Staking Pool Review | Everything You Need To Know About Earning A Passive Income Through Proof-of-Staking

bitcoinkings (55)in #cryptocurrency • 6 years ago

The era of crypto currencies are upon us and earning a passive income from this space has become even easier. This is all thanks to a process called proof-of-staking which is a method used to achieve distributed consensus by holding your proof-of-staking compatible coins in a staking wallet.

The main reason why people get involved with proof-of-staking is because of the potential income a person can earn from staking their PoS-compatible coins. The longer you hold onto your PoS-compatible coins the more staking rewards you can earn per day.

Unlike proof-of-work mining, a person doesn't have as much expenses when staking so the profits are also greater. You do however have to own some PoS-compatible coins in order to start staking through your own wallet or through a staking pool.

If you are considering proof-of-staking as a source of income then i would highly recommend staking through a pool such as SimpleposPool or StakeUnited instead of staking on your own. Staking through a pool can be more profitable. The reason for this is because it has more tokens thus allowing for more frequent staking rewards.

The rewards I get from staking through a pool are higher than the rewards I get from staking on my computer and it's less stressful. I am currently staking XP Coin and I am receiving on average 9 staking rewards per day from SimpleposPool and 3 staking rewards per day from StakeUnited.

The thing I like the most about staking is the ability to earn compounding interest on a daily basis. Compounding interest simply means whatever interest you earn from your stake will be entered into the staking pool thus allowing your interest to earn interest consistently. Wouldn't you agree when I say this is a great way to grow your investment?

For the sake of security I would recommend splitting your investments between SimpleposPool and StakeUnited. This will allow you to mitigate some of the risks associated with proof-of-staking through a pool. Below are some of the advantages and disadvantages associated with staking pools.

Advantages Associate with Pool Staking

User friendly interface - you are able to track and manage your coins with ease
Shorter reward time - the time between rewards are much shorter when you stake as a community
Higher rewards - you will earn more from the same amount off tokens when you stake in a pool
Complete transparency - deposits and withdrawals can be found on discord in real time
No third party involvement - these staking pools are completely independent
Open system - no restrictions on deposits or withdraws
Hardware costs non-existent - you don't have to worry about hardware costs when you join the staking pool
Electricity, computer or server costs non-existent - you don't have to worry about any extra costs required for staking

Disadvantages Associate with Pool Staking

Ban in certain countries - the pool could get banned in some countries
System hack - hackers are always looking for vulnerabilities
Hardware failure - technical difficulties are always a threat in any technology startup
Scam project - the founders could decide to run off with the funds invested

Masternodes

Another great benefit when joining a staking pool is the ability to own a portion of a Masternode. This can potentially double your earnings. You will earn from your portion of the Masternode and whatever tokens earned will also earn compounding interest through the staking process. So in-essence you can earn twice when you own a Masternode thus increasing your earning potential.

Deposits and Withdrawals

When you request a withdrawal, you will receive your tokens immediately after the generated stake. I highly doubt any staking pool can guarantee instant withdrawals. This would not make sense seeing that all tokens are required to mature in order to earn any rewards. Any attempt to disrupt the staking process would destroy the stake for the entire community.

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