What is better delegating or curating?

in LeoFinance2 months ago

delegating or curating.jpg

This blockchain offers the opportunity to power up or stake your Hive. When doing so, you block this hive for about 13 weeks but it comes with nice side effects.

Powering up increases your resource credits necessary to be active on the blockchain, it increases your vote value and it generates curation rewards.

Because of a certain threshold built into the blockchain, smaller stakes don't generate curation rewards. You will need at least 100 Hive Power to generate these rewards.

A big account opens a whole set of opportunities

The bigger your account gets, the more possibilities you have to generate an income. There are mainly two ways to generate an income with your stake: Delegating or Curating. In this post I want to compare these two opportunities.

What you should know about delegating your stake

When you delegate your stake or part of your stake, you allow somebody else to curate with it and for that you can get paid. Here some important things that you need to know about delegating:

  • You won't automatically get paid when delegating your tokens. Make sure that you will get paid in a way or another.
  • When delegating your stake, you decrease your own stake, your voting power and therefore also your curation rewards.
  • When you stop a delegation by undelegating it, your tokens will be kind of blocked for 5 days. During this time they won't generate any income for you or the person you have delegated to.

Some services that pay you for delegations

  • dlease.io: is a marketplace for delegations
  • @tipu: is a curation program that you can delegate to and get payments from their curation effor
  • @project.hope: is a community program that curates posts. They will pay you daily from your delegation
  • @leo.voter: is a curation program run by leofinance. You will get daily payments in the form of Leo tokens
  • @ctpsb: is a community program that curates posts. They will pay you once a week in the form of CTP tokens.

What can you earn with delegations

At the moment, you can earn between 10 and 20% from delegations through the services above. In addition to that, you will also earn about 3.47% organic interest when you stake tokens.

What are the advantages of delegating?

There are some clear advantages for delegating.

  • First, you don't need to do anything. You delegate your tokens and you will get your dividends on a regular basis without doing anything at all.
  • The second advantage is that you can support a cause that you believe in by delegating your tokens.
  • Finally, what is really interesting with delegations is that you earn liquid tokens, often on a daily basis.

What you should know about curation

Curation is the act of upvoting content with your stake. A lot of things can be done wrongly when curating. These are some important points that you should pay attention to:
You won't get curation rewards if you upvote with less than 100 hive power. If you are close to 100 hive power, always vote with 100%!

  • You won't earn curation rewards automatically. You need to vote to get them and you need to know how to vote!
  • If you don't know how to set your votes, your income will be drastically reduced.
  • It's possible to set your upvotes automatically with voting services like https://hive.vote or https://rewarding.app/. Before you use these services, it's again important to know what you are doing.

I've created an online course with everything that you need to know about upvoting content on Hive. You can use the coupon code hive-post for a 1$ discount, valid till 31.1.2021

What can you earn with curation?

This is a very difficult question to answer. Of course you will also earn the organic interest of 3.47% for all staked tokens. What is certain is that the better you know how to set your votes, the more you will be able to generate with curation. I try to do manual curation but I also set automatic upvotes when my voting power is close to 100%, in order not to loose any votes when I can't be around for some time.

It is possible to generate up to 20% APR on your curation. Most people however will reach between 6 and 15%.

What are the advantages of curation?

Curating requires more work and knowledge than delegation but it has some nice benefits:

  • You keep full control over your stake and you vote on the content you like. With your behaviour, you define how the blockchain allocates the newly minted tokens.
  • When you curate posts automatically, you can set up everything once and let it run by itself.
  • The biggest advantage of curation is in my opinion the fact that you can earn second layer tokens when you do that. If you stake all the hive-engine tokens in your wallet, you will generate not only hive curation rewards but also rewards in LEO, Sports, Stem, Pal, Archon, Neoxian, CTP, .... The return of second layer tokens can be much higher than hive and this will provide you with several income sources for the same work!

Maybe the best solution is a kind of mix...

You don't have to decide yourself for only one thing. It's a good idea to combine delegating, curating and even manual and automatic voting. If you want to do that, make sure that you keep a substantial part of your stake ready for curation.

What do you do? Do you curate or delegate?




Let's connect on Hive, Lbry or on Publish0x

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Another fantastic, educational post.

100 percent upvote, reblogged and tweeted.

Bradley

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Thanks a lot for your feed-back and the support!

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a very well written post! so to answer the initial question i am doing a little bit of both! If i don't have time at all them i will be only delegating!

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I think it's a valid strategy to do a bit of both. I do the same. Thanks for stopping by!

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It's a mix for me as well.

I like to do both, but I do love the automation of delegating.

Having HIVE pop into your account every day is awesome.

I agree that it's much easier to simply get liquid hive every day into the account. I also quite like to curate when I see nice posts. So it's really a mixture of the two.

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Any interest percentage to share about the 4 delegations you're talking about ?
I heard leo.voter is around 16% but no idea for the rest.

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I will gladly try to answer your question. These are the rough rates of the moment that can fluctuate:
dlease.io: 13.5%
@tipu: 10%
@project.hope: 10%
@leo.voter: 16% (LEO)
@ctpsb: 12 - 20% (CTP)

Thanks for stopping by!

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Thanks a lot for that !
I’ve started playing with dlease before to know about all the options I had “in-house” and get an average of 13%. I’m still having a look there from time to time as I could secure a 27% once :)
I didn’t delegate to ctpsb yet so I think it will be my next one.
Have a good day.

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Both options are valid and I don't think you have to choose when both are profitable (and not just financially).

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I totally agree with you. I believe it's good to have both on. Delegation as a liquid income and curation to be able to show appreciation on the blockchain. Thanks a lot for stopping by!

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Thank you so much for your thoughtful and informational posts. I don't even think about most of the stuff you write about until I read your posts and find the content very beneficial.

I do a mix of both. I have some automatic curation set up and well as do manual curation (I upvote every post I comment on and some that I don't). I also have delegated multiple tokens to CTPSB.

I am a strong proponent of multiple income streams in order to protect against a catastrophic loss if you lose an income stream. That is why I also recently started focusing on investing in tokens that pay out dividends. Some of these pay out dividends in several different tokens based on your investment. And if they pay out a token that I am not interested in, I convert it to HIVE and use that HIVE to purchase more of the dividend generating tokens.

I have a very similar approach. For the moment the interest producing tokens don't give a satisfactory return in my opinion and I reach a better return by actually curating in several tokens. I should write a post about that ;-)

I agree that the returns are not very high, but it is another way to "delegate" tokens and earn passively. As with staking, the more you do it, the larger your returns will be. It is just another way to diversify your income sources. This can be especially helpful for accounts that do not do a lot of curating.

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