Staking

Proof of Stake (staking)

 

 

 

 

If you have been involved with Bitcoin and cryptocurrency in general for any length of time, you have probably heard about mining by now.

I want to introduce you to something similar. A little something called Proof of stake.

What is POS (Proof of Stake) as compared to POW (Proof of Work) The first Cryptocurrencies, notably Bitcoin, use Proof of Work (POW) as method to define who (which “miner”) can add the next block.

That is, potential miners need to solve additional mathematical problems with are unrelated to the task of processing transactions. This is called “difficulty” – the aim is to make the threshold for mining high enough so that not to many blocks are mined.

Increasing difficulty off expensive coins leads to extreme waste of resources, notably electricity. Proof of Stake tries to avoid this waste. Instead of solving mathematical puzzles, potential miners (here called stakers) need to leave a certain amount of coins “unspent” – that is not moved – in their wallet.
Thus the name – they have to put their coins “at stake” – while they are staking, they can’t be sent.

 

So – what is staking and how is it profitable?

If you are following the Viral Stacking strategy, you know that we want to earn seed coins to participate in more passive programs and strategies. One of these strategies involves something called staking. Staking is a hands – free passive strategy, that once set up, can earn you passive cryptocurrency daily.

So, what is staking anyway? I’m glad you asked. Staking is a way of earning interest, if you will, on certain coins held in a cryptocurrency wallet. Think of it like a cryptocurrency savings account. For example, when you deposit money into a savings account at your bank, you are earning interest on that money just for keeping it there, and allowing your bank to use it as collateral to borrow to make loans to customers. The same concept applies here. By staking certain coins, you are, in effect, lending them to the block chain to verify transactions. The reward you receive is the “interest” you would earn, and the more coins staked, the more the reward.

So, how is this different than mining. With mining, transactions are confirmed on the block chain using a computer’s processing power to complete complex mathematical computations, expending a great deal of electricity, to confirm a transaction. While this is a passive method of earning cryptocurrency rewards, it uses a costly amount of energy, and the amount of reward is based on luck. With staking, the luck is taken out of the equation because the annual interest rate is fixed and the verified transactions are based on the amount of coins staked with a verifier node. No electricity is needed, and rewards are earned as long as coins are staked.

As you can see, staking can be a more profitable form of passive earning. Coins can be staked at a set interest rate for reward, and earnings are paid daily. These earnings can also be compounded by staking more of a particular coin for faster earning, giving a greater daily reward. Other passive methods, such as mining, do not provide the ability to do this, nor can they guarantee the same type of return.

Leaving your wallet online, to support the network, and leaving some of your coins unmoved on the same address for some time, and thus earning reward.

 

Now, I don’t know about you, but I would rather not leave my wallet open for days on end.

Also, here is something else to think about. Did you know for instance that when a lot of people

pool their POS coins, they can get a lot better results than just staking with only what each one of them has? Why is that?

Proof of stake Pools are primarily targeted on getting the most efficiency out of the combined amount of coins actively being staked at that time. To summarize, the bigger the pool of coins being staked is, the higher the chance is that the staking pool in question will be picked and verify a block on the blockchain.

 

You can click the banner below to sign up for a FREE account over at StakeCube right now!

 

 

Here are some coins that I am going to start doing some research on staking at different locations:

Exchange Coins:
BNB
KCS
CRO
SCC

AWC (Atomic Wallet Coin) This is the native coin of the Atomic wallet. You can stake it in the wallet for 23% APR and like a lot of exchange tokens, the lifelong price chart on this coin is pretty darn impressive.

IOT:

HNT

DEFI:

ALGO (Algorand) is a decentralized network built to solve the blockchain trilemma of achieving speed, security, and decentralization simultaneously. Known as “ETH killer”
Ada (Cardano) is created by the cofounder of ETH and is great for smart contracts such as lending
Avax (Avalanche) features superior scalability compared to ETH. Like BNB, a portion is burned
SOL (Solana) is a public, open-source blockchain that supports smart contracts, including non-fungible tokens (NFTs) and a variety of decentralized applications (dApps)
LUNA (Terra) value has been consistently going up despite the entire crypto marketing going sideways! With nearly $18 billion in total value locked, Terra recently became the second-largest DeFi protocol behind Ethereum, according to data provider DeFi Llama.

XTZ (Tezos) Another ETH competitor that uses smart contracts

MATIC (Polygon) is built specifically for Dapps

 

Hi dollar

FUN (FunFair/Fun Token) It is at a very low value now and cannot go much lower but can get a 25% APY when staked at freebitcoin

 

Here is the order I am considering putting money into these coins to stake them:

 

SCC (for simplicity sake)

DOT (Voyager 12%)

MATIC (Crypto.com 10%)

BNB -Trust wallet

ALGO (Bitstamp 5%)

KCS-KuCoin Bonus

AWC (Slightly more expensive if done from Atomic wallet)

CRO-Crypto.com

FUN (most expensive staking strategy)

Hi (Whenever it becomes available to USA residents, otherwise I will just hold several hundred)

 
gold backed crypto coins?
 

 

 

 

Dan Watson and Arkham Industries provide an informational service only and are not responsible for any investments made applying this information. The results described are not typical and are not guarantees of future income. Any investment contains risk and is 100% the responsibility of the investor to assess the risks/rewards involved. It is possible to lose some or all of your investment. We assume no liability assumed or implied for your application of the information shared from the training programs.

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