Where to get your Proof of Stake tokens

It can be very easy to get lost in the sea of tokens that the current market offers. At the time of writing this article, coinmarketcap had 1,563 tokens listed. This list can be useful to check general information on projects, like market caps, prices, volume, and circulating supply; but it lacks additional information that is very useful to long term investors. A main issue we have found is that it does not mention which protocol a given project uses. With the current Ethereum Proof of Stake switch in plan for later this year and the long lasting Proof of Work vs Proof of Stake debate, we think information on used protocols is very important and not easily accessible to investors.

Given the lack of information in available lists, investors are set to waste a lot of time finding out which Proof of Stake tokens are out there. On top of this, it is difficult to find reliable information on the different projects. The best way we devised to find this information is to go to coinmarketcap’s Exchange Volume Rankings page, view all the traded coins in a specific exchange, then click on a given coin, proceed to the project’s website, open the whitepaper, and finally look for the used protocol. If you take the three exchanges outside of South Korea with the highest trading volume, you are looking to analyze the white papers of over 100 tokens! Needless to say, this is very time consuming.

With this in mind, Pool of Stake has done the work for you. We researched which Proof of Stake (PoS) projects with decent liquidity are available on the three exchanges with the highest trading volume outside of South Korea. These exchanges are Binance, Bitfinex, and Bittrex. We will first list the PoS tokens that have the highest trading volume out of the 100 most traded tokens on each exchange; then, next to each list, we will chart the distribution of protocols of the 100 most traded tokens for each exchange. This information is relevant because liquidity is something that cryptocurrency investors should always have in mind. If a certain asset has low liquidity, there will be a difference between the expected price of a trade and the price at which the trade is actually executed (this difference is called slippage). Low liquidity can result in a considerable amount of money lost when buying or selling a token. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. As you might have guessed, liquidity and slippage have an inverse relationship, and the most favorable situation is to have high liquidity and low slippage. This article will help us find exchanges where PoS coins are traded with decent liquidity.

For the following text, we have bundled the different protocol categories into three: Proof of Work (PoW), PoS, and “other”. PoS will include pure Proof of Stake as well as delegated Proof of Stake (dPoS) tokens. The “other” category refers to any other protocols used, as well as any hybrids that could include PoS. Please note that all the information used in this article was obtained from each project’s whitepaper in the official website and from coinmarketcap at the moment of writing. Projects that don’t specify which protocol they are using will be listed as “other”. Let’s check our findings now! Where to get your Proof of Stake tokens

Proof of Stake tokens on Binance

Notes:

• Binance is the exchange with the highest volume in the world.
• PoS tokens represent 21% of the 100 most traded tokens listed on this exchange.
• There is a similar distribution of PoW and PoS coins in Binance.

Proof of Stake tokens on Bittrex

Notes:

• Bittrex is one of the exchanges with the most diverse availability of tokens.
• Given that they are a US listed company, they try to adhere to tokens that are tradable by US citizens. Good security standards.
• This exchange has a higher distribution of PoW tokens compared to PoS.

Proof of Stake tokens on Bitfinex

Notes:

• Bitfinex lists considerably less tokens compared to Binance and Bittrex.
• There are more PoW tokens than PoS and others.
• PoS tokens constitute 22.22% of the offer.

Conclusion

It is not an easy task to find out detailed information regarding used protocols in the cryptocurrency world. Drilling through each whitepaper can be a draining ordeal. This article will point you in the right direction to buy PoS tokens in an exchange with favorable liquidity.

Fortunately, in addition to this article, there is solution on its way. Besides the first truly decentralized pool to share forging rewards in PoS blockchains, Pool of Stake is developing the Smart io data base and platform. This will be a comprehensive tool that will list all the PoS coins available, as well as live data regarding the rewards produced by forging. If finding which protocol a currency uses can be a headache, now imagine how time consuming an accurate prediction of staking rewards con be… this will be solved soon!