Staking vs Delegating coins

TreasureHunter

TreasureHunter

Well-Known Member
Hello,

Is Staking safer than Delegating?

I'm inclined to believe that Delegating your coins (Ethereum, Solana) to a node is not safe, because you a literally handing your coins over to a 3rd party (like an exchange). Nowadays even the software wallets have their own nodes and you can Delegate your coins. But you're not actually Staking, this is Delegating. THEY are staking it for you.

Correct me if I'm wrong, because I am still learning.

This sounds similar to when you upload your coins to an exchange (which then goes bankrupt, burns down or otherwise disappears together with your crypto).

Giving up your coins to a staking provider sounds risky, because during this period, the coins are in their hands.

There is quite a number of software wallets (not hardware), which offer Staking, literally. They don't call it Delegating (unlike a number of other software wallets).


If I'm getting something wrong, please feel free to correct me. From what I understand, Delegating is a form of Staking when you "hand over" your coins, while with Staking they still remain in your wallet.

Having seen several wallets, I freaked out how some of them have a more complex multi-step "Delegation" process instead of the simple "Staking". Therefore the dilemma...
 
Is Staking safer than Delegating?


I wouldn't do both personally.
Some coins wouldn't allow you to undo it. They are not user friendly. As there are no buttons to undo it.
As for Staking at the Exchanges. Mostly are Con Job.
Learn from FTX , there are No Safe place.
If they are not in your wallet , then the coins are not yours.

Same as you put yours precious metals at someone Vault.
 
Golden ChipMunk said:
Is Staking safer than Delegating?


I wouldn't do both personally.
Some coins wouldn't allow you to undo it. They are not user friendly. As there are no buttons to undo it.
As for Staking at the Exchanges. Mostly are Con Job.
Learn from FTX , there are No Safe place.
If they are not in your wallet , then the coins are not yours.

Same as you put yours precious metals at someone Vault.
Click to expand...

What does this have to do with FTX?

Cardano, Ethereum and Solana can all be staked. Several software wallets allow your to stake your coins and you can Unstake them.

I only heard about "Delegating" today and I freaked out. Sounds like an exchange taking your coins.


Golden ChipMunk said:
If they are not in your wallet , then the coins are not yours.

Same as you put yours precious metals at someone Vault.
Click to expand...

Agree 500%. But a large number of wallets include "Staking" as an easy included function.

I don't know whether this means that the coins are still in the wallet OR whether is too means that it's in their pocket.
 
TreasureHunter said:
What does this have to do with FTX?

Cardano, Ethereum and Solana can all be staked. Several software wallets allow your to stake your coins and you can Unstake them.

I only heard about "Delegating" today and I freaked out. Sounds like an exchange taking your coins.




Agree 500%. But a large number of wallets include "Staking" as an easy included function.

I don't know whether this means that the coins are still in the wallet OR whether is too means that it's in their pocket.
Click to expand...


Exchanges didn't taken my funds but lost in NEM
Unfriendly as lost All my coins thru Staking.

Lesson learnt. All those people creating tokens , coins out from Thin Air.

And there are No such thing as Easy Money but All Empty promises.

The Lists of Coins of Scam goes on.
 
Golden ChipMunk said:
Exchanges didn't taken my funds but lost in NEM
Unfriendly as lost All my coins thru Staking.

Lesson learnt. All those people creating tokens , coins out from Thin Air.

And there are No such thing as Easy Money but All Empty promises.

The Lists of Coins of Scam goes on.
Click to expand...

You personally lost coins through staking?
 
TreasureHunter said:
There is quite a number of software wallets (not hardware), which offer Staking, literally. They don't call it Delegating (unlike a number of other software wallets).


If I'm getting something wrong, please feel free to correct me. From what I understand, Delegating is a form of Staking when you "hand over" your coins, while with Staking they still remain in your wallet.
Click to expand...

The two terms are probably conflated. From my understanding staking is when you run a node yourself, when you delegate you give permission to a provider to stake your tokens on your behalf for whatever reason be it technical expertise, not enough tokens to create a node etc.
 
You can also go toss some cash off a bridge once in awhile and call it averaging down.
Call it a bridge token or something cool like that.
You could even claim they are limited!
 
mmm....shiney! said:
Coins are never held in wallets. Repeat, coins are never held in wallets. Ever. Ever.

A wallet is a ledger, not a money box.
Click to expand...

Of course, true. They're in the blockchain, after all. With basic Core wallets for desktop as well. But they're directly accessible by the owner ONLY.
 
mmm....shiney! said:
The two terms are probably conflated. From my understanding staking is when you run a node yourself, when you delegate you give permission to a provider to stake your tokens on your behalf for whatever reason be it technical expertise, not enough tokens to create a node etc.
Click to expand...

Yes, this is my understanding as well. DELEGATION sounds dodgy - there is no security if you let a node owner meddle with your coins. It's like putting your money into a shady investment fund in Absurdistan.
 
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