How to Earn the Best Rewards with Cryptocurrency Staking
The new rising trend in cryptocurrency investments is staking because it is safe, lucrative, and an excellent way to start earning money for both beginners and advanced investors. It is a concept in blockchain technology, and alternative to cryptocurrency mining, that helps the blockchain network to validate transactions and reach a consensus automatically.
In staking, you earn a percentage profit once you buy and hold the coins of a specific blockchain network in a cryptocurrency wallet, to support the network’s operations. This is contrary to mining, which requires a miner to spend electric power to solve complex mathematical problems and earn a reward in freshly minted coins off of the network.
Staking and mining are necessary in blockchain technology since there is no third-party involvement in the network to oversee transactional trust between senders and receivers.
Instead, blockchain networks widely use either the Proof of Work consensus protocol, which involves mining or the Proof of Stake, which involves staking. These two are programmed conditions that are stored in a block, and they execute transactions once a transaction meets the pre-written conditions.
How Do You Earn Staking Rewards?
- Staking
You start by purchasing the crypto coins based on a PoS consensus protocol. Next, stake them through one of the many available staking services likeMyContainer.com. These staking services do the work for you and split the profit with you.
You can choose to hold your coins outside the staking service platform by opting for a multi-crypto wallet and transfer them to the staking wallet when need be. Alternatively, some staking platforms like MyContainer also give you an option to buy coins in-house, thus availing every staking operation on a single platform, which is very convenient and time-saving.
The expected annual returns and percentage profits for coins are different and are usually listed for every PoS coin.
- Masternodes
Many blockchain networks support the use of masternodes. They are nodes that agree to host and maintain a full copy of a blockchain network and get rewarded to verify transactions. Nodes are a network of geographically distributed computers or servers, that some blockchain networks accept into their ecosystems and which help to run and secure the network.
The concept of masternodes is slightly different from PoS, but if stakers hold masternode coins, they get masternode rewards, which are higher. This is because masternodes have some rights to govern the network and receive a bigger percentage of the block validation reward.
Examples of Top Coins to Stake with
You can choose to stake either through cryptocurrencies or through masternodes coins. Some of the best coins to you can start to stake with include:
- Dash–Dash is a masternode coin that facilities instant money transfers anywhere in the world. Staking Dash through a staking service like on MyContainer rewards you with the benefits of running a masternode without having to do it. You also get to keep custody of your coins, and that is what makes staking a safe investment.
- PIVIX (Private Instant Verified Transaction) –PIVX is a PoS coin designed to offer its users secure and private money transfer for almost zero costs and whose network also supports the use of masternodes. You can buy it using a bank transfer on MyCointainer exchange services. To proceed to stake, MyCointainer provides you with the address of the staking wallet for that coin, and all you have to do is transfer the coins and start earning.
- STRATIS
STRATIS is a PoS blockchain development platform that makes it easier for other projects to or applications to develop, test, and deploy on the dot NET framework. It has a solid use case in the business industry, to help organizations implement blockchain technology into their operations. STRATIS uses the Stratis token (STRAT) to run its thorough platform staking, and it is available for staking on MyContainer.
- TEZOS (XTZ) –Tezos is another popular and fast-growing blockchain development platform for decentralized applications and which is maintained globally by a network of validators, developers, and researchers via the XTZ native token.
Tezos uses the Liquid-Proof-of-Stake (PLoS) consensus protocol that allows XTZ to give their staking rights to other owners in a process referred to as delegating. The best way to choose a validator is to look at which validator has the highest reward rate and delegate your staking power to them.
- Blocknet (BLOCK) –Blocknet is an ambitious and futuristic PoS blockchain solution that seeks to link the nodes of different blockchains. Although blockchain networks have decentralized servers, most ecosystems are standalone, and Blocknet is seeking to bridge this gap and allow different blockchains to share information, regardless of their consensus protocols seamlessly.
Blocknet uses the digital token BLOCK for staking, which earns stakers for simply holding Block or running a service node.
Final Thoughts
As you can see, staking is almost similar to earning a compound interest from a bank deposit as an investment. You don’t even have to worry about some of the foreign concepts while you are starting out, as staking platforms will handle it for you. More blockchain networks are employing different variations of the Proof of Stake consensus, which needs participation by staking.
You can start making a decent passive earning through staking, and you should. Getting started is as simple as signing up on a staking service like MyContainer and discover many others you can earn more and discover other cryptocurrency coins and masternodes.