Being a crypto entrepreneur means you have to take risks, and well, that's pretty much the same with business as a whole. Risking your funds by staking or investing it in a project that may or may not be personal turns into profit. In crypto, there are two broad ways of earning, and they are either through Mining(staking) or trading.
People on Hive and other Proof of Stake networks will be very familiar with the staking and how it works. On this dynamic blockchain, you stake tokens in a process called powering up. The more stake you have, the more cryptocurrency you earn. So simply put, you're using Hive to earn Hive by investing(staking) Hive.
Different blockchains have different staking mechanisms and APR for staking. On hive, for example, the APR varies between 9%-15%, depending on your proficiency with curation and all that. Platforms like Vite that I talked about in this post, offer similar APR to Hive but the dividend comes in VX tokens, USDT, Eth and Bitcoin Pegs that are tradable on the internal DEX.
So, in some lose/technical sense, staking is basically the same thing as mining on Bitcoin or Ethereum but without the need for sophisticated, and power-consuming mining rigs. Over the last couple of months, Mining(read as staking) has been my major source of income, and one that funds most of my activities. It is a legitimate hustle that pays and typically, the volume is the key ingredient in determining the quantity of earning. However, there are a few people who share a different school of thought.
I remember sometime in March when I made $1 while trading Vite/USDT pair on Binance. The entire capital for that particular trade was roughly $100 and I consider how the market was, I didn't particularly do so well, yet here I was, earning $1 in a minute, which is a big deal when you consider that I earn just about that amount daily from staking three times the trade capital.
Trading cryptocurrency is a perilious route, but it is probably the most rewarding means of making money in the crypto world. If staking is classical music,then trading is rock music. The fundamentals are pretty simple; Buy low, and sell high, however, if it were that simple, we'd all be riding lambos. The market is volatile and unpredictable, so how come people still prefer this route?
Like I said, I don't trade but I actually admire traders because they're like the soldiers of crypto. They're a big part of the reason why a project has value and considering how much risk they take regularly, they probably have big balls too. Traders have to watch the charts, look out for trends, follow the "rules", and still roll the dice anyway because, hell, this market is not your own. The best part is that the amount of profit you can make as a trader is limitless, and the worst part is that the amount of loss you could incur as a trader is also limitless.
I prefer staking to trading because I've always been a fan of slow and steady while riding gently in shallow waters but hey if you dive into the deep end and swim with the sharks, all I can say is good luck and remember it is important to breathe, so try to stay above water.
