Due to its volatility, the Cryptocurrency market has experienced ups and downs in the past years. However, this volatility did not stop people from investing in different cryptos. Cryptocurrency trading consists of different concepts, topics and techniques that are essential to help put every new person on the right track to success.
If you have done your research about digital currencies, you probably have come across the concept and benefits of Proof of Stake (PoS) and the list of digital currencies that utilised this algorithm. Some of the PoS cryptocurrencies provide the best staking benefits, such as economic and technician benefits just for having them and following the buy-and-hold strategy.
Each cryptocurrency follows a consensus algorithm, and there are two main algorithms – Proof of Stake (PoS) and Proof of Work (Pow). Before diving into the most profitable PoS cryptocurrencies, it’s important to understand the entire concept of PoS. Having this knowledge is beneficial before investing in your choice of various crypto trading platforms , you can subscribe here: Crypto Engine login.
What is Proof of Stake?
The Proof of Stake (PoS) refers to the process and algorithm in cryptocurrencies, which asserts who are allowed to mine cryptocurrencies and confirm the number of blockchain transactions in the market. PoS claims that the more Bitcoin or cryptocurrency coins you have, the more you can mine the utilised coins.
Blockchain follows a specific process to verify any transaction – miners need to solve complicated mathematical equations and algorithms. This process demands a lot of power and energy. By using the Proof of Work (PoW) algorithm, doing this process requires a huge amount of energy to the point that miners had to sell away their crypto coins just so they could achieve the bill. However, the Proof of Stake (PoS) algorithm took away this struggle and instilled a new process: the more crypto coins traders are holding, the more validation power they can achieve.
In comparison, PoS provides opportunities for investors and traders to achieve good staking rewards than PoW. In addition, the PoS algorithm is less risky as its coding structure is designed in a way that can not be easily hacked or intervened.
Now that you know the concept of PoS, it’s no surprise that the crypto market is filled with the top PoS coins by market capitalisation. Over the years, different cryptocurrencies have followed the PoS algorithm; check out the best and most profitable PoS coins in 2021:
TEZOS is a great option for those looking for a good passive profit. This crypto is one of the best cryptos to stake, and the digital currency that accepted the PoS algorithm led to the acceptance of the well-known crypto exchanges. Also, this is one of the best digital currencies to invest in if you are looking for the best yearly rewards. The best way to fully experience the benefits of TEZOS is by staking it on Binance exchange, as it offers 0% staking fees.
Neo is an open network for the smart economy that is owned by the NEO Network and considered as the best staking crypto of all time. While it’s formerly known as Antshares, this coin is oftentimes referred to as the Ethereum Killer. Applying the buy-and-hold strategy to Neo provides good dividends and staking rewards, especially if you apply the strategy on the Binance exchange. This coin is also known for giving its user an array of decentralised applications.
Dash is one of the very first digital currencies to adopt the PoS algorithm. The term DASH refers to the digital cash cryptocurrency with unique features such as digital currency with extra security and quick transactions. This BTC-based crypto can be fully utilised by the buy-and-hold strategy to get good dividends.
If you dream of having the best profit in the digital currencies market without sacrificing too much money and time, PoS cryptos are the most efficient ways to earn crypto profits passively. It’s no surprise that PoS is gaining so much attention these days because your 1% investment can multiply to a huge amount by doing nothing other than keeping your crypto wallet open.
So if you’re new to trading in any crypto platforms, it’s wise to do your research and catch some tricks to gain more profit from your investment. However, make sure not to dive directly into investing without understanding the basics and the risks of the world of cryptocurrency.