What is staking? Learn about a method of investing in cryptocurrencies called staking

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In the world electronic money, there are many different investment methods. Very familiar when we come across a series of posts Bitcoin investment on facebook and find a lot of other posts on google. But most of these investment posts are preliminary and do not introduce much about investment methods. Today, Blogtienao will introduce you to one of the investment methods called Staking - This is the method you probably specialize in bitcoin mining will know very well.

What is staking?

What is staking?
What is staking?

Staking is the purchase of cryptocurrencies and keeping them in cryptocurrency wallets for a specific period of time. This is similar to a fixed deposit in a bank, and it will reward you with a fixed interest rate at the end of the period specified in the contract.

This brings us to the concept of Proof of Staking (PoS) - this is probably a fairly well known concept in the community in 2018 and early 2019. It is a deal-making algorithm for a number of generating cryptocurrencies. new blocks that you can add to the blockchain. These generated blocks are actually okay Stacked (Betting) by someone holding some cryptocurrency and helping to validate a new deal on the platform.

You can mine or validate new transactions for cryptocurrencies equal to the amount of cryptocurrencies you have made. The more cryptocurrencies you set, the higher your ability to authenticate transactions. Similarly, the longer you keep the cryptocurrency in your wallet, the higher your amount.

In fact, only a few individuals understand the shares and its benefits when compared to the majority of people who know about Virtual currency mining and devices related to it.

Risks Related To Staking

One of the risks that I am concerned with and perhaps a major influence in Vietnam is that it comes with a great security risk. With most staking coins, the staking person must keep his or her machine online. This creates a problem for users, because of placing money in hot wallet Their IP address is made public, which could make them a target for hackers. As soon as a machine is compromised, hackers often go straight to the private keys being placed.

Some users like to join the cryptocurrency group, but they are still vulnerable to the hacked group in the exact same way without them even knowing it.

Another risk that I want you to know is that Staking Coin only receives a percentage of interest in coins, if that coin plummets, you can understand it yourself. And vice versa if the coin increases sharply, your profit will increase very quickly.

Solution: Cold Staking

One solution that can be thoroughly solved is Cold Staking. This process, through a smart contract, delegates the Staking authority of a specific wallet to a Staking Node.

Staking Node will always be online. However, the stakes button itself does not contain the private key. Staking Node provides resources for blockchain and Stakes on behalf of another wallet that cannot be spent in any way.

Particl, Startis, Navcoin are among the first projects that have been successfully implemented. The project allows users to assign their Particl money to their stakes button and rest assured, knowing that their money is safe. By using a cold wallet, users simply need to set up a smart contract and then sit back and watch their passive income accumulate. They don't even need to keep their machines and can keep their money safe and secure in hardware wallets like Ledger.

How does staking work?

Each mining node that helps maintain the network in the blockchain network Proof of Stake (PoS) must contribute or verify ownership of some cryptocurrencies. The bet amount indicates that the owner of the node is an investor in the network. It also allows them to participate in creating new blocks (validation). Eventually, they receive any accumulated rewards, including newly created cryptocurrencies and other things.

Stakes provides a financial incentive to help build blockchain network infrastructure and help keep nodes honest. In general, if a node tries to add a fraudulent agreement in a block they are validating, other nodes in the same network will refuse to accept that block. Fraud buttons will no longer work to validate new blocks and receive accumulated rewards.

Top T

In many PoS networks, a node trying to play fraudulent transactions will lose any cryptocurrency it has actually bet. On the Proof of Staking platform, they choose randomly validators or miners from a group of cryptocoin holders. A miner can easily be accepted into the group when they put a specific amount of cryptocurrencies into a bound wallet.

The selected node places the cryptocurrencies in the wallet bound and creates a new block equal to the percentage of the cryptocurrency they hold.

Stakes Pools and how they work in Vietnam

The requirement of Staking PoS is that a large amount of cryptocurrencies are required to qualify for new blocks. And with the Vietnamese, they put their cryptocurrencies together. They then split the block authentication reward equally to each group member.

Advantages Of Staking

  • It eliminates the need to invest in expensive mining equipment such as ASIC or high-end GPU.
  • You can buy cryptocurrencies and lock (hold) them in your cryptocurrency wallet instead of buying equipment to mine. This leads to value growth.
  • Proof of Stake is more environmentally friendly and energy efficient than Proof of Work (PoW) used in bitcoin mining projects. It uses few resources for its PoS operations.
  • Staking guarantees you a predictable source of revenue as the value of cryptocurrencies rises in a predictable way.
  • You do not need to have high technical knowledge before placing a bet.

Cons Of Staking

The only drawback is that they hold cryptocurrencies for a period of time. Moreover, you cannot sell cryptocurrency until that time is up. And if it plummets then you SML.

The Best Staking Coins in 2019

# NEO

NEO has some similarities with Ethereum. Cryptocurrency supports smart contracts and provides the functionality to set up dApps and ICOs. This project is often referred to as China's future-oriented Ethereum due to a series of upcoming projects. NEO developers seek to turn it into a platform for smart economies that can be traded at minimal cost.

NEO has an internal currency named GAS. You earn GAS when you place a NEO bet. Every time you set up an asset on the NEO blockchain, you will have to pay GAS fees. Before receiving GAS, you must keep your NEO in your wallet. Only exchanges Binance , and Kucoin can only place NEO properties.

# Lisk

Lisk is a decentralized network with its own blockchain system. Unlike other popular cryptocurrencies, Lisk does not use Proof of Work or Proof of Stake. As an alternative, Lisk uses Delegated Proof of Stake (Dpose), a consensus algorithm. The platform is used to create decentralized applications through the popular JavaScript programming language. It focuses more on ease of use and adaptability.

With the Lisk network, only the top 101 delegates have a say in forging blocks. Delegates receive a bet reward that means there is an incentive for a person to become an active voter. The Nano Lisk wallet is used to place bets and vote for delegates in a rather complex system compared to betting other cryptocurrencies. Rewards vary between owners from month to month. However, the reports indicate that you can get about 10% of the initial investment.

In addition, we also mention quite famous Staking platforms today

  1. Tezos (XTZ): HOT HOT HOT
  2. Cosmos (ATOM): HOT HOT HOT
  3. Reddcoin (REDD)
  4. Ontology (ONT): HOT HOT HOT
  5. Komodo (KMD)
  6. Vechain (VET)
  7. Ark
  8. Bean Cash (BEAN)
  9. OKCASH
  10. LINDA

The list is very HOT in the field of investment Staking, there are two giants that can join this year: Ethereum (ETH) and Cardano (ADA). Therefore, POS as well as Staking investment may tend in the end of 2019 when the bulls are moving.

Conclude

Staking is one of the lucrative ways to earn income with cryptocurrencies that you should know. If you decide to do Staking, there are many factors that will guide you in choosing an effective currency. Just like any other cryptocurrency investment, do a full research before investing. It is important to go to a future oriented currency that provides an opportunity to get started. Always remember that? Staking investments need to be patient before receiving significant profits.

(Note: the article is the investment knowledge that you should know, Blogtienao does not encourage you to follow, this is the field of venture capital, so you should be careful to prepare everything before starting). from offline)

 

 

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1 COMMENTS

  1. Now, but staking ji anymore, they won't play anymore, and chickens can only lose money when they come in. With the big fluctuation of virtual currency, stak can not keep up.

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