What does the term Coin Staking mean?
You might have many important questions: What is a proof-of-stake cryptocurrency and how does it differ from other cryptocurrencies? Why should I know about proof-of-stake cryptocurrencies? What is so special about them?
Proof-of-stake (PoS) cryptocurrency has many technical advantages as well as various economic benefits for HODs. It gives you the opportunity to operate a Master node or keep coins in a wallet for interest.
Put simply, PoS means that you can earn by only holding the cryptocurrency. This provides the double benefit of securing the blockchain network and allowing users to receive financial incentives or dividends on their holdings in PoS cryptocurrencies.
First, let’s explain what the proof-of-stake consensus is for newcomers to the cryptocurrency world.
What is Proof-of-Stake (PoS)?
Proof-of-stake is one of the alternatives to an agreement or a decentralized consensus. The PoS was proposed in 2012 by a member of the Bitcointalk forum because proof-of-work (PoW) needed too much power and energy. The miners felt that mining a single block was a waste of resources.
Some studies have shown that the operation and maintenance of PoW networks (such as Bitcoin) are as costly as powering millions of homes in entire countries. PoS is generally a much more user-friendly (and greener) alternative to PoW.
The Consensus Model
In the consensus model, the number of coins you have stored in the system is important. The greater your “”stake””, the higher the likelihood that you will not endanger the system (because you have a large share in this system’s optimum performance).
In contrast to the PoW, blocks in the PoS are not mined but forged or embossed (minted). Participants who have significant involvement in the system are pseudo-randomly selected to cast and then add blocks to the blockchain.
This pseudo-random selection is done after an analysis of various factors to make sure that not only people with a large stake are selected, but also others. Some of these selection factors are random block selection, age-related coin selection, master nodes, etc.
PoS Applies to Which cryptocurrency?
PoS is generally applied to cryptocurrencies that are prefabricated so that users have access to the coins and stakes. This means that the emissions from PoS cryptos are fixed from the beginning and there is no block mining or block reward, as in the PoW.
The only incentive a PoS forger receives is the transaction fee associated with the block.
Therefore, if you want to keep PoS cryptocurrencies, you probably want to know which ones work best for coin staking and which ones allow you to earn the most dividends, which are an excellent source of intelligent and passive income.
Here is a list of the top seven PoS cryptocurrencies for Coin Staking:
DASH is a popular cryptocurrency known as digital money. It’s one of the pioneer cryptocurrencies that has implemented the PoS consensus mechanism.
Dash is a unique cryptocurrency that is built on the core of Bitcoin, providing extra privacy and fast transactional features like PrivateSend and InstantSend. It describes itself as decentralized electronic cash and intends to be as liquid as real cash.
Dash also allows its HODLers (Hold on for Dear Lifers) to earn dividends in the form of Dash by running a master class. But the catch is that you need at least 1000 Dash units to run a master node. If you’re looking to make a big investment and get an annual return of 7.5%, this could be the way to go because Dash is a promising cryptocurrency for HODLers. In addition, over time, the potential returns could come from Dash’s price gains.
NEO, formerly known as AntShares, is China’s first open-source blockchain project, calling itself a “”distributed network for the smart economy””.
NEO is a cryptocurrency that exists on the NEO blockchain. Apart from the NEO cryptocurrency, NEO has another crypto token called GAS (formerly known as ANC or Antcoins). It can be used in a NEO wallet for a decent return (5%), and you do not always have to keep your wallet open as in other PoS cryptos.
The income that you earn is credited in the form of NEO GAS for Coin Staking.
PIVX is the abbreviation for Private Instant Verified Transaction. It is a PoS cryptocurrency that focuses on privacy and security during the transaction.
It split from Dash in early 2016 and is a fully-functional PoS currency that allows its users to stash coins on the blockchain at a decent rate of return. Any amount can be used with PIVX, as there is no upper limit and lower limit, which many consider a good way to start coin staking.
Another way to earn PIVX is to run a 10,000 live PIVX unit, which also gives you an annual 5% return on your holdings. If you’ve put PIVX in your wallet, you can start working on a master node right away.
OKCash is a coin-staking cryptocurrency that was launched in 2014. It is a fast currency that can be used for microtransactions. In terms of coin staking OKCash offers its users the highest returns.
All you have to do is put your OKCash coins into a wallet to earn a fixed percentage (10%) of OKCash as a reward for coining stacks of blocks. Another important feature is the fact that you can use a lot because there is no restriction.
5. NAV Coin
NAV Coin is the first cryptocurrency to have a double blockchain for private transactions, and for Coin Staking as well.
NAV Coin is a fully functional PoS cryptocurrency that has been running since 2014 based on the Bitcoin core code. Some of the benefits of this currency include fast transactions (30 seconds), optional double blockchain data protection and a PoS coin staking reward system that lets you earn while sleeping.
Stratis is a PoS cryptocurrency and blockchain-based platform that simplifies the development, testing, and deployment of C# applications on the .NET framework. STRAT is the native token (or cryptocurrency) of the Stratis platform and can be used in a Stratis wallet to earn rewards.
The rewards are pretty low on Stratis stakes compared to its competitors, but if you have a significant amount of STRAT then you might think about having a punt on them. There are also no limits to coin staking.
ReddCoin wants to be the top currency of social networks. With the PoS cryptocurrency ReddCoin, you can send and receive ReddCoin on any social media platform.
Being a PoS currency, Reddcoin can also be put into a ReddWallet, which gives owners attractive profits.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.