5 crytpocurrency coins to stake in 2020 (updated – Feb. 12) – heard of Proof of Stake cryptocurrency (POS) and curiuos of what it is and how it works? Now, if you are a part of the cryptocurrency world and want to earn more than you invest in some popular POS. It is the only platform that provides technical and economic benefits to its holders.
You can use it as an alternative for proofing your work saved in your original algorithm. Now the question that comes to mind is why it needs to hold cryptocurrency coins to stake, and how does it work?
Here you will get all the answers, and we will also discuss the top 5 most popular and profitable cryptocurrency coins in 2020 along with a short definition of Proof of stake.
What is Proof of stake?
An algorithm that allows cryptocurrencies to achieve distributed consensus at a lower cost and more energy-efficient way is Proof of stake (POS). Now, if you want to add the chains in your block, it will be effortless to use a proof of stake as an alternative for doing POW transactions.
In terms of the potential to attack the network, it seems less risky for the miner who has POS in their stake able wallet. In simple words, the concept of POS states that the audience can validate according to the number of coins they hold. It merely means that the mining power can be more by owning more Bitcoin or Altcoin.
How does POS work?
- To validate the block POS uses a random selection process that is not based on the grouping of randomization, and the node’s wealth.
- Now, here precisely, the blocks are not being mined; instead, they are being forged through different sources.
- It is effortless for the audience to switch to POS after launching the POW algorithm.
- Now, when the user wants to indulge them in the forging process, it becomes essential to lock some coins to participate.
- To forge the next block, the size of your stake plays an essential role to decide whether your node’s selection chances are more or not.
- In the end, the owner will receive a reward for the transaction they have done. It happens once your node is chosen to forge and your sale is authentic in that particular bloc.
How to own POS coins?
By following some easy steps, you can own cryptocurrency coins to stake in your stake able wallet. The process is given below.
- The very first step is to log in to your Binance account, or if you don’t have an account, then you can create a new one.
- Select the earn option and then click on the stake.
Now, you can get the list of POS, annual yield and holdings requirements once you click on a specific stake.
- You can choose the coin as per your budget by clicking on deposit and start staking.
- As per the technology improved, it has been so easy and faster to stake the coins and earn more profit.
List of most profitable cryptocurrency coins to stake in 2020
Now step forward to have a look at the top 5 most popular proof-of-stake (POS) cryptocurrency coins. These coins are profitable to invest in the beginning.
It is a multipurpose blockchain which offers to earn passive income by staking it into your stake able wallet. All the major exchanges for stacking supports Tezos, and it is seen as a paradigm shift that exchanges are offering crypto staking lately. The staking fees of Tezos applicable as per different exchanges and wallets.
Binance crypto exchange is offering zero prices for Tezos POS coin for staking. The other trades like Coinbase charge 25% of the total amount of the currency, and Gate.io is charging 33% of the total amount for staking it into the wallet.
Binance is the perfect platform to own the Tezos coin for all the investors and traders.
The Ticker symbol of Tezos is XTZ, and it provides approximately 6.8% annual return to the coin holder. The user can get it from Binance (global) and Coinbase (USA). The recommended wallet for owning Tezos is Binance or the atomic wallet.
Tezos’ market cap is $905,234,934, and the 24th volume of Tezos is $57,351,803. It can be achieved via liquid Proof of Stake, and the audience can own it via banking or delegating.
If the investor participates via the delegating method, then the annual reward will be 6.06% and 0.99% adjustment reward extra. The risk ratings are very stable and recommended to own a minimum of 1 Tezos.
How does the investor delegate Tezos?
The investors can delegate it directly inside the wallet easily, and it is secure.
How does the investor bake Tezos independently?
The investors need at least one roll to bake Tezos independently, and the investor has to run a Tezos node, the baker, and endorser client.
For security, the investor can maintain the node with regular updates from the Dev team and save the funds into a hardware wallet.
Is staking Tezos risky?
No, it is safe. It’s recommended to the investors to not share the private keys and coins with anyone.
It is an ecosystem of connected blockchains, and the market cap value of Cosmos is $798,479,493. The 24h volume of this POS is $146,689,665. A single Cosmos (ATOM) price is only $4.22. If the investors own 1000 Cosmos, then they can earn $28.7 per month and $344.45 per year.
This blockchain is achieved via Tendermint, and the audience can participate via staking. The delegating reward of Cosmos is around 8.24 % annually, and the exchange also offers 1.60% extra adjustment rewards.
The investor has to own a minimum of 1 cosmos and to lock it up for 21 days to get rewards. The risk ratings are moderate to stake Cosmos.
If the investors run are via validator node, then they can get the annual reward up to 8.96% and 2.31% extra adjustment reward.
The minimum required volume is 100,000 cosmos for this and to lock it up for a minimum of 21 days. It is quite risky to run Cosmos via a validator node.
How does the investor stake the Cosmos?
Delegating to one of the valuator’s networks is the best way for staking the Cosmos for the average users. At present, there is no audited wallet to empower it and recommended to stake it by using the CLI.
Rewards depend on which network metric?
The staking depends on the stake ration and inflation that investors can track live on the official website. The initial increase is up to 7% with the proposed block time of 5 seconds.
If the investor reached a total staked of 66%, then the annual rate will rise by up to 13 to 20%. However, inflation will decrease back to seven percent (7%) if the total coins staked is over 66%.
Is staking Cosmos risky?
Yes, it is quite risky to stake the Cosmos even by the delegating method.But, still, if any investor or traders try to corrupt the network, then the delegator’s holdings will be blocked immediately.
The little sign of Synthetix network token is SNX that is a decentralized synthetic assets network. The market cap value of SNX is around $80,474,805, and its 24h volume value is $4,822,899.
The investor can get 1 SNX Proof of stake by investing just $0.8922, and if the investors own 1000 SNX, then they can get $30.97 rewards income monthly and $371.66 per annum.
There is only one method to earn passive income from SNX is – Staking. The investors who hold a minimum one SNX can get the state rewards up to 41.70% of the amount annually and also the 41.70% extra adjustment rewards income.
The risk model for staking SNX is moderate, and the complexity is effortless.
How does an investor stake the Synthetix network token (SNX)?
The investors can lock their SNX tokens as collateral to stake the system where the exchange uses the SNX for a variety of purposes like remittance and trading.
The synth traders are minted into the market against the value of Synthetix tokens by trading and payment and generate the rewards fees that they distribute to the token holders as a reward for staking SNX.
Is there any risk to stake on the Synthetix network token?
It’s quite risky to stake SNX; that’s why it is recommended to the investor for not sharing the security passwords or tokens with anyone.
The market cap value of an open blockchain platform is $89,808,177, and the 24h volume is $49,453,795. The price of 1 wave token is $0.8981, and if the investors own 1000 tokens of waves, they can get $4.88 as reward income monthly. If the investor locked up 1000 waves for a year, then the amount of the reward will be $58.54.
The wave’s blockchain can be achieved via leased POS, and the investor can participate in VI two methods that are staking and leasing to earn passive income and staking rewards.
If the investors lease waves, then they can get 6.52% as reward income from the total amount of holding waves annually and also the 3.39 % extra adjustment rewards. The investors are recommended to keep a minimum of 1 wave for earning the staking rewards, and the risk ratings for leasing waves are stable.
Another method to get rewards is staking or mining that requires a minimum of 1000 waves for mining. The annual reward percentage will be 6.66 for mining 1000 waves, and 3.52 % adjustment rewards will also be provided to the token holder. The risk rating for mining waves is stable, and the complexity ratings are very hard.
What are the essential requirements for staking waves?
Waves don’t need any expensive equipment for staking; it just needs a dual-core system with 4 GB RAM and 40 G.B. storage spaces to balance 1000 waves to the node’s account.
Are the staking waves risky or not?
There is only a single risk for staking waves that is the block generator will never meet their stated terms and conditions, and in this case, remuneration will not transfer to the user, and the user may not earn a profit.
The short name of Decred is DCR, which is a free digital currency. The market cap value of DCR is $193,717,774 and the 24h volume value is around $18,052,267. It is one of the costly POS that can own by investing $17.74 for one DCR.
If the investor owns 1000 DCR then they can earn $126.33 monthly as a reward and passive income. The annual reward for holding 1000 DCR is $1516.
There are two methods for participating that are voting or delegating to earn passive income and staking rewards; if the investor uses the delegating method and holds 1 DCR, then they can get 8.40% rewards of the total amount annually 3.77% extra adjustment rewards.
The minimum requirement for contributing to a split ticket is 5 DCR to earn an 8.49% reward annually. The extra adjustment award of 3.86% will also be applicable to the token holders.
Decred rewards depend on which network?
A single Decred price is calculated by averaging the number of tickets and size of the available ticket pools. After 144 blocks, the algorithm automatically tabulates a new ticket price in order to maintain a target 40,960 tickets pool size.
What is meant by tickets?
The rights for Proof of staking are assigned through tickets. Tickets can be purchased inside the wallet, and an algorithm determines the price of the ticket for getting the reward at the same rate.
What is meant by DCR staking pools?
The tickets purchased by the investors have to be online for 24×7. The investor can join staking pools that will help the investor to keep the online ticket 24X7.
Hence, one can get cryptocurrency coins to stake as per their choice. But, be smart, and bet well.
It’s never too late to start investing. Cryptocurrency, bitcoin specifically, was named as the most profitable investments in our lifetime.
Now is the best time to dive into the world of crypto. Why not start with our recommend profitable cryptocurrency coins to stake in 2020. Best of luck and invest responsibly.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.