Topic: Staking vs Mining Cryptocurrencies - page 2. (Read 363 times)
Because I don't have a powerful computer, rater an ordinary laptop I go for POS. But I think is more profitable to mine POW then POS, because is harder and more expensive.
Quote from: https://www.google.com/amp/s/www.tokens24.com/cryptopedia/basics/staking-vs-mining-cryptocurrencies
What exactly is Staking and Mining?
Proof of Stake (PoS)
Using the Proof of Stake (PoS) algorithm that is the basis of many new cryptocurrencies, staking involves the purchase of cryptocoins and holding them in a wallet for a particular period of time. This is akin to a fixed deposit in the non-digital currency sphere. Similar to a fixed deposit which rewards you with a defined interest at the end of the period as stipulated in the contract, Proof of stake also rewards you with additional coins. By holding coins in your wallet, you are rewarded for supporting the network. Therefore, your coins will increase in number depending on how long you hold them in the wallet.
Mining
Mining requires technical know-how as well as computational power so as to solve the algorithmic puzzles involved in blockchain networks. There is the possibility of mining solo or joining a pool to make mining easier and more effective.
The Advantages of Staking
However, once you stake a coin, you automatically lock that coin for a particular period of time and therefore, you cannot sell it.
But in conclusion, PoS strategy is saving the money you would have to spend on mining hardware or buying high-stake crypto-coins from a coin exchange, and committing them to your personal wallet, where you can watch their balance.
I did not write myself, this is a copy/paste post, with the hope that it will probably be beneficial for someone.
edited for correcting the reference: bullrun2020bro Thank you for correcting me
Proof of Stake (PoS)
Using the Proof of Stake (PoS) algorithm that is the basis of many new cryptocurrencies, staking involves the purchase of cryptocoins and holding them in a wallet for a particular period of time. This is akin to a fixed deposit in the non-digital currency sphere. Similar to a fixed deposit which rewards you with a defined interest at the end of the period as stipulated in the contract, Proof of stake also rewards you with additional coins. By holding coins in your wallet, you are rewarded for supporting the network. Therefore, your coins will increase in number depending on how long you hold them in the wallet.
Mining
Mining requires technical know-how as well as computational power so as to solve the algorithmic puzzles involved in blockchain networks. There is the possibility of mining solo or joining a pool to make mining easier and more effective.
The Advantages of Staking
- You don’t have to spend money buying a machine, like ASICS or high-end GPUs used in mining.
- Instead of buying the hardware for mining, you purchase coins and lock them. This will lead to balance and value growth.
- The amount of coins grows as the rewards increase and once prices escalate; your wallet value goes up.
- Staking uses little resources when compared to mining or PoW. This means less electricity consumption and no need for extra machines to participate in staking.
- Given the holder of the coins is incentivized to keep them rather than selling them, there will be stability in the price of coins.
- Staking doesn’t require the technical knowledge of how to participate.
However, once you stake a coin, you automatically lock that coin for a particular period of time and therefore, you cannot sell it.
But in conclusion, PoS strategy is saving the money you would have to spend on mining hardware or buying high-stake crypto-coins from a coin exchange, and committing them to your personal wallet, where you can watch their balance.
I did not write myself, this is a copy/paste post, with the hope that it will probably be beneficial for someone.
edited for correcting the reference: bullrun2020bro Thank you for correcting me
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