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
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A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
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Adegbe Gift 3dWhen 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.
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Yeah, exactly! We should always calculate our risk and "put our eggs in different baskets". 👌👍💪
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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.
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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. 🙂
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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.
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Jessica Ossom 3dI 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
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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! 😁
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Jessica Ossom 3dOkay...
I'm glad I read the post.
It's good to know
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Umair Awan 3dIf we keep our cryptocurrency on a good platform then how can it be possible to lose it? Please explain some detail
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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. 🙃
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Sofs Su 3dWe 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.
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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. 😂
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Sofs Su 3dHmm.. 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.
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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. 😁