Staking vs Earning: PROs and CONs

Yesterday I wrote about the PROs and CONs of exchanges vs wallets and I thought it’d be interesting to share the same perspective on staking vs earning. If we wanna keep it simple, staking and earning are basically two different ways of defining the act of earning interest on your crypto. That’s the bottom line, and the baseline for the conversation. But there are a few differences and also the reason why sometimes, some people tend to think they’re the same thing. Both earning and staking your coins will bring a similar result but the path to get there is different, as is the reward.


Staking: PROs


The first thing people will want to know is staking usually offers higher interest rates, and there’s no limit. There are tokens that allow you to earn 100+% APY / AER on your crypto. This makes a huge difference because it allows you to grow your portfolio by 20-30-40% across the board – obviously I’m just talking about your holdings, not the $USD countervalue which may vary.


In short, staking means you’re committing to holdings to support a specific blockchain, and it can only be done with tokens and coins that operate via proof-of-stake. By staking your coins, you’re actively participating in the project, essentially, and it is, for the most, truly decentralised and you still get a good level of decentralisation even if you do it through an exchange.


Staking: CONs


In order for your to stake your coins and tokens, you almost always have to lock them and accept the fact that for a pre-planned amount time – it could be anywhere between a few days and a couple years – that money will not be available to you. This means you can’t cash out if the token in question 100Xs, for example.


Staking is also a bit harder to do and understand than earning, which means it takes a few extra layers of patience. I don’t think it’s a great idea to stake a YOLO coin you bought randomly, unless you’re comfortable with the risk or unless you can afford it.


Earning: PROs


The biggest advantage of earning is that it can be done pretty much on any exchange. Most of them offer competitive rates when you compare them with the rates that your bank would give you: even if you get like 1 or 2% on your BTC, it’s a lot better than the risible 0.5% or whatever that your bank guarantees on your dollars. It’s easy and flexible, you can cash out at any time.


Another advantage is that you can earn interest on any currency, even when it does not operate with a proof-of-stake model.


Earning: CONs


I guess different people have different opinions on this but the main disadvantage is that you’re essentially giving your crypto to the exchange in question and they’re free to keep them on their balance sheet, while using them for proper DeFi projects, and then they just give you a small(er) percentage, which is the agreed APR/APY or AER.


There are some conspiracy theories about this. Some people think this doesn’t happen at all, others demonise exchanges because they think that anything that’s not 100% decentralised is evil, but I guess at the end of the day, it’s all about what you’re comfortable with.


I personally use both. I stake most of the stakable coins, usually for 30 or 60 days, and put the rest on ‘earn’.


What do you say? Also, if there’s anything you wanna add, feel free to do so in the comments.



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Bitcoinea is unsponsored and independent. If you like the content please subscribe to the WordPress website, follow on Instagram it helps a bunch. Also, if you want to support the website with Crypto, any donation in Eth (or any other Ethereum-based token), Btc, Nano, Xmr, is highly appreciated (see address below) Thank you.

Eth: 0xF8D5df20ed7B80624B02F21661DD0Fd57bf27F0D

Xmr: 8BZ1CtEoQsu1AekeSRmum5Y9o15RGjnbGbY34EertEYxYtXLsTwsH4bHQQrDf1Azz2du9h6NucR5aTxtMHpKRH38QhCkDu6

Btc: bc1q40wwu2qshpwkpurtyyrhs5t3kq0szrfjlyzmku

Nano: nano_3931o9kgduoqpt6wi6148dbooj8458wzi6djqkiocyqkkfyus71agxbtzg13

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Experiment: I much I made staking KAVA for 21 days

About a month ago, I was looking for some staking opportunities with coins I wasn’t familiar with and I found KAVA, and I picked it for a technical and logical reason… I liked the name. Kava is the Serbian/Hungarian (and a few more) word for ‘coffee’ and I’m a big fan of coffee, so I thought… why not?


I know that some people are going to giggle because a lot of YouTubers out there allocate thousands of dollars for this experiment but I’m a lot more conservative than that (and poor-er) so I thought $95 would do. On December 13, I bought 27 KAVA at 3.5248 per coin, so that’s $95. I staked that amount for 21 days at a 33.7% APR.


Twenty-one days later, staking had generated an additional 0,4845, on January 4, when I claimed the rewards, that amount was worth $2.57. In the meantime, the price of KAVA has gone up so my initial $95 investment is worth $150.69.


So what have I learnt? Two things. One, I stake all of my stakable coins on Binance and/or with wallets that allow it and use various apps like BlockFi to earn interests on the other coins. But I do that with coins I’m familiar with, and most of it is in BTC anyway. This was basically a gamble, and yes, I bought when the price was low but I certainly wouldn’t rely on this strategy in the long term. Two, I sold half of my KAVA (for BTC, duh) and kept the rest just ’cause you never know. And two, coffee never fails.



I’ve crossposted this article on readcash, LeoFinance and Publish0x, a social media platform that pays you small amounts to create and/or read content. You need to sign up but it’s 100% free.

Bitcoinea is unsponsored and independent. If you like the content please subscribe to the WordPress website, follow on Instagram it helps a bunch. Also, if you want to support the website with Crypto, any donation in Eth (or any other Ethereum-based token), Btc, Nano, Xmr, is highly appreciated (see address below) Thank you.

Eth: 0xF8D5df20ed7B80624B02F21661DD0Fd57bf27F0D

Xmr: 8BZ1CtEoQsu1AekeSRmum5Y9o15RGjnbGbY34EertEYxYtXLsTwsH4bHQQrDf1Azz2du9h6NucR5aTxtMHpKRH38QhCkDu6

Btc: bc1q40wwu2qshpwkpurtyyrhs5t3kq0szrfjlyzmku

Nano: nano_3931o9kgduoqpt6wi6148dbooj8458wzi6djqkiocyqkkfyus71agxbtzg13

Doge: DD7use8x8Zw37XumJcwQxfkiqYR4eo5pjF


Use this link to get a discount on Undone Watches

Use this link to get a discount on your first Glovo order

Use this link to get up to $250 in crypto on your first deposit on BlockFi

Use these links to get free crypto on your deposit Coinbase or Binance

Use this link to get free diamonds use my CoinmarketCap code

The latest staking product on Binance

There’s a million platforms you can use and people tend to have polarised opinions on this and to be honest, I don’t really see why. Broadly speaking, you go to places like Coinbase or Binance, which are very obviously more centralised, when you want a good compromise with a platform that allows you to manage new assets with a more, let’s say, old-fashioned tool. You go to full-on DeFi platforms when you A, are a lot more prepared and B, you feel comfortable taking 100% of the risk of managing your assets. These two things can coexist.


I think Binance is a great platform to blend decentralised products with a safety-first approach, you don’t need to be a software engineer to buy some crypto and stake it on Binance, and I think the risk-benefit ratio is actually optimal.


I like Binance, and I’m not gonna pretend I don’t, and the latest staking product I’ve used involves FC Porto tokens. I’m into sports, specifically football (or soccer, if you’re reading this in the U.S.) and F1, and I think there’s huge potential in that. Sentiment surrounding football clubs tend to be humoral and whimsical. You win, the price goes up, you lose, the price goes down. Rumours about a great footballer joining the roster, price goes up, rumour about a great footballer leaving the club, price goes down. FC Porto are one of the three top clubs in the Portuguese ‘Primeira Liga’, which means it’s a great club but it is also (for the most part) exempt from scandals that routinely shake other major leagues like the Italian Serie A. That’s a good thing, the way I see it, because it saves you from the Black Swan event that might lose you XY %.


It is also a winning team. Year on year, FC Porto are either winning, or competing to win, which is good. It means that an FC Porto token will potentially go up and down over time, but always within a… comfortable range.


Binance has just launched a 10-day staking programme for the FC Porto token, with a 40.something (I think it’s 40.5%, if memory serves) APY. I’ve bought $25 worth of FC Porto token to give it a shot, worth around 8 tokens. I’ll keep you posted.


In the meantime, the only question now is… where’s my Lambo?!


I’ve crossposted this article on Publish0x, a social media platform that pays you small amounts to create and/or read content. You need to sign up but it’s 100% free

Bitcoinea is unsponsored and independent. If you like the content please subscribe to the WordPress website, follow on Instagram it helps a bunch. Also, if you want to support the website with Crypto, any donation in Eth (or any other Ethereum-based token), Btc, Nano, Xmr, is highly appreciated (see address below) Thank you.

Eth: 0xF8D5df20ed7B80624B02F21661DD0Fd57bf27F0D

Xmr: 8BZ1CtEoQsu1AekeSRmum5Y9o15RGjnbGbY34EertEYxYtXLsTwsH4bHQQrDf1Azz2du9h6NucR5aTxtMHpKRH38QhCkDu6

Btc: bc1q40wwu2qshpwkpurtyyrhs5t3kq0szrfjlyzmku

Nano: nano_3931o9kgduoqpt6wi6148dbooj8458wzi6djqkiocyqkkfyus71agxbtzg13


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3 staking products that I personally find useful

Yesterday I wrote an article about 3 mistakes to avoid when investing in crypto and today I wanna talk about 3 staking products I’ve been using BUT, just like I said for the article, I’m not a financial advisor, and the only reason I’m writing this is I think it’s important that we learn from each other’s mistakes, yes, and also possibly learn about things that potentially work in this relatively new, relatively uncharted territory.


1. Kava on Trust


I gotta admit I picked Kava because it’s a Slavic word for ‘coffee’. But then I actually looked into it and noticed that it’s relatively stable, it goes up and down but never by much, and it’s a relatively flexible plan. You lock any amount (minimum is 0.000001) for 21 days and you get 34% APR.


2. BNB on Binance


Okay, technically this is not staking, this is just an ‘earn’ product. So, more like a traditional savings account. The biggest difference between BNB staking and BNB earning on Binance is there’s a minimum threshold of 1 BNB for staking but there’s no minimum for earning, the APY is low, but you get your rewards in Santos Token and Merit Circle. I’m still not sure what to think about MC, but I’m very bullish on Santos because it is one of Socios.com’s products, and I think fan tokens have huuuuuge potential.


3. Axie on Binance


This is a product that Binance has been promoting like mad, and it’s pretty straightforward, you can lock Axie Infinity, I don’t remember the minimum amount in Axie but I remember thinking “wow, I can do that starting from like 10 dollars”, and you get 103% APR or better, starting from a 30-day lockup period. What’s not to like?


I’ve crossposted this article on Publish0x, a social media platform that pays you small amounts to create and/or read content. You need to sign up but it’s 100% free


Eth: 0xF8D5df20ed7B80624B02F21661DD0Fd57bf27F0D

Xmr: 8BZ1CtEoQsu1AekeSRmum5Y9o15RGjnbGbY34EertEYxYtXLsTwsH4bHQQrDf1Azz2du9h6NucR5aTxtMHpKRH38QhCkDu6

Btc: bc1q40wwu2qshpwkpurtyyrhs5t3kq0szrfjlyzmku

Nano: nano_3931o9kgduoqpt6wi6148dbooj8458wzi6djqkiocyqkkfyus71agxbtzg13


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Have you ever bought a coin or a token just because you like the name?

I keep well over 90% of my holdings in btc and eth because these are the only two cryptos I firmly believe in the long run.


After that, I allocate small amounts here and there to buy, and sometimes stake, random coins and tokens that aren’t actually so random. I mean, I might be wrong, of course, but I always have a reason to buy them.

Except this one, I bought Kava because the word ‘kava’ means coffee in a variety of Eastern European languages, including Serbian and Hungarian, which are both countries I’ve lived in. ☕️


I bought 27.09 Kava, worth around $90 at the time of purchase, and I’ve staked them for 21 days.


So far I’ve made 0.00001 Kava (in 3 minutes). So…

Where Lambo?!


This is day 1, next update on day 8



Bitcoinea is unsponsored and independent. If you like the content please subscribe to the WordPress website, follow on Instagram it helps a bunch. Also, if you want to support the website with Crypto, any donation in Eth (or any other Ethereum-based token), Btc, Nano, Xmr, is highly appreciated (see address below) Thank you.


I’ve crossposted this article on Publish0x, a social media platform that pays you small amounts to create and/or read content. You need to sign up but it’s 100% free


Eth: 0xF8D5df20ed7B80624B02F21661DD0Fd57bf27F0D

Xmr: 8BZ1CtEoQsu1AekeSRmum5Y9o15RGjnbGbY34EertEYxYtXLsTwsH4bHQQrDf1Azz2du9h6NucR5aTxtMHpKRH38QhCkDu6

Btc: bc1q40wwu2qshpwkpurtyyrhs5t3kq0szrfjlyzmku

Nano: nano_3931o9kgduoqpt6wi6148dbooj8458wzi6djqkiocyqkkfyus71agxbtzg13


Get a discount on Undone Watches

Get a discount on your first Glovo order

Get free crypto when you make your first deposit on BlockFi

Get free BTC using my Coinbase code

Get free diamonds using my CoinmarketCap code