2 Unique Ways to Score Crypto Rewards
Hard or Easy — You Decide
Crypto rewards come in many flavors. From exchanges offering free crypto for opening an account, to projects airdropping tokens into your ethereum wallet, there’s no shortage of giveaways in today’s cryptocurrency industry.
However, the majority of these styles offer minimal amounts of crypto. After all, one of the inherent benefits of most cryptocurrencies is a limited supply.
If projects are freely awarding their coins and tokens to people — most of whom have very little if any vested interest in the project’s success — it’s only fair to keep handouts on the lower end of the spectrum.
And that same vested interest underpins the main message here — network participants with something at stake are downright entitled to higher payouts.
With that in mind, let’s take a look at crypto bonuses offered by different blockchain consensus mechanisms — bitcoin’s Proof of Work, and CloakCoin’s Proof of Stake.
Open your wallet
Mining Rewards — The Hard Way
PoW systems require an enormous network of computational power. Computers validate blocks by performing heavy math.
Without a doubt, cryptocurrencies obtained by this method can be very rewarding. Bitcoin’s block-minting rewards currently pay 12.5 BTC. The price is continuously fluctuating — can we trust you to do the math?
But if you want those coins, they’re going to cost you. And there are several ways in which you’ll feel the impact:
High Startup Costs
A decent miner sets you back about 1,000 greenbacks. And to improve your chances of scoring some bitcoin, you’ll want stronger hardware.
The higher your hashrate (computational power), the more likely you are to receive the bitcoin network’s crypto rewards.
It’s important to note that by mining bitcoin, your hardware is in direct competition with millions of machines scattered across the globe. And since rewards come at random, some miners never see their efforts pay off.
Ongoing Resource Consumption
Collectively, the electricity consumed by the world’s bitcoin mining machines is enough to power a small country.
Now, bitcoin sees ridicule for its heavy power consumption. And most of the ill-will comes from the banking industry.
But if you were to calculate the power consumed by all the banking institutions across the globe, it’s safe to say that it outweighs the energy used by every blockchain project combined.
Nonetheless, in addition to purchasing an expensive mining rig, expect your power consumption to skyrocket once it’s in place.
Advanced Technical Knowledge
You don’t necessarily have to be a programmer to mine bitcoin, but it wouldn’t hurt. Be prepared to run command prompts on the computer connected to your mining rig.
It takes root-level control to mine BTC
You may be more comfortable with OSX or Linux, but a certain level of technical wizardry is in order if you want to harvest specific cryptocurrencies.
But we have good news for those who might be a little afraid of technology.
Staking Rewards — The Easy Way
Do you know how to operate an email account? Congratulations, you’re qualified to stake coins. It’s as simple as that. Download a program, keep your login details safe and secure, and you’re ready to go.
Staking offers an effortless, mostly hands-off approach to cryptocurrency generation.
In comparison to PoW, here are a few advantages CloakCoin’s PoS system provides:
Minimal Startup Costs
Got $0.56? Sure you do. Have you checked your couch cushions? If you can convert that to 1 CloakCoin, you’re ready for staking.
April 13, 2019
Just download your choice of CloakCoin wallet, stash at least one CloakCoin inside, and enjoy 6% annual crypto rewards on your deposits.
Limited Resource Consumption
Running a staking wallet doesn’t require dedicated hardware.
Since you’re merely running a program on something that’s already running other applications — a laptop, for example — electrical costs are negligible.
Super-Low Technical Barriers
Basic wallet operation only requires copying and pasting addresses and making copies of your private keys.
Think of your wallet address as an email equivalent — safe to give out to the public. And private keys, just like an email password, are only for the eyes of the account’s owner.
If you’re reading this, we can safely assume that you already possess the skills to run a crypto wallet.
Diversity is prevalent in the blockchain industry. Most projects out there — including ours — are decentralized organizations with contributors residing all over the globe.
Diversity is also the cornerstone of successful risk management. Apart from knowledge and resources, nothing is stopping you from mining PoW coins.
But we don’t like to HODL all of our eggs in the same basket.
Stashing CloakCoins in one of our wallets is like sending your crypto to a job. In stark contrast to PoW consensus mechanisms, you don’t work for coins; your coins work for you.
Staking provides the ability to score crypto rewards while you sleep. You earn tokens for holding tokens. And that, our friends, is one of the most exciting concepts in all of crypto.
Try it out if you haven’t already. We think you’ll love it!