{"id":8316,"date":"2022-09-27T19:02:39","date_gmt":"2022-09-27T19:02:39","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=8316"},"modified":"2022-09-27T19:02:39","modified_gmt":"2022-09-27T19:02:39","slug":"choosing-between-hard-vs-soft-staking","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/09\/27\/choosing-between-hard-vs-soft-staking\/","title":{"rendered":"Choosing between Hard vs Soft Staking"},"content":{"rendered":"\n<p>The choice between Hard or Soft Staking comes down to the trade-off between the flexibility of access of Soft Staking vs much the higher rates but constraints of a lock-up period.<\/p>\n\n\n\n<p>If you opt for Hard Staking and the asset you have staked appreciates over the lock-up period you win twice &#8211; higher interest plus the increase in value.&nbsp;<\/p>\n\n\n\n<p>If you choose to be paid interest in the token specific to the provider, and that also appreciates in value, you\u2019re winning on three fronts, but trebling your overall risk.&nbsp;<\/p>\n\n\n\n<p>If the markets start to tumble during the lock-in period, you have no choice but to watch your deposit fall in value. You can withdraw the interest accrued and exchange that, albeit for a declining return but are otherwise powerless.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Getting Paid In A Native Token<\/h2>\n\n\n\n<p>Getting paid in a token specific to the provider has its own set of trade-offs. Interest rates are higher if you get paid in a native crypto token because the providers are trying to incentivise its use.<\/p>\n\n\n\n<p>Native tokens are however volatile. Indeed, the relative illiquidity of such tokens &#8211; difficulty of selling them &#8211; make them more unpredictable than the likes of Bitcoin and Ethereum. By choosing to be paid interest in a native token you are speculating that their price will increase, which is no different to speculating on any cryptocurrency:<\/p>\n\n\n\n<ul><li>What is its value proposition?<\/li><li>Will the user base grow?<\/li><li>Will the provider change its model? Is it competitive?<\/li><li>Is the provider secure from attack?<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The choice between Hard or Soft Staking comes down to the trade-off between the flexibility of access of Soft Staking vs much the higher rates but constraints of a lock-up period. If you opt for Hard Staking and the asset you have staked appreciates over the lock-up period you win twice &#8211; higher interest plus [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[268],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8316"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=8316"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8316\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=8316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=8316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=8316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}