Staking versus hodling What is your preferred crypto investment strategy?

HODLING the preferred crypto investment strategy

HODLING is a all time favorite of crypto enthusiasts
If we trace the price of Bitcoin the Big Daddy of crypto then we notice how its price moves in leaps and bounds.
At practically doubles or multiplies many folds in in a very short span of time.

This makes it a very attractive investment opportunity as compared to other asset classes.

Add to this the fact that Bitcoin and Crypto is a very volatile asset class.
This makes it a tricky investment to track.

In theory all you need to do is buy and hold onto to your bitcoin stash.
The Bitcoins leaps and bounds growth phenomena would do the rest and you could end up getting Rich or super bitcoin rich for that matter.
This investment strategy holds true even today for a lot of people.

HODLING the Magic Internet Money

Bitcoin or the magic internet money as it is also referred to has shown phenomenal growth from its early days where one could buy bitcoin at a sub dollar price.

If you do not believe that bitcoin was at one point that cheap then you can refer to the historical data of bitcoin.

Even if you had bought bitcoin at dollar one and held on to your bitcoin stash ever since you would be sitting on an enormous profit.
Do you remember remember the time when a guy paid 10,000 bitcoins for a pizza.

Now imagine what if you were the guy selling the pizza.
We do not know for show what did the guy who sold his pizza for or 10000 bitcoins did with all those bitcoin.

Did he sell them or held on to them for much longer who would know?
Now imagine that you were the guy who got 10,000 bitcoins for his pizza.
By holding on to to your 10000 Bitcoin they would be worth 10,000X $35,954
That for sure is enormous amount of money.
This is a typical example of of the HODLING investment strategy.
In this strategy one buys a crypto asset and holds onto it. He does not sell his holding.
His intention is to to witness capital appreciation due to the appreciation of of the price of individual token or coin.
Staking as an alternative to HODLING.

In HODLING your asset does the bro in the number the of tokens or coins held.
In staking a coin can we locked in the wallet and it slowly grows in number by way of earning a staking reward.

This is similar to you putting your money in the bank and earning interest on the amount held in the bank.
Staking is usually associated with proof of stake or POS coins and tokens.

Can one choose to Stake or To Hodl?

You can HODL any coin or crypto token however not all tokens and coins can be stick.
For it to Binance be staked the the usual requirement used to be that it has to be a a proof of stake POS coin.
However this definition is being put to test and can be confusing for some investors.
I say so because some centralized exchanges have a number of projects which are not proof of stake yet you can stake these coins from within your centralized crypto exchange account.

If you look at bitcoin then you would find that it is based on proof of work.
However if you were to check staking of use under an exchange like Binance then you would find that they offer the option of staking your bitcoin.
These bitcoin need to be held within your bitcoin account and your bitcoin exchange account should be in good standing for you to be able to stake your bitcoins and make them grow overtime.

Concluding thoughts.

Staking gives you the capital appreciation associated with Hodling as well as increase in the number of tokens held.
Thus this can be an added opportunity to grow your crypto.

Explore staking on Binance

In case you wish to explore staking on Binance
You can register for a Binance account here

Staking on WOXDefi for phenomenal returns

https://woxdefi.app/ is a DeFi project that has been built on the Tron TRX blockchain.
The good part about the project is that it has been giving a return of 26251.488% APY on STAKING !

This may sound insanely high but is very true.
The APY has been steady around this range

Currently with a price in the below $0.10 cent range it is easy to get into.

Happy Staking folks.

Standard Disclaimer : The purpose of this post is for education purpose only. Please do your own research DYOR before making a financial decision.