The concept of PoS (Proof of Stake) was developed by early blockchain investors such as Adam Back and Hal Finney. It is an innovative way (newer and better) of achieving agreement among distributed parties in a crypto network. The situation in which coin holders put their coins in a PoS compatible crypto wallet and earn more coins as a reward is called as ‘Staking’. PoS is considered to be an eco-friendly alternative to mining in Proof of Work systems where large amounts of electricity and computing power are required. PoS does not require much computing power and electricity. Coins are ‘minted’ instead of mining, and distributed in the almost same way.
Also, PoS avoids centralization of third parties or network providers such as individuals, companies, and mining conglomerates, which is considered to be one of the biggest problems of Bitcoin. Currently, there are hundreds of cryptocurrencies using different versions of PoS.
Below are the top 5 PoS cryptocurrencies for 2018:
DASH abbreviated as Digital Cash is one of the Proofs of Stake cryptocurrencies. It is built on the Bitcoin system or platform with some additional features such as InstantSend and PrivateSend. These additional features provide privacy and support to quick transactions.Holders of DASH are allowed to stake a minimum of 1,000 DASH and run a ‘master node’ to earn dividends in form of DASH rewards. One DASH values around $1,144. So, it requires the minimum investment of about 1,144,000.
It can be considered as a hybrid of PoS and Proof of Work. But, it is one of the best ways to earn with PoS as it provides an annual return of 7.5% plus the price appreciation reward of DASH.
–Annual Return: Approx 7.5%
–Staking Wallet: DASH Desktop Wallets for staking
DIVI has a master node system in which its first level requires a minimum investment of 1,000 DIVI. Its current price is around $2. So, it requires a minimum investment of only $2,000. It is also working as a user-friendly wallet. In this type of cryptocurrency, it is better to buy a master node early. Also, its master node calculator presents 60-100% annual rewards.
NEO is the first Chinese open-source blockchain project and also a cryptocurrency. It tags itself as a ‘distributed network for the smart economy’. Apart from cryptocurrency, it has a crypto-token called GAS which can be staked in an NEO wallet to gain handsome returns. It does not require you to keep staking wallets open all the time like in other PoS systems. The returns are provided in the form of NeoGAS, which has a value of around $24.
— Annual Return: Approx 5.5%
— Staking Wallet: NEON wallet
OkCash is also one of the Proofs of Stake cryptocurrencies. It was started off in 2014 and aims to be a fast currency for microtransactions. In terms of returns, it provides the highest returns to its users. Moving your OkCoins to a staking wallet will allow you to gain rewards. You will start earning OkCash at a fixed rate as a reward of minting blocks through staking. As there is no cap on it, you can stake any amount.
— Annual Return: 10%
— Staking Wallet: OkCash Desktop Wallets for staking
Reddcoin, one of the Proofs of Stake cryptocurrencies aims to be the tipping currency of social networks. On social media platforms, Reddcoin cryptocurrency can be used to tip someone for any content that you like. Being a PoS currency, Reddcoin can also be staked in a wallet. It gives handsome returns to its users. As there is no cap on it, you can stake any amount.
— Annual Return: Approx 5%
— Staking Wallet: Reddcoin Desktop Wallets for staking
Staking PoS cryptocurrencies is a smarter way of earning a handsome income. In many currencies, the entry barrier is very low to get started, and 1% to 10% reward is not bad at all. It requires nothing, just keep your wallet open. There are some countries where interest rates are zero or even negative, and so cryptocurrency staking is much more profitable. There are some other currencies, but the above currencies are best for earning staking rewards as other ones offer very low rewards.