Some blockchains allow cryptocurrency users to place their assets in a digital wallet to validate transactions and thus obtain passive income, but how do I make a profit from "gambling" these cryptocurrencies? This is possible thanks to the Proof of Stake (PoS), a model that uses a different algorithm to the Proof of Work (PoW) of Bitcoin.
The Proof of Stake model generates new blocks through two variants: the time that the cryptocurrency has been active and a randomizer based on a formula that searches for wallets taking into account the lowest hash value and the stake size.
The coins placed by users on the blockchain help to secure the blockchain and keep it running. Thus, each coin bet helps to validate network transactions and help support the creation of new blocks, thus granting users profits.
Just as in the Bitcoin PoW, the miners generate new blocks by solving complicated mathematical problems, in the PoS the creators of new blocks do so in a pseudo-random way, depending on the wealth of the user, defined as “stake”.
How to earn money with your staking coins participating in the Proof of Stake
We can compare the profits generated by these cryptocurrencies to the rewards given to Bitcoin miners, but staking is much easier than mining BTC. So in order to get your rewards you will need a minimum of requirements:
- Place your cryptocurrencies in a wallet that is connected to the blockchain and as we mentioned earlier, that this wallet is kept online.
- A computer that is kept active for this purpose or acquire a Raspberry Pi, which is a device that can process information like a normal desktop computer, but with the size of a card.
If you are concerned about the expense that staking cryptocurrencies may represent in terms of electricity and specialized equipment expenses, that is not a problem. Unlike Bitcoin mining, staking does not require high power consumption or specialized equipment.
Now let's see which are the 10 best cryptocurrencies to staking considering their advantages, and the Return On Investment (ROI) that we can interpret as the profit they offer:
Tezos (XTZ).
ROI: 6.15% annual.
Tezos is a cryptocurrency on the rise and one of the best crypto stakes. It is a blockchain project with some key areas of focus on smart contract technology, long-term upgradability and open participation. It is also famous for the largest ICO (Initial Coin Offering) at that time, raising $ 232 million USD.
Tezos uses a new modified DpoS (Delegated Proof of Stake) model, which goes by the name of LPoS (Liquid Proof of Stake). It has a slightly different consensus mechanism and the delegation process is a bit more flexible and optional.
Advantage: It has a modern blockchain with many new features and innovations, as the LPoS and the technological side are very strong; Furthermore, it is easy to bet via Ledger and Trezor wallets and exchanges such as Binance, Coinbase and KuCoin.
NEO.
ROI: 2.5% annual.
NEO is a community-driven smart contract open source coin. It is one of many "Chinese" cryptocurrency projects and supports the creation of numbers for different digital assets and certificates that allow a wide range of use. It was launched in 2014 and quickly achieved great acceptance in the crypto space. It has a modified type of Proof of Stake blockchain and simply by having NEO in a supported wallet one achieves a separate token called GAS in return.
Advantages: It is an intelligent platform with enabled contracts, it contains digital and certified identities plus a wide range of dApps.
VeChain (VET)
ROI: between 2 and 5% annual.
VeChain is another NEO-like cryptocurrency project and platform that enables smart transactions. They have a strong focus on the supply chain industry, with various partnerships in this space that have made VeChain famous in the crypto community.
It has a Proof of Authority blockchain coin, which is similar to a Proof of Stake blockchain, but with a different consensus model. If you bet on VET, you will receive in exchange a token called VTHO, which is used to power transactions on the VeChain blockchain.
Advantages: wide variety of associations and real use cases, different bonus models and nodes, plus its ease of “staking” or “betting” on a blockchain.
PIVX
ROI: Between 5-8% annual.
PIVX is a privacy-focused fork of DASH, and an open source blockchain project. It offers extremely fast transaction and privacy features. With its strong community focus and cheap fees, it makes it a very solid option even in the crypto privacy group.
Advantages: Privacy-enabled transactions, really fast transactions, and a self-governance system in place that works. It has a voting and proposal system that guides future development.
Fusion (FSN)
ROI: 19% annual.
With the Fusion protocol, innovative new solutions can be built with a focus on interoperability. With its rich technologies such as its native API, the developer can easily create his new products and services without the need to create overly complex smart contracts.
The company uses a new type of Proof of Stake consensus model, called Ticket Proof of Stake (TpoS). Simplifying, it works to get lottery tickets and events. Those who bet their FSN tokens get tickets based on their stake amount.
The easiest way to bet FSN is on stakeout pools and let other nodes use your tokens. One option to do so is WeDeFi, which is a platform that makes it easy to bet on your staking coin.
Advantages: It has a highly interoperable blockchain with its DCRM technology and cross-chain features, rich native APIs, and a very high, easy-to-gamble ROI.
Ark (ARK)
ROI: 10% annual.
The Ark blockchain has become known for wanting to be the "Smart Bridge" platform and is looking to position itself as an easy-to-use blockchain. Its features allow you to easily connect with other blockchains.
ARK has 8-second blocks, which makes it very fast, and ARK wallets work as soon as they are installed. It has unique characteristics.
Advantages: it provides facilities to start betting cryptocurrencies, allows very fast transitions and its ability to bridge smart.
Lisk (LSK)
ROI: 4% annual.
Lisk is similar to ARK, and like the previous staking coin, it seeks to make it very easy to use its blockchain and for companies, developers and cryptocurrency projects to use its platform. Lisk is an application-based blockchain allowing others to easily create decentralized applications on their platform.
With Lisk, you can build side chains, and each side chain has its own unique characteristics, but it is still connected to the main Lisk chain, which operates independently of any other side chain.
Advantages: The sidechains feature makes scalability less of an issue, interoperability between the sidechain and the main Lisk blockchain, and ease of use and Javascript friendly application development.
Neblio (NEBL)
ROI: 10% annual.
Neblio is a cryptocurrency and blockchain project similar to Lisk and ARK that focuses on business use. That wants to make it very easy for companies to create their own decentralized applications and blockchains. Neblio also plans to add smart contract features in the future.
Advantages: blockchain and dApp platform focused on the company that makes it easier for them to start, great return on investment and good variety of APIs that facilitate the connection to the Neblio blockchain, written in 8 different programming languages.
Ontology (ONT)
ROI: 5% annual.
Ontology is a project aimed at business users. Its blockchain platform is built to support other blockchains, both in the private and public sectors, so that companies can have more flexibility and accessibility with other technologies. It also offers users the ability to store data completely private or public.
The platform was co-founded by the same founders of the NEO blockchain. The difference is that NEO is open source and Ontology is a for-profit blockchain aimed at the business. But the two blockchains have many characteristics and similarities to each other.
Advantages: It was created with an experienced team, it has a significant business focus that will make them more likely to be successful with more comprehensive services, smart contracts, decentralized applications, and real-world focus.
Komodo (KMD)
ROI: 5% annual.
It is another blockchain platform that wants to make it easier for users to develop their full-service blockchain solutions. The Komodo platform is trying to build a blockchain ecosystem. That means a full range of products and services like a decentralized exchange, a decentralized ICO crowdfunding platform, among others.
Advantages: Along with its focus on scalability, interoperability (atomic swaps, cross-chain characteristics, bridging) and security are key to its identity.
As you can see, the world of cryptocurrencies is wide, with many ranges and different facets. It is always important to analyze as much as possible to get the most benefit. Research, read, learn, enjoy, follow me (the less important one) HERE... and with or without Staking Coins, be happy!
But why you missed Hive here? It give you interest as well as curation APR as ROI.
Posted Using LeoFinance
I reversed the order. Followed you first and will go up the order.Okay, next up - enjoy and learn😇