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Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Proof of Stake (PoS) is a blockchain-based consensus which allows cryptocurrencies to verify transactions. A more sustainable and energy-efficient alternative to the Proof of Work (PoW) consensus, Proof of stake blockchains have become increasingly popular in the last few years.
This guide reviews the best proof of stake coins to invest this year.
Top 8 Proof of Stake Coins 2022
The sections below provide the top 8 proof stake cryptocurrency list for investors to watch right now.
- Tamadoge - Best Proof of Stake Crypto to Trade
- Battle Infinity - PoS Crypto with Staking Platform
- Lucky Block - NFT-Based PoS Cryptocurrency to Buy
- Cardano - Decentralized PoS Cryptocurrency with Low-Cost Transactions
- - Native Crypto of Global Trading Platform
- - Cryptocurrency Supporting 65,000 Transactions Per Second
- Avalanche - PoS Cryptocurrency with 3 Sub-Blockchains
- Algorand - Cryptocurrency with a Unique Take on the Proof of Stake Protocol
Closer Look at the Top Proof of Stake Cryptocurrency to Buy
Here is an in-depth analysis of the top 8 PoS cryptocurrencies to look at this year. Keep reading to learn about the features, tokenomics and price rises for the trending Proof of Stake coins in 2022.
1.Tamadoge - Best Proof of Stake Crypto to Trade
Tamadoge (TAMA) is a new cryptocurrency token that leverages the decentralized GameFi (Gaming Finance) space by offering its platform members a play-to-earn (P2E) ecosystem. TAMA is the native cryptocurrency in the Tamaverse - a metaverse-style ecosystem that attracts players by hosting tradable NFT competitions.
On the Tamaverse, players can utilize TAMA to invest in tokenized pet NFTs known as Tamadoge pets. Using smart contracts, these 3D avatars have been minted as NFTs (non-fungible tokens). On Tamadoge, players can purchase NFTs and other virtual items to help breed their 3D pets.
Eventually, the P2E element of the Tamaverse will host community-wide competitions, where the top performers will earn dogepoints on a monthly leaderboard to win TAMA rewards. Tamadoge is undergoing one of the best crypto presales, selling more than $16 million of its $19 million targets.
After selling out its beta presale hard cap targets of $2 million in 10 days, Tamadoge has become one of the fastest growing cryptocurrency assets. Built on the Ethereum network, Tamadoge currently does not function as a proof of stake token. However, Ethereum’s new upgrade will switch the network from a PoW to a PoS consensus, making TAMA one of the best Proof of Stake coins to invest in.
With a total supply of 2 billion, investors can access 50% of the tokens during the ongoing presale. After the round ends, TAMA will list 20% of its token supply on various centralized (CEX) and decentralized exchanges (DEXs). For example, Uniswap and LBank are two popular cryptocurrency platforms listing Tamadoge after the presale ends.
Follow the Tamadoge Telegram Channel to stay updated with the latest news surrounding Tamadoge. Telegram admins will never DM you first.
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2. Battle Infinity - PoS Crypto with Staking Platform
Combining P2E features with decentralized finance (DeFi) protocols, Battle Infinity (IBAT) provides a unique decentralized cryptocurrency platform. Leveraging IBAT, the native token, along with NFTs and staking protocols, Battle Infinity hosts 6 unique P2E features.
Catering to the growing popularity of GameFi among crypto projects, Battle Infinity will incorporate P2E opportunities through the IBAT Premier League - a decentralized sports fantasy league where players can earn IBAT rewards. To trade IBAT, platform members must access the IBAT Battle Swap - Battle Infinity’s decentralized exchange.
Notably, IBAT follows Binance’s BEP standard to facilitate low-cost transactions on the platform. IBAT also uses the Proof of Stake concept to validate transactions on the different P2E mechanisms. Investors can validate transactions by staking IBAT on the IBAT Battle Stake - a staking platform which also provides potentially high APYs (Annual Percentage Yields) to traders.
Striving to become one of the best metaverse crypto coins, Battle Infinity has developed the Battle Arena - a virtual ecosystem where players can use VR headsets to participate in concerts, events and other virtual ecosystems. On the Battle Arena, all characters and items have been minted as NFTs via ERC 721 smart contracts. These NFTs can be updated on Battle Infinity’s NFT marketplace - the IBAT Battle Market.
IBAT concluded its token presale in August after selling out in 24 days and raising 16,500 BNB tokens. Launching on PancakeSwap in August, IBAT has grown from an initial presale price of $0.0015 to a live price of $0.0036.
Invest in Battle Infinity
3. Lucky Block - NFT-Based PoS Cryptocurrency to Buy
Lucky Block (LBLOCK) is an NFT competition platform enabling players to participate in fair and transparent draws via its decentralized network. Participants stand a chance to win huge rewards such as luxury cars, $1 million Bitcoin giveaways and $1 million houses.
Lucky Block hosts NFT draws for which interested participants must purchase local NFTs minted on the platform. For example, LBLOCK hosts exclusive Platinum Competition draws for holders of the platinum Rollers Club NFT collections.
Originally launched as a BEP-20 protocol, LBLOCK has introduced an ERC-20 (V2) token which abides by the Ethereum standard. While the BEP-20 consensus collected a sales tax on transactions, the V2 token charges no additional tax to investors.
Once Ethereum undergoes its much-awaited switch to the PoS consensus, LBLOCK will become one of the top Proof of Stake cryptocurrency assets to trade. The ERC-20 token has been listed on popular CEXs - MEXC exchange and Gate.io. LBLOCK is trading at $0.0007 per token.
4. Cardano - Decentralized PoS Cryptocurrency with Low-Cost Transactions
Cardano (ADA) is an open-sourced platform built on the proof-of-stake consensus to provide a decentralized and peer-driven blockchain.
Cardano used the PoS protocol Ouroboros, allowing the network to support staking pools where ADA holders can delegate their stake. Staking pools ensure the maintenance of the staked assets and validate the transactions on Cardano. Since PoS protocols support cheaper transactions, Cardano’s average transaction cost is roughly 0.16 ADA ($0.064).
After launching in 2017, Cardano implemented the Alonzo hard fork in 2021, which allowed the blockchain to support smart contracts and deploy various NFTs and DApps (decentralized applications).
Cardano deployed over 100 smart contracts within 24 hours of the Alonzo upgrade, resulting in an ADA price rally in September 2021.
Currently trading at $0.47, Cardano’s ADA has corrected from its all-time highs (ATHs) of $3.10 set in 2021. However, the growing use cases and the low-cost efficiency makes it one of the cryptos with the most potential for growth.
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5. BNB - Native Crypto of Global Trading Platform
BNB (Binance Coin) is the governance token of BINANCE - the largest cryptocurrency exchange in terms of the trading volume. Operating on the Binance Smart Chain (BSC), BNB follows the BEP standard to integrate smart contracts.
BNB follows the Proof of Stake Authority consensus, allowing a validator to stake a specified amount of BNB to validate transactions on the network. The token is the 5th largest cryptocurrency asset, with a market cap of $45 billion.
As the main token of the Binance exchange, BNB provides various benefits to Binance customers. Investors can get a 25% discount on spot trading crypto transactions on the platform, which generally costs 0.1% per transaction. Investors holding BNB can also save 10% on futures trading
The popular token is also used as a swapping mechanism for investors looking to purchase other BEP-based cryptocurrencies. For example, investors looking to buy Battle Infinity, one of the best new cryptocurrency assets, must purchase tokens with BNB.
After reaching an ATH of $690 in 2021, BNB is available to buy at only $280.
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Cryptoassets are highly volatile and unregulated. No consumer protection. Tax on profits may apply.
6. Solana - Cryptocurrency Supporting 65,000 Transactions Per Second
Solana (SOL) is a fast and secure decentralized blockchain that uses an innovative protocol to validate its blocks. Solana uses the innovative Proof of History (PoH) protocol, allowing the network to process transactions as they come in.
The protocols architecture allows Solana to achieve high throughput - processing 65,000 transactions per second (TPS). On the other hand, the Ethereum blockchain processes an average of 17 TPS. The high scalability makes Solana an ideal network for decentralized applications (DApps), as developers can achieve high levels of scalability with Solana.
While PoH is the protocol Solana uses to improve speed, SOL still operates as a Proof of Stake consensus mechanism and supports staking protocols. SOL has proven to be one of the best altcoins to invest in, as the token has increased from $0.78 in 2020 to $33 in September 2022.
Despite the enormous growth, SOL is 87% below its ATH and may be a potential long-term investment opportunity.
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Cryptoassets are highly volatile and unregulated. No consumer protection. Tax on profits may apply.
7. Avalanche - PoS Cryptocurrency with 3 Sub-Blockchains
A layer-1 network, Avalanche (AVAX), is another smart contract-compatible platform that acts as a hub for decentralized applications and custom blockchain networks. A popular Proof of Stake crypto, Avalanche can support 6,500 TPS.
The high transaction speeds are made possible due to Avalanche's unique blockchain architecture. The cryptocurrency consists of three different blockchains, each partaking a different role in validating the transaction process. The Exchange Chain (X-Chain) is responsible for sending and receiving funds on Avalanche.
The Contract Chain (C-Chain) handles the transactions generated by DApps or smart contracts, while the Platform Chain (P-Chain) takes care of the staking/validator transactions on the Avalanche network. AVAX, the native token, is currently trading at $19 with a market cap of $5.6 billion.
Visit Avalanche with eToro
Cryptoassets are highly volatile and unregulated. No consumer protection. Tax on profits may apply.
8. Algorand - Cryptocurrency with a Unique Take on the Proof of Stake Protocol
Algorand (ALGO) is a self-sustaining blockchain-based network that uses the Pure Proof of Stake (PPoS) consensus, slightly different from the PoS algorithm.
With the PPoS network - platform users are chosen randomly to validate blocks and vote on proposals. The likelihood of a user being selected is linked to the amount of ALGO they stake.
Therefore, Algorand’s unique consensus strives to increase security, ensuring that minority shareholders do not have the power to harm the whole system.
In 2022, Algorand also developed the London Bridge - a trustless bridge that makes the network compatible with the Ethereum blockchain. In the long term, Algorand looks to solidify its DeFi ecosystem. Currently, ALGO is trading at $0.3 per token.
Buy ALGO on eToro
Cryptoassets are highly volatile and unregulated. No consumer protection. Tax on profits may apply.
Proof of Stake Explained
Proof of Stake (PoS) is a network consensus used to validate transactions on different blockchains. Since cryptocurrencies aim to be decentralized networks, transactions are validated in a distributed databases, known as blockchains. Each block comprises a new transaction which has been validated on the network.
To verify transactions using the Proof of Stake consensus, coin owners can act as the validators of transactions. Coin owners stake their own token holdings to get assigned the responsibility of validating transactions on the network.
These coin owners or ‘validators’ are selected at random, with each crypto network offering different rules to become a validator. For example, Ethereum requires its coin owners to stake at least 32 ETH ($51,000 at the time of writing) before standing a chance to become a network validator.
Proof of Work vs Proof of Stake
When Bitcoin was launched in 2008, the cryptocurrency space adhered to a Proof of Work (PoW) consensus. With Proof of Work, the consensus provides an objective way for Bitcoin holders to navigate and manage transactions on the platform.
Proof of Work enables the concept of hashes, which comprise a long string of numbers, each assigned to a particular block. When a given data set is put through a hash function, it will only generate one hash. The hash will become totally unrecognisable if the data is tampered with or changed.
Each block is identified by its own unique hash, and one block connects directly to another on the blockchain. Therefore, it is impossible to tamper with a different set of hashes since one validates the other. Generating even one hash requires tremendous amounts of computational power. Therefore, the validators of Proof of Work networks are known as ‘Miners’.
For example, the production cost to mine one Bitcoin is expected to be around $13,000. The high cost of production combined with the limited token supply of Bitcoin is one of the big reasons for its high price.
However, the Proof of Work network has been blamed for requiring an unsustainable amount of energy to facilitate the process. Therefore, Proof of Stake originated as a quicker and cost-effective alternative to validate transactions.
Should You Invest in Proof of Stake Tokens?
Before investing in PoS cryptocurrencies, investors should analyze why this particular asset class may be a good investment. The sections below discuss some of the main advantages of Proof of Stake cryptocurrencies.
Energy Efficient
Bitcoin miners are required to solve a complex mathematical equation to receive a Bitcoin. This process requires large among of energy, which has led many miners to switch to green energy resources. Since 2015, the energy requirements to mine one Bitcoin has rapidly increased.
Growth of the Consensus
With the PoS consensus, many blockchains are managing to increase scalability while quickly establishing new blocks on the blockchain. In fact, Ethereum has developed close competition from upcoming altcoins such as Cardano, Solana and Algrorand, all of which have applied this consensus.
The popularity of the Proof of Stake consensus is now at its peak, as Ethereum will be undergoing a network upgrade which will see it switch from the Proof of Work to Proof of Stake consensus. In the long term, it is more likely for PoS tokens to be more sustainable.
How to Buy Tamadoge
After analyzing the top PoS cryptocurrencies, investors can decide on their preferred assets. The sections below highlight a step-by-step process on how to purchase Tamadoge - one of the most popular cryptos to invest in right now.
Step 1: Set up a Crypto Wallet
To buy Tamadoge, investors must set up a cryptocurrency wallet that is compatible with this token. For example, METAMASK is one of the best crypto wallets that is compatible with the presale website.
Traders can head over to MetaMask and click on ‘Download’.
Step 2: Buy ETH or USDT Tokens
Investors can purchase TAMA tokens by swapping them with ETH or USDT tokens.
If you do not hold one of these assets, buy ETH or USDT from a cryptocurrency exchange and transfer them back to your MetaMask wallets.
Step 3: Link MetaMask to the Tamadoge Presale Platform
Go to the Tamadoge website and select the ‘buy’ option. Click on ‘Connect Wallet’ and select MetaMask as the wallet provider.
Follow the instructions to officially link the wallet.
Step 4: Buy TAMA Coins
Investors can now select the amount of tokens they wish to purchase. Select an amount of 1,000 TAMA or greater and click on ‘Convert ETH’ or ‘Convert USDT’.
You can now access the TAMA tokens after the presale round concludes by clicking on ‘Claim’ on the Tamadoge website.
Via the fiat on-ramp Transak, it is also possible to purchase TAMA with a credit/debit card. This option can be availed after connecting a MetaMask wallet.
Visit the Tamadoge Presale Now
Conclusion
After reviewing the best Proof of Stake cryptocurrencies, we recommend Tamadoge as the best cryptocurrency to invest in. A deflationary token with a 2 billion token supply, TAMA is on verge of selling out its $19 million presale round in 2022.
Visit the Tamadoge Presale
What are some of the popular proof of Stake coins?
Some of the popular proof of stake tokens include LBLOCK, Cardano (ADA), Solana (SOL) and Binance Coin (BNB).
Is Shiba Inu a proof of stake crypto?
Currently, Shiba Inu runs on the Ethereum chain, which uses the Proof of Work consensus. However, the Ethereum upgrade will convert the network from PoW to PoS.
Is XRP token a PoS cryptocurrency?
Unlike most blockchain networks, Ripple (XRP) does not use a PoS or a PoW consensus. The network relies on a consensus system that is controlled by various bank-owned servers.
