Cryptocurrency price fluctuations now become a fact, but encryption currency investors how to avoid price volatility in sharp fluctuations, to find a relatively safe investment? The Bloomberg article on February 1 pointed out that some investors began to have an interest in proof of rights (PoS) .
The transaction to create a new block in the blockchain network is verified by placing the token in an encrypted wallet. At the same time, they can get cryptocurrency rewards. Depending on the amount of cryptocurrency and the amount of money held, the return from equity certification process ranges from 5% to 150%.
This Equity Proof Agreement is very different from the Workload Proof System ( PoW) used in the traditional Bitcoin transaction verification process . The workload proof system solves extremely difficult mathematical problems through miner mining . Investors do not need third-party verification, and only need to ensure that the verification transaction is successful in the blockchain network.
In the current bear market, investors in cryptocurrencies such as Tezos, EOS and Livepeer are more likely to survive the encryption winter through this type of equity certification agreement.
In terms of returns, earning interest through equity certification agreements seems to provide a more secure way for cryptocurrency investors to make money. On January 31, Pantera Capital Management, Coinbase Inc., Digital Currency Group and other investors succeeded. Raised funds of $4.5 million.
However, since it is an investment, the risk exists. Through the equity certification agreement , investors may have to wait a few hours or days to complete the transaction. In the process of waiting, investors may not be able to respond quickly to fluctuations in the market. At the same time, there is no clear definition of which cryptocurrency should be considered as a security, and there is some uncertainty in the regulation of this field.
The Information Presented Here Does Not Constitute Investment Advice Or An Offer To Invest. The Statements, Views, And Opinions Expressed In This Article Are Solely Those Of The Author/company And Do Not Represent Those Of Coinworldstory. We Strongly Advise Our Readers To Do Your Own Research (DYOR) Before Investing In Any Cryptocurrency, Blockchain Project, Or Ico, Particularly Those That Guarantee Profits. Furthermore, Coinworldstory Does Not Guarantee Or Imply That The Cryptocurrencies Or Projects Published Are Legal In Any Specific Reader’s Location. It Is The Reader’s Responsibility To Know The Laws Regarding Cryptocurrencies And Icos In His Or Her Country. Please Respect Your Country Law & Take Advice From Your Advisor .