Proof of Stake cryptocurrencies are getting popular with every passing day. Especially with the environmental concerns around cryptocurrency mining and the power consumption on the rise, Proof-of-Stake currencies are the need of the hour. Currencies such as Ethereum are working on shifting from Proof-of-Work protocol to a Proof-of-Stake protocol, which consumes far lesser power.
While power consumption is one advantage of these currencies, Proof of Stake currencies also have a number of other technical benefits. Some currencies also offer investors with dividends on holding the currencies, making them quite lucrative. Moreover, mining for Proof of Stake based currencies costs lesser than mining for Proof of Work based currencies. For a detailed understanding of Proof of Stake and how it is different from Proof of Work protocol, you can refer to: What is the Proof of Stake Protocol?
Best Proof of Stake Cryptocurrencies
Let us take a look at some of the best Proof of Stake cryptocurrencies - and why you should invest in them!
Formerly known as Antshares, NEO is arguably the most popular name on this list. The eighth largest cryptocurrency by market cap at the time of this writing, NEO has been hailed as ‘China’s Ethereum’ - a technology which has shown results in the crypto-world as well as in the world of the blockchain industry. Neo’s blockchain systems have been hailed by many business and are being used by the top names in China. Moreover, NEO also has a crypto-token, GAS, which can be staked for holding NEO!
PIVX is another popular proof-of-stake based cryptocurrency. PIVX stands for Private Instant Verified Transaction. The currency focuses on, as the name suggests, Privacy and Speed. It is also a very secure currency for making crypto payments and transactions. PIVX was formed as a result of a fork from DASH coins in 2016. Running a masternode of 10,000 PIVX offers a guaranteed return of 5% per annum! At the time of this writing, PIVX ranks at no. 33 in the list of the top 100 cryptocurrencies!
Having been around since 2014, NavCoin (NAV) is among one of the oldest and most credible names on this list. The currency uses a dual blockchain network to ensure transactions are fully anonymous. The currency has a high focus on privacy and helps provide privacy with the help of a dual blockchain network where any link between the two parties involved in a transaction is completely broken off. The currency is based on the Bitcoin Core code. The currency offers an annual staking return of up to 5%.
DASH, which stands for Digital Cash, is one of the most popular proof of stake cryptocurrencies. It was among the first names to make use of the Proof of Stake mechanism. DASH is built upon the Bitcoin Core network, but offers additional privacy as well as faster transactions. DASH aims at becoming one of the most liquid cryptocurrencies which can be traded just like everyday money! DASH offers a 7.5% annual return to those who run a masternode of 1000 DASH currencies. Purists argue that DASH is not a pure Proof of Stake system. However, the staking mechanism here works in a very similar manner.
Another popular proof of stake based currency which started off in 2014, OKCash was created to be used for microtransactions. It offers extremely fast transactions. Interestingly, OKCash offers the highest staking rewards at 10% per annum! Moreover, unlike other currencies where a minimum amount of currencies have to be staked, OKCash doesn’t really have those sort of requirements - which lowers down the entry barrier, making it possible for practically anyone to earn staking rewards. All one needs to do is to put their OKCash currency in a staking wallet!
Reddcoin is a ‘social currency’ which is primarily created to be used across social media platforms such as Twitter and Facebook. The currency is aimed at ensuring that payments over social network are made easier than ever before! It has 0% transaction fees and allows the users to make quick and small transactions. For example, if you enjoy someone’s song or dance performance on YouTube, you can quickly tip them RDD tokens! These tips help motivate better quality content. The annual returns on staking RDD is about 5%. The currency can be staked in any wallet to get these returns.
STRAT, short for Stratis, is another popular Proof of Stake cryptocurrency which can be staked to earn staking rewards. However, it offers very low returns (only about 0.5% to 1% returns per annum). The Stratis platform is primarily built to aide the development, testing, and deployment of C# applications on the dot NET framework. While it offers low returns, there is no minimum or maximum limit of currencies that can be staked!
The Proof of Stake consensus mechanism is a unique and innovative method for investors to get guaranteed returns on their investments. Moreover, Proof of Stake currencies involve low cost of mining, as well as do not consume as much electricity. With the likes of Ethereum moving to this consensus mechanism, we expect a surge in the number of Proof of Stake currencies in the years to follow.