In the crypto sphere, all transaction need to get validated, that's the one thing every blockchain has in common. Until a while ago, the most common validation system was mining or 'Proof-of-Work' which is known to use huge amounts of electricity, and that's not good for the miners pocket or the environment. Fortunately, there are other forms of validation also known as 'Consensus Mechanism'.
Proof-of-Stake (PoS) is a consensus mechanism that comes with different variations and some hybrid models. Coin staking gives currency holders decision power on the network, and by staking coins, the holder gains the ability to vote and consequently generate an income. This is very similar to receiving interest for holding money in a bank account.
We can stake coins in their native wallet, but in most cases, we will need a determined minimum amount of coins for that in order to be profitable. For example, although DASH is not a truly POS its masternodes work more or less in a POS way and you will need 1000 DASH units (83,440.457 €) to run a masternode and to get an annual return of 7.5%... plus you will need the technical knowledge to run your own masternode. On the other hand, you have coins like Tron TRX that with a 2€ investment you can stake and start earning tokens and interests.
Always Do Your Own Research
Staking POS currencies is undoubtedly one of the smartest ways to earn passive income. Choosing the right coin to stake is both a gut feeling and a well done numeric research. Before you begin staking research minimum amounts, staking rewards, and particular staking protocols. Always pick projects that resonate with you and that provide real-world value, those are the projects that will be around in the future. And after all, when you stake you are investing and helping that project to become a reality.
Free Online Platform That Allows To Stake Cryptocurrencies
If you have some coins you would like to stake there's also the possibility of doing it online and without the need for technical knowledge.
MyCointainer is an online platform that allows to stake cryptos, via coin staking and masternode staking. This means that it will generate profit for you in the form of 'stakes'. For those who don't know, to stake is to participate in a Proof of Stake (PoS) system where your tokens serve as a validator to the blockchain and in return you receive rewards.
In MyCointainer you will get access to shared masternodes staking for a variety of coins. As it offers an automated pool staking, the advantages are steadier, more predictable earnings and the fact that you don't need to take care of any hardcore technical details.
Every reward is subject to compound interest, so basically, a longer period of time equals higher chances of earning more as this is how the staking process works.
Rewards are generated according to basic math behind coin staking/masternode rewards ratio. This estimate includes some technicalities such as current blockchain block, developers roadmap changes, compounded coins addition. It's also very coin specific. Some coins even built their own calculators to help you with this - you could google those by specifying the coin name + 'rewards calculator'.
The best about MyCointainer is that there's no need for technical knowledge in order to fully use it. Investment and reward system process is 100% automatic. All you need to do is to deposit the coin(s) of your choice and gradually watch your balance grow.
MyCointainer hosts the best masternode coins and PoS (Proof of Stake) staking coins selected after detailed analysis. If you want to see the average fee on all coins just visit the homepage, scroll down and check the section. Currently, the highest fee that might be charged is 9% taken from your profit, but some coins like QTUM have no fee.
Let me know if you’re already staking and what's your favorite POS coin. Let me hear your thoughts in the comments below!
Here are a few suggested things to read next:
Passive Income | 5 Cryptos That Pay You Dividends
Cryptocurrencies || A Tool To Break The Financial Enslavement System
Tron The Decentralized Entertainment Network That Rises Against The Content Industry Giants
Passive Income | What Is Cloud Mining?
Best Faucets In 2019