Our Investment Appetite
I have recently switched from trading cryptocurrency to staking cryptocurrency.
When we are doing trading on an exchange, we often want to buy the dip and sell our tokens when it is pumping.
It is indeed an ideal situation but it may not always go according to our own plan.
The price of Bitcoin has not been improvement even with all the good prediction.
It rises for a short period and the price of Bitcoin can drop within a day or even after a few hours later.
For trading of cryptocurrency, we need to be patient to avoid panic selling so it really it a waiting game.
The wait can really kill one who may need the cash urgently so we should never invest more than we can afford.
Switching to staking of cryptocurrency can have its risk but we are earning extra cryptocurrency as interest when we stake so the number of cryptocurrencies will stay the same.
When we gather enough cryptocurrency, we can sell those that we earn by interest and keep those that we stake untouched.
Trading in exchanges can let us gain fast when there is a pumping but it may not always be so.
On the other hand, staking may provide a more stable flow of earning in terms of the number of extra cryptocurrencies we can get.
It really depends on our appetite and our level of risk tolerance.
There is no right or wrong but the best that suits our character.
Many investors may also diversify by doing both trading and staking but the amount of cash involved may be quite significant.
As a small investor, I guess I will go for staking for now.
Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth.
Yes, it totally depends on your risk appetite. Staking is also a good option. Great choice.
Thanks! 😀
@tipu curate
Upvoted 👌 (Mana: 8/20) Trade Steem <-> BTC from your wallet :)
which ever way we do it, investment is always a risk. Even staking comes with its own risks, we can only do our best by investing and hope the worst doesn't happen. it is important to trust your investment instincts and understand that it could go anyway.
Investment instincts is good after a nice research before investing. Thanks for your comment! 😁
But how can I go about staking some of my cryptos too? Is there any trusted platform for that?
You can try out atomic wallet that has staking function or exchanges like Binance or Bittrex. It really depends what type of cryptos that you have but you can always convert them to a certain type of cryptocurrency to stake if that particular one does not have your current crypto.
I will have love to do the both. But trading cryptocurrency is highly risky which I can't afford to pass through and also staking cryptocurrency, the return is always quite low and who knows the price of the particular crypto to be staked in the future
In this case, writing on steem to earn steem tokens would be the best for you then. 😁
Yea I think that will be better. And thank God I embrace it earlier
You are right, we have different level of risk taking, some people can invest millions into a project that does not have prospect but either staking or trading crypto, I feel they are both good.
It really depends our risk tolerance and how much we can afford at our comfort zone.
Staking is a great idea because the risks are less and it is a better way to keep our funds safe also.