I am facing a painful decision tonight. I want to stake DOT at Kraken at 12%, as I believe DOT is going to make the same exact move that UNI just made. I bought UNI at $30 in anticipation that it would zoom back to $40. But I totally agree that UNI has the juice to go on up to $50.
Do I sell the UNI tonight, and buy the DOT staked at 12%, or stay in the UNI which cannot be staked at Kraken yet? I believe the percentages involved say I make the switch.
B_Musk
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@jaykoval why must you stake right this second? 12% is a poor return relative to what you can gain riding the markets anyway. Unless your rich and just want stable somewhat stable modest returns, you’re better off growing your capital in the markets and then staking down the road. Or stake on a chain that doesn’t require locking up (cardano) or I believe there are services that give you liquidity while you’re staked
jaykoval
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@B_Musk, Because I want to be setting a small amount of my profits aside in less risky ventures. I opened Kraken with $100 in ALGO transferred from Coinbase, and then ran it up to $189, and bought $187 of DOT today and staked it.
In order to trade on margin, I want to do it all legal and straight up. This means no using a VPN to get on ByBit or Binance China. Kraken has margin, and I want to build an asset portfolio there so that I can short the cryptos when the market turns, or go long at 5X.
I am a noob who has only doubled his accounts since beginning active trading Dec. 2020. I hear you, and know I should be up 400%-500% by now. I have been all in for the last three major drops, and lost all of that time waiting for the comebacks.
Although one may technically be all in with staking, I believe in having a little staked for the big long term swings. For example, I bought XRP at 0.30 in January, and dug my heels in for a long hodl. I sold half at 1.38, and will hodl the rest for the lawsuit victory and the relistings on the US exchanges.
Maybe I could kill it trading the XRP, but I believe it is good strategy to keep a portion of one's stash invested in long swing trades, especially when I need formal training in day trading.
Finally, the best play that I missed was buying Pancake at $17, and staking it at 300% at Bunny Swap. The trading action and the staking action all in one move.
B_Musk
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@jaykoval, If you're willing to go long and short, then there's a huge opportunity cost to staking no matter the market conditions. Stake because you want to support the eco system, not for profit, because there's not going to be much of it in the short to mid term when you're locking up 3-4 figures. The staking rates are also variable so what seems attractive now will likely diminish as staking demand grows.
Do I sell the UNI tonight, and buy the DOT staked at 12%, or stay in the UNI which cannot be staked at Kraken yet? I believe the percentages involved say I make the switch.