Staking derives from Proof of Stake. This is the concept that a person can mine / validate transactions in a block based on the amount of cryptocurrency token they hold. Thus, mining power increases relative to increased in the amount of cryptocurrency owned by a miner. The first cryptocurrency to adopt a Proof of Stake mechanism was Peercoin followed by Nxt, Blackcoin and others.
Mining relies on proof of work and complex cryptographic calculations involve expensive hardware, prohibitive energy costs and a significant environmental impact. Proof of stake seeks to solve this by allotting mining power in proportion to the coins held by a miner. Thus, a Proof of Stake miner is limited to mining a share of transactions in a block reflective of their ownership stake. Additionally, Proof of Stake models avoid the potential issue of a 51% attack by making it disadvantageous for the person with 51% control to do so as they could only have 51% if they owned 51% of that cryptocurrency. It is because of this that Ethereum has been transitioning completely to a Proof of Stake mechanism from a Proof of Work mechanism since May 2017.
Proof of Stake coins essentially reward you simply for holding them. You take the money you would otherwise spend on mining hardware and energy costs and purchase high-stake coins from a cryptocurrency exchange. You send these to your personal wallet and watch your balance grow. The more coins in your wallet, the higher your chances of solving blocks and reaping stake rewards due to the distribution of mining power in proportion to token ownership.
Unlike mining you require no specialised hardware or software beyond your personal computer which can easily run multiple staking wallets simultaneously. Your money is minted automatically. Staking is akin to enjoying the benefits of the interest gained from a loan.
Different Proof of Stake cryptocurrencies incorporate different parameters and rewards for staking but the mechanism is the same throughout – once in your wallet, the tokens gain weight (amount of tokens * coin age), once they have sufficient weight, your wallet will generate and add a Proof of Stake block to the blockchain. With the favour of luck and sufficient weight, you’ll promptly solve a block and be rewarded in line with the particular cryptocurrency’s parameters. Your coins are immediately returned to your wallet for compounding gains and the process repeats. Some stakers have gained up to 2000% from staking tokens, which is nothing more than letting the software wallet of a Proof of Stake currency run on your personal computer.
There are over 300 Proof of Stake coins which you can invest in to start redefining your reality. Return on investment can range from 25,000% (GENERO and Enchant) to 2.35% (CREAM). You can keep up-to-date with current cryptocurrency staking returns on investment through https://masternodes.online/. More significantly, you should regularly check-in with WeViveLive to ensure that you realise the 25,000% gains instead of just reading about them.
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