Adaora Anders
4 min readDec 28, 2021

Why Staking Derivatives Are A Better Option To Trading

Crypto trading has garnered interest over time as more people turn to digital assets to survive the onslaught of the pandemic. Yet, the crypto market has a way of spitting out newbies as quickly as they get in.

While these greenhorn crypto traders are basking in the euphoria of an initial profit, strings of losses incurred eat up all that profit and more. Next, they’re back to complaining about crypto.

The crux of the matter is that crypto trading isn’t ideal for anyone just learning about cryptocurrencies. The epic volatility of these assets combined with the heavy manipulations that happen in the background ensures crypto trading is not where inexperienced traders should be.

The Marvel of Staking Derivatives

The crypto space isn’t all about trading digital assets; there’s a lot more going on. Staking is one of the more lucrative alternatives. You can stake your assets on PoS chains, reinforcing the security of the blockchain with the promise of a reward.

Staking on POS chains isn’t without faults. You have to worry about delegators doing their job right combined with the waiting period to unstake. From afar, staking on PoS chains is attractive, but on getting up close, you get to see its many pitfalls.

Staking derivatives make PoS chains less unattractive to stakers. Through liquid staking — a solution that depends on staking derivatives — stakers can access their liquidity as soon as they want. Liquid staking solution providers like StaFi also solve the delegator problem that keeps many would-be stakers on the fence.

How Does Staking Derivatives Fare Against Crypto Trading?

Trading cryptocurrencies is often made out to be lucrative, but that’s far from the truth. Too many variables are involved in crypto trading — and manipulations make things worse. Yet, a handful of people have been known to make great profit no matter the condition of the market. So how do liquid staking and staking derivatives compare to crypto trading? Let’s find out.

Staking derivatives provides access to liquidity which can be put to use towards making more profit. You can put these assets to use in DeFi protocols like lending, liquidity providing, and more. Of course, the potential of these staking derivatives depends on the liquid staking solution provider. For instance, StaFi protocol has partnered with many a De-Fi protocol to give more utilities to its staking derivatives. The greater the use case of these synthetic tokens, the more lucrative it is for the average holder.

Crypto trading doesn’t come with this privilege. You have to buy cryptocurrencies and then hope the value increases. Futures trading, a riskier aspect of crypto trading, allows participants to buy or sell assets in preparation for a future change in price. It does have benefits, but the risks can be overwhelming.

With crypto trading, you can lose all your assets if the market goes to the dogs. That risk is much lower with liquid staking and staking derivatives.

Should You Leave Crypto Trading For Liquid Staking And Staking Derivatives?

Crypto trading requires a lot of experience. Those without experience get eaten up by the big dogs in the market. Making that switch to liquid staking and staking derivatives is certainly a worthwhile option, especially if you’re looking to leverage the opportunities in DeFi.

If you’re wondering if you should leave crypto trading, look at your profit and loss statement since you started trading cryptocurrencies. If you’re still in decent profit since you started trading, then moving completely to liquid staking and staking derivatives might not seem like a smart move. However, most people trading cryptocurrencies are not in profit. The manipulations and machinations of the different interest groups ensure it’s a dog-eat-dog business. There is a large chance most crypto traders will become ‘bag holders’ or get ‘rekt’ while the bull market continues. Fortunately, those odds drop as one moves towards Liquid staking. The easy access to liquidity when you need it makes a world of difference.

Staking on PoS chains often comes with enticing APYs that can build up into something significant. Through staking derivatives and liquid staking, you enjoy these fantastic offers without any liquidity crisis. Add the opportunity to put that fund into something more lucrative, and staking derivatives becomes life-changing.


Crypto trading requires deep pockets if you’re to survive the whirlwind of the market. That’s something most crypto traders haven’t come to terms with. Interestingly, the entry requirement for liquid staking and staking derivatives is much lower, making them a smart choice for asset holders.

Beyond the craze of crypto trading, there’s a sinister side to this digital asset trading that many are yet to understand. Fortunately, with liquid staking and staking derivatives, you don’t have to worry about such.

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