The most frequent issue in the crypto industry nowadays is the security of our assets, so how to secure with efficiency our coins ?
First of all we need to understand the nature of the crypto assets we are holding, is it a mining coin aka proof of work (POW) or a Staking coin AKA proof of Stake (POS)
Mining has become less and less profitable due to the high energy bill and the bear market we are facing since the beginning of 2018.
For that reason I have decided to dedicate this article exclusively to the Staking coins, personally I do hold a bunch of them it is for me the best way to generate a passive income with low cost.
So What Is Staking ?
Proof of Stake (PoS) means that a person can generate and validate blocks transaction according to how many coins this person holds in his or her wallet.
That means the more coins the Staker Holds the more Staking power he or she will have.
Lets put it in another word, the more coins the Staker holds, the more money he or she will earn, in order to be really profitable a Staker needs to run his computer basically all time. This will increase the chance to generate new blocks and get the rewards.
In addition to that the Proof of Stake consensus algorithm is secured by the number of users which are holding their coins in their wallets, in another word, the more users Staking in the network the more the network is secure.
Staking Coins That I Stake
The crypto space is full of new staking coins and it is actualy the new tendency.
This Article will cover ARK, BEAN CASH, REDD COIN, LINDA.
I’am actually Staking this coins for more than a year, so I’am going to share with you the results after this period.
ARK
The ARK mainnet’s consensus algorithm is known as Delegated Proof of Stake, or DPoS.
It is quite different than the classical Proof of Stake (POS),
Holders of ARK use their wallets to vote for delegates who secure the network, insert blocks into the ledger, and create new ARK.
With the Delegated Proof of Stake (DPoS) you don’t even need to run your computer in order to receive a reward.
The Delegate runs the node (computer) and share the profits with all the voters, no energy lost and no need to even open the wallet, you just need to vote for a Delegate and it costs 1 ARK.
1 ARK= 1 Vote.
For me it is the best proof of stake model, pure profit without any lost of energy. You can store it in a cold wallet like the Ledger nano S for a Total security.
I’ am actually heavily investing in this coin it is one of my favorite Altcoin, of course it is my personal opinion, not a financial advice do your own research if you want to invest in this crypto.
Earning expectation :
ARK ROI is between 5 to 10% a year, depending on the Delegate you vote for.
Bean Cash
Bean Cash is an OG coin it has been in the market since February 2015, it is also one of the pioneers of the Proof of Stake (POS) system.
With a maximum block size of 20MB, transactions on the Bean Cash Network are sent within 0-3 seconds. Which is insane.
This unique Cryptocurrency offers for the Staker a huge reward for each block resolved, 1000 Bean in one Stake are sent to the wallet for each new block solved.
In order to Stake at least once a week the Staker needs to hold 100 000 Beans and run the computer all time (even if the computer is off for a period of time it doesn’t mean that the Staker won’t receive a reward, but for more efficiency the computer needs to be running as much as possible).
Earning expectation :
Bean cash ROI is approximately 3% per month and if the interest is compound the Staker can expect a huge return at the end of the year.
REDDCOIN (RDD)
RDD has been an OG coin since 2014 created specifically to facilitate social interactions in the digital age.
RDD is powered by its users, which are securing the network with a Proof of Stake (POS) system.
RDD is dedicated to one thing , tipping on social networks as a way to bring cryptocurrency awareness and experience to the general public.
Earning expectation :
RDD ROI is 5% a year with a consistent small staking rewards basically each 15 days (sometimes it’s more than 15 days sometimes it’s less than 15 days).
LINDA
LINDA is a Proof of Stake (POS) cryptocurrency, It offers partnership opportunities to other cryptocurrencies to use LINDA COIN platform.
LINDA offers for the users a Proof of Stake (POS) system and a masternodes (MN) system.
A masternodes (MN) is quite similar to a Proof of Stake (POS) model.
In order for a masternodes (MN) to be set up, the users need to lock a certain amount of coins into the wallet.
In the case of LINDA 2 000 000 coins need to be locked into the wallet.
Earning expectation :
LINDA ROI for a masternodes (MN) is 44 % for 829 days, basically 2 years and 3 months.
For the Staking ROI this website https://www.poslist.org/ announces 99% return a year, but in my wallet it is not the case may be a don’t have enough coins at this time.
Vulnerability Of Staking
Keeping his machine online all the time increases the probability to get hacked, this create a major issue for the Stakers that’s why security becomes the number one priority.
Here is an example of somebody who get hacked and share his unfortunate experience on Telegram.
All of his Bean cash were stolen in one shot, how did it happen, I don’t know it just happened.
When I saw this I was really afraid and I felt like it could happen to me as well, so I started to search for an efficient way to secure my hot wallets and I found something interesting and working well.
A VPN
A Virtual Private Network (VPN) was developed to allow remote users to access corporate applications and resources to ensure security.
The connection between parties is encrypted, in another application internet users may secure their transactions with a VPN, it protects personal identity and location to stay anonymous on the internet.
That is perfect for me I found out the perfect way to secure my wallets and could finaly sleep without thinking about it.
For more details about VPN's visit this link https://smartsindustry.com/blog/
And here is one of the best VPN out there https://go.nordvpn.net/aff_c?offer_id=15&aff_id=25393&url_id=902
Conclusion
Staking is one of the best ways to generate a passive income within the crypto space, simple to set up with a low energy consumption.
However Stakers need to be aware of the risk they are taking, Stakers needs to know how to protect their assets and how to invest as well.
Remember this is my personal opinion and investment before getting into this game do your own research and chose the best security option that suits you.
Peace.
