Proof of Stake (POS) is a common theme thrown around in the crypto community, but what exactly is proof of stakes, how does this factor into the functionality of a coin, and most importantly, how can you benefit from it?
We will attempt to answer all these questions, and as a plus, we will delve into the discussion and suggestion of some good POS coins that should be on your attention radar.
What is a POS Crypto?
POS Cryptos are coins that provide economic incentive and dividends to its holders. They can do this by giving holders the option of running master nodes or stacking their coins in a stackable wallet.
In layman’s terms: you can profit from POS coin simply by holding them!
How do POS Cryptos work?
POS utilizes an algorithm that acts as a channel for certain cryptos to achieve distributed consensus. In this manner, POS serves as an alternative to the famous Proof of Work algorithm, and may even prove to be more advantageous, since it achieves the same distributed consensus for much less energy.
Peercoin was the first crypto to implement the proof of stake algorithm for securing its blockchain, however, it only offered holders a meager 1% earning per annum. This was considered as too small of a reward, and the coin quickly lost its popularity.
A lot of things have changed since Peercoin, so if you aren’t holding any POS cryptos, it may be time to start considering buying some, or maybe you are already a holder of POS cryptos, then it is time to position yourself to earn dividends, by staking them in the proper wallets.
Let’s look at some of POS coins with good investment value.
Top 7 profitable Proof of Stake Cryptos
NEO is a Chinese-based blockchain platform and cryptocurrency which enables the development of digital assets and smart contracts.
Aside from the NEO crypto, NEO has another token-based cryptocurrency known as GAS. GAS can be stored in a NEO wallet to produce nice earnings for its holders. The cool thing about this is that it is not mandatory to keep your wallet open at all times, which can be considered to be an improvement when compared to other POS cryptocurrencies.
Ticker Symbol — NEO
Annual Return — Approx 5.5%
Staking Wallet — NEO Wallet
PIVX is an open-source cryptocurrency that is focused on complete privacy and security within their transactions.
PIVX stands for Private Instant Verified Transaction. Having forked from DASH early in 2016, PIVX has developed into a fully functional POS coin devoted to security and privacy dealing transactions.
Since it works on a POS algorithm, its holders can earn profits on it.
There are two ways to make profits by holding PIVX:
– Running a master node of 10,000 PIVX units and receiving an amount of 5% returns on your holdings. OR
– Stake any amount you wish without running master nodes. This is possible because there are no cap limits or restrictions.
Ticker Symbol — PIVX
Annual Return — Approx 4.8%
Staking Wallet — PIVX Desktop Wallet for staking
Initially called PIMPCash, OkCash rebranded, the developers changed the name to realign it with their goals of making it mainstream and to reflect the positivity and innovation behind the currency.
OkCash kicked off business in 2014 and plans to be the go-to crypto for quick microtransactions. As a POS coin, OkCash provides one of the highest returns to its users.
To take advantage of its POS feature, you simply need to move your OkCash coins to a staking wallet and watch it earn OkCash for you at a fixed percentage. This serves as a reward for minting blocks via the staking process. It is also low barrier like PIVX since you can stake any amount (i.e., there is no cap on it).
Ticker Symbol — OK
Annual Return — 10%
Staking Wallet — OKCash Desktop Wallets for staking
4. NAV Coin
Nav Coin is a type of decentralized cryptocurrency based on the most recent Bitcoin Core. It offers convenient wallets packed with high tech privacy features.
What are its perks?
Well… NAV coin boasts of faster transactions, privacy options, dual blockchain and you guessed it right…. POS staking reward system!
NAV coin has no cap for staking, with it, you can literally earn in your sleep!
Ticker Symbol — NAV
Annual Return — Up to 5%
Staking Wallet — NAV Coin Desktop Wallet for staking
Stratis is a Blockchain-as-a-service (BaaS) Platform, created to provide solutions for corporations in the financial sector that want to enjoy the benefits of Blockchain technology
Stratis’ native token is STRAT, and it runs on the Stratis platform utilizing POS, which means it can be staked in a Stratis wallet for certain benefits.
In contrast to the other POS tokens, Stratis returns are on the low side. However, if you managed to collect a significant amount of STRAT, you can consider staking them. It is also worth to note that Stratis has no cap for staking.
Ticker Symbol — STRAT
Annual Return — 0.5–1%
Staking Wallet — Stratis Desktop Wallet for staking
Reddcoin is the social currency that enriches people’s social lives and makes digital currency easy for the general public. Reddcoin achieves this by integrating a digital currency platform seamlessly with all major social networks to make the process of sending and receiving money fun and rewarding for everyone.
Reddcoin’s POS features allow it to be staked in a wallet for some impressive earnings. Similar to its peers, there is no cap for staking.
Ticker Symbol – RDD
Annual Return – Approx 5 %
Staking Wallet – Reddcoin Desktop Wallets for staking
Dash (formerly known as Darkcoin and XCoin) is an open source peer-to-peer cryptocurrency. On top of Bitcoin’s feature set, it currently offers instant transactions (InstantSend), private transactions (PrivateSend) and operates a self-governing and self-funding model that enables the Dash network to pay individuals and businesses to perform work that adds value to the network.
Dash holders can earn dividends in the form of DASH by running a master node. However, this is only possible if you have a minimum of 1000 DASH units. This may prove to be quite expensive for some people, but if you were one of the lucky early adopters of the DASH coin, then you will want to consider jumping unto this.
Without a doubt, staking POS coins is a really cool way to earn some passive income on the side; the advantage here is that with most of these coins, there is no cap for staking so you can start with what you have.
Ticker Symbol – DASH
Annual Return – Approx 7.5%
Staking Wallet – DASH Desktop Wallets for staking
For the sake of time and space, some POS cryptocurrencies were not included here, but they’re still worth mentioning: QTUM, XMG, NXT, XSPEC, LISK, etc.
You can check these out if POS staking resonates with you.
The reward percentage for staking varies with each POS crypto, and can range from as low as 1% to as high as 17%!
Considering the fact that you are making some earnings by virtually doing nothing except for keeping your wallet open, I think this is actually worth a try!