Staking has grown to become a very popular practice in the crypto industry recently. Many platforms now allow it for specific coins as a method for crypto users to earn money without entering the risk of trading.
Now, traders can simply purchase tokens and deposit them into a wallet. That's pretty much all there is to it. By keeping the coins locked up, they can earn passive income and earn more coins by not doing anything apart from sitting patiently on the coins they already have.
But, while this is a new feature for most coins, cryptocurrency Peercoin has been doing it for years already. It was a unique practice at the time, which allowed it to approach mining in a more eco-friendly way.
Earning through Peercoin staking
Peercoin (PPC) is a peer-to-peer digital currency that was designed using Bitcoin's Proof of Work algorithm. However, PPC included its own innovations that made it sustainable and efficient, as well as a much greener solution when it comes to the energy used for mining.
Bitcoin has been a massive user of power necessary for mining for years now. However, a lot of it ends up being wasteful, which is why Peercoin came up with the process of staking where new coins are minted into the network based on the Peercoin protocol.
While based on PoW, Peercoin uses both this algorithm as well as Proof of Stake (PoS). As such, it is much more eco-friendly, and the only energy it needs to maintain its network is the one used by computers running the software.
It is quite a simple process based on the PoS model known as coinage. Basically, when Peercoin is held in a wallet for a certain period — let's say 30 days — coinage begins to accumulate on its own. It is calculated by the number of coins held multiplied by the number of days.
So, 10 coins held for 30 days would accumulate 300 coinage, which is then used for solving blocks within Peercoin's network. Contributing coinage for solving blocks brings back a reward for the user, basically allowing them to profit just by holding coins in their wallet.
Staking PPC in HolyTransaction wallet
One of the best wallets around for holding PPC in is HolyTransaction Wallet — a wallet that allows users to trade cryptocurrencies, make and receive payments, and manage entire portfolios.
The wallet is highly convenient and secure, simple to use, and as such — a perfect solution for HODLing coins and benefitting from the staking process.
Another great thing is that HolyTransaction also works with any fiat currency, that can be used for buying or selling cryptos. That way, users can stake PPC, earn a sizable amount through rewards, and exchange it for fiat, which they can then withdraw and use.
Alternatively, users can also increase their earnings further by using coins received from staking to do more staking and accumulate more coinage.
It is a system that feeds itself and allows users to grow their wealth by simply owning a small number of coins. After a while, the amount can grow to some rather great sizes.
Peercoin's price is not too high right now — only around $0.265693. However, at its peak in early 2018, the coin reached a value of $10 per unit, and if the long-awaited Bitcoin bull run is truly starting, it is quite possible that the altcoin market will follow, and reach its former ATHs. In that case, amounting a certain portion of PPC now could lead to the users owning quite a fortune when the price goes back up.