Which Is More Profitable - Buying And Staking A Token Or Buying And Staking A Miner?

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I received 2 new tokens today because I staked the PAL I got through the claimdrop, though I bought additional PAL from the Steem-Engine DEX so that I had over 2000 Palcoins. It got me wondering which will be more profitable in the long term when you consider buying and staking a token as against buying the miner of that token and then staking it.

Take PAL for instance, 1 PALMM cost 100 Steem, with 100 Steem I could have bought 100 / 0.05 which gives 2000 PALs. By the way 0.05 Steem was about the price I bought the PAL when the massive dumping of the token was at play.

Now with 1 PALMM I doubt I would have received up to 40 Palcoin in total rewards if I had bought and staked the miner, this is based on feedbacks I’ve been reading from members who bought just 1 PALMM.

On the contrary, with 2000 staked PALs I would be receiving curation and author rewards from my upvotes. On top of that I would be receiving other tokens that come through airdrops for the PAL I staked, like LEO, JAHM and GG.

If I were to sell my 2000 PAL at today’s price it will go for about 880 Steem and if I were to sell the 1 PALMM at today’s price it will go for 100 Steem still. Note that I did not factor in the rewards from curation or the value of other tokens received for staking my PAL, I also didn’t factor in the rewards received from the 1 PALMM.

Though, it does seem in the case that it is more profitable to buy PAL and stake it than to buy the miner. But in the future, if there is a price crash will this line of argument hold water? I haven’t check the same line of argument for other tokens, but what I have done personally is to go for both the miner and the token for the tokens I am interested in.

In the mean time, I love it that I woke up in the morning and when I check my Steem-Engine wallet I see another new free coin in my balance, it feel good man. Lol.

Note: Please don’t take this as a financial advice, do your own research or contact your lawyer or accountant before taking any decision. If you sight me as your source of information for taking your own financial decisions I’ll say I said whatever I said under the influence of alcohol. Lol.

Image Credit: The banner is from the Steemleo introductory post

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