Tezos and Proof Of Stake

Keep in mind that I am in no way a financial advisor, I post about my experiences trading and what I have learned from them. So far I have been holding Tezos for 3 weeks on Coinbase. I have gone from earning a great amount of profit over a few weeks to losing most of that profit in a matter of hours, but that is to be expected when dealing with crypto investments. Not only do I believe that holding altcoins comes at a great risk, but I also believe that holding certain altcoins can be a great financial move at the right time. 

I chose Tezos specifically to hold for the next few months because if I hold for 35-40 days, then I will begin to earn 4.63% apy after holding for those 35-40 days. There are other altcoins that earn rewards for staking your coins sooner, such as Cosmos, but I wanted to try out Tezos for myself. While it doesn’t seem profitable unless you have a large amount of money in Tezos, I still see it as a good investment. In my eyes it is a guaranteed profit compared to throwing your money into a random cryptocurrency or stock. Not only can you earn a passive income for holding it for a while, but I have noticed that staking my own money into a cryptocurrency for a month or longer is a great idea, whether or not I earn interest, because over the past few months cryptocurrency has shown itself to be way undervalued. Obviously holding comes with its risks and rewards, but earning interest can get you more bang for your buck. What I am going to talk about is whether or not I believe Tezos is the right move. Proof of stake is becoming one of crypto hodlers favorite words these days. Tezos is a proof of stake, meaning that miners earn more for how much they have, and so do investors. Proof of stake is considered far superior to proof of work these days because it requires less work from miners, and far more rewarding. 

Is it worth waiting for the rewards?

In my honest opinion I think that the rewards for holding the cryptocurrency are not worth it if you don’t have a lot of money. Which is ironic because the more money you put into it the more of a risk you are taking regardless of the interest earned. Let’s say that I hold Tezos for the next year. If it does really well I can make a large return, and on top of that I will earn a few extra bucks. Sounds intriguing right? The downside about waiting this long to earn a few extra bucks is that you could miss out on really good times to sell. My experience of holding onto Tezos not only showed me how reliable holding is for your investment, but it also taught me that patience could lead to large returns or you could keep ending up back in the same place. There have been times while holding Tezos that I wish I bought more, and then times where I wished I had just sold all of it. As a crypto alone I would say that Tezos is a great investment regardless of the interest you earn. It has moved up 75% this month and has no signs of dropping yet. 

Great for Long Term Holders

There is no debate that when choosing a crypto to invest in, all of them look nearly identical. This is because they are. The crypto market almost always moves in unison, but that doesn’t mean there haven’t been days where some do far better than others. I firmly believe that, because of this program, Tezos has one of the strongest communities of holders. Not only because it is mandatory for people to hold for a month before they can earn rewards, but the typical hold time on Coinbase is a whopping 63 days! That’s an even higher hold time than Dogecoin’s typical hold time of 52 days. That stat alone can reassure hodlers that there are plenty of other people taking advantage of the Tezos rewards as well. I personally think that people who are in crypto for the long run should consider staking their tokens. Whether it’s through Coinbase or any other app or website. This recent week has been great for Cosmos and Algorand as well, which also give rewards on Coinbase. It is clear that proof of stake cryptocurrencies are on the rise. And now that Ethereum is testing out their proof of stake, it is clear that it might be the future of cryptocurrency. Please feel free to leave comments on what crypto project you think I should invest in. I would love to hear what you think.