it has one huge advantage, which is decentralization.


In other words, you put your tokens on a decentralized platform, like Uniswap, and you earn from the fees that people are paying when they are making transactions.


 


Basically, what both of the options mean is that you transfer your cryptocurrency to a given platform and you get payed for that.


 


I won’t create a whole how-to-do-it guide.


Every platform has its own steps to follow, so you’ll have to make a very good research, choose one for yourself, and follow its specific instructions.


 


Don’t forget to not put more than you can afford to lose.


There’s risk in everything and it wouldn’t be very smart if you bet your house on the possibility to earn interest on your crypto.


Be intelligent!


 


HODL


 


Follow me on Twitter.

COMMENT

14

Adegbe Gift
3d

When you're ready to stake you should also be ready to be patient till the maturity time, if you're not able to wait it means there won't be reward for such person.

And another thing is investing on what you can lose, as an investor or staked, you need not to stake all your tokens, something can happen along the period, and who knows, just have it in mind that you need to HODL some in your wallet,or you split it, if one doesn't one another will definitely work.

25

preview not available Ivan .
3d

Yeah, exactly! We should always calculate our risk and "put our eggs in different baskets". 👌👍💪

20

preview not available TEDDY FOSU
3d

There are new amazing concepts when it comes to staking and providing liquidity and must say the Binance chain is doing amazingly well. Because if you treat staking as investment in the long run with crypto it can always go side ways and sometimes the falling value of token used can be very depressive. If one can earn something daily on their staking then in the long run the burden of losing value can be reduced.

25

preview not available Ivan .
3d

Yeah, I like Binance chain too. And, well, I say this a lot but I will say it again - if you think about they money, instead of your goals and visions, you will always lose [in your mind] and you will always suffer. The point is that once you make a decision, you just accept it and live with it, and not have any expectations whatsoever. That's how you win. 🙂

20

preview not available TEDDY FOSU
3d

That's the truth. Every decision one make will yield either positive or negative and with optimism, we should accept our fate once we took those decisions. DYOR is very important in any major investment decision.

15

Jessica Ossom
3d

I didn't stake last time but I staked my 1up during the first staking but somehow the system got hacked and my 1up was returned to my wallet.

Are you saying that when staking is ongoing, it may be difficult to have an added liquidity?

Anyways I am Hodling even though it's not a very huge amount, it is something I can afford to hodl

25

preview not available Ivan .
3d

Ahh, yes, this was some third party staking site. I lost the interest from it too. 🙃

I'm saying that staking and liquidity are different ways for you to earn interest on your crypto. 

And hodl! 😁

15

Jessica Ossom
3d

Okay...

I'm glad I read the post.

It's good to know

7

Umair Awan
3d

If we keep our cryptocurrency on a good platform then how can it be possible  to lose it? Please explain some detail

25

preview not available Ivan .
3d

Well, platforms may seem good on the surface but you never know what may be happening inside. Also, centralized platforms can be hacked. Decentralized platforms may be using exploitable smart contracts (intentionally or not). That's how you can lose. 🙃

20

Sofs Su
3d

We need to take caculated risks in life. But it is upto us to do our own research. Its is good to learn all these jargons and familiarise myself with Crypto arena.

25

preview not available Ivan .
3d

It is indeed an arena! 😅

It even managed to slap me in the face today, trying to connect to uniswap through an android device... It was real pain in the ass. 😂

20

Sofs Su
3d

Hmm.. it is so scary when people like you say this, but the market is unbelievable volatile now I guess. 

Hope you have a better day tomorrow. Lol Now I understood that image about your mood on twitter.  

25

preview not available Ivan .
3d

Well, yeah, we are not ready for mass adoption yet. It's just still too difficult to manage thigs and you have to have big desire to learn. 

Meditate. It helps. 😁

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