Crypto staking Vs Crypto Mining! which is more profitable?

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Avatar for Abothe
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3 years ago

A new way of earning passive income has started in this century which is mainly means for investor and traders of cryptocurrency . And it's called staking. Here i am discussing for its general information.

Topic involves

  • History of staking

  • What is staking?

  • Mining Vs Staking

  • Profit comparison with mining

  • Advantage

  • Disadvantage

  • Where to stake?

  • Which coin to stake?

History of staking

The word staking is mainly mean for investor and traders for making profit from whatever property they have.Crypto Staking was first introduced in the year 2012 by Sunny King and Scott Nadal in a whitepaper introducing the peer-to-peer cryptocurrency, Peercoin (PPC), as a form of reward for the Proof of stake.

What is staking?

cryprocurrent staking simply means  the purchase of cryptocurrency coin  and keeping  them in a staking support wallet for a particular period of time and making profit out of it after  certain time period. It is  just like a fixed deposit  our of normal cash in bank . Which we latter gain profit with a certain interest from our investment after the end of certain contract period as per deal.

unlike  in cash here it uses an alogorithm called  Proof of Stake (PoS) . Which is means only for new cryptocurrencies. So what is happening in POS is  after buying coin of your choice you keep the coin in your wallet for certain time and you are rewarded in more number of coin as a mark of supporting the network. Hence your coins will increase depending on how long you hold them in the wallet.

***As a secret tips for staking its better to choose those coins which price will be increases in near future rather than choosing coin just for profit. Because there is no point of staking with those coin whose price will be decreased to half in years to come.***

Mining Vs staking

Mining requires an advance technical knowledge of computer algorithm  which are involved in blockchain networks.where as in staking you only need some knowlege of investment and profit earning starategy.staking can be considered as a bonus to all the miners.

MIning is done according to proof-of-work(POW) whereas in staking its proof-of-stake(POS).Mining also requires some hardware equipment to set up the mining machine.Also require some technical knowlege. Above all its drains more electricity or power ans is also expensive

Profit comparision with mining

Profit from both the process is almost same  and staking can almost be as profitable as mining. The only thing is that staking doesn't require much labour, advance knowledge and less expenses as we do in case of mining. We can also say that  staking is a new  method of mining.

Our profit in staking also depends on how much we invest and how long we hold our coin in our wallet.

So here is my quotes "The more  we invest the more we hold, the more is our profit"

Advantage

  • The most important advantage for staking is that we don't have to expenses any penny for equipment. Its only about investment.

  • Also it is another means of making passive income for miners. Hence its a bonus to the miners.

  • There is no consumption of powers or electricity  as it is  in case of mining.

  • It also reduce all the risk  faced by the miners.

  • Another advantage feature where  most people don't think about is  decentralization. Earning from mining can sometime be centralized due to change of miners from  group to individuals. which is not possible in case of staking

Disadavantage 

Everything out here doesn't based only on its advantage .if there is an advantage there is also a disadvantage.

  • The main disadvantage is that you cannot trade your coin until it reach the final period of staking.

  • Also the coin value can be changed or affected according to the change in  market price.

Where to stake ?

Three of the most popular wallet for staking are :

  • Atomic wallet

  • Binance

  • Coinbase

Which coin to stake?

Top 10 coins  most profitable for staking along with its annual  yield according to Binance are as follows:

  • Tezos(XTZ)        6%-7% AY

  • Ontology(ONT)  3%-5% AY

  • KAVA                   14%-16%AY

  • ATOM                  6%-9% AY

  • Tron(TRX)           7%-9% AY

  • LOOM                  10%-12% AY           

  • Algorand(ALGO)8%-10% AY

  • KOMODO            5%-6% AY

  • Fetch.ai(FET)    8%-12% AY

  • Stellar(XLM)       2%-4% AY

*AY- Annual yield

HAPPY STAKING !!

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Avatar for Abothe
Written by
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Comments

I prefer staking and that is why I will always recommend Atomic Wallet. I think the highest staking reward today is AWC with 20% AY right in Atomic Wallet. https://atomicwallet.io

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