In this article I show you where you can easily stake your coins for free.
However, there are both advantages and disadvantages, which I will show you at the end of the article.
First I would like to explain what Proof of Stake is.
While proof-of-work based systems create crypto-currencies to reward miners, the proof-of-stake system usually uses transaction fees as a reward.
Users who wish to participate in the forging process are required to block a certain number of their coins as their use on the network. The size of the stake determines the chances that a node will be selected as the next validator to forge the next block — the larger the stake, the greater the chances. To ensure that the process benefits not only the richest nodes in the network, other unique methods are added to the selection process. The two most commonly used methods are “random block selection” and “coin selection by age”.
Random block selection selects validators by finding nodes with a combination of the lowest hash value and the highest bet, and because the size of the bets is public, the next validator can usually be predicted by other nodes.
Coin selection by age selects nodes based on how long their tokens have been locked. Coin age is calculated by multiplying the number of days the coins are held as a bet by the number of coins that are bet. Once a node has forged a block, its coin age is reset to zero and it must wait a certain amount of time to forge another block — this prevents nodes with a large bet from dominating the block chain.
Each crypto currency that uses the proof-of-stake algorithm has its own rules and methods that determine what it believes is the best combination for it and its users.
It is good to remember that the crypto-currency industry is changing and evolving rapidly and that there are several other algorithms and methods that are being developed and tested.
Basically there are many different ways where and how you can stake your coins. Let’s talk about Exchanges first.
Binance
On Binance you can stake some different coins.
Starting with LOOM, Tezos, ATOM, ALGORAND, Stratis, Vechain up to Tron, Komodo and NEO.
You can also stack many more coins on Binance without additional fees and receive your coins.
The disadvantage is that you do not own the property rights or the Private Keys. But you have to assess for yourself whether it is worth leaving the coins on the exchange.
If you do not yet have a Binance account, click on this sentence now.
There you will also find a list of all coins with Proof of Stake and how much you earn per year.I get a small reward for this and get some free bonuses with this invitation.
Trust Wallet
I can also recommend Trust Wallet. There you can also stack coins.
The selection is much smaller. There you can only stack TRON, COSMOS, Callisto, Vechain, TOMO and ALGO.
You have a seed for your wallet — the coins are safer than on the exchange, but if the coins are stacked on your PC at your own wallet, you are definitely safer.
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