While the initial cryptocurrencies, like Bitcoin, relied on Proof of Work as a way to certify the authenticity of ledger transactions, some currencies took a different rout. In 2012 Peercoin was created and it employed the novel method of Proof of Stake, where the creator of the next block in the blockchain is selected thru a combination of random section and wealth of age.
This means that simply by holding that particular coin (stake) you may be selected to create the next block and be rewarded for your stake.
Now there are two ways you can go when you decide to stake crypto. You can do it by yourself or you can join a staking pool. If you go at it alone you would need to buy some of the staking coins, keep them in a wallet and have the wallet online 24/7 so that your coins will be available for the staking operation.
If you join a pool, you won’t have to keep your wallet active all the time, but will have to turn your coins over to someone else who’d carry out the actual staking for you, and take a share off your profit. You would then want to work with a solid and reputable service to minimize the risk of losing your investment to fraud or ir the service goes out of business.
A wallet you can use to stake some of the top stakeable crytpos is Atomic Wallet. With Atomic Wallet you can stake ATOM, XTZ, TRX, ONT, NEO, KMD, ALGO and VET. Each crypto follows a slightly different staking procedure, and you can also receive airdrops of BTT or WIN for holding some Tron in your account.
The yearly staking return percentages in Atomic Wallet are currently as shown in the picture.
Some exchanges are also offering the option of staking with the funds you have in your exchange account, as is the case with CEX.IO. You can stake NEO, ONT, TRX, and MCH here. The great advantage being that you can trade or withdraw your staked funds at any moment, they don’t freeze your money when staking it.
It must be noted that even though all the sites mentioned in this article have been proven to be reliable, there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.