You should have a Delegate who is online 24/7 ready to "bake" new Tezos at a moment's notice whenever the system calls or you risk losing your opportunity to grow your Tezos ownership.
If hosting your own server node does not sound like something you are interested in doing, a Delegate such as "CryptoDelegate" is your most profitable alternative. As a delegate, we offer to share our profits (in the form of dividends) in a bid to attract more stakes such as yours. More stakes allow for economies of scale.
Depending on the value of your free time, your personal risk tolerance, the size of your Tezos stake, the cost of your equipment, and your technical expertise, it could be either more or less profitable in the long run for you to stake and bake your own Tezos. Each situation is different depending on node hosting and personal opportunity costs.
We provide delegation as a service because many people simply want an easier professional solution. Alternatively you could choose to do nothing by letting your Tezos sit un-delegated and idle, but then you would be losing out on the opportunity to grow your Tezos ownership.
Each Tezos Token gets 1 vote. Each group of Tezos is a roll. The more Tezos you own, the more votes you have. You can use these votes to give your opinion on new software upgrades and protocol updates. However, similar to growing your stake, to vote you need to either host your own server node or delegate your authority to someone else. Currently, when you delegate your staking rights you also delegate your voting rights. MyCryptoDelegate is working hard to create a custom solution that allows you to vote independently while still delegating your stake. If you do not want to vote, you can choose to have MyCryptoDelegate vote on your behalf.
Just like if you owned a piece of land. You may choose to buy equipment and spend time farming that land yourself or you could choose to lease that land to an experienced farmer. That farmer would grow crops on the land then pay you the agreed rent each month. (we use the "farm & farmer" analogy and not "gold mine & miner" analogy because Tezos are not "mined" like Bitcoin or Ether.)
We do not charge any account maintenance fees, time based fees, percent of Tezos minted fees, or delegate voting fees. WE PAY YOU.
SECURITY WARNING: Unless you are VERY sure that an online wallet or exchange service has a good reputation and is supported by hardware wallet technology, it is good practice that you store your Tezos in your own personal hardware wallet and take all actions to keep your private keys offline and secure.
In its initial incarnation, Tezos is launching with a delegated proof-of-stake consensus algorithm. This choice of consensus algorithm is amendable, on-chain, by the stakeholders. In principle, a proof-of-work consensus or even a federated consensus could take its place. However, the development team expects proof-of-stake to be an important part of the Tezos culture and thinks it will remain the primary consensus method.
Tezos’ delegated proof-of-stake system works by letting every stakeholder designate one or several delegates of their choice to create blocks and validate transactions on their behalf. The higher the stake delegated to a given validator, the more often will they be called upon to create blocks. Though the Tezos system is delegated, every token holder can participate as a delegate regardless of the amount they hold.
The network issues newly minted ("baked") tokens as a reward to validators for the service they provide to the network. These rewards will create nominal inflation; holders are free to be their own delegate if they so desire and thus to avoid any dilution. It likely that large delegates will offer to share some of their profits in a bid to attract more stakes.
The computing requirements to become a validator are relatively lightweight (a few hundred watts at most) but a robust, high-speed Internet connection is required. Running a proof-of-stake node also requires more operational security than running a mining operation as it involves signing blocks with a private key on a machine connected to the Internet. This risk can be mitigated by the use of secure hardware components, as found in devices like the Trezor or the Ledger Nano S. -Official Tezos Position Paper
Please Note: CryptoDelegate.com and CryptoDelegate LLC is not a crypto token exchange. We do not provide any method of purchasing, selling, or trading any type of blockchain coins or tokens. We also do not give any financial advice or recommendations. Invest in crypto currencies at your own risk. Our payment system is on a closed loop. This means we do not have any means of receiving or transferring tokens from a client to a third party or visa versa. Payments can only be sent to the original delegator. We do not store crypto tokens on behalf of our customers. Any tokens that we generate and hold in our hardware wallets are property of CryptoDelegate. Token ownership transfer happens immediately upon the Tez tokens being sent and received from CryptoDelegate to the client. If you wish to transmit crypto-tokens to a third party, you must send directly from your personal wallet or use some other method.