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Proof of Stake Coins

Using P-O-S Coins for Earning Income

There no denying that cryptocurrency trading is the most popular form of earning through cryptocurrencies, with many traders preferring the massive price moves to facilitate profitable trading opportunities and decisions. However not every crypto-enthusiast enjoys the stress that comes with active cryptocurrency trading where manic highs and depressing lows are unpredictable. An alternative to active cryptocurrency trading is using Proof-of-Stake coins for passive income generation.

Large parts of the crypto-community are switching from Proof of Work protocols to the Proof-of-Stake, as PoS are arguably the better option for a variety of reasons. Even Ethereum has introduced a hybrid system, which alternates between both protocols.  Using POS coins for income generation are considered significantly less risky and unpredictable than normal crypto-trading. If done properly, traders can simply start earning by just holding the proof-of-stake coins rather than participating in active trading.

  1. Q) What Is Passive Income?

The proof-of-stake protocol is lighter and considerably more energy efficient as compared to the Proof-of-Work protocol. The process involves users who hold on to a particular token. They stake a certain amount of tokens on the network, mostly through wallets. When the particular platform or network needs to create a new block, it usually chooses wallets which have a high number of staked coins to validate any action. Thus, for a coin holder, the more coins a wallet holds, the more chances it has to get selected and thus receive the block reward.

Thus, the process creates an incentive for holders to stake coins on a regular basis. This allows users to generate a steady passive income from the block rewards. The process is considered beneficial for all parties involved as both the network and the users reap the results.  Rewards can be earned as a percentage of a particular staked coin, usually on a monthly or yearly basis. Earning can range anywhere from 20% to even 99% in some cases.

Choosing The Right Coin

Although earning from PoS staking is considerably less complicated than other methods, selecting and compiling PoS coins to invest in requires some knowledge regarding a high return on investment.  This means that only stable, reputed and proven coins should be chosen. Newer unproven coins which have a risk of getting extinct within 6 months are not recommended investment choices.

There are no hard and fast rules per se for selecting the best Proof of Stake coin. It depends heavily on the trader’s personal trading habits; his/her excess funds, preferences and lifestyle. Thus, it is advised to conduct proper research before selecting a coin, ignoring coins which have a high ROI but little substance for sustenance.

 

A list of the most profitable PoS coins

There are several PoS coins on the market which have been proven to have stable sources for generating passive income in the long run. Returns vary depending on various factors as well as the nature of the trader. Below is a list of several PoS coins which can generate passive income for a user.

  1. NEO: Possibly the most well-known PoS token on the market, NEO is currently ranked 12th at the time of writing. It is more of a smart contracts development platform rather than a typical cryptocurrency, and is often referred to as the “Chinese Ethereum” among various trading circles globally. According to the NEO team, the platform aims to be at the forefront of a future smart economy, where digital assets can be traded securely.

Through staking, Neo lets users generate GAS, which is the platform’s internal native currency. Gas is a crucial component of the Neo ecosystem, as it is used as fees for completing every action on the NEO blockchain. With a large and reliable community behind it, NEO has a promising long-term prospect, with the network rewarding stakers annually with a return that ranges from 4% to 6%.

  1. ARK: Ark is another project which acts as an ecosystem rather than a particular cryptocurrency. The main focus of the project is aimed at linking disparate blockchains which is otherwise not possible, through the use of its innovative SmartBridge technology.  The result provides fast and scalable services on a variety of platforms.

Ark actually uses a delegated PoS Consensus algorithm which treats coin holders as voters and delegates as transaction processors. All Ark users are required to vote for 51 delegates who are assigned to forge new blocks. These delegates then validate transactions to receive rewards, a percentage of which is also earned by the corresponding voters. Staking this coin has a higher payout range, usually between 10 to 12% depending on the delegate earnings and percentages.

    1. PIVX: PIVX is a privacy focused cryptocurrency designed for fast transactions and “close to zero” fees. Although originally a fork of Dash, PIVX shifted from PoW to PoS for a different approach.
      PIVX staking is different from other PoS coins as it requires an official PIVx wallet synced with the blockchain. PIVX Dividends for staking range from anywhere between 5% to 10%, with the PIVX team also providing an “earnings calculator” on its website for stakers.

  1. Bean Cash: Formerly known as BitBean, the rebranded Bean Cash is a blockchain project focused on large block sizes and 60 second target blocktimes. The resultant network has fast confirmation speeds, along with extremely low fees that make it a good “store-of-value” token.
    The BeanCash network uses their own version of the PoS protocol, called “proof-of-Bean”, while staking the coin is referred to as “sprouting”. Users need a Bean Cash Core Wallet and sync it with the blockchain to start staking. Staking BeanCash brings in a 4 to 5% monthly reward, with an additional reward of 1000 tokens in place for finding each block.

  1. Dash: Dash is one of the oldest cryptocurrencies on this list, and arguably one of the most profitable ones to invest in. Dash focuses on privacy, combining both proof of Work and Proof-of Stake to create a unique mining algorithm.
    In terms of staking, a user has to buy a minimum of 1000 Dash Tokens to secure a master node. Generally returns amount to 7.5% annually.

 

Recent Tokens with Staking Potential

As mentioned before, traders have to be ever vigilant and constantly conducting market research to find coins that have a good staking potential.  As staking mechanisms serve as crucial tools to strengthen networks, it is very crucial to select a coin with substance rather than hype

 

  1. StrongHands: StrongHands is a Hybrid PoS/PoW cryptocurrency, aimed at “strengthening the community” according to the Dev team. It utilizes the Sha256D protocol with a 100% PoS reward. At the time of writing, it has a total marketcap of $6,129,083 USD
  2. 808 Coin: Another well performing new comer, 808 Coin, also known as BassCoin is a PoS coin. 808 coins mature after 8 days of staking, after which the wallet has to be unlocked. Reports conclude that this coin gives a staking reward roughly equal to 17% forever 8.08 days. At the time of writing, it’s value is $0.000005 USD
  3. Experience Points: Experience points is another relatively new token which aims to build a rewards based digital currency system. The system is designed to compensate gamers and all global communities around the world. At the time of writing, XP tokens have a value of
    $0.000055 USD
  4. ZeitCoin: Zeitcoin aims at building a community-based cryptocurrency by removing global barriers for commerce and preserves the worldwide financial balance. Although still in its fledgling stages, the coin already has 16 active markets spread across 6 major exchanges including Yobit and Cryptopia. At the time of writing, Zeitcoin is valued at

$0.000064 USD.

  1. AntiMatter: AntiMatter is another community-driven cryptocurrency launched in June 2017. The project relies on network participants to complete development tasks for a fixed reward. At the time of writing, Antimatter tokens are valued at $0.000078 USD.

Final Thoughts:

Using PoS Coins for staking involves a crucial monetary incentive mechanism and is arguably more secure. For instance, the threat of a 51% attack is greatly diminished, as the attacker needs a massive initial investment to obtain 51% of the PoS network tokens. These tokens also have a lack of liquidity, which further prevents hackers from converting the loot into other crypto currencies. At the end of the day, using PoS staking to generate passive income is one of the most sure-shot ways to- success in the current cryptocurrency language.  The future looks indeed bright for PoS based tokens, which are especially useful for utility or consumer token models.