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The world of crypto offers enthusiasts many passive income options. One of them is staking — an easy way to make the crypto on your wallet bring you profits. In this article, we will explain staking compared to mining and trading, consider its advantages, and look at the best staking options today. Dig in!
What is staking?
Staking means locking some crypto on your wallet to help the coin’s network operate securely. This is eligible for the cryptocurrencies with the Proof of Stake (PoS) consensus algorithm.
Once you’ve started staking, the network may choose you to validate a new block of transactions and add it to the blockchain. In Proof of Work networks, you get this right by competing with other users in terms of calculating power. In PoS cryptos, the network chooses you to validate a block depending on your stake size and other parameters. Thus, you don’t need to have expensive equipment to help the network run and get rewards.
This is not the only advantage of staking compared to the other ways to profit from crypto. There are more:
- No extensive research is needed. The only things you need to explore are the best coins to stake and how staking works in general. No technical analysis, no sophisticated trading strategies, no complex mining rules.
- This is a stable way to get your profits. Unlike in trading, your income is well-predictable. This means you don’t have to keep an eye on the market all the time — whatever happens, you will get your staking reward.
- Staking takes very little time. Once you’ve chosen the coin and set the amount, all you need to do is get comfortable and count your staking rewards.
What kinds of staking are there?
Proof of Stake described above was developed in 2012 with the first PoS crypto being Peercoin (PPC). But no technology in crypto stands still, and two years later, a Dedicated Proof of Stake consensus algorithm was introduced as an alternative. In DPoS, stakes are used as votes to delegate the right to validate blocks to the most trusted users. Staking rewards are distributed proportionally between the elected validators and the voters. The largest DPoS coins today are EOS, TRON, and Tezos.
What cryptocurrencies do people stake?
Let’s take a quick look at some of the biggest PoS and DPoS coins that crypto enthusiasts stake.
Tezos is similar to Ethereum in a way that it supports decentralized applications and smart contracts. The open-source platform is driven by a global community of validators and developers. Tezos is well-known for its improved governance solutions. One of them allows stakeholders to vote for network changes that come into effect automatically — this is called on-chain governance. A self-correcting protocol is also implemented.
TRON is a blockchain-based operating system founded in 2017 by a tech entrepreneur Justin Sun. The platform also allows for creating DApps and smart contracts, publishing, owning, and storing data and other content. Massive scalability and consistent reliability are the priorities for the project.
Decred is a Bitcoin fork that is focused on on-chain governance and intended to be a community-directed store of value. Voting stakeholders govern Decred. This allows the network to prevent powerful individuals from having too much influence over the platform — which is exactly what happened to Bitcoin.
What is NOW Token? Why should I stake it?
NOW has been issued in 2018 by an instant crypto exchange service . This platform allows users to swap 200+ cryptocurrencies without registration, limits, and custody. The fully anonymous swap service has gained 4.8 stars out of 5 on Trustpilot and partners with Binance, Ledger wallet, and other crypto industry leaders.
The service offers a very transparent and flexible reward calculator — the more and the longer you stake, the more you get:
A progressive scale of rewards is implemented: staking for 12 months is 2,5 times more profitable than doing so for 6 months (in annual terms).
Staking time span is also very flexible: you can stake for a week or for more than a year. The rewards are granted every week.
NOW also uses the so-called “whale protection”: the maximum amount for staking is 100,000 NOW, thus ensuring the equitable distribution of the chances to validate a block and get rewarded.
How to start staking NOW?
In case you already have some NOW, head to the official NOW Staking website , choose the staking method, and follow the simple instructions. To get some NOW, visit this short guide . You can get NOW on a DEX or by participating in ChangeNOW activities.
Staking might be the best solution for crypto enthusiasts who want to profit without extensive research and investment. It’s easy to start staking, and you don’t have to worry about losing your rewards. Many prefer staking top coins, but we recommend you NOW Staking that offers high and flexible rates. Whatever crypto you choose to stake, we wish you good luck and great profits!
Originally published at https://blog.swapspace.co.
How to start staking now? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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