The magic of staking
In one of my last posts, I've written about how to build a regular, stable income by staking tokens. Instead of cashing out all your earnings from this platform, I suggested that you stake it, or at least part of it, to build a stable income in the long term.
The magic dimension of staking
When you leave your money in a bank account, you will probably get 0 – 3% interests on it. These interests will probably be paid to you at the end of the year. If you have 1000 $ in your bank account, you will get 30 $ interests if rates are at 3%. This is great but it doesn't even come close to the potential of this platform.
To illustrate the potential of staking, I would like to make an example with you
Let's say you start the year with 1000 Hive and you stake all your tokens. In this example, you don't make posts.
Organic growth of your stake
When you have tokens staked, your stake will actually grow at a rate of about 3.47%. You don't have to do anything to get this. What is interesting is that this interest isn't paid out at the end of the year, your stake is actually growing every minute!
Using your stake
There are several ways how to make a nice return on your stake. You can either delegate your tokens on a platform like dlease.io and you can get a return between 12 and 15%.
Another way of generating a return is simply to use your stake to curate posts. By upvoting content, you will receive curation rewards. 50% of the value of a post is distributed among the curators. This can be even automated using a service like hive.vote.
Whether you delegate or you curate, you can get a return of about 10 to 15% on your tokens. The amazing thing however is that you get daily payouts from these activities.
Staking pays you out every day!
At first sight this seems not to be a big thing but it actually is. Your stake is growing organically and also thanks to curation/delegation. You earn 3.47% from organic growth and about 12% from curation/delegation. This is a total of 15.47%.
Because of the fact that your tokens are paid every day, you can reinvest all your earnings and you will thereby generate compound interests!
In the table below, I've made the calculation for a whole year and thanks to compound interests, the APR of my stake reached 16.75%. This is about 1.4% additional return just from compound interests! Where can you get 16.75% on autopilot?
Now imagine that you make your stake grow by producing content regularly. This gets really interesting!
In short the potential of the staking economy is simply mindblowing. Once you have discovered that, you should do everything possible to make your stake grow as fast as possible.
Let's conect on Hive, Lbry or on Publish0x
My free e-mail course: The 100'000 satoshis a week strategy
https://twitter.com/AchimBeda/status/1343884540335562752
Thanks @achim03.
Ok, so can I ask, so as this is another great example of why days like PUD day exists, during the last Twitter Hivechat directly after the last PUD day, all of the questions that twitter session were about powering up and one of the questions was asking if we powered up just on PUD day and if we powered up every/any other day.
So, if we weer to power up every day, then do you think that there is a standard rate that we should use to power up as a rule of thumb to 'play it safe...'?
My only issues with powering up, is that apart from seeing the transaction registering in the wallet, I see absolutely no other indication that it actually worked, as there is no visible change to my vote value, vote mana, or resource credit.
And then when I do vote, I don't see the power up making any visible difference there either, so most of the time I don't actually really 'see' any difference at all.
So I understand the financial significance of staking up, but not having any indication that it is actually working during the process is quite confusing and can really cause some disenchantment among the newbies too I think as it seems like it could be a glitch in the system or something.
Love to hear your thoughts!
Thanks so much!
Your HP in your wallet will increase.
If you check on HiveTasks, you'll see an increase in your vote value.
Thankyou and I have opened the link to Hive tasks and am looking at it now.
And A huge happy new year to you!!!
For a long time I've powered up everything that came in. This allowed me to grow my stake. However this only makes sense if you also use this stake, either by giving upvotes or by delegating it for a return.
When you power up small amounts, you won't realize immediately that you have more hive power. It's only after 100 Hive power that you can actually generate curation rewards. With small amounts of Hive Power it's important not to split the votes so that you can get curation rewards (each vote should carry at least 100 Hive Power). To get the first 100 Hive Power is by far the most difficult passage for people on this platform. Once you start to generate curation rewards, it's getting interesting.
This is a great website to look in real time how your account grows: https://hive.nuthman.com/
Thanks Achim!
I have opened up and book marked nuthman and can't wait to see what it looks like tomorrow on hivepud day when I power up all 137 hive and then I should be able to get an idea with the comparison.
Oh and I hope that you have an awesome New Year!!!! 😃
Thank you!
That's quite a nice power up! Happy new Year to you too 😀
Haaa well that's all I've got and I thought that since it's the first day of the new year, I'd throw it all in and see how I go...😃
!ENGAGE 20
ENGAGEtokens.what a great post! Showing everyone how easily they can generate income even if they do absolutely nothing! YOu also showcase the potential everyone has by doing some curation! awesome post!
Posted Using LeoFinance Beta
Thanks for the feed-back. I believe that for many people on the blockchain they are not aware of how great this stuff is !
!ENGAGE 20
ENGAGEtokens.I've been looking for an estimate of what return you can make by curating.
I would expect that it was as good or better than you can get just by delegating.
After all the people buying the lease need to earn a return on it so they must expect to be able to earn more from curation.
The other thing about voting and being active on the platform is that it causes others to vote on your content thus increasing your earnings from posting.
The more you have staked, the more interested people will be in earning your attention and potential vote.
So there are other financial returns from staking and being active that you haven't quantified.
I've seen people that could reach 18% APR with curation but I believe it was rather automated curation. With a mix of automatic and manual curation I manage to get between 10 and 16%.
Another big advantage of opting for curation rather than delegation is that you also generate curation rewards in Hive-Engine tokens that can be quite interesting.
I totally agree with you. I've written a post about it where I consider the Hive Power like your business card that shows the world how invested you are in this. The "bigger" your account is, the more interesting it will be to become your friend :-)
Thanks a lot for stopping by!
!ENGAGE 20
That's a good point about Hive-Engine curation and earnings from posts.
LEO in particular is a significant contribution to my earnings.
ENGAGEtokens.When people 'get it' they'll understand what so many of us have already known for years....You cannot BEAT this blockchain!
I totally agree with you. I've seen a lot of projects and a lot of whitepapers. The big difference with Hive?... This thing has actually been working for close to five years and it's getting better and better!
!ENGAGE 20
ENGAGEtokens.Wow...I unfortunately don't have enough HIVE to delegate and all... I use it for my expences or invest on cryptos, very little of it.
I consider staking in Hive like investing in crypto. Of course the price of hive might not be that sexy compared with other crypto but I totally believe in this blockchain and having a big stake into it is a promise for the future!
!ENGAGE 20
ENGAGEtokens.Staking is GOLD. I love staking, even some of my "whatever" tokens, because it builds on itself. The big tokens like CTP, LEO & CTPSB are epic for this...when I see that passive income each day, it really encourages you to keep hodling & staking...
I try to do as much of this as possible (or a percentage at least) & when you keep the mindset of long term investing, the rewards now & down the road are easy to see ...
Great post, Achim! It is good to see people talk about this simple, but powerful action :)🧡
Posted Using LeoFinance Beta
What is absolutely sensational about this blockchain is that you can actually stake a ton of tokens and all at the same time. You can get 15% on Hive and at the same time 30% on Leo and 40% on CTP. I love staking :-)
Thanks a lot for stopping by!
!ENGAGE 20
ENGAGEtokens.It's an excellent idea, and hopefully I had 1000 HP to be able to do it and sit down see earnings.I hope one day to reach that level because due to my particular and difficult economy It is very difficult for me to invest what I produce.
Great post.
Hello my friend. I hope that you will manage to start staking your tokens but I totally understand your situation. Staking is only possible once you have the basics needs covered. I believe that if you can start to stake already 10% of your earnings, you will be grateful for that in the future.
!ENGAGE 20
ENGAGEtokens.https://twitter.com/AndersonSBrad/status/1343987326926680066
Hi @achim03
I am very curious about your publication that I made my calculations myself in an excel sheet, now I know that you mention the 12% yield however it can be determined exactly, or how can I do to be able to know what can really be obtained.
I don't know if I explain myself...
I always forget to ask, that course you mention at the bottom of your publication is dictated by you?
Hello @lanzjoseg,
If you take delegation return from dlease, it's quite easy to define the return on your tokens. A 12% or bigger yield can be quite easily found. In order this to function as calculated, it would be necessary to restake all the daily paiments recieved from dlease.
With curation, this is slightly less easy to define. From my personal experience, when using automated upvoting 12%, can be reached quite easily as well. With curation the stake is growing automatically and the account is directly appyling compound interests in the upvotes.
Hope this helped :-).
The 100'000 satoshis a week strategy is an e-mail course that I have built a year ago :-)
Hi @achim03
Okay I can use the explanation and after seeing the performance I think you are definitely right about the investment of the stakes.
Okay, I just have to register my email and I can receive the course?
!ENGAGE 20
ENGAGEtokens.Staking is a good option to get income. You have different options like delegation, curating content that you mentioned in the post. Your stake will grow slowly.
The only concern is the token value that you stake. In case it is gradually decreasing, and you want to convert the token into the dollar, the ROI might not look impressive. If token value increases, you will get more return. :)
This is a very valid point. The best is to diversify your stakes. Some tokens will go up and others will go down. Maybe you are lucky and one of the tokens you stake goes through the roof :-)
!ENGAGE 20
ENGAGEtokens.This is a great explanation.
With solid backups and examples.
Well done.
I have not thought as staking as investments, hadn't really paid attention to the payouts.
Something to look into for sure.
What I like about staking is that it gives a real return on your money. I'm not a speculator that looks at graphs day in day out. I like things that pay me a return and staking is great for that. Thanks for stopping by!
!ENGAGE 20
ENGAGEtokens.Staking is awesome! Exciting stuff and I am looking for ways to invest a little more fiat currency here and there to grow more quickly
I love staking and what is particularly great here is that you can actually stake a ton of different tokens at the same time and make them grow. Thanks for stopping by!
!ENGAGE 20
You're welcome, Achim! Thank you for the ENGAGE tokens! 😀
Made in Canva
@lisamgentile1961
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ENGAGEtokens.You're welcome, @misterengagement and Thank you! 😀
Made in Canva
@lisamgentile1961
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The economics behind staking is so cool that even if one decides to do nothing, he can still stake his HP and either delegate them or follow curation trails and still be earning as long as trail is active.
Nice exposition buddy
A lot of people haven't yet discovered the power of staking. Even if they are active on this platform. I believe that staking is like leaving your money on a bank account but on steroids :-). Thanks a lot for your comment!
!ENGAGE 20
ENGAGEtokens.hi @achim03 - it is really great to read this and see the analysis you have done. I am a true believer in staking and currently reinvest everything I get back as stakes. It is good to see your stats though - very encouraging.
Happy new year my friend.😀
Happy new year to you too! I think it's a very good approach to stake and reinvest your earnings :-). Thanks a lot for stopping by!
!ENGAGE 20
ENGAGEtokens.