How to Start !
In this Article I want to show you how easy you can start with staking your coins.
First of all you have to understand the difference between Proof of Stake ( POS ) and Proof of Work ( POW ) coins. I found a good explaination which I will quote you here:
Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. Unlike proof-of-work (PoW) based cryptocurrencies (such as bitcoin), where the algorithm rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining), in PoS-based cryptocurrencies the creator of the next block is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake).
This tells us that we dont have to setup a miner, using CPU or GPU running 24 hours to earn coins. We can earn coins in a much easier way.
We have to setup wallets – for each coin – running 24 hours 7 days a week to hit blocks based on the coin-age. You dont need a mining graphic card anymore, Wallets run on almost every PC.
Every PoS Coin is working with a different way – some coins have to mature 6,12 or 24 hours to be able to receive stakes, some coins hit a reward every couple of days. I will try to present you each coin with detailed information so you can know how and when you will receive your next rewards.
After you received the basic information we have to follow up 3 easy steps to start staking coins:
WHERE SHALL OUR WALLETS RUN?
A Wallet shall run 24 hours, 7 days a week – as mention above already – to make sure that your transfered coins can mature and receive stakes. You have two possibilities to handle this problem.
Possibility 1 You can leave your PC open whole day to make sure coins mature and stake.
Possibility 2 You setup a Windows Server.
Depending on your PC (Voltage used) and the region you life (Voltage price) you have to calculate what is more cost effective.
I would always suggest a V-Server with Windows running. You can get a V-Server starting from 4$ / month which would make a daily cost of 0,13$.
My V-Server is hosted at Zap-Hosting with a daily cost of 0,20$. In my case this means that after 4 hours of staking on the first day of month i already covered the whole cost for the Server each month.
WHERE CAN I GET POS COINS?
Almost every PoS Coin is listed on different exchanges. Right now we have a couple of active exchanges so it is always worth to compare the price of one coin on each of the listed sites.
The most common exchanges are:
After you send your Bitcoins/DOGE/LTC to one of the exchanges you can start trading PoS Coins. Simply setup a buy order with a satoshi price you think is good for you or take one of the open sell orders to get your wished amount of PoS coins.
HOW TO I SETUP A WALLET?
You have to understand that every coin uses their own, unique Wallet. So you have to download a Wallet for each coin and let all processes run at the same time.
I will show you how to setup a Wallet based on my favourite Coin 808.
Step 1 Download the Wallet
Step 2 Synchronize the Wallet and Encrypt it
After you downloaded the wallet you can open it for the first time by simply starting the application. Next step is to navigate to “Settings -> Encrypt Wallet” to setup a Password you can remember and which is not so easy to guess. After you setup a Password you are kindly asked to restart the wallet, please do so. Now the wallet will proceed to synchronize with the current block, depending on how old and fast the coin is this could take several minutes to hours. Once you are finished with synchronizing please navigate again to “Settings” and unlock your wallet by entering your Password. This progress is needed to allow the wallet to “work” with your coins (mature them to receive stakes).
Step 3 Transfer the coins to your wallet
Navigating to your “Receive Coin” Tab will show you a wallet adress. This wallet adress needs to be used to transfer coins from your exchange ( see above ) to your encrypted wallet.
Once you transfered the coins you shall receive a new transaction in your wallet. After you received them you are done with the basic setup and your coins begin to mature.