S4B Crypto Contest - Season 18
Apart from earning money from content, cryptocurrency is also one of the profitable investments one can earn money either by staking and holding or trading cryptocurrency. Before I begin with the contest hint, let's let explore a little fact about this popular investment strategies called staking and trading.
Staking in cryptocurrency is holding and locking up your assets just to support a network and validate transactions, and this locking fund comes with a reward. Staking is one of the popular ways you can make money online just by locking and supporting the networks, but it has its potential fluctuations in staked asset value.
Trading is watching the crypto movement, buying when the price drops and selling it when the price increases. It's a profitable investment but it has its own risk of losing assets. A trader who trades in crypto makes use of technical analysis, fundamental analysis, and risk management to inform their decisions.
| Staking | trading |
|---|---|
| Staking includes holding assets for longer periods and reducing short-term fluctuations. | Trading is exposed to market volatility and price changes |
| Staking locks up assets for a set period, mitigating liquidity risks. | Traders face challenges in buying and selling assets quickly during market downturns |
| Staking may miss out on investment opportunities by locking up assets | Trading offers flexibility in changing market conditions. |
| Staking rewards are more predictable | trading profits depend on market conditions. |
Profitable: how much do we want to achieve in the investment? Can we handle market volatility and potential losses? Can we have time to actively monitor trades and understand the blockchain network?
We also need to assess whether we can commit to taking long-term, want to invest in specific assets, need quick access to funds, and are aware of regulatory restrictions in our region. After considering all this, we can make a decision that aligns with our goals, preferences, and risk tolerance.
Though trading and staking are in the same crypto space, the rewards and distribution make them different from each other. Staking rewards come from validating transactions and supporting the blockchain network, while trading profits come from buying when the Price is down and selling when the price is up.
Staking rewards are more predictable, distributed regularly, and involve lower risk because they're tied to the performance of the validator and network while in trading, the profits are highly variable, dependent on market conditions with higher risk due to market volatility and trading errors.
Staking rewards requires low effort, while trading profits requires active involvement in market analysis and trade execution.
In short, staking involves passive income and lower risk, while trading involves active buying and selling with higher risk. The choice between the two depends on investment goals, market knowledge, time commitment, and asset selection. Understanding the differences here will help in making informed decisions and investing in a profitable one.
Am inviting;
@saintkelvin17
@bossj23
@emmaboy23
@josepha
10% to @hive-109435
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.
My X link:
https://x.com/Mhiztachosen/status/1821523047997731214
Good day @hive-190435 and @malikusman1. I won a contest last week and beat the post of the day, but my reward was not given to me.
Here are the screenshots of my position
I haven't received any of the rewards, I have been waiting patiently for booming but I haven't seen it that's why I had to bring it to your notice
Hahaha🤣! I saw that man running above the green arrow showing his high risk tolerance. Indeed when it comes to making a choice of either to trade or stake, it is based on some factors that could be ignored. Both trading and staking are good, but must have to consider your time,, market knowledge, risk tolerance etc.