If you have spent some time in the world of digital currencies, then you should be familiar with the concept and benefits of Proof of Stake (PoS) and the digital currencies that have adopted this algorithm. Some PoS cryptocurrencies give you the best staking advantages for just having them. They give you many technical, as well as economic benefits for just hodling them decently. Before we learn about the most profitable PoS cryptocurrencies, we should get ourselves comprehended with the entire concept of PoS.
Every cryptocurrency works on a consensus algorithm. And there are two major consensus algorithms. One of them is Proof of Stake, and the other one is Proof of Work (PoW). So to put it straight, PoS is an algorithm according to which cryptocurrencies work. Various cryptocurrencies accepted this, as it solves a lot of problems.
What Is Meant by the PoS Concept?
PoS is the mechanism and algorithm in cryptocurrencies, which states that an individual is allowed to mine cryptocurrencies and validate any number of blockchain transactions, according to the number of cryptocurrencies one is hodling at that moment. PoS says, the more BTC or other crypto coins you have, the more BTC or crypto coins you can mine. Proof of Stake came after the Proof of Work algorithm. The former one solved some main drawbacks of the latter one.
In the blockchain, in order to verify or validate any transaction, the miners have to solve complex mathematical algorithms and equations, which require a lot of hash power or energy. In PoW, it used a large amount of energy, in which the miners had to sell away their crypto coins so that they could meet the bill. PoS took away this limitation from the algorithm and made it to the more cryptocurrencies you are hodling, the more mining and validation power you have. PoS cryptocurrencies will let you have good staking rewards by just hodling them.
- Note: PoS is comparatively less risky when we talk about the chances of people hacking it. It is made in a way that does not give much of a benefit to the hackers.
Now that you have understood the concept of PoS let us learn about the best proof of stake cryptocurrencies. The first altcoin that adopted the PoS algorithm is Peercoin. Over the years, many other cryptocurrencies took this algorithm. Have a look at the best PoS coins for 2020.
The Best PoS Coins of the Current Times
- NEO- This digital currency belongs to the NEO Network and is one of the best staking cryptocurrencies so far. Antshares was the former name that was originally given to NEO. It is also sometimes called the Chinese version of Ethereum. Hodling NEO will get you good dividends and staking rewards, especially if you hodl it on the Binance exchange. But, if you are looking for a wallet to stake the NEO currency, then Atomic Wallet is a good choice. GAS is another digital currency that belongs to the NEO Network. Moreover, NEO is also known for giving its users a wide range of decentralized applications.
- DASH- One of the very first digital currencies to take up the PoS algorithm was DASH. DASH is also known by the name of digital cash cryptocurrency. DASH has several unique features such as a digital currency with extra security and quick transactions. It is a BTC based cryptocurrency. If you are planning to hold DASH, then that is a good initiative to get good dividends. Atomic Wallet and the Ledger Wallet are the best wallets to stake them.
- TEZOS- This digital currency is an excellent choice for good passive income. It is one of the best cryptocurrency to stake. It was the digital currency that accepted the PoS algorithm and now is accepted by almost all popular and mainstream crypto exchanges. It is one of the best digital currencies if you are looking for the best annual rewards. It also offers its users the Smart Contract technology. It has some innovative features. The best possible option is to stake it on a Binance exchange with 0% staking fees. Coinbase exchange also allows you to stake it with 25% Tezos staking fees.
- PIVX- The primary focus of this digital currency is privacy and security. PIVX stands for Private Instant Verified Transaction. It completely works on the PoS algorithm. You can stake your coins on the blockchain network and have favorable returns. There is no limitation on staking with this cryptocurrency. You can stake this cryptocurrency on different wallets. However, it will be useful to note that you cannot stake PIVX crypto on some of the mainstream exchanges like Coinbase and Binance. You can set up a master node, and that will give you decent annual returns.
- NOW- This digital currency belongs to one of the mainstream crypto exchange platforms called ChangeNOW. In 2020, NOW staking came into existence, through which you could hodl NOW and get good returns. Staking NOW can give you 25% annual interest.
If you want the best income in the world of Digital Currencies without giving too much time and money, then PoS cryptos are the best way possible. It is one of the most efficient ways to earn crypto incomes passively. Getting a reward, even if it is just 1%, becomes a lot when you do absolutely nothing and keep your crypto wallet open. This is why PoS cryptocurrencies are gaining so much popularity these days. The above-mentioned coins are the best PoS coins for 2020. Various other cryptocurrencies are there that give good returns for staking them. But the above-mentioned cryptocurrencies are the top ones that provide you with the maximum benefits on staking. Before you decide to stake or hodl any digital currencies, it is always a good idea to know about the cryptocurrency inside-out. Study about them a little. It will help you know about the best crypto exchanges or wallets to stake them in order to get the best annual returns.
Sujit is a Crypto enthusiast and a blogger by passion. He Works for a Crypto news Company Cryptoknowmics. Cryptoknowmics is one of the best companies in this industry because they have the passion to provide users the relevant crypto, bitcoin, and altcoin news today. You can follow him on LinkedIn and Twitter too.