There are different ways of earning an income from cryptocurrencies. The leading option is through actively participating in exchanging cryptocurrencies where investors usually buy digital assets at the lower price and sell them when the price rises. This process is high risk.
However, cryptocurrencies can have lucrative and stress-free returns through passive income generating means like Proof-of-Stake (PoS). This investment plan entails holding onto your cryptocurrency and selecting the appropriate Proof-of-stake digital currency to get rewards. Generally, Proof-of- Stake is the opposite of Proof-of-Work. In this case, PoS works on a process similar to lotteries where every staked crypto operates like a raffle ticket. This model is different from PoW where mining discovers new blocks and authenticate payments.
Under PoS, users who own a coin stake a given amount on the network and isolate the currency where it cannot be used. If the need for creating fresh blocks arises, the isolated coins are selected randomly to validate the process. The wallet that has more coins has higher chances of getting the block reward.
Users who stake are able to get some rewards that are then channeled back to the network as an investment. This model benefits both users and the network since all parties can receive a fraction of the staked coins at a given period of time. A majority of PoS carry a minimum investment requirement and they need a constant connection to a wallet as a way of keeping the ROI up.
Top Coins To Stake In 2019
If you have settled for staking as a form of earning passive income, choosing a legit, reward paying asset can be challenging. We have a compiled a list of coins that have the potential of giving you better returns in 2019.
NEO has some similarities to Ethereum. The cryptocurrency supports smart contracts and offers the functionality of setting up dApps and ICOs. This project usually known as the ‘Chinese Ethereum’ is future-oriented due to its wide range of upcoming projects. Developers of NEO seek to make it the base for the smart economy that can be traded with minimal overhead.
NEO has an internal currency dubbed GAS. You earn GAS when you stake NEO. Every time you set up an asset on the NEO blockchain, a GAS fee is incurred. Before receiving GAS you must hold your NEO in a wallet. Only Binance and Kucoin exchanges permit staking of the NEO asset. It is advisable to use the official NEO wallet or cold storage in order to get payments for the GAS you are owed.
Earning a passive income with NEO is easy since you don’t require a constantly connected wallet to get paid. If you settle on NEO, you are guaranteed of a yearly return of 4-6%. Neo also comes with the staking calculator to determine how much you will earn.
With the Lisk network, only the top 101 delegates have a say in forging blocks. The delegate receives staking rewards meaning that there is an incentive for one to become an active voter. The Lisk Nano Wallet is used to stake and vote for delegates in a rather complicated system compared to staking other cryptos. Rewards vary between holders from month to month. Reports, however, indicate that you can get about 10% of the initial investment.
Reddcoin network serves the general public. The platform is used to ease online payments for the masses. Users of this network have access to free transactions. The network works by linking micro-payments into leading social networks for paying generated content that has value. The payments are in the form of tipping.
Staking RDD is a very user-friendly process. Start by downloading the Reddcoin Core wallet for desktop and load your RDD into the wallet. The staking process will begin in eight hours after the coins have reached maturity. Users who stake in RDD can get rewards of about 5% per year based on the initial investment.
However, the staking process can be hard especially for beginners. In some cases, synchronizing with the blockchain can take days to complete, and your wallet must stay connected to generate income. Use the Reddcoin Stake Calculator for accurate estimation on your earnings.
Developers of Ark want to join disparate blockchains together via the SmartBridge technology. In the end, the link will offer a quick and scalable service independent from the platform being used. This cryptocurrency that doubles up as an ecosystem has no competitors because of its unique idea.
Ark resembles Lisk because both platforms make use of a Delegated Proof-of-Stake system where delegates act as agents of verifying transactions. Ark only requires votes of 51 delegates to come up with new blocks. Under this model, participating delegates will authenticate payments and earn varying rewards. Each delegate will then share a percentage of the reward to members who voted in their favor.
Unlike other cryptocurrencies, staking with Ark comes with unique advantages. You are able to earn while your wallet is offline. The only thing you are required to do is send your votes and then understand the staking process. The platform also supports staking from wallets like the Ledger Nano S. Good earnings range between 10-12% on the initial investment.
Bean Cash (BEAN)
The technology behind Bean Cash enables the platform to quickly confirm payments at reduced fees. Formerly known as BitBean, Bean Cash blockchain system was set up around large block sizes and 60 second target block times. For any investor, BEAN is a viable option for storing value alongside its use for daily payments.
Bean Cash uses the Proof-of-Bean as its validation process while staking on the network is called “Sprouting”. They both work as the PoS. Before staking, you need the Bean Cash Core Wallet with numerous BEAN coins. The coins will then mature after a certain period of time before getting rewards. Investors can earn up to 4% in rewards monthly through sprouting. Furthermore, for every block found, the network pays 1000 BEAN. Bean cash has the Sprouting Calculator that can estimate your earnings.
Okcash is an open source network that seeks to cater to the needs of businesses and individuals in the crypto world. The platform attracts low transaction fees and giving users control as a way of pushing for mass adoption. Initially, OKcash was a PoW platform but switched to PoS where the developers looked at future stability through staking. In the future, it will halve ROI earnings eleven times in a bid to retain the coin. At the same time, the model intends to keep the appreciation rate predictable. Staking on Okcash has returns of 5% as of last year. In 2019, the rate has declined by half to %2.5. By 2044, the earning rate will be 0.03%.
Before you stake, you need an official wallet and switch on the staking mode. You also require an internet connection that is effective.
Linda is a privacy-centered project with a high risk if you consider investing in this one. . The project has a dynamic and anonymous crypto payment system powered with stealth transactions feature and Tor masking. The developers are working on eliminating the need for trading platforms when offering cross currency exchanges involving Linda. Linda largely depends on staking from users. Latest data shows that the network pays back 70% in annual returns. Furthermore, the project allows users to operate master codes where they get 99% ROI. There are no minimum or maximum investments requirements.
To help users stake easily, Linda has published a staking guide. You need an updated Linda official wallet with coins that take a day to reach maturity. Like other platforms, the wallet should be synchronized with the blockchain before staking.
Staking is one of the lucrative ways to earn an income with cryptocurrencies. If you settle on staking, there are various factors that will guide you on choosing the effective coin. Just like any other cryptocurrency investment, conduct sufficient research before staking. It is vital to go for a future-oriented coin that offers an opportunity to start small. Always remember that staking needs patience before getting significant returns.
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