In the cryptocurrency world, there are many different investment methods. It is very familiar when we come across a series of bitcoin investment articles on the facebook social networking space as well as find many other articles on google. But most of those investment articles are only preliminary and do not introduce much about investment methods. Today, Blogtienao will introduce to you one of the investment methods called Staking – this is a method that you probably know very well about bitcoin mining.

Watching: What is Staking

What is Staking

?What is staking?

Staking is the purchase of cryptocurrencies and holding them in a crypto wallet for a specific period of time. This is similar to a fixed deposit in a bank, and it will reward you with a fixed interest rate at the end of the period specified in the contract.

This brings us to the concept of Proof of Staking (PoS) – this was probably a pretty well known concept in the community in 2018 and early 2019. It is an agreement algorithm for several generating cryptocurrencies. out new blocks that you can add to the blockchain. These generated blocks are actually Stacked by someone holding some cryptocurrency and help to validate a new deal on the platform.

You can mine or validate new transactions for cryptocurrencies equal to the amount of cryptocurrencies you made. The more cryptocurrencies you stake, the higher your chances of validating your transactions. Likewise, the longer you keep crypto in your wallet, the higher your coins will be.

In fact, only a few individuals understand the stake and its benefits when compared to the majority of people who know about cryptocurrency mining and the equipment associated with it.

Risks Related to Staking

One of the risks that I am concerned with and probably have a big impact on in Vietnam is that it comes with a big security risk. With most coins that can be staking, stakingers should always keep their machines online. This creates a problem for users, as placing coins in their hot wallet makes their IP address public, which can make them a target for hackers. As soon as a machine is compromised, hackers will usually go straight to the private keys being set.

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Some users like to join the crypto group, but they are still vulnerable to the group being hacked in exactly the same way that they don’t even know about.

Another risk that I want you to know is that Staking Coin only receives a percentage of profit in coins, if that coin plummets, then you understand it yourself. And vice versa if that coin increases strongly, your profit will increase very quickly.

Solution: Cold Staking

One solution that can be completely solved is Cold Staking. This process is through a smart contract, which delegates the Staking powers of a specific wallet to a Staking Node.

Staking Node will always be online. However, the stakes node itself does not contain the private key. The Staking Node provides resources to the blockchain and Staking on behalf of another wallet that cannot be spent in any way.

Particl, Startis, Navcoin are among the first projects that have been successfully implemented. The project allows users to assign their Particl coins to their stakes node and rest assured, knowing that their coins are safe. By using cold wallets, users simply set up smart contracts and then sit back and watch their passive income accumulate. They don’t even need to keep their machines and can keep their funds safe and secure in hardware wallets like Ledger.

How does staking work

?Each mining node that helps maintain the network in the Proof of Stake (PoS) blockchain network must contribute or verify ownership of some cryptocurrency. The stake amount shows that the owners of the nodes are investors in the network. It also allows them to participate in the creation of new blocks (confirmations). In the end, they get any accumulated rewards, including newly created cryptocoins and others.

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Staking provides a financial incentive to help build blockchain network infrastructure and help keep nodes honest. In general, if a node tries to add a fraudulent agreement in a block they are validating, then other nodes in the same network will refuse to accept the block. The cheat node will no longer be active to confirm new blocks and receive cumulative rewards.

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In many PoS networks, a node attempting to broadcast fraudulent transactions loses any cryptocurrency it has actually staked. On the Proof of Staking platform, they choose validators or block miners at random from a pool by cryptocoin holders. A miner can easily be accepted into the pool when they put a specific amount of cryptocurrencies into a constrained wallet.

The chosen node places the cryptocurrencies in the bound wallet and generates a new block equal to the percentage of the crypto they hold.

Stakes Pools and Ways they operate in Vietnam

The requirement of PoS Staking is to need a large amount of cryptocurrency to be eligible to validate new blocks. And with Vietnamese, they lump their cryptocurrencies together. They then split the block validation reward equally among each team member.

Advantages of Staking

It eliminates the need to invest in expensive mining equipment like ASICs or high-end GPUs. You can buy cryptocurrencies and lock (hold) them in your crypto wallet instead of buying equipment to exploit. This leads to value growth.Proof of Stake is more environmentally friendly and energy efficient than Proof of Work (PoW) used in bitcoin mining projects. It uses few resources for its PoS operations. Staking guarantees you a predictable source of income as the value of the cryptocurrency increases in a predictable way. You don’t need to have one. high technical knowledge before entering bets.

Disadvantage of Staking

The only drawback is that they hold the cryptocurrency for a period of time. Furthermore, you cannot sell crypto until that time is up. And if it plummets then you SML.

Best Staking Coins in 2019


NEO has some similarities with Ethereum. The cryptocurrency supports smart contracts and provides the functionality of setting up dApps and ICOs. This project is often referred to as the future-oriented Chinese Ethereum due to a host of upcoming projects. NEO’s developers seek to make it a platform for a smart economy that can be transacted with minimal costs.

NEO has an internal currency named GAS. You earn GAS when you bet NEO. Every time you set up an asset on the NEO blockchain, there will be a GAS fee. Before receiving GAS, you must keep your NEO in your wallet. Only Binance and Kucoin exchanges allow staking of NEO assets.

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# Lisk

Lisk is a decentralized network with its own blockchain system. Unlike other popular cryptocurrencies, Lisk does not use Proof of Work or Proof of Stake. As an alternative, Lisk uses Delegated Proof of Stake (Dpos), a consensus algorithm. The platform is used to create decentralized applications through the popular JavaScript programming language. It focuses more on ease of use and adaptability.

With the Lisk network, only the top 101 delegates have a say in forging blocks. Delegates receiving staking rewards means there is an incentive for one to become an active voter. Nano Lisk Wallet is used for staking and voting for delegates in a rather complex system compared to staking other cryptocurrencies. Rewards vary between owners from month to month. However, reports indicate that you can get around 10% of your initial investment.

In addition, we also mention quite famous Staking platforms today such as

Tezos (XTZ) : HOT HOT HOTCosmos (ATOM) : HOT HOT HOT Reddcoin (REDD)Ontology (ONT) : HOT HOT HOTKomodo (KMD)Vechain (VET)ArkBean Cash (BEAN)OKCASHLINDA

The above list is very HOT in the field of Staking investment, this year there are two giants that can join, including Ethereum (ETH) and Cardano (ADA). Therefore, POS as well as Staking investment may trend in late 2019 when the bulls are moving to work again.

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Staking is one of the lucrative ways to earn income with cryptocurrency that you should know. If you decide to staking, there are many factors that will guide you in choosing an effective coin. Just like any other crypto investment, do your due diligence before investing. It is important to go to a future oriented coin that provides an opportunity to get started. Always remember that Staking investments need patience before getting significant returns.

(Note: the article is investment knowledge that you should know, Blogtienao does not encourage you to follow, this is the field of venture investment, so you should carefully prepare everything before investing. fourth)