Bitcoin is at the forefront of decentralization in regards to blockchain technology. The first-ever digital asset still owns a majority of the total market capitalization in the industry. However, earning bitcoin is a challenge for those that don’t have access to powerful mining rigs. This is due to the fact that bitcoin is a Proof of Work (PoW) digital coin.
Recently, we’ve seen the emergence of Proof of Stake (PoS) coins. These projects are now more common and are gaining popularity since they don’t require a lot of energy or hardware to verify a transaction.
Additionally, investing in a Proof of Stake coin could potentially result in significant profits, especially if you’re able to find a solid crypto staking pool to join.
What Is a Staking Pool?
No, not that kind of pool.
A staking pool is a way to focus on getting the most out of the staking process. Think of a mining pool, which many Proof of Work projects use, and apply the same logic to a Proof of Stake coin. The goal is to earn better gains for everyone involved.
How Do They Work?
Staking pools use the staking capacity of many users combined together. This creates a larger staking pool. Generally speaking, when a staking pool is bigger, it is more likely to be chosen to verify a specific block. This, in turn, earns everyone involved a larger return on their investment.
We’ve done our research and created a list of the top crypto staking pools on the market. We’ve rated each option on a scale of 1 to 3 according to year established, how easy they are to use, the fees they charge, and the number of coins they support.
Should You Join a Staking Pool?
Of course, the answer entirely depends on your expectations and needs. If you’re already getting pretty good results from staking the coins you already have, then you may not need to consider joining a staking pool.
On the other hand, if you don’t have a lot of coins, you could stand to gain more profits if you participate in a staking pool.
To learn more about staking pools and how they work, as well as other bitcoin and altcoin related news and information, subscribe to the Bitcoin Market Journal newsletter. You’ll get the information you need to make knowledgable investing decisions.
