Books On Philosophy, Art, Religion, Psychology and Computer-Aided Brainstorming
Mine Bitcoin on an Older Computer by Staking by Author and Composer R.S. Pearson
1 How to mine bitcoin on an older computer using proof of stake wallets
A Basic Overview of the Process
2 How to find a good coin
3 Trading Tips/Unlimited Trading Should Be A Natural Right
I wrote this book because more grassroots knowledge about Cryptocurrency is needed to be written and circulated. I am not an expert on programming cryptocurrency, or the math behind blockchain operations, or even all the variations of proof-of-stake cryptocurrency. Staking can become complicated with ways of describing different percentages that you gain, types of staking algorithms, and block information. Being a consultant or teacher to the general public, I realize that most people do not want to get technical. I also realize that most technical people do not know how to communicate to non-technical people.
The general public wants things easier to understand whereas programmers and other technical people sometimes have a type of attitude to have to solve things with the least possible explanation, which is the opposite of how many aspects of business works. Even with forty credits in computer programming at college but even I do not understand everything there is about staking, and so I am not going to try to write a book for technical people. If you love technical information, there is more to experience online by searching out different topics related to staking.
I think personal wealth can be built by things that are contrary to what most people think. Take the rare book market, for example. Books are like coins - each has a specific value based on rarity and condition. Yet, you can buy these sometimes for one dollar or less, sometimes they are even free. Many think that the government is responsible for their wealth, when really it is they themselves. Generosity, courage and risk taking is important, which is contrary to the fear most people live with regarding money. Cryptocurrency is one way that people are empowering themselves today and it's already made many people rich or given them a good main or extra income.
All it takes is having some patience and the heart to teach people how to carefully invest in these things.
Creating staking computers with even older model computers with a few good crypto currency wallets would be like a type of magical machine for people to keep in their houses for a few weeks, to see how these staking wallets are profitable. Many lower entry POS coins have done well even in the bear market of 2018. The reason why
is that people understand the value of creating wealth by staking.
For legal reasons, I cannot reccommend which coins to buy, only discuss certain ones that follow a pattern that I like. I have to stress that these coins may change over time. Sometimes they lose their developer, or have a change in philosophy that makes them no longer follow my rules. For this reason, its important to follow my philosophy, not the various coins that today match these criteria. I like coins that are not already expensive, and which have a high enough return on interest to make it feel like one is mining in a profitable fashion. Some coins have percentages as high as 900%, and reward early adopters by keeping it at this rate for a while. Then the coin's staking percentage goes down gradually, until more use is built up for the coin.
Many high quality coins follow the model that I will describe, but they are expensive. To get stakes, or coins in return for running the wallet on your computer, you have to buy often thousands of dollars worth of these coins. Many of the coins I have chosen have rewarded me with stakes starting with investments of only ten dollars. And since more and more coins are being created, it's like compound interest: you get bigger rewards if you do not sell your coins right away but let them build up, earning you larger and larger stakes.
The use of some coins, or utility as it's often called in cryptocurrency, is to create the value of producing for almost free more coins that one can sell for Bitcoin. I do not have a problem with this. My views are that only a few people have most of the money today, and most other people have a good amount but they have sold their time to working 9-5 or similar jobs. They are often not able to do many hobbies, spend much time with their children, or volunteer in the community. Anything that can boost the income of these people is good, and staking and trading cryptocurrency is one of those things.
The situation that I see is that cryptocurrency is still a small phenomena and within that small thing there is something called Proof-of-Stake (POS) Wallets which only a small fraction of that small fraction know how to use. If more people understood how easy it is to use them, back them up, restore them after they crash and so on, then more people will buy these coin, and it will remain profitable to stake. That is the angle I am trying to work from.
If suddenly POS Wallets are seen as a cheap way to mine BTC in a roundabout way,
the cryptocurrency revolution can happen to more people like it happened to miners and traders so far before the bear market of 2018, when I am currently writing this.
Remember, if you're staking a coin and it gives you 100 new coins a day, then those coins can be sold for BTC, LTC and/or DOGE. That is the premise of staking wallets.
With miners, you have to purchase the miner, and the power supply (which are often more expensive than the miners on the used market). The electric bill of mining can be so high that it can usually by itself be enough to heat a house in winter.
Proof-of-Stake wallets on the other hand can be done in computers one can often get for free, or perhaps $50 at a Pawn Shop or other second hand venues, like Craigslist,
thrift shops, and so on. The electric bill is usually much not higher than keeping the computer on without the staking wallets running.
You have to understand the mathematics of the "canvas" of cryptocurrency. The canvas of the crptocurrency compared to fiat is ever changing but always retains value.
You can't "print money" so the fact that you get 100 coins a day from one staking wallet that has some Bitcoin value which then has some monetary value is the only formula you need to understand. The fact that this Bitcoin may be worth twice, ten times, or one-hundred times as many dollars one day compared to another. The essential fact is that, like like stocks, there are bear and bull markets. If you hold on to Bitcoin, it will most likely go up from the bottoms it's seen, just like the stock market continues to go up over time, with its bear and bull markets.
You have to look at the gains in the microcaps to understand that not all coins follow the model of the majority of the top one-hundred coins. Most of the top one-hundred coins have been in a bear market in 2018, and also historically, there were similar years. But the microcaps have frequenty made huge gains during that time. Sort on percentage gain on Coinmarketcap. Some coins even in bear markets are still going up from 20% to 300%. or more a day. There are two thousand coins listed, but it's not easy to see them all at one time unless you select the number of coins at the top left, which brings you to a new screen. Of course, this may change in the future.
High percentage low entry staking coins are the original spirit of cryptocurrency where people can create their own value at home. If we taught people to do this, we'd have the personal economic revolution that some of us need and the big investors clearly do not need. Plus, it's a way to distribute a blockchain, which is the heart of a fair decentralized economic system.
It is very easy to use staking wallets. Like anything, it has a learning curve, and the only way to really learn is to do it.
First, you want to pick a coin or coins and buy some at an exchange. You can find
out more about coins at a site like Bitcointalk.
Secondly, you have to download the wallet. Make sure you get it from an official site because in rare cases hackers have used phoney wallets to try to trick people. Hackers can upload a fake wallet that will have trojans or viruses in them. The Announcement page at BitcoinTalk should have a link to the wallet.
After you download the wallet, boot it up and select "Recieve" and in that box that comes up with be an address. That is just like your Bitcoin address, which most people should know about. It's just like an email address. You give it to people, or to websites, so they can send you coins. You
I have a text file in a word processor that I always work side-by-side with that I have
copy and pasted all my wallets addresses that I have gotten from the wallet themselves. Next to those, I have clearly labelled "exchange addresses" of those same cons so that I can send to the exchanges coins to sell.
You have to make sure you have a large enough balence so you can get stakes. Sometimes it's as little as $10 worth with some coins. Some coins it may be $1000 or more worth of the coin. So, you have to stake coins that are on your budget.
You should encrypt the wallet which is very easy to do. You simply select "encrypt the wallet" in one of the menus and type in a password and then write that down. You can back up the wallet immediately by selecting backup from a menu and give the file a name. This file is the same as the "wallet.dat" file that the wallet uses but
it will have the name you give it. Or, to backup your wallet, you can go to your Appdata folder in the profiles section of your computer if you're using Windows and find wallet.dat. Mac and Linux users will do the same thing but just in a different way. Make sure if you encyrpted your wallet, you back-up and use the new wallet.dat.
Now if your wallet should ever crash and not operate properly, which they often do, all you have to do is delete the old directory in the Appdata folder and restart the wallet. The wallet will recreate the folders and files and start to download the blockchain again. This can sometimes take many hours, even days, and to
make it quicker something called a "bootstrap" is often created by the developers.
It's much quicker to download that and put its files in your Appdata folder then it
is for the wallet to process the blockchain download itself. Synching the wallet means being up to date with the blockchain ledger and all it's information about what addresses sent what to what other addresss.
When you run the new wallet the first time after a crash, it will recreate the new folder and make a new wallet.dat. You must then close the wallet and delete the new new wallet.dat and put a copy of your wallet.dat backup into the new folder in it's place. Thnn launch the wallet and you should see your old balance and history when it is all synched.
I have a folder that has subfolders with each of the coins I stake. I put the wallet.dat for each coin in these backup folders and then put the whole folder with subfolders on a thumb drive.
The high staking and lower entry coins I've found are liable to change. The reason why they change sometimes is that they are abandoned by the developers. This is not that bad in itself in cryptocurrency because the team of "bagholders" can come in and pick up where the old developer left off.
The coins that were right for my philosophy at various times have been Truckcoin, GrowthCoin, RAIN, VersionCoin, Healthyworm, Bitradio, Chess, Compound, BUZZ, StackBit. HousingCoin, VulcanoCoin, Bottlecaps and Crackers. Some of these I no longer stake for various reasons. Because I do not want to tell you what exactly to invest in, I will not say which ones are no longer good options for staking. There will be new coins being developed which may be the best ones to get into when you are reading this book.
Since most coins have shown a rise and fall and rise again in price, stopping staking a coin when it gets very high in price can be a good strategy. You can possibly buy low and then start to stake it again. I have found with some coins that there is a point where you have to continue to buy more to get a stake, and then it becomes more about investing and not about earning "interest," or staking.
At one time, I was staking a coin called BOAT because it had a good name. The boating industry is huge. I guess you just have to have someone with connections that wants to do something like give away 100 BOAT coins for looking at their yachts that they have for sale. People with money are or are getting into Bitcoin. I thought maybe we could get a salesperson who has experience just in sales and have him or her work on commission. The crypto-market was almost at this stage in 2017 when it then started to fall
Let's take a look at Bitradio. You get paid in crypto for streaming radio. The percentage has been high enough at this time of writing to justify the electricity it takes to keep the computer running full time. Of course, I can run three or four other wallets on it the same time, so it justifies space on that computer.
Any of the coins that I have researched paid a good amount of stakes. It this sense, they are like cheap bitcoin miners, so they are "working products." People often complain about some coins that they have no working product, and are just taking investments. Coins with good staking wallets are of course a product in themselves and good coins like Bitradio have a utility on top of that. Of course, if you cannot run a staking wallet, feel comfortable that it's little wallet.dat file is in a few other safe places being your wallet folder, and know when to buy and sell your stakes, you could lose money. One could also lose money if the stakes become relatively worthless. But even a coin that is only worth .00005000 Doge like the way DiverseCoin is right now, can create stakes that can be sold. I do not have a huge amount as far as dollar value but I get several millions worth of coins a day in my stakes. The percentage of return is so high with it that one day I received a stake of ten million coins! No one knows what these coins will be worth in a few years, but at least today they are still worth something.
Remember the law of supply and demand. If a coin has a staking percentage of 900% a year, sooner or later stakers are going to flood the market with new coins and bring the price down. Such stakers would have to tell their friends and family to start buying the coin and set up staking computers to raise the price. This is exactly what should be done and what I hope is done.
A very interesting thing can happen to some coins. The difficulty, meaning work needed to be done to get a stake, goes up with such a high POS percent. The price can hold with nice volatility to make some money now and then by setting buy and sell orders. If the difficulty went down, there would be no reason to buy. We need to always get more stakers involved to buy the coin so they can stake it themselves to raise the price. As I mentioned, the "utility" that some people keep saying needs to be in a coin is simply to privitize money and the creation of wealth. Yet, it's interesting how hard it is for many to see that. Another utility is of course creating social networks of teams of people who support the coin, or other purposes like philanthropy that can be used by the team at their discretion.
One problem is at times people come in with a lot of money, buying a lot of coins, stake them, and then crash the market by selling to all the buy orders. Once a buy order is filled, then the coin price goes lower because the seller just finds the next buy order to fill.
If the coin is at 9 Sat, and has 100,000 buy orders at 8 Sat, to instantly gain cash, a seller can sell to all 8 Sat buy orders. If he has 200,000 coins, then he can either create a sell order at 9 Sat, and wait. Perhaps another greedy seller will come in with 300,000 coins and crash the price down to 7 Sat or lower.
I am not sure there are enough "gentlemen" to not have high POS interest coins crash to a 1 Sat value where there are no longer any buy orders. But often coins fall below 1 Sat and move into the Litecoin and Doge markets. You might be able to sell your 1000 coins not for 1000 Sats but instead 5,000 DOGE. One Sat may be more than what each is worth. You might have a coin increase in value in DOGE or LTC when it seems it's just staying at 1 Sat BTC. So, it's possible to sell a coin that is being staked even if it falls to 1 Sat and there are 50 BTC worth of buy orders. Then hopefully you will trade with that profit on something that will also be profitable.
Let's play around with the numbers a little:
Here is some conversion of DOGE to USD and DOGE to Bitcoin. This exchange rate no longer applies, but was accurate at one point of time.
At one time of this writing, 1 DOGE equals 86 sat
1 DOGE equals .0055 cents
50 DOGE equals .00004350 sat
50 DOGE equals 27 cents
100 DOGE equals .00008700 sat
100 DOGE equals 54 cents
500 DOGE equals about 43500 sat
500 DOGE equals about .00043500 BTC
500 DOGE equals about $2.74
Minimum DOGE Cryptopia trade is 38 cents
Minimum Coinexchange BTC trade is .00010000 or 76 cents
38 cents = .00005000 BTC
21 cents = .00004000 BTC
7 cents = .00001000 BTC
.0076 cents = .00000100 BTC
1 cent equals 300 satoshis
For instance,if 1 Dogecoin = 0.002252 US Dollar, use this chart:
1 Dogecoin = 0.002252 US Dollar
10 Dogecoin = 0.02252 US Dollar
100 Dogecoin = 0.2252 US Dollar
1000 Dogecoin = 2.252 US Dollar
10,000 Dogecoin = 22.52 US Dollar
1 Doge equals 53 Sat that equals $.00483
10 Doge equals 530 Sat that equals $.0483
50 Doge equals 2650 Sat that equals $.24
100 Doge equals 5300 Sat that equals $.48
500 Doge equals 26500 Sat that equals $2.41
1000 Doge equals 16000 Sat equals $2.52
100 Doge equals 1600 Sat equals $.25
A Minimum Cryptopia trade is $2
What is the minimum trade on your exchange?
200 cents = .00005000 BTC
160 cents = .00004000 BTC
40 cents = .00001000 BTC
4 cents = .00000100 BTC
1 cent equals 25 satoshis
$4 = .0010000 BTC
$2 (200 cents) = .00005000 BTC
160 cents = .00004000 BTC
80 cents = .00002000 BTC
8 cents = .00000200 BTC
1 cent equals 25 satoshis
$4000 = 1.0000000 BTC
$400 = .1000000 BTC
$40 = .0100000 BTC
$4 = .0010000 BTC
.40 = .0001000 BTC
4 cents = .0000100 BTC
1 cent equals = 25 satoshis
1 WAVE = 0.00164688 BTC
.1 WAVE = 0.00016468 BTC
.01 WAVE = 0.00001646 BTC
.001 WAVE = 0.00000164 BTC
You can do similar math with Litecoin or any other cryptocurrency. These are called trading pairs. The most popular of course is Bitcoin, but many exchanges trade via the medium of Litecoin and DOGE.
You should feel as comfortable trading in DOGE or Litecoin as you do in Bitcoin. Many coins were at 1 Sat or less in 2016 before the 2017 bull market. People were making 15 times their money or even more trading obscure coins like Chesscoin, which was at 1 Sat for what seemed like ages.
You should know about buy and sell orders for the best trading. A buy order is a price you say that you want to pay for a coin. In fact, you have to actually purchase the coin and have the money to purchase it, but you can cancel the order at any time and the money will be refunded to you. So, in that sense you create the order, you pay for it, but the coins are only yours when someone wants to sell the coins at the price you've put in the order at.
A sell order that you make with your coins is the same thing only reversed. You start out having the coins, and you select the price you want for each one, and how many of your coins you want to sell at that price. You then have to give up or lock in the coins into that order. You can cancel it at any time and the coins return to your balance. There are no fees associated with cancelling buy or sell orders.
More About Using Wallets
Some wallets takes more tweaking than average to work properly. Some give an error that is easy to plow through on the startup of the wallet with no negative consequences. Almost all coins have an Annoucement page at BitcoinTalk, the forum that Satoshi Nakamoto started. If the original starter of the coin's BitcoinTalk thread is still online, a team can work together on getting a better one uploaded and keep it in as the first post in thread. That post is the only one that's easy to read, since threads often have five hundred or more posts. If not, a new thread should be started so people can easily find the true wallet.
All wallets have to download the complete blockchain so that it can then put all it's transactions on a real copy of the blockchain so everything is honest. If you use the wallet to sync, it will use much of the CPU, and be more of a strain on your computer. It will also take a long time, sometimes several days. Updating with a bootstrap is easier. I had some bad luck starting out with bootstraps, maybe others have also, but once you get the hang of them, they're very easy to use. They, in fact, really are easy to use if you have a computer background, and quickly update the blockchain on your computer.
Sometimes wallet installations have something called a .conf file which shows what Internet addresses or nodes can be used to synch the wallet. It will be called something like CoinName.conf. Make sure you spell it exactly the way the wallet program or executable is spelled. You should close down the wallet when you change the .conf file.
The .conf is just a text file and you can edit it by clicking on it then using the right mouse button and selecting open. Online, you may find updated nodes list that looks something like this:
Simply paste that at the end, save it, and restart the wallet.
If you add a node or update the nodes in the conf file it may sync better. You can find out about these nodes at some exchanges that trade the coin, BitCoinTalk, or at the coin website. Nodes often do change, so at some point the wallet may not be in sync with the current state of the blockchain. This is one of the hardest parts about using these wallets.
Some wallets use a lot of memory compared to other wallets. These are often older coins that have a large blockchain of transactions that must be held in its memory.
The code for almost all coins is open source and a lot of coins no longer have their original devs. Who knows what might happen in a year.
Coins do become a little scary when you have to keep buying to get frequent stakes. It gets to be a point where you don't seem to be earning interest anymore, just keep putting more money in. If there were more advertising, or some incentive program, the price would go up and it would have more value. I think people may get to a point where the stakes just aren't coming in because of the difficulty increase.
The concept of difficulty in blockchains is fairly complicated and this book is not the place to describe it technically. One easy way to understand it is that in staking it is how hard it is for stakers to get a payment in coins. If five times the amount of people start staking your coin, it will be more difficult to bring in new stakes.
You can usually see the difficult by looking at the tray icons. One will have a figure
of a fraction, like 3000/150035555. The closer you get to being a bigger fraction, the more likely you will get a stake. You'll notice when you buy and deposit more coins,
your chances get better.
Staking wallets work on a consensus model, which in this case is Proof or Stake verses Proof-of-Work that is use in Bitcoin and similar coins based on the mining algorithm.
A consensus model, accoring to Wikipedia, "achieves overall system reliability in the presence of a number of faulty processes." Consensus models are used all over the technical world, and are one of the most important aspects of computer science. They show which computers have accurate blockchain information and which do not. That is largely what the Proof-of-Stake wallet is doing all that time. We are paid in stakes based on how many transactions we process. This of course also secures the network, since we are creating real blocks in the blockchain by our work. We get a porportional share based on how much of the total currency that we own. If we own 5% of all the coins out there, we would get a somewhat random amount daily but overall in time something like 5% of the overall stakes paid out to stakers.
Some wallets will produce a stake once a day if the amount of coins in it is high enough. If you are not getting a stake around twice a week, you may want to increase the coins in your wallet. Of course, how many you want to get is based on how much you want to spend. You can tell the difficulty and also most wallets will give you an average amount of days until you see your next stake. Sometimes they will keep showing one day and it may in fact be a week until you see your next stake.
Some coins I had to keep buying to get frequent stakes on. It gets to be a point where you don't seem to be earning coins anymore in ratio to how many you are buying, because it seems you just keep putting more money in to buying more to still get stakes. But if you look at the big picture, by looking at the transaction section of your wallet, you might see four or five times as many stakes overall to the purchases you've made. You can see the overall ratio of stakes to incoming coins from your exchanges.
Remember, all these stakes represent basically free coins. So, even though you keep buying the coin, you keep making it to.
At some point, I have had to decide to stop staking certain coins. The amount of stakes I was receiving was too low, and the investment to make it worth the electricity and space on one of my staking computers was too high. Noblecoin was such a coin. Some coins, like Bitbean, or what became Beancash, actually never produced a stake for me because I was interested in diversifying in ten or more coins, and the amount for enough to stake became too high. After weeks of running the wallet, I did not get one stake with the same investment as the others, so I chose to use my current stakes to build up my trading account and stopped trying to stake Bitbean/Beancash. That's not to say it's not an excellent coin with a great team. You often get what you pay for in staking.
Couldn't a person with enough money buy a high POS coin and make a fortune? They would be getting an high return in a month or two. Most traders I believe do not feel secure with wallet software. First they would raise the price by buying a lot of the coin. People who wanted the coin would have to pay a lot of money for it. Hopefully, they could then sell many stakes at that high level over time, not crashing the price.
There are very easy ways to do due diligence. Even though some coins will pump without reason, there is no reason to say there is no due diligence in crypto. In fact, these no reason pumps may be disinformation by those who do not want cryptocurrency to succeed. For instance, look at the pump of Greencoin, which has no team and really no chance of a revival, it had been the highest gaining coin consistantly in early 2018.
The easy ways to do due dligence in cryptocurrency trading are to look at the activity
on BTCTalk. Is there an active and helpful team? Is the person who created the original post still logging in? Is the coin high priced? There is a greater probability that lower price coins will go up.
Sometimes coins in the price range of 3 or 4 sats are a good investment, because historically you would get a quick 15% to 25% gain. Your buy order just has to process or complete at 3 Sat and then your sell order just has to complete at 4 Sat for you to get a 25% gain.
You can tell by the sell orders what's in store. If people with less money don't get out in time that's their problem. There are warning signs. I personally diversify completely over about 70 coins and so it's easy for me to move in an out without much emotional difficulty. There are about ten POS coins right now that look fair for a long time yet. I always look at the orders all the way up on the exchanges to see if someone could crash the price.
If I swap my sbit to distrixx, I will no longer have the volume for it to continue staking, this is why the 30 to 1 didn't work for me. It was originally 1 to 1, then it seems someone got "ambitious" (don't want to say greedy). Other coins have
not survived with developers got a little overly ambitious in a similar way. (I didn't
post this before the swap ended to lessen motivation). I would have just had to keep
pumping more BTC/DOGE into Sbit instead of being able to reap a profit and continue to have the volume to stake.
If everyone on this forum just convinced people around them that they could make money trading cryptocurrencies we would have a bull market for sure. I think one way to solidify this is you get involved in staking coins because it's just like mining. And if the percentage is over 20% in a coin with a good team, that's for sure money.
The crypto market largely rose in the previous years because mining was profitable. It still can be but running an older computer with some staking wallets with the right coins is definitely profitable now.
The difficulty, meaning work needed to be done to get a stake
Something happens to high proof-of-stake coins. The difficulty, meaning work needed to be done to get a stake, goes up with such a high POS percent. Sellers keep selling their stakes which drives the price down. This is why more education has to be done so people can continue to make money in such a simple way.
Stakers want the price to hold with nice volatility to make some money now and then. If the difficulty went down, there would be no reason to buy more coins, because you would be earning many coins from staking. When you stop earning new stakes, that means you need to buy more coins, because the difficulty has risen.
We need to get more stakers involved to buy the coin to raise the price.
I now stake about 9 coins actively, and building another machine to do more.
I think the money went out of deserving coins into ICO scams. That's what happened to the marketcap. If the dev team really is incompetent and can't get this going on a grass roots level, it's probably because their not paying college kids to get it going. I can't believe this one ICO has pictures on their website of all the custom neon lighting they had built for their office, like they were an uber fortune 500 company. That's where their labor budget for the next three years went, that and all the other wastes like expensive office furniture and so on.
what will happen if Growthcoin isn't distinguishable anymore by a higher POS return? 100% a year shouldn't be too much. That goes with the market trading, it's easy to make 100% a year trading crypto, and BTC has been much higher than that.
It's a great POS coin with a good team of supporters but not sure about the mining pools for it right now.
I hope everyone realizes we created all this wealth out of nothing and it will take the same level of energy to keep it going
I would suggest reading material like Benjamin Franklin, such as the anthology Benjamin Franklin Worldly Wisdom, or the Poor Richard's Almanacs.
"The more I am away from my trading, the more profitable it is."
This can be do. We need to let the market do the work for us sometimes. Most people cannot force the market to move up or down.
Need a good new pool for Version (V) Coin
"We are investingating issues in the backend. Your shares and hashrate are safe and we will fix things ASAP.
Findblocks disabled, new blocks will currently not show up in the frontend
Blockupdate disabled, blocks and transactions confirmations are delayed
Payouts disabled, you will not receive any coins to your offline wallet for the time being"
I signed up to mine it and tried to connect and my miner said dead (I currently use it to mine other coins so miner is working).
Ok, I can pretty much understand everything you've said.
I mine too and so always try to communicate with people about good things. I never tried to mine Growthcoin before.
Thoughts On More Expensive Staking Coins
Staking can be done at all income levels. Some people talk about their $10,000 staking wallet portfolios, but for some it is more practical to invest at levels far below that. Chances are, higher priced coins can have bigger teams, which can mean a more secure investment. They also have much farther to fall when something goes wrong.
All markets go through ups and downs, and you really need to develop some callouses from holding. If you invest in more expensive coins to stake, it can seem like a bigger loss - you're still making new coins from stakes but they are worth less. More people may be buying in which changes the difficulty, and unless you keep buying, you may not get the stakes you once did. The key is to set high sell orders on exchanges from your stakes or purchases so when the volume spikes, which they often have, you will be there to take advantage of profits. The worst thing one can do is have weak hands and when months or years of staking seems to be almost worthless compared to the time and investment.
There is too much information needed for this to be an exact comparison of staking percentages, all time hights (ATH), and various prices. My intention is just to give some brief analysis of different coins. Coins are like sports teams: there is a lot of emotions between supporters of different coins. I am a moderate about this subject like I am about politicis. I just want the best coins to win. I have decided to do staking with many different coins and to not invest very much in them. I think this philosophy has roughly equalled being as good as if I would have invested much more in higher priced coins as far as profitability.
Some people pick an obviously good coin like PivX and only stake that. I liked the idea of diversification. I had to take some chances, high levels of risk, where the coin turned out to be a complete flop. For instance, there was a coin called Kangeroobit2 that had a random percentage in its staking just like the coin RAIN does. Some stakes you would get 3000 coins, some only 200. It was only on two exchanges. One exchange seemed to do an exit scam, the other exchange claimed that no one was mining the coin, and so couldn't support it. It was one of the common occurances where the developer disappeared after releasing the coin. Some people bought the coin, but after that, he went on to do something else. No one knows who this developer was, or who they are. It's a very common occurance in cryptocurrency, from high priced IPO, to barely anything coins with little graphic design, websites, or social media campaigns. I lost about $20 because I don't invest much on coins that seem to have nothing backing them.
So, the option is that you can invest $400 or so to get one coin to stake that has a high reputation, or invest $400 to get ten coins that stake, one of which may become a great coin investment. Condensate, also known by it's ticker name RAIN, was like that for a while or me. I bought enough at fairly low prices, all lower than 400 Sat, and was getting many stakes from it. It climbed up to the 2500 Sat realm for a good amount of tim. It is wonderful when you have a high staking coin and a wallet full of them, and the price goes up over five times.
Linda was like that as well, but after a while the stakes stopped coming, the price went up too high for my principle of cashing out to fiat currency. Fiat currency is a fancy name for the regular currency of one's country. I keep taking my profits out in dollars because this endeavor took a lot of time of my time, and I had to get an income from it. I had to trust in Linda coin more than what I could bear in my risk tolerance. It's price didn't end up too different than TruckCoin and GrowthCoin, and only twice as much as Bottlecaps. If the algorithm made it worse for staking then those coins, I made the right decision. But what makes the choice not a great one is that Linda is on six or seven exchanges, which guarantee a certain level of security.
While I mentioned I"m not against anyone's coins,lets look at some more to get more understanding of the staking marketplace.
NEO is one of the best coins out there. It has a five hundred million dollar market capitilization as of the date I'm writing this (1/8/2019). It is number 16 in ranking of the 2000 coins on Coinmarketcap. If you were to buy 10 NEO today that would be $93. At the end of year, the ROI would be 3.88%. Neo around this time last year was $110. Since the ROI is the same, then one can see that investors in NEO buying it at that time have not done very well in using it as a staking opportunity. It was only at that high level for about six months. There were many times when one could get NEO at $30. Those buying it at lows will possibly not only make a profit in the future, but they will have a better or larger team that most of the low entry higher percentage staking coins.
To sum it up, it's hard to say which coins are better as far as profitability for someone who has trading skills. If you can buy low and time it right, either choice can be a good one. Buying expensive POS coins requires strong hands to be in it for the long term in the hope that the coins go back in price.
The coin Neutron is a good example of the danger of investing too much in a staking
coin. It came in an expensive coin, like many coins do, and then went far down. For two months in mid 2015, it was in the 5000 to 10000 Sat range. Then it went down to the 300 to 500 Sat range for two years. It climbed back up in the 2017 bull market. It was even between 5000 and 8000 Sat for about four months in early 2018m but then went to 200 to 300 for the last quarter of 2018. If you bought this coin at the right time, you would have to hold for years to hope to see it rise back to a profitable range.
Many other higher priced staking coins have been like this. Beancash has had periods of good value, then almost worthless for a while. It had two bull cycles when it went high, but each time came came down. It might be an investment of $300 to even get one stake in this coin, and then the stakes would not be worth very much, not until, and if they, go up again.
It seems like Smartcash has had a troubled record too, with one major bull run, and then two small profitable cycles and then leveling down to the 300 Sat level at the end of 2018. But this coin came in low priced, and so early stakers were rewarded. All one has to do is look at charts to see that coins that were low for a very low time have also came
up for a long time. Many POS coins look like the chart of Smartcash, maybe not so drastic, but the long bear market of 2018 has lowered the price of most coins. This goes along with the two major principles of the canvas of cryptocurrency, and the adage that you cannot print money. The "canvas" of crptocurrency compared to fiat is ever changing but always retains value.
NavCoin is one of the bigger marketcap coins that would have cost much to stake at various times. It was between 14,000 Sat and 30,000 for most of the time between July 2017 to July 2018. It then went down to the 4000 to 5000 range for the last half of 2018.
At only 5% staking returns, it's hard to see that people will make back their investment from staking alone. The utility and development has to come from the developers.
Syndicate coin looked like a good coin for a while, with typical ups and downs, but it leveled out pretty bad at the end of 2018. According to their Bitcointalk thread, they missed their whitepaper by being 8 months overdue. It was a coin that was frequently in the 6000 to 8000 Sat range for a period of about seven months, and often above 4000 Sat. It's now trading at around 700 Sat Without a very active team that hits its deadlines, some of the investors are getting weakhands. These stories make investors sad, as people had hopes for this coin, but when deadlines are missed without much communication it's hard to see such times the way we look at other companies outside of Cryptocurrency.
The higher investment coins fall more in value compared to many of the lower priced POS coins.
TruckCoin and GrowthCoin have been two of the lower priced coins that have retained a large percentage of their value. TruckCoin has spent most of it's career from July 2017 to
June 2018 at the 25 to 40 Sat realm. It did have a spike going from 50 to 70 Sat in January 2018, so wise traders who set their sell orders correctly would have seen a nice profit at that time. From January 2015 to March 2017 it was worth more than later times, but that was before Bitcoin took a run from the $1000 range in April 2017. A Sat wasn't worth very much before that, so it's hard to factor in the lower price of TruckCoin at that time compared to the higher prices of Syndicate, NavCoin and Neutron.
So, even though higher investment coins fall more in value compared to lower entry coins, the lack of good teams is more common in lower investment coin. It's easier to lose all in lower investment coins, but so far, it looks as if higher priced coins have also been risky in a different way, if the maret in these altcoins does not go up.
Ideally, holders of higher priced coins should be doing dollar cost averaging to keep the staking going if that's what's required. This shows a faith in the coin. It's sad though that many coins do not have "teams" that show a lot of optimism nor are willing to volunteer to do the little things that keeps a coin going. When this happens to a lower-priced coin, you can gradually get out of it and probably still make a profit. If this happens to a higher-priced coin, chances are you are going to take a loss. But, as every trader knows, without risk there is no reward.