POS for beginners: How to earn coins passively with no work

[bitsnack]

What is proof of stake?

Proof of stake (or POS) is just like proof of work. Proof of work is mining with mining power, for proof of work, your coins ARE your mining power.

The more coins you have, the more cois you will earn over time.

Where can I see a list of proof of stake coins?

Cryptoslate offers a great list in my opinion, each coin has a objective, and you can look on this list and find which coin is right for you.

(URL: https://cryptoslate.com/cryptos/proof-of-stake/)

Ive got coins, now how do I stake them?

There are several different routes that you can take, its all up to you.

Route 1: Staking coins yourself

On the official coin page, download the wallet, which will typically allow you to stake in the wallet, aswell as have a guide on how to do it.

Route 2: Using a online service

You can use a online service to stake for you, and they take a little fee. Its a much simpler route, but perhaps quite a bit more unsafe.

All you need to do, is register, deposit your coins, wait a bit, (24 hours at most) for coins to propegate, then they will begin staking and earning you a pasive income!

Some of the services I reccomend are BTCpop, SimplePOSpool, and Stakecube.

If you have any questions, or comments let me know, and I will assist you to the best of my ability! 

[Little Mouse]

Using online service is a worst idea. Staking on your device is okay but, using online service can get your coin hacked. That's very risky. Always be the owner of private key, not the owner of an account.

[o_e_l_e_o]

The problem with all these coins is that they all under perform massively when compared to bitcoin. You have to hold an obscene amount of coins to earn even a few more; most of them earn you fractions of a coin if you are only holding hundreds or even thousands of said coin. Although you increase your total number of coins by a little, you end up losing value compared to if you had just kept your money in bitcoin. In most cases, you also lose value compared to if you hadn't done anything at all and just kept your money in fiat.

Doubling your total number of coins is meaningless if the coin loses 90% of its value.

[Sharon121212]

If you have any questions, or comments let me know, and I will assist you to the best of my ability! 

Try assisting us firstly by moving the thread to its more appropriate board.  You are trying to propose a service here so it will fit the market place or it's child board https://bitcointalk.org/index.php?board=5.0

[Little Mouse]

If you have any questions, or comments let me know, and I will assist you to the best of my ability! 

Try assisting us firstly by moving the thread to its more appropriate board.  You are trying to propose a service here so it will fit the market place or it's child board https://bitcointalk.org/index.php?board=5.0

I don't think he is offering any service here. If someone face any problem, he will assist without any charge as most people help here solving problems posted by others.

[1miau]

Route 2: Using a online service

You can use a online service to stake for you, and they take a little fee. Its a much simpler route, but perhaps quite a bit more unsafe.

Yes, that's possible, but it's another question if it's a good choice to give the coins out of your control to a third party website.

I won't do that personally because I see a big risk there that you deposit your coins to a fake staking website or it's already enough if the site is legit but gets hacked. We all know that hacks aren't impossible and happen quite often if the hackers can gain some valuable coins.

I'm not a professional in staking but I think the reliable coins are only generating up to  10-15% (20%) per year, some of them more but that are highly volatile shitcoins and you risk to have less value even if the number of coins has doubled due to the staking.

Some stakeable shitcoins from StakeUnited (service is closed):

Embercoin https://coinmarketcap.com/de/currencies/embercoin/#charts
B3coin https://coinmarketcap.com/de/currencies/b3coin/
xGOx https://coinmarketcap.com/de/currencies/xgox/
Monk https://coinmarketcap.com/de/currencies/monkey-project/
Buzzcoin https://coinmarketcap.com/de/currencies/buzzcoin/

All of them almost worthless now...


Even for 15% (20%) per year the risk would be far too high. There are 2 big drawdowns:

- that the whole coins are lost if the site exit-scams / gets hacked
- that the shitcoins are getting almost worthless.

The risk - profit - ratio is horrible in my opinion.

[bitmover]

Until a big blockchain project such as ethereum adopt proof of stake, there is no reason to try those risky projects.

Even vitalik is being conservative and is delaying forever Casper (which is the implementation of pos in ethereum network).
A big project like ethereum never tried pos before. So this is extremely risky and nobody knows how it will work

[Pffrt]

Using someone else's wallet is much risky. However, I have seen Kucoin has introduced a soft staking reward model which is thousand time better since they have already established themselves as a trusted one.

[o_e_l_e_o]

However, I have seen Kucoin has introduced a soft staking reward model which is thousand time better since they have already established themselves as a trusted one.

Correct me if I'm wrong here, because I don't use KuCoin, but I was under the impression that if you held KuCoin Shares (KCS), you received a proportion of the trading fees of all other cryptocurrencies which are traded on their exchange? That's not staking a coin, that's simply KuCoin rewarding their "investors", somewhat akin to paying dividends on a stock or a share. I'm also under the impression that you have to store KCS on KuCoin, and if you withdraw to your own wallet then you no longer receive the reward? Long term holding of any asset on any exchange is risky behavior.

[Little Mouse]

However, I have seen Kucoin has introduced a soft staking reward model which is thousand time better since they have already established themselves as a trusted one.

Correct me if I'm wrong here, because I don't use KuCoin, but I was under the impression that if you held KuCoin Shares (KCS), you received a proportion of the trading fees of all other cryptocurrencies which are traded on their exchange? That's not staking a coin, that's simply KuCoin rewarding their "investors", somewhat akin to paying dividends on a stock or a share. I'm also under the impression that you have to store KCS on KuCoin, and if you withdraw to your own wallet then you no longer receive the reward? Long term holding of any asset on any exchange is risky behavior.

You are correct, Kucoin still give reward for holding KCS, however, what Pffrt said is also correct. Recently they have introduced the model for a variety of cryptocurrency. Kucoin gather all the coins and stake them, share a reward with the holder.

[Lauren Smith]

The problem with all these coins is that they all under perform massively when compared to bitcoin. You have to hold an obscene amount of coins to earn even a few more; most of them earn you fractions of a coin if you are only holding hundreds or even thousands of said coin. Although you increase your total number of coins by a little, you end up losing value compared to if you had just kept your money in bitcoin. In most cases, you also lose value compared to if you hadn't done anything at all and just kept your money in fiat.

Doubling your total number of coins is meaningless if the coin loses 90% of its value.

All coins underperform compared to bitcoin. You shouldn't be comparing it to bitcoin anyway.
If you properly research how many coins you need to stake you won't need to hold an obscene amount of coins. It is all about coin weight and age.
Not all pos coins fall to the same fate.

If the % you stake each day is outweighed by the loss in coin value you will lose yes.

[Pffrt]

All coins underperform compared to bitcoin. You shouldn't be comparing it to bitcoin anyway.
If you properly research how many coins you need to stake you won't need to hold an obscene amount of coins. It is all about coin weight and age.
Not all pos coins fall to the same fate.

If the % you stake each day is outweighed by the loss in coin value you will lose yes.

For a good amount of rewards, you must have to stake with a good amount of coins, otherwise, your BEP will never be achieved. Say, you are staking a coin with 5% reward. If you stake with 1000 coins, your annual return will be 50 coins, I doubt it will cover the electricity cost and device depreciation cost.

[Thirdspace]

how about those coins/tokens with master nodes, are they considered as PoS too?
for eg. waves masternode, it collects tx fee and shares it to owners of leased waves
waves called this as Leased Proof of Stake (LPoS), but there's no new coin minted in the process
and being leased power, your waves are safe because node cannot steal and run away with your waves

another PoS coin that may be of interest is Clam coin
to save electricity and other costs, we can invest it in just-dice site
we will get shares on stake rewards and site profit from dice game (note: gambling risk exposure)

[pooya87]

you can't mention PoS and not mention the biggest problems that it has specially from an investment perspective. PoS is basically giving away profit on your money for free! this not only causes inflation but also it is inserting a lot of supply in circulation which will then cause the downfall of that coin. that is why most PoS coins don't even survive for long specially those with big rewards.
that makes them terrible investments. you think you are earning something like 10% profit but as the price declines more than that 10% profit you lose more money than you earn in the long run.

Route 2: Using a online service

this will introduce an additional risk on top of already existing risks. the risk of that "online service" running away with your money!

[bitmover]

you can't mention PoS and not mention the biggest problems that it has specially from an investment perspective. PoS is basically giving away profit on your money for free! this not only causes inflation but also it is inserting a lot of supply in circulation which will then cause the downfall of that coin. that is why most PoS coins don't even survive for long specially those with big rewards.
that makes them terrible investments. you think you are earning something like 10% profit but as the price declines more than that 10% profit you lose more money than you earn in the long run.

People are naive, and misunderstood dividends from real companies (stocks), and think that just staking a shitcoin it will multiply itself forever.

Dividends are the profits of a real company that comes to it's investor. A coin with no use, which nobody uses, and just indefinitely multiply itself when new blocks are created , has no value.