Just getting started with cryptocurrencies and starting your research? Good call. You've landed at a prime spot to soak up some knowledge. Today, let’s dive into the intriguing world of cryptocurrencies you can stake with. You’ll quickly encounter concepts like cryptocurrency mining. This leads you deeper into technical territory with ideas like Proof-of-Work (PoW) and Proof-of-Stake (PoS) .
Initially, this can seem overwhelming, but understanding these concepts is more accessible than it might appear at first glance.
PoS is captivating because it’s where a considerable part of the cryptocurrency sector is gravitating towards today. Even Bitcoin's upcoming Lightning Network upgrade appears to hint at a system resembling PoS while the primary chain remains reliant on PoW.
Let's first outline what Proof-of-Stake truly means before we delve into today's top-tier PoS projects.
PoW Versus PoS
The Proof-of-Work idea for cryptocurrencies was pioneered by trailblazers like Hal Finney and Adam Back.
Simply put, PoW is a method for reaching a consensus across the decentralized parts of the Bitcoin network. Bitcoin miners safeguard the network’s stability by contributing substantial computing resources, alongside electricity, to solve intricate cryptographic challenges.
Proof-of-Stake offers a newer method for achieving decentralized consensus. Instead of mining, networks based on PoS reach consensus through staking. In essence, staking means users hold PoS-compatible crypto in a designated staking wallet.
Staking brings about the same outcome of mining (decentralized consensus) without the hefty consumption of computing power and energy.
By ‘staking’ your coins, you can earn crypto rewards over time, akin to a miner ‘winning’ a block.
PoS decentralizes hash power, preventing it from being monopolized by massive mining corporations, allowing anyone to 'stake' a given amount of their cryptocurrency or connect to larger staking pools.
Among the top 100 by market cap, many cryptocurrencies are now on PoS:
- BitcoinDark
- BitShares
- Blocknet
- CLAMS
- Cloakcoin
- Crowns
- Diamond
- Elastic
- Factom
- GridCoin
- I/O Coin
- Lisk
- NAV Coin
- NEO
- Nxt
- OKCash
- Omni
- Peercoin
- PIVX
- Reddcoin
- RubyCoin
- Stellar Lumens
Stakers can potentially earn returns ranging between one and five percent over a period, such as annually, from their staked coins.
Let’s explore a bit further into some exciting projects that are PoS or transitioning to it soon.
Ethereum (Can Stake Soon)
Ethereum deserves early mention because, though currently PoW, its switch switching to PoS This looming change will mark a significant moment, given Ethereum is the second-largest cryptocurrency by market cap.
If the second-largest cryptocurrency adopts PoS, many others will likely follow suit. Numerous projects are already shifting to PoS, though it's a relatively new distributed consensus model that hasn't had extensive testing yet.
Should Ethereum transition to Proof-of-Stake smoothly and succeed, the dynamic where PoS coins occupy only a slender portion of the top 100 market cap will inevitably shift, expanding that fraction significantly.
ETH’s so-called “ Casper ‘’ update will kickstart Ethereum’s shift to PoS. Afterward, ETH holders can stake their assets to receive recurring 'dividends' of ether.
It's currently uncertain how much ether will be required to stake. Various figures have been tossed around in the community lately, but none are officially confirmed.
Some forecasts state up to 1,000 ETH needed for staking, with others suggesting as low as 10 ETH. A popular estimate is 32 ETH.
Don’t worry if you aren’t an ether whale. Eventually, you'll probably be able to contribute smaller amounts to staking pools and still participate in the evolving system.
NEO
NEO is fascinating for implementing delegated Byzantine Fault Tolerance (dBFT). While seemingly complex, consider dBFT as a type of enhanced Proof-of-Stake.
In contrast to Ethereum, the NEO project already operates on this staking model.
A unique aspect of NEO's system is rewarding you not with NEO, but with a different cryptocurrency called 'GAS'.
At press time, GAS is the 63rd largest crypto by market cap and is worth $18.50. Not bad!
Lisk
Like NEO, Lisk employs a different PoS variant. Lisk's model is known as delegated Proof-of-Stake, or DPoS.
Such a system means staking is available in Lisk, but exclusively to the top 101 'delegates,' who are chosen continuously by community vote.
Not everyone can stake with Lisk. You'll need to be among the top 101 delegates to stake, but its PoS model is captivating.
With its JavaScript foundation instead of Ethereum's Solidity, Lisk's potential mainstream application could propel its DPoS model to popularity.
Stratis
Stratis is a C#-based crypto effort that mined its inaugural PoS block earlier this year in May .
As declared by the Stratis team with pride:
“This marks the first authenticated and detailed instance of a PoS blockchain block mined via C#. Now our developers will merge this with the previously developed wallet layer for Breeze. The full node with PoS should be ready for testing in about a week.”
PIVX
PIVX branched from the DASH blockchain last year and, unlike DASH, has completely adopted the PoS model.
PIVX users can stake without any minimum or maximum limits, encouraging the staking of any amount. This is a stark contrast to Lisk's approach, enabling everyone to stake.
Stakers get an annual return of around 4.8 percent with PIVX.
OKCash
OKCash is a more seasoned cryptocurrency, rolling out in 2014. It’s among the PoS 'originals,' aiming to facilitate microtransactions.
They’ve got a pretty impressive annual staking return of around 10 percent. That’s among the best annual returns you’ll find among any PoS coin right now.
To participate, simply transfer your required OKCash into a staking-specific wallet.
Final Word
There are numerous other promising PoS projects in the pipeline, so vigilance is key.
Some ERC-20 token teams like OmiseGo (OMG) and ChainLink (LINK) are crafting staking strategies that appear innovative. The crypto ecosystem holds much promise!
17Comments
Ark utilizes DPoS, where only the delegates earn Ark through staking. They share between 85 and 95% of their earnings with holders who vote and store their Ark in a wallet, with an annual yield of 8-10%.
Yep, we covered ARK here – https://level-up-casino-app.com/ark-guide/
Waves are excellent to hold and lease for additional earnings: https://level-up-casino-app.com/waves-guide/
Minexcoin stakes offer approximately 3.75% weekly! Occasionally more!
Is it accurate that Minexcoin provides about a 3.75% weekly return?
Stellar Lumens PoS, really? Where's the tutorial for verification?
Anyone exploring Lindacoin? It's recently surged from 5 to 15 sats. Worth a look!
NAVCoin's staking system is undervalued, alongside its other intriguing features!
Does staking solely benefit the wealthy (whales) more, given they have more funds expendable for staking?
Blackcoin deserves mention as the pioneers of applying PoS blockchain technology.
RAIN CONDENSATE COIN… A top-notch staking coin!
Surprised no one's brought up Bitbay.
Bitbay has flirted with the top 100, making it noteworthy. It's PoS 3.0, with 50% of the network staked leading to a 5% return. The coin's history is long, with plans for Q2 2018 launches like Rolling Peg and Web Marketplace. A proactive team and loyal community assure steady progress on their roadmap.
https://bitbay.market/
https://coinmarketcap.com/currencies/bitbay/
Before staking solo, I didn't receive rewards because I frequently lost internet or shut down my desktop:^
Now i’m using
https://simplepospool.com/?ref=psequeira
It boasts an impressive PoS pool reward system, a comprehensive masternodes sharing setup, and an exceptional referral program.
You should take a look.
Embrace staking coins! Easier to gain with collective pooling, sparing the need for constantly running a computer/wallet.
SimplePOSPool is worth exploring; I've been using it for several weeks. Frequency of rewards is high, with straightforward deposit and withdrawal processes. Best of all, your stake automatically reinvests to enhance your share in the next round.
https://simplepospool.com/?ref=kryptominnow
In my view, Rebellious (REBL) exemplifies the ultimate PoS system!
Harnessing proof of stake, Rebellious will deliver tailor-made blockchains as per client specifications. This ensures blockchains seamlessly integrate into client operations with the expertise provided by Rebellious.
Leading Proof-of-Stake Cryptocurrencies: Engage, Supervise, And Gain Profits
You can read here more details:
https://www.rebellious.io/whitepaper/
These days, the trend in the crypto world is all about staking your coins - uncover more in our Guide to the Leading PoS Currencies
Foremost Proof of Stake Cryptocurrencies: Hold, Verify, And Profit
New to cryptocurrencies and just scratching the surface? Great initiative! You’ve landed at the ideal spot to deepen your understanding. Today's focus is on some captivating cryptocurrencies primed for staking. Inevitably, your journey will first lead you to cryptocurrency mining. This, in turn, will introduce you to more complex concepts like
*Energi (NRG)*
Proof-of-Work (PoW) versus Proof-of-Stake (PoS)
Initially, it might all appear overwhelming, but it's actually quite simple to grasp the fundamentals of these concepts in practice.