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[Josemendez]

Staking of coins and providing liquidity are the two common ways cryptocurrency investors generates passive income .
Staking can be done with a single token while liquidity needs two tokens.

Which of these two method of earning passive income is the best ?

 

[LutherKing]

In Staking Current , you always have fixed visible apr yield to you above 10% per year .

While in liquidity , you will always get part of your share from the total profits of exchanges so the first one is better option

 

[Niftyicon]

I know of taking and I do stake my coins on binance but I have never provided liquidity before because I fail to really understand how it works despite having an idea of it.

 

[Humbu]

I think staking is the better option, because you have a fixed share no matter where the market goes. You just need patience since the percentage is normally small

 

[gammarays]

I think providing liquidity in farms gives you a better apy though it reduces with time because people provide liquidity too. Staking is fixed for the entire duration.

 

[GoldenLady]

Is liquidity not as a result of buying and selling? I believe it's traders that provide liquidity, which stakers don't. Both are still important measures of how good a coin is.

 

[Makaliki]

Liquidity mining has higher risks, but also higher rewards with much fewer investments. Although, impermanent losses can be witnessed which mean that your tokens can lose value while they're inside a Defi protocal.

 

[ElPaule]

I woud like to uderstand better how liquidity is working. Understand the risks and issues with this method. Currently I am sticking with staking, there you can also make some nice mounts of money...

 

[BullyMaguire]

I think staking is better specially for people who wishes to held their coins for long term.. that would be perfect. Earning while everything is still securely yours

 

[silentwatch]

If you a long term investor then staking is good choice, all you do is watch your coin grow every year. But if you a midterm ir shortterm investor then go with liquidity, know the risk and offcourse, the profit you will earn.

 

[GoldenLady]

If you a long term investor then staking is good choice, all you do is watch your coin grow every year. But if you a midterm ir shortterm investor then go with liquidity, know the risk and offcourse, the profit you will earn.

With liquidity, one can easily sell the held coins when you feel you're in enough profit. I also prefer it because sometimes the price only goes up for a short while before coming down.

 

[Josemendez]

With liquidity, one can easily sell the held coins when you feel you're in enough profit. I also prefer it because sometimes the price only goes up for a short while before coming down.

The issue with liquidity is what is called impemanent loss , liquidity providers have to bear this in mind when Investing in LP staking.

 

[Makaliki]

That depends with the provider. We shouldn't focus from the beginning on how much you want to earn but how much you want to invest and how much you can afford to lose.

 

[Emmanuel24]

I don't know liquidity work but I think it will also be a good way to earn. To my experience, Users in staking activities is more than users in liquidity . Therefore staking is more profitable than liquidity

 

[Wisdom01]

I will choose staking option and considering the amount I would earn just staking coins , so staking seems to be the best option for me compared to liquid