Which Is More Profitable - Buying And Staking A Token Or Buying And Staking A Miner?
I received 2 new tokens today because I staked the PAL I got through the claimdrop, though I bought additional PAL from the Steem-Engine DEX so that I had over 2000 Palcoins. It got me wondering which will be more profitable in the long term when you consider buying and staking a token as against buying the miner of that token and then staking it.
Take PAL for instance, 1 PALMM cost 100 Steem, with 100 Steem I could have bought 100 / 0.05 which gives 2000 PALs. By the way 0.05 Steem was about the price I bought the PAL when the massive dumping of the token was at play.
Now with 1 PALMM I doubt I would have received up to 40 Palcoin in total rewards if I had bought and staked the miner, this is based on feedbacks I’ve been reading from members who bought just 1 PALMM.
On the contrary, with 2000 staked PALs I would be receiving curation and author rewards from my upvotes. On top of that I would be receiving other tokens that come through airdrops for the PAL I staked, like LEO, JAHM and GG.
If I were to sell my 2000 PAL at today’s price it will go for about 880 Steem and if I were to sell the 1 PALMM at today’s price it will go for 100 Steem still. Note that I did not factor in the rewards from curation or the value of other tokens received for staking my PAL, I also didn’t factor in the rewards received from the 1 PALMM.
Though, it does seem in the case that it is more profitable to buy PAL and stake it than to buy the miner. But in the future, if there is a price crash will this line of argument hold water? I haven’t check the same line of argument for other tokens, but what I have done personally is to go for both the miner and the token for the tokens I am interested in.
In the mean time, I love it that I woke up in the morning and when I check my Steem-Engine wallet I see another new free coin in my balance, it feel good man. Lol.
Note: Please don’t take this as a financial advice, do your own research or contact your lawyer or accountant before taking any decision. If you sight me as your source of information for taking your own financial decisions I’ll say I said whatever I said under the influence of alcohol. Lol.
Image Credit: The banner is from the Steemleo introductory post
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Lol this really is getting complicated @ketcom, anyway you look at it in the long term many of these tokens will generate passive income.
What to do...what to do 😀
At one point I was wondering if it was more profitable to dump LEO take the profit's that were free and invest in a profitable delegation on steem????
I think now diversification is the best thing to do especially with the Steem price being down.....
Now if I was smart, with Steem so low, I could pick up some Steem at a bargain price......😀
Yeah, diversification is the key.
The miner is passive which I think is way people like it, but at some point you will have so many tokens that the miner becomes useless in a sense, since you will get lots from curation compared to the passive income. Its a nice little boost tho.
Not sure my leo miners is worth it at all xD
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Miners for me are long term passive rewarders.
I have 14 LEOMM now and they're doing ok. I've always known that to get some good from miner you need at least 5 and above, having less isn't going to place you in a good position to earn rewards.
It is like hash power, the more you have the more you're able to mine.
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But still. At some point with 5% voting power will give you more than your miners xD
Long term tho.
And yes, I only have 2 leom snd 1 leomm x) Not really worth it for me
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seems like stacking if one has a long term perspective
I think they're all long term stuff. Thanks for your comment.
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Thanks for sharing! I don’t think you could go wrong staking either, this stuff is all gonna pay off! 💰💰
You're welcome my dear. Yeah in the long run we anticipate it will be a very profitable venture.
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Interesting topic @ketcom
I think it's worth mentioning, that staking your token can give us influence within this community. That's a great advantage. Profits are not everything :)
Yours
Piotr