Post
Topic
Board Altcoin Discussion
Re: what is difference between HODL and staking?
by
adzino
on 07/02/2022, 21:52:30 UTC
hii all
my question is what is difference between HODL and staking
Hodling is holding your coins for long term till you are ready to sell. Staking is locking your coins and contributing to the network in some way. You receive passive rewards  for your contribution to the network. While staking you are also holding, but you won't be able to sell when you want until your staking period ends. If you are planning to hold for a very long term, then staking your coins (only coins that uses PoS or similar mechanism can be staked) would give you some nice profit along with the price appreciation. There are also coins that you can stake without having your coins locked.
But you should take into account the fact that when staking, you usually need to send your coins to other platforms, which significantly increases the risks.
You don't send it to other platforms if you stake using your own wallet. You only send it to other platform if you decide to use an exchange or a centralized platform to stake.