Many people are confused about whether investment in a liquidity pool is better or investment in #ArcadeColony games and staking their tokens is better. If I talk about myself my experience is that I have invested in both markets and I have earned a good amount from both.

I will share my experience with you people and will share as much information as possible so that you can get proper guidance. Remember that every investment has profit and loss and invest only that amount whose loss does not affect your financial life.

Liquidity pool and #ArcadeColony token staking are two different marketplaces. The profit APR changes in both and in the same way the loss is also different. The method of investment in both is also different. That is why these two should not be mixed.

A liquidity pool is a pool investment place in the #Hive ecosystem where investors invest in different tokens and provide liquidity. What kind of liquidity? Traders need volume for trading and when you provide that volume their transactions happen and you get profit.

In LP you have to make a pair and invest by creating any pair. For example you make a pair of SWAP.HIVE and COLONY. Now whenever a transaction happens in this pair you keep getting your profit APR.

In this investment both profit and loss are included. If the price of the tokens you invested in increases you get overall capital gain and if the price of those tokens dumps, the overall capital value decreases.

But one good thing is that whether the price goes up or not you keep getting passive income for the liquidity you provided. This feature is present in both whether you invest in LP or in ingame staking.

Now lets talk about in-game staking or investment in the #ArcadeColony project. In #ArcadeColony there are many tokens available for investment including #Splinterlands tokens but at this time the two main tokens are #COLONY and #SCRIPT.

After investing in these two tokens you can earn a good APR by putting them on staking. If you only stake #COLONY and #SCRIPT you may get around 9% APR but if you also play the game this APR can increase up to 18%.

The staking method is simple. You buy #COLONY and #SCRIPT from #Hive-Engine then transfer them to #ArcadeColony. From there stake COLONY and SCRIPT. If you like games there are currently 4 excellent games available that you can play and earn from.

If I talk about profit and loss it is the same as LP. If the prices of these two tokens increase you will get capital gain and if the price drops there can be capital loss.

But if you hold for the long term recovery is possible in both markets and even capital gain is possible. I believe that in long term holding the concept of loss does not exist. That is why whenever you invest, invest with a longterm perspective.

I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.

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