The Difference Between Staking and Earning in Crypto, Which One is More Profitable?
Definition of Staking
Before we get into the main discussion of this article about "The difference between Staking and Earning", it would not hurt us to first discuss the meaning of the two. First, let's discuss what is staking? In short, Staking is an activity or action to lock up crypto currency in order to get a big reward.
Is Staking really useful for Crypto users?
Of course. By staking, you can easily earn income in the form of rewards or interest from the currency you lock. Staking is very useful and simple because you only need to do a simple method to be able to get the reward that you will get, namely you only need to save and lock the coins that are on the exchange.
How to calculate Reward from Staking?
There are several ways to calculate rewards from staking. We can't mention them one by one. However, of the many ways, there are some common ways that we can see depending on each blockhain network that you use.
- How long have you been staking and
- How many Staking coins are you staking
What about Earnings?
Definition of Earn in brief
We have discussed Staking briefly. Then, now let's discuss what is Earn ? Earn is a new feature in trading that has another name saving. This Earn has the same goal as Staking, which is to get rewards from the crypto that we have.
What are the facilities provided by Earn?
This Earn provides freedom for its users, where these users can withdraw balances as they like from wallets or Wallet Earn whenever they want for trading needs. Even better, in Earn there are no additional fees for users who want to top up or withdraw balances.
Looking at all the freedoms provided, we can conclude that users can get the maximum benefit or passive income from the investments they make in crypto for long-term and short-term needs.
How does Earn provide rewards or rewards to its users?
Bitcoin funds or crypto currency that you use is rotated to third parties. Or we can say that the funds of customers or users of Earn are reused by managers (third parties) to make a profit. So from there later the results obtained will be shared with the first party or owner
Then, what is the difference between Staking and Earning?
Now we come to the heart of this article. After reading and understanding the meaning and advantages of each of the features above, let's see what's the difference between Staking and Earning?
How to get Rewards
The first, we can see from the way Staking and Earn explain how to get their respective Rewards. If Staking takes the action of locking cryptocurrencies so that users can get the rewards they want, it's different from Earn. Earn instead offers rewards or rewards for crypto every hour and is flexible. Which means, users don't have to bother locking up their currency or crypto assets within a specified time period.
The reward path/process is running
In the Staking feature, the Passive income or Reward they get must pass through the system first or we can call it "By System" which has been determined earlier, that is they have to go through the blockchain code themselves. Whereas Earn does not use By System but they go through direct third parties which later the funds will be rotated and the results will be distributed to the owner or the first party itself.
Pros and Cons of Staking and Earn.
We start with the advantages of Staking:
From this Staking feature you will get a reward which we can call passive income or interest from locked crypto currency. This makes it easier for users to have diversified digital asset income. In this blockchain, any user with a minimum balance can validate transactions and get rewarded.
Then what are the drawbacks of Staking itself?
The downside of staking is that crypto prices are less stable. Staken Cryptocurrencies will be locked part of the investor's crypto for a certain period of time as a way to contribute to the blockchain network
Advantages of Earning:
The advantage of Earn itself is that this feature provides an hourly and flexible reward offer for crypto money users, where users do not need to lock up the assets or crypto currency itself within a specified time period.
Disadvantages of Earning:
Because the Earn feature uses a third party as a money player, Earn feature users need to be careful and be more open about where and where the funds provided are managed.
Staking and Earn are two features of Crypto which have their own advantages and disadvantages. If you ask which one is better to use? it all depends on the comfort of the users of these two features. We cannot say which is better Staking or Earning because user experience and satisfaction take different forms.