Staking coins throughout 2018 seems like an overlooked aspect in the art of hodling (vs selling) in the realm of crypto.
Maybe you're not totally sure what I'm investigating here? Well, it's the rise of 'Proof-of-Stake' with many cryptocurrencies using it. It's an algorithm that is more eco-friendly as it enables a crypto network to achieve consensus without the inefficiency of mining.
'A Tough Job!'
Staking is where you can gain some returns by simply HODLing coins, in the form of more coins. It lends pretty well to crypto as a 'growth movement' as a whole. It's passive and you don't have the risk of selling and buying at the wrong times. It's more like... investing... the Buffet way(!) You might actually learn about the project while you're waiting;) However, there are different variants so you'll need to research each coin individually.
Ethereum has always been moving towards this (read here about Casper), and EOS will be Delegated Proof-of-Stake, so only selected /voted for block producers will gain the rewards, as in Steem Witnesses. It's important to vote for these as it is with Ark. The staking returns for Ethereum will become clearer down the road, but it might be worth investing now anyway.
The main aim of this post is to transmit a simple reminder to check on this when you decide to invest in a crypto project. Some will pay off just by hodling in any wallet, even on an exchange, but many will require a special wallet (and a voting transaction) before you receive payout coins.
I've actually been sitting on a couple of coins in desktop wallets, without ever 'turning on' this staking feature if you like by voting. So maybe you want to make sure you've done this too!
The better known projects are:
- Neo (earn NeoGas)
- Ark (dPoS)
- Vechain Thor (soon)
- Stellar Lumens (set wallet to adjust for inflation)
- Bitshares (dPoS)
- Nexus
- Reddcoin
- Cloakcoin
- Nav
- Stratis
- Bitcoin Dark
- Bitcoin Green... many more...
Here is also quite a good list of PoS coins.
How long to double up?
Apparently there is a handy equation you can do to calculate time it will take for you to double your money with a PoS coin. Just take 72 and divide it by the coin interest rate and that equals the approx. years it will take.
Beyond this, you could even consider running a Masternode, in these early days where if you find yourself on the right project, you could find yourself in charge of a very stimulating, responsible and rewarding operation.
('Stakeout' was actually a pretty enjoyable 80s buddy cop movie).
A Quick Note about Staking Pools
There are some sites out there where you can sign up and join a pool of fellow stakers, to thereby increase your gains on a coin. Obviously, this will entail the transfer of coins from yours to someone else's deposit address, then linked to a pool address, or masternode, or something. In other words? You will have to trust that your 'donations' will arrive somewhere.
My advice: unless you really know the people involved, I wouldn't touch these sites at all. Check Reddit first for many a disgruntled comment. Maybe it's just early days for these sites, but a lot of the coins they feature are pretty rubbish anyway.
UPDATE: Ok, so I decided to experiment with just a small amount of PIVX bought on exchange and sent to StakeUnited.com, to test this one out (it's related to CryptoUnited.com).
The site and the dashboard all look encouraging, and the account balance has a nice big list plus info on staking rewards etc. After a few days of worry and an empty account balance (plus a support ticket) the balance showed up and it seems I'm now good to go. You could try this one and let me know how it goes. Here's my referral link, if you don't mind supporting me. Be nice to hear about anyone's motivations behind your choice of a certain coin.
My Smartsteem Referral:
Got any views on any of this, or some fave or recommended coins? You've probably got something like Minex coin that you know something about, or have a suggestion, but will such a minor coin have a real future? Please share!
Plse remember to follow me for more: crypto investigations, plus art, music and geeky reviews. I'm into Steem for the long haul.
- Ade #greenwise