Today, I will write an article about the term POS, also known as Proof of Stake, in the easiest way for you to follow.
Well, no more words, let's start!
What is Proof of Stake (POS)?
POS stands for Proof of Stake, to explain for easy understanding, this is a form of coin mining algorithm.
It's like having a frugal savings. Instead of outsiders, you deposit cash, then here you deposit with coins and earn interest in coins according to the% specified by each coin.
For example: Coin X stipulates a monthly payout of 15% per month and brothers send 100 coins to the wallet at the end of the month. You get 15 more coins, in total, you have 115 coins. Depending on the type of coin, there are different times and stakes.
Advantages of POS
- The first is that you will increase the amount of coins in the holding period. Instead of keeping coins on the floor, you will not have any more coins. So even if the price drops, you can still profit a little, because of the number of coins you have.
- The second is the mining without a machine with a terrible configuration, just need a computer with corn stammer to install cable internet on 24/24, you can dig.
- The cost of mining is extremely cheap and especially for miners, so if you don't want to dig anymore, move the coin to the floor and sell it.
- Stake is 100% safe because the wallet has a back up. Huge profits for some coins (for example, BUZZ profit up to 100% per month). However, many coins only have 10% per year.
- The POS coin flow is becoming a new trend after Trending ICO passes. According to the information I find out, ETH is going to have POS already. Let's follow the trend to make more money!
Disadvantages of POS:
- The interest is only an estimate and at staking it will not reach that level.
For example: The BUZZ is theoretically 100% per month, but last month it was only 88%.
- Staking is not always profitable if the Stake rate is lower than the coin's depreciation rate, you will lose. For example: Brothers stake 100 coin X for $ 1> the cost is $ 100 with a 10% / month Stake rate. After the first month, you will have 110 coins and if the price does not change, you will earn $ 10 / month. But the price of coin X at that time was only 0,5 $ / coin x 110 coin equal to 55 $> brothers lost $ 45.
POS can stick Scam because if you choose the wrong Scam coin to Stake, you will receive the coin and then sell it to someone.
After a few CAMs, you will definitely have the experience.
Maybe you will wonder about what Staking is, Coin98 has a detailed article on this topic, you can refer to the following link:
Maybe you are interested in: What is staking? A basic guide on staking for beginners
So how to mine POS coins?
First: You need to buy coins at the market price with the desired stake.
Next: Download the coin's wallet to sync with the computer this time, short and long, different for each coin type.
Then: Let the machine run 24/24 to stake. Encourage to buy VPS to stake.
Next: After putting the coin in the wallet for a while the coin will mature and start going to win the block.
Finally: When you do not want to stake anymore, move the coin from the wallet to the floor and sell.
Some experience when Staking coins
As I said above, POS is a mining coin in the form of shares.
This means that the amount of coins you mine is dependent on the number of coins you hold and the percentage of Stake allowed by that coin's DEV team.
For example: Coin Buzz rate is 1200% / year, EMB 7200% / year, B3 10000% / year
However, digging is not a simple matter of putting coins in a wallet and hanging 24/24, you will have such a great profit.
To get the highest interest, you need to have a really high Weight to compete with other staker.
The goal is to win the fastest block to receive coins.
Explain about Weight and age of coin
The weight here includes the age of the coin and the number of coins you need to staking.
Coin age: After loading a coin into a coin wallet, it takes time for the coin to mature (usually this time will take a few hours to a few days depending on the type of coin.)
After the coin matures, the Weight will increase. The higher the weight, the greater the chance of winning the block.
But, it will take a long time to mine coins because:
- In the first block mined after having enough weight, all the brothers have only 1 single block. However, these coins will split into multiple blocks.
- After about 1 - 2 weeks, the income starts to stabilize because the network of netweight has formed.
- In the process of stake absolutely do not receive or withdraw coins because these actions will wipe out the effort to build the network netweight and have to wait for it to regenerate.
So, I have briefly explained what POS (Proof of Stake) is and how to start mining with POS so you can visualize the most overview of POS. Hope it will help you.
Through the article, do you have any questions about Proof of Stake? If so, feel free to leave your comments below the post !!
Hello and see you again in the next article!