http://topstaking.com/wp-content/uploads/2018/08/profitable-to-stakeblog.png

Running a [Proof of Stake](https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/) wallet is both [rewarding](https://www.reddit.com/r/ethereum/comments/62x9ts/how_profitable_will_proof_of_stake_be_for_small/), and sometimes frustrating. The rewards for running a proof of stake coin vary by [coin type](https://coinsutra.com/proof-of-stake-cryptocurrencies/), and how many coins you have. Due to this variability it is impossible to tell each person reading this whether it is profitable or not. But, their are some key factors that go into [determining profitability](https://medium.com/@poolofstake/the-most-profitable-pos-coins-to-forge-ffe24745c917) so let’s cover those.

## Costs of [running a Staking wallet:](https://deeponion.org/community/threads/tutorial-running-multiple-wallets-on-windows-for-staking-purposes.29083/):
In order to accurately determine profitability of running a staking wallet we need to measure costs. This is usually overlooked on [calculators](https://bitcointalk.org/index.php?topic=4052447.msg37975789;topicseen) in regards to staking, but it needs to be taken into account.


http://topstaking.com/wp-content/uploads/2018/08/proof-of-stake-computer-1.jpg

### 1. Computer:
You need a computer to run a staking wallet. And in many cases it needs to be a reasonably powerful computer with decent internet speeds.
   - **Features of [Profitable Computers]:**
      1. 100% uptime
      1. Sitting idle most of the time
      1. Running anyway
      1. Don’t need 100% computing power
      1. Low fan noise
  - **Features of unprofitable computers:**
      1. You need computer for work
      1. Old and uses a lot of electricity
      1. Crashes often
      1. Low computing power
      1. High fan noise

### 2. Internet:
High speed internet is a necessity for creating a well connected [staking node](https://forum.pivx.org/t/masternode-vs-staking/442) for a proof of stake wallet.
   - **1. Features of profitable internet:**
      1. Already purchased and installed
      1. Internet is faster than you need
      1. Your internet plan is what you were going to purchase anyway
  -  **1. Features of unprofitable internet:**
      1. Not installed yet
      1. Already too slow for your usage needs
      1. Need to [upgrade service for staking](https://deeponion.org/community/threads/how-much-staking-consume-internet.11795/)

### 3. User:
Time and energy always needs to be taken into account. If you don’t value your time, then you are not human. Some people are more apt at staking than others.
   - **Traits of a profitable staking wallet user**
      1. Good with computers
      1. Already a Cryptocurrency user
      1. Knows [how to run and update wallets](http://pos-monkey.com/how-to-start/)
      1. Familiar with [nodes and how networks work](https://www.webopedia.com/TERM/N/node.html)
      1. Knowledgeable of wallet security.
  - **Traits of unprofitable staking wallet user**
      1. Not good with computers
      1. New to cryptocurrency
      1. Never ran a cryptocurrency wallet before
      1. New to cryptocurrency [wallet security](https://www.reddit.com/r/omise_go/comments/76x1rv/what_are_the_potential_risk_when_staking_comes/)

The fact of the matter is that its probably not profitable to stake your own coins if you’re not good with cryptocurrency wallets, have an idle newer computer, and have good internet.

If you are already good with cryptocurrency and have profitable features and traits listed above, go ahead and stake. [Staking cryptocurrency](https://medium.com/@stevekrohn/everything-you-need-to-know-about-staking-coins-686ea95041c) is rewarding and kind of fun.

### The main takeaways of the above list are:
 - Don’t [purchase a computer just for staking](https://www.reddit.com/r/CryptoCurrency/comments/7qqdzv/buy_a_computer_for_multiple_crypto_staking/) The costs are probably not worth the benefit (unless you have a large amount of coins)
 - Don’t upgrade or purchase internet just for staking
 - Take your time into consideration

### StakingPools are the answer for 95% of all stakers
[Staking Pools](https://hackernoon.com/staking-pools-how-they-work-aaf7f8c0f81) are services that run [POS wallets](https://blockonomi.com/proof-stake-cryptocurrencies/) and stake them for users. Much like a [cryptocurrency exchange](https://en.wikipedia.org/wiki/Cryptocurrency_exchange), staking pools control the cryptocurrency and users control an account with that service.

Staking pools work like they sound. They pool all funds into 1 wallet. Stake that wallet to earn staking rewards from that large balance wallet. And then they distribute all the rewards collected on a % basis back to depositors.

## Advantages of staking pools
http://topstaking.com/wp-content/uploads/2018/08/2018-08-29.png

1. **Don’t need to run a wallet:**
If you don’t have an idle computer, good internet, and cryptocurrency wallet skill it makes much more sense for someone else to run your wallet. This saves considerable time and investment in getting the staking infrastructure.
1. **Can hold many different POS coins:**
A regular staking computer can only run a limited number of staking wallets and not crash often or burn up. With a staking pool you can [have as many POS coins](https://microcapcrypto.com/proofofstakepools/) as they list with no adverse effects.
1. **Regular staking reward payouts:**
Staking pools are large staking wallets. Staking rewards are usually distributed randomly, but in a way that larger wallets have a higher probability of collecting a reward than smaller wallets. So larger wallets will [get rewards much more regularly](https://www.youtube.com/watch?v=YeC0DdS-laI) than smaller wallets which could have to wait long periods of time before rewards
    - An important aspect of many smaller staking payouts is the compounding effect over time. This compounding effect will usually be higher than the staking fee of staking pools.

## Disadvantages of Staking pools
### Ownership of cryptocurrency:
The main drawback of holding your cryptocurrency anywhere but your own wallet is ownership. “_ Not your private keys, not your cryptocurrency _” is a popular and frighteningly true saying in the crypto world. If you have your coins in an exchange or staking pool you are relying on someone else to secure them funds and give them back to you. Always keep this in mind, but don’t let it stop you. Nearly everyone in the world holds fiat money in a bank which is the same concept. Trusted 3rd parties are for now still needed in the financial world cryptocurrency or not.