Staking and Breaking - A Trader's Journey
Early on in my web3 journey, I realized that as new artists were being onboarded everyday, there was a lack of spaces teaching them the basics of trading. Fortunately, some of my colleagues noticed the same unfulfilled need, and “Ladies Who Trade” was born.
Our weekly Twitter spaces have been a safe space for web3 community members to both ask questions about relevant trading topics and offer tips and advice.
I have every intention of making podcast episodes out of these live Twitter spaces, but for now, I’ve recapped the main points that stuck out to me in today’s discussion about staking cryptocurrency.
It’s a Mobility Crisis
When I spiral-fractured my tibia in 2019, my mom called it a mobility crisis. Somehow, when thinking about staking, and hearing my friend Randall Almeida explain it, the concept of mobility came to mind. When you stake, your funds are locked away for a given amount of time. If the market shifts in a dramatic way during this period, you are unable to move your funds. Though the rewards involved in staking may be worth this particular risk for some, it’s important to think about how much you value your liquidity in general before deciding to lock your funds away.
Religion Plays a Role
NFT artist Humble 1 brought an illuminating perspective to our discussion on staking. Though he is knowledgeable on the topic, he himself will not be staking due to his faith. In Islam, it is forbidden to pay or receive interest. Seeing as gaining interest is the main principle that separates staking from other trading strategies, it's important to know that a significant part of our collective society may not be participating.
Embrace Your Why
For crypto investors solely interested in trading for money’s sake, staking is an attractive option. Nobody likes to wait for eons as ethereum rises and falls, knowing that their money is not making profits, nor guaranteed to do so. Accumulating interest can be a positive alternative to letting your money sit. However, if you are using your ethereum to invest in NFTs or ENS domains, both of which have their own added significance, your money isn’t sitting. It’s rather going to a cause that can sustain your passion for the space while waiting for real gains to happen.
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