My little experiment with small market cap POS coins
In this post I'll be writing about small market cap POS coins that many never heard about before and my experiment with investing a smaller amount (0.10-0.15 BTC) into them and leave them to stake.
What is POS?
POS or Proof-of-Stake is an algorithm by which the blockchain can achieve distributed consensus with users leaving their coins in their wallet to stake, achieving reward (more coins) for doing so. Coins produced in such a way are minted or forged, unlike mined coins that are the result of the good old Proof-of-Work algorithm. The chance of minting a reward is directly related to the number of coins tied in a wallet, staking.
I consider POS to be superior for a number of reasons including:
- much less wasteful with energy, which translates into way more efficient
- more decentralized where every wallet staking is also securing the blockchain
- price stability as it gives the user more incentive to hold instead of selling
- more secure as acquiring a huge amount of coins only to destabilize it and loose money makes no sense
My little experiment
I've decided to find about 5 cryptocurrencies and buy in small, set it up and just leave it to stake. Weeks or months? Not sure yet, I'll see how it'll go.
After doing some research I only found 3 that were interesting enough for me, be advised that I wasn't looking at established POS cryptocurrencies at all.
I have to state here that this isn't my usual way. My plan to invest into cryptos is always to find the best projects, best teams, best ideas and invest early on, when they're still small projects. This is an exception to that ruling, an experiment.
My POS Coins
Spectrecoin (XSPEC)
Number of coins staking: 2962
Invested: 0.12 BTC
Condensate (RAIN)
Number of coins staking: 9767
Invested: 0.12 BTC
Netko (NETKO)
Number of coins staking: 1647
Invested: 0.10 BTC
DeepOnion (ONION)
Honorary Mention (Free Airdrop Distribution)
Number of coins staking: 2172
Invested: Nothing but time (funny thing is that right now it's already worth more than any of the others)
Conclusion
My plan here is to make a post in a couple of months, linking back to this one and analysing how this experiment went for me. How many coins did I got via staking and if it was worth it moneywise.
Interesting post! I love how you are doing this for science!
How did you get started with DeepOnion? Did you have to buy off an exchange first?
I wrote about DeepOnion in my previous post - https://steemit.com/deeponion/@cryptor47/could-this-cryptocurrency-become-the-best-marketed-and-most-widely-distributed-altcoin-ever
No didn't buy, but honestly I am thinking about buying some off an exchange to add to my staking strength. Loving this project!
I'm participating in their AirDrop for 4 weeks now, only missed the first one. Just Received my 4th AirDrop some hours ago.
How many are distributed in AirDrop?
25 Mil total coins, 18 Mill are premined and out of that 12 mill for 40 week airdrop, 5% if I'm not mistaken for devs, everything else for bounties, contests and social media campaign.
2 mill for mining (x13 algo), 5 mill for POS
I hope I have my numbers right
Why not? You might end up loosing all in 3 of them. But two should generate a return.
I have mixed experiences with pos. Vericoin for instance uses more computational power than adobe photoshop. So I had to shut it.
Yeah, exactly. Just an experiment. I'll be treating this like 0.1 btc is $10000.. a couple of months later, what do we have.
Not familiar with Vericion. Why, is the wallet so unoptimized? Does it do anything else?
interesting. You should try Netcoin as well. Great PoS. Works like a charm, very easy and very frequents rewards.
Forgot to mention this in the post. I was also careful not to invest into something that was pumped strongly before, like Netcoin for example.
You could say Rain was as well, but it didn't fall to the ground completely.
Did checked out Netcoin, but decided to pass.
I missed DeepOnion sign in deadline. Hoping they open it up again in the future.
I don't think they will. Too risky. People could start doing multiple accounts, and with VPN it's hard to combat that.
There is a significant amount of coins meant for other kind of distribution - bounties, contests, social media campaign.. check it out on their forums - https://deeponion.org/community/
Interesting to follow the progress and see your own conclusion from the experiment.
I'm interested myself what the results will be in a couple of months
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STOPDo you have a conclusion after 2 months? I also have NETKO and try to find another coin to stake. I have 35000 coins of NETKO and I got good rewards/ month . So Netko is still ok.
great post mate im thinking of doing the same thing, the POS system adds up after a while its worth a few dollars just in case one of them grows into something usable.