Passive income with POS coins

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”― Albert Einstein

And he’s damn right! Compound interest is the biggest asset you could have nowadays.

I’ve recently started to look into POS coins because I don’t have too much time to stare at charts 24/7 and this is a good method to grow my portofolio even if I do nothing.

So on to the good stuff.

What is compounding?

It’s a process that generates profit based on an initial investments and the future profit it’s related to the invested amount and compounding rate. For example, in stock market, some companies pays you ~5–10% annually if you bought shares of that company. In cryptocurrency, this rate may vary between 5–10.000% per year.

Why POS coins?

Maybe you know that POW (Proof of Work) coins, Bitcoin for example, rewards miners because they secure the network and through them transactions are possible. POS (Proof of Stake) coins have sort of same principle, but you don’t need to invest a lot of money in equipments, electricity, only investment you will make is in the specific coins that you want to stake.

Let’s make things simple: those type of coins will reward you if you own them into your local wallet on into a POS pool regarded to you number of coins and coin specifications. Simple as that.

Where to start?

I’ve learned from my mistakes and I know how hard it is in the beginning with lots of unstructured info out there.

So, now you understand how POS works, now you need to choose your coins in order to start staking them. Best thing you can do is to consult this and this, join on Discord channel of your coin to see latest news, state of the project, updates and so on.

You need to do your diligence before you invest in a coin because usually the %ROI (Return of investment) of them vary in range of blocks and you must know what ROI you will get before you invest. What I mean with that?

Source https://bitcointalk.org/index.php?topic=2401268.0

Let’s take an example: OPC

OPC it’s a POS coin with the specification from the left photo. And what the heck those specifications means? It’s very easy. When a coin is created, it’s blockchain will start from block 0 and in time will advanced through block based on time block from coin speficications. For example, OPC has 3 min block time, this means that on every 3 minutes, blocks are increased with 1.

Source: http://opcoin.prenges.rocks/

And why I want to know that?

Because at this point in time (11.03.2018), OPC it’s on block 95.532 and if I’ll look on specifications, I will know exactly what ROI I get if I bought this coin right now.
So, we are at block 95.532, this means that if I want to stake OPC, my ROI will be 1200% per year, this means that I will receive ~3.3% daily, and between block 100–120k, ROI will be increased to 1500% per year, so ~4.1% for a period of time and so on.

You got the ideea.

Therefore, before you invest, check coin specifications to see what ROI will be and between what blocks, block explorer in order to check current state of the network (block height), price history, project as well and make your decision.

Here is an updated spreadsheet with average ROI for some of the existing POS coins out there.

I decided which coin. What I should do next?

You have 2 options:
1. Send your coins on local wallet:
2. Send your coins on a staking pool.

Steps to do if you want to stake in local wallet:

1. Download latest coin wallet;
2. Encrypt it — write down your password;
3. Send coins in local wallet;
4. Decrypt it — the wallet must be decrypted in order to start staking;
5. Wait your stakes;
6. From time to time it is recomended to do coin control.

Good to know: If you want to stake alone you must know that if the coin have some history will be hard for you to receive a stake because the difficulty of network is high and you just start. Works on the same principle as if you want to mine bitcoin now with your personal computer… That’s impossible. And also, you must run PC 24/7.

Steps to do if you want to stake in staking pool:

1. Choose you pool - StakeUnited*, SimplePool*, StakingLab*;
2. Make an account and activate 2FA;
3. Send your chosen coin on one of those pool;
4. Start staking without worrying about coin control, restart your PC and other time consuming stuff. Fees of pools are ~3% of your stakes.

Also, on StakeUnited*, you will find useful informations about every POS coin hosted there.

Staking in a pool is a better option if you don’t have a PC to run 24/7, stress with coin control also you will receive reward more often than staking alone because.

I’ll throw below some resources to make your research easy:

1. POS Monkey it’s a group of people with focus on POS coins. They have a nice community around them as well .- Reviews, Twitter, Discord;
2. List with POS coins;

3. POS and Masternode pools:

Name: StakeUnited*
Social: Discord, Twitter
Spreadsheet:https://docs.google.com/spreadsheets/d/1Gf4rTyN3nos0DUGGObhrMgRyHiNWay6HLxAX_tg6LsA/edit#gid=943002905

Name: StakingLab*
Social: Twitter

Name: SimplePool*

Examples of POS coins hosted on StakeUnited*:

• BitBlocks [BBK], DeviantCoin [DEV], LUXCoin [LUX], Reddcoin [REDD], MonkeyProject [MONK], xGOx, SONO, BUZZ, AERIUM, MutualCoin, HOLD, LAMBO, Highcoin, Experience Points [XP], PIVX, Embercoin [EMB], B3Coin [B3], OP Coin [OPC], DV7, EDDIE, XIOS

Do not hesitate to DM me for questions!

*ref links — your stakes will now be affected

Hope it helps. Enjoy the ride!

I can be found also on:
Twitter, Tradingview

Tipjar if you find those informations useful
BTC: 3QrD1CkfSuyuAF4cktNqCBiFMNUz2bRh1u
ETH: 0x4adEFda868b38099c486958C8b87d1e9E7F98a70

The above references are opinions and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.