What Is A Staking Pool?

What is a staking pool?

A staking pool is a collection of “Proof of stake” coins held by lots of different members. The idea of a staking pool is have a large number of coins all in one place. This gives the ‘pool’ a much bigger network ‘weight’ thus receiving more frequent staking rewards. You can read more information about proof of stake and how it works here. 

Most proof of stake coins will let you stake your coins on your own, however if you don’t have a large amount of coins, your chance of recieving a stake is very small. While being a member of a staking pool however, you will join together will thousands of other people and share a much larger balance. This larger balance will have a bigger chance of reciving more stakes.

What are the advantages to joining a pool?

Always Online – The pool is always staking, unlike solo staking you don’t need to be connected to the internet and have your wallet open all the time. 

More frequent rewards – When in a staking pool it is completely normal to receive several stakes a day, however while staking solo it can take months to receive anything. 

How to join a staking pool?

There are multiple staking pools on the market currently, all offering a very simular service. However the two platforms i have been using are SimplePos & Stakecube. I have written a more in-depth review of these websites here, but both of them have been really good and offer a great service. You can withdraw your coins anytime and the fee’s you pay are very low and reasonable.