Staking Series (5 part series — PART 1)
If you are new to cryptocurrency, you surely have heard about BTC and Ethereum.
And, why not? They are the best crypto coins on the market. Proof of Work(POW) powers them.
However, in this article, we will focus on staking or also popularly known as Proof of Stake(POS) coins. To understand the concept we first need to understand the underlying terminology behind them, i.e., POW and POS.
Let’s get started with Proof of Work(POW) coins. POW is a computer algorithm which is used by popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. POW works in a decentralized network and requires SHA-256 Hashcash method to facilitate the process. It is all about computationally solving puzzles using computational power. POW is used to confirm transactions on the blockchain.
Proof of Stake(POS) also aims to solve confirmation of the decentralized consensus. It is an alternative to POW and works without energy consumption. So, how does it work? It works by simply keeping the coins in a staking wallet. By simply storing it, you will get a percentage and help the network confirm transactions.
POS is undoubtedly a better way to confirm transactions on the network as they do it in an environmental-friendly way. POS is only possible for coins that are pre-mined. So, you will only gain a fraction of the staking coins as a reward if you keep the coins in your wallet. The percentage and the time for which you need to keep the coins changes from coin to coin.
Note: Some coins uses both POS and POW which means that you can mine and stake the coin at the same time. For example, Peercoin uses both POW and POS.
So, does that mean that you can earn crypto without a powerful mining rig? The answer is Yes, you can! There are multiple benefits of staking and one is to not spend a lot of money in getting a powerful mining rig. If you do staking right, you will granted to make money. It is a better option than trading for crypto enthusiast who are not interested to take risks.
Alright, you are now convinced that staking coins can really make you get good profit. So, Let’s list the popular staking coins.
NEO is also known as Chinese Ethereum. It is an open source project and is created for the distributed smart economy network. It has an annual return of approx 5.5%. By staking NEO, you get GAS(another cryptocurrency). GAS is the part of the NEO distributed ecosystem.
OkCash is extremely popular among cryptocurrency staking community. At the time of writing, it is giving an annual return of 10%.
DASH is one of the oldest cryptocurrency. It is similar to Bitcoin, but with additional features such as privacy and better transfer rate. If you decide to stake it, you can net an annual return of approx. 7.5%.
Staking Wallet — https://www.dash.org/wallets/#win64
If you are looking for a cheap coin to start staking, then ReddCoin can be a good choice. It is created for social media platforms and has an annual return of 5%. Also, there is no cap and you can HOLD a lot of coins of your choice.
Staking Wallet: https://www.reddcoin.com/#Wallets
Stratis is a POS cryptocurrency platform focused on deploying apps created using C# and the .NET framework. However, it has the least annual rate compared to other popular staking coins at only 0.5–1%.
Staking Wallet: https://github.com/stratisproject/stratisX/releases/tag/v220.127.116.11
FundYourselfNow offers help to people to raise funds for their projects that they are passionate about and to make their great ideas happen. They are currently holding a staking reward where you can enjoy 15% quarterly bonus till 2019. Get FYN tokens now from their on going starter program — more details here.
That’s it. We hope that you understand the difference between POS and POW, and more importantly, have found yourself a staking coin to earn crypto without a powerful mining rig. Comment below and let us know!
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