What is the difference between staking Crypto and regular investing? And does the current problem with wonderland make it less worth it?

Question

I’ve done so much research but I just can’t fully grasp it.

In: 0

Answer 1

Normally when people talk about investing, they’re talking about buying an asset that generates income, like buying stocks in a company that generates income or real estate that you can rent out.

Crypto is really more speculation than investing. It doesn’t generate any income and you’re just speculating that the value will rise in the future. This is more similar to buying foreign currencies or gold or art.

The difference between these things and crypto is that the price of a crypto token can change very rapidly just based on a loss of confidence in that token. This can also happen with the things I mentioned, but it’s usually a lot less severe than with crypto. There are numerous of crypto currencies that went to basically zero over night.