The POS coins are really the next big thing in the cryptocurrency market, people are beginning to you align with the ideology of proof of stake. because of how effective and efficient these cryptocurrencies have become.
In this post, we will examine some of the best proof of stakes coin (POS) and make lots of profits.
know that there are levels to this cryptocurrency business of ours? Before you smile to yourself, have you heard about the proof of work (POW) and proof of stake cryptocurrency?
This article is strictly concerned with proof of stake cryptocurrencies. Proof of work cryptocurrencies will be handled in the next content that will be coming your way shortly.
What is proof of stake (POS)?
POS, otherwise called proof of stake, is a cryptocurrency consensus Algorithm that encourages holding your cryptocurrency for a longer time in anticipation of associated rewards.
in a simpler term,Staking is a Way To Earn Passive Income that states that holders of a particular cryptocurrency can partake in the blockchain mining transaction process. The proof of stake idea is built around the notion that the more quantity of coins one holds, is commensurate to the mining power and benefits to be gained. The Proof Of Stake(POS) model is the perfect alternative to the proof of work (POW).
By staking, what is meant is the practice of supporting a particular network by HODLING your cryptocurrency units to validate blockchain transactions for profit. Cryptocurrency stakers are usually rewarded for participation by earning extra tokens which can be sold as well. To take off on such a journey, there is a minimum amount of coins required for a successful configuration.
While there are still lots of gaps to fill in the proof of stake topic, let’s take a deep dive into some of the best proof of stake coins (POS) in 2021.
Why IS Proof of Stake POS Better than Proof of Work POW?
the proof of stake consensus algorithm is really a game changer in consensus algorithm, it is most preferred by most cryptocurrency developers and builders. Recently, Ethereum and some major cryptocurrency project are considering switching to POS, you want to know why?
POS coins are more energy efficient that POW coins. Research has claimed that the energy will take to mine bitcoin will power city. but POS coin don’t require such amount of energy to mine. You can mine any POS coin by holding it in your laptops without costing much energy.
As you mine POW Coin they get to a certain point where mining becomes difficult, it will require more computation power and machine to output but that’s total not the case for POS Coins.
A POS coin can easily be hijeacked whenever they are few miner on the blockchain, but for a POS coin to be hijacked or attacked, the attacker must have atleast 51% of the coin to be able to carry out a 51% attack.
This is one of the most regarded staking tokens judging from its yearly returns. The staking fee for tezos on Binance is 0% while coinbase takes 25% for stakings you do with them. You are left with the option of baking your tezos for an annual reward of 6.20%, or you can delegate it for 5.50%
Neo is an open-sourced blockchain and crypto platform. This coin is most times called the Ethereum killer. It rewards its holder handsomely with approximately 1.9% within a month. Neo also has another token it supports on its blockchain. It is called the GAS token or ANC – Altcoins.
The QTUM cryptocurrency is also decentralized blockchain technology. This network utilizes smart contracts, accompanied by proof of stake
Cosmos otherwise known as COS is another coin that rewards its holders, qualifying it as a proof of stake token. The secret behind this cryptocurrency is in having heavy bags. You are rewarded based on the number of coins deposited in your wallet and staked.
Obtaining dividends is made possible through the running of master nodes that gets enabled when you hold your Dash tokens. To successfully run a master node, an average of 1000 dash units is required.
Stellar uses a shared network that permits people to exchange assets worldwide without any hassle.
The annual reward for staked XLM remains 1%. with this, you will see loads of accumulated profit should you decide to invest in this project.
Algorand is a blockchain network in itself. Its goal is to achieve a borderless economy. Though the Algorand coin remains categorized on Binance, this cryptocurrency remains active on lots of other platforms.
In conclusion, each of the above named coin has varying degree of reward for staking, always check the pros and cons associated with the staking of any cryptocurrency before you venture into it.
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