Hi everyone,
Today we will discuss on how to make money from staking cryptocurrency.
What is staking?
Sometimes Staking is also called Proof of Stake.(POS). Not many people really understand how Proof of Stakes works...
Proof of Stakes involves buying the coin and keeping in the wallet for a certain fixed period, just like putting money in a fixed deposit for a fixed period.
For Fixed deposit, you will be paid an interest as a reward.
For Proof of Stake, you will be paid additional coins as a reward.
The factor determining the amount of reward is as follows:
Maturity Period
The longer the time, the higher the reward
3 months 20%
6 months: 50%
12 months: 100%Simple or Compound Interest.
Reinvestment is allowed after the expiry of the coin
For compound interest, you can can reinvest your reward.
Advantages of Staking:
You do not need to spend money buying a machine.
Just use the money that you would have used to buy the machine and buy the coin and wait for the wallet balance to grow. the value of the coin will grow at the same time.You can guarantee to make money.
The price of coin grows at the same time and the number of con in the wallet increase too.You may mine the coin too.
The amount of coin that you can mine depends on the amount of coin you have in your wallet. It is like having a strong bank account in your personal computer.
Disadvantages:
- Once you stake a coin, you have lock in the coin for a certain period. You cannot sell the coin.
From the Wikipedia,
Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. Unlike proof-of-work (PoW) based cryptocurrencies (such as bitcoin), where the algorithm rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining), in PoS-based cryptocurrencies the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake). In PoS cryptocurrencies the blocks are usually said to be forged (in the blacksmith sense of this word), or minted, rather than mined. Also, usually all the coins are created in the beginning and the total number of coins never changes afterwards (although there are some other versions of PoS where new coins can be created). Therefore, in the basic version of PoS there are no block rewards (e.g. as in bitcoin); so, the forgers take only the transaction fees.[1]
Example:
Bixc - This is a new undervalued Cryptocurrency that you can stake Now:
Find out more at :
https://www.facebook.com/billionexworlds/
Bye