Opportunity to earn on stacking
Often people think that the only way to make good money in cryptocurrency is to buy them at a lower price and sell them when the price rises.
However, there are hundreds of other smart ways to make money in the cryptocurrency industry.
Cryptocurrencies for which passive income is paid become a dominant and constantly growing trend, because they give hope for stability and real value.
Different ways to generate passive income in the cryptocurrency space
There are various ways to earn passive income from cryptocurrencies or tokens, and they differ for different currencies, because each has its own working principle and its own rules.
Many cryptocurrency projects offer their users rewards in one form or another.
As a rule, PoS-staking in cryptoeconomics looks like this: you keep a certain number of tokens in a compatible wallet, and each designated period (from one day to one quarter), a certain amount is credited to the account where you hold coins.
It is very important to make sure that you are using the correct type of wallet, because if you hold your coins on a cryptocurrency exchange, it is likely that this exchange will receive a reward in your place.
The most popular ways to earn rewards are
- Staking – storing coins of type Proof-of-Stake (PoS) in a special wallet (usually the official currency wallet) and receiving payments for the period during which you keep them. Today, Cardano stacking is very popular.
- HOLDing – Purchase and storage of cryptocurrency in any cryptocurrency wallet.
Based on these two types, we compiled a list of several cryptocurrencies that look very promising and, in our opinion, they should be kept.
The best cryptocurrencies for passive income
NEO is a popular cryptocurrency that supports smart contracts and is often called “Chinese Ethereum” because it has similar functionality, including support for DAPP and ICO.
This platform is developed by Onchain, a Shanghai-based company, and began life as Antshares. Only recently she went through rebranding and got the name NEO.
Along with the NEO coin, the project has another coin called GAS, which can be placed in the NEO wallet and used for stacking, making good profit.
To receive GAS, you must keep your NEO in your wallet, and not on the exchange (not counting the Binance and Kucoin exchanges that support stacking).
However, only a few wallets allow users to receive GAS.
That is why it is very important to choose and download the right wallet from the official website in order to receive GAS as dividends.
It is also worth noting that in this case you do not need to constantly keep your wallets used for stacking open, unlike other Proof-of-Stake projects.
You will receive profit in the form of NeoGAS – unique tokens paid as a reward to investors holding NEO coins.
The Pundi X team believes that the adoption of cryptocurrencies is hindered by the excessive complexity of their exchange for the average potential user.
Point of sale terminals combined with a proprietary mobile application and smart card are the solution that Pundi X offers for faster adoption of cryptocurrencies.
The whole system also has open source code, which, according to the developers, is an important quality for any project in the cryptocurrency space.
Pundi X plans to distribute commercial equipment for select demographic groups for free.
The Pundi X product package (for example, equipment for points of sale, bank cards, etc.) is planned to be gradually announced and sold to entrepreneurs and consumers.
At current prices, you can buy 1.5 million NPXS for $ 1000, which will allow you to make a profit of $ 220 per year. It turns out quite a solid income of 22.8% per year.
NPXS allows you to open deals and stack on Binance, HotBit, UpBit and many other large exchanges.
Komodo, a fork of Zcash, is a privacy-oriented cryptocurrency that uses many unique features developed by various existing blockchain projects to create a more confidential, secure, compatible decentralized network.
Instead of competing directly with the most popular protocols, such as Bitcoin, which Komodo team considers useless, the project is trying to experiment with other combinations of familiar parameters.
At current prices, you can buy 1050 KMD tokens for $ 1000, which will allow you to make a profit of $ 50 per year. It turns out a modest but stable income of 5% per year.
KMDS supports the ability to trade and allows stacking on the Binance, Huobi, Bittrex and many other major platforms.
NULS is an open source global blockchain project, which is a modular blockchain infrastructure with many customization options, consisting of a microkernel and functional modules.
NULS includes a smart contract platform, multi-chain mechanism and a consensus cross-chain algorithm.
It is aimed at overcoming the technical barriers that blockchain technologies face, reducing the cost of developing and promoting the use of blockchain technology in the commercial sphere.
The NULS token will be used to support the operation of the entire ecosystem.
It will be used to support applications on the NULS platform, pay for application costs, exchange digital assets of auxiliary chains, support NULS development, reward miners and pay transaction fees. The total number of Nuls tokens is 100 million.
At current prices, you can buy 2500 NULS tokens for $ 1000, which will allow you to make a profit of $ 150 per year. It turns out pretty good income at 15% per year.
NPXS can be used for trading and stacking on Binance, Huobi, OKEX and many other large exchanges.
Decred separated from Bitcoin when the Bitcoin Core team rejected a proposal to add a new feature set from Company 0 to the blockchain.
These functions, collectively called btcsuite, became the core of the Decred project.
Decred’s management and consensus mechanism relies on the PoW / Proof-of-Stake (PoS) hybrid model, which is seen by the project as a kind of “second authentication factor for consensus,” allowing coin holders to restrain the potential centralization of mining.
In order to determine the direction of the project and to finance operations from its treasury, Decred uses a governing body called Politeia.
The treasury is replenished due to block subsidies, amounting to 10% of the remuneration for each block.
To receive the funds, proposals are sent to Politeia, where they vote either for their approval or for rejection.
Once approved, funding for the proposal is released from the treasury upon reaching pre-agreed benchmarks.
Holders of their own project tokens, DCR, can earn rewards by placing their tokens for stacking in exchange for tickets.
The reward mechanism functions like a lottery, randomly distributing tokens among ticket holders.
To increase the likelihood of receiving rewards, many users prefer to transfer their tokens to stacking pools.
The pool receives a large number of tickets using invested DCR members, which increases the chances of receiving rewards.
At current prices, you need to buy at least 109 DCR tokens for $ 1800, which will allow you to make a profit of $ 225 per year. This is also quite a solid income of 12% per year.
You can trade and stack DCR coins on Binance, Huobi, DragonEX and many other major exchanges.
The VeChain Thor project switched to its own blockchain from the ETH network.
VeChain Thor platform uses two different tokens
- VeChain Tokens (VET).
- Thor Power (THOR).
Token VeChain (VET) is designed to work as a currency for intelligent payments when conducting business activity on the blockchain.
During the transition period, companies that hold more VETs receive higher priority and more rights on the new VeChain Thor blockchain.
Thor Power Tokens (THOR) are issued to VET holders. They can be used to execute smart contracts and launch applications on the blockchain.
The distribution model for these tokens is similar to how NEO distributes GAS tokens among its holders.
NavCoin is a PoS fork of Bitcoin, created back in 2014.
You just need to keep your coins in the Core Wallet wallet, which is very lightweight and can even work on the Raspberry Pi.
The reward is about 5% per year, which is not so much, but since the stacking process is very simple, this is also a good option to replenish the budget with almost no effort.
For a more accurate estimate, use the NAV stacking calculator.
Lisk is a decentralized network with its own blockchain, similar to Bitcoin, Bitshares or Nxt.
However, Lisk does not use Proof of Work (PoW) as Bitcoin, or Proof of Stake (PoS) as Nxt, but works on the basis of a consensus algorithm called Delegated Proof of Stake (Dpos), which is a simplified version of the original BitShares algorithm.
Each LSK owner can vote for delegates who ensure the safety of the network, but only 101 of the largest investors with the highest number of votes (i.e., the largest number of coins owned by them) have the right to vote in solving problems and can vote for making proposals.
In addition, only they can receive rewards for generating blocks, that is, users have a financial incentive to become an active delegate.
All other delegates are on standby, awaiting election.
ARK pays dividends on its coins up to 10% if you place coins for stacking and vote for one of the delegates (there are 51 in total).
These dividends are paid every few days (sometimes even daily), so you are guaranteed a rapid increase in the number of your tokens.
In total there will be 128,694,286 Ark coins. Currently, 97,444,286 of them are in circulation, with Ark using the Delegated Proof of Stake.
Stacking RDD cryptocurrency is a very convenient process – you just need to download the Reddcoin Core wallet and load your private keys into it.
After eight hours of waiting, you will start earning coins. The approximate amount of remuneration is about 5% per annum.
KuCoin is a world-class Hong Kong-based blockchain asset exchange that pays 90% of daily trading fees to its token holders.
The exchange was launched in mid-2017 and is a relatively new player among cryptocurrency exchanges.
However, its founders began to explore various possibilities back in 2011. In 2018, KuCoin grew rapidly thanks to its business model and marketing.
At the time of writing, the daily trading volume is only 4,622.37 BTC (which is equivalent to 65,549,835.96 USD), but after entering the promised functions, such as the ability to add trading pairs, the volume should grow very quickly and very much, which will allow Kucoin to reach its Goals by the end of 2019.
KuCoin offers its own KCS token (KuCoin Shares) with a total volume of 200 million when issued, which is used in the same way as the Binance token.
However, the reward mechanism for token holders is different from what is used in Binance.
By holding Kucoin Shares tokens on the exchange, you can receive a daily bonus called KuCoin Bonus.
KCS owners receive 50% of the total amount of trading fees generated in proportion to the number of tokens they own, that is, if the number of coins traded on the KuCoin exchange increases, the bonus for holding KuCoin Shares will also increase.
Masternodes in the ZenCash ecosystem are called Secure Nodes. Secure nodes are divided into two types – A-Secure Nodes and B-Secure Nodes.
The difference lies in the number of coins that you need to have for stacking and the percentage of rewards you get for each block.
A-SecureNodes require a minimum of 42 ZEN and a profit of 3.5%.
Faced with the problem of rapidly decreasing profits for node operators due to the rapid growth of the community, the Zen team recently decided to introduce a completely new reward scheme.
Under this new system, node operators now share 10% of the total mining rewards among themselves.
BridgeCoin is a scripted coin that appeared in July 2017 as its own token of the new popular decentralized exchange CryptoBridge DEX.
This coin was created to finance the development of this decentralized exchange.
BridgeCoin promises benefits such as high liquidity and convertibility, fast transactions, multi-platform support and guaranteed scalability.
The project is being developed by a highly qualified international team, which plans to bridge the gap between various types of cryptocurrencies in many aspects, including the level of scalability, arbitrage, liquidity and pricing, as well as other factors.
All BridgeCoin profits are shared with coin holders, and the main goal of the project is to give users the opportunity to use coins for stacking, becoming “owners” of the DEX crypto bridge and receiving 50% of trading revenue.
We like this idea because it is a decentralized exchange and it has a decent income distribution model.
DigixDAO is a company offering storage services for gold and the first Ethereum-based token for which dividends are paid.
Digix Gold Tokens (DGX) are secured tokens running on the Ethereum network, each of which is a small part of the company’s gold.
Dividends come from fees for storing gold, and this fee is distributed among the holders of DIGIX tokens in the form of earnings from DigixDAO.
It is important to note that DigixDAO provides full support for tokens at the expense of gold in its store, which requires payment of costs for maintenance, audit, insurance, etc.
In January and February 2018, when the price of Bitcoin showed a decrease of 15%, and Ethereum – by 20%, DigixDAO managed to grow by more than 50% and is the only cryptocurrency from the first hundred (by market capitalization), which in those days was Plus.
PIVX (Private Instant Verified Transaction) is an open source decentralized cryptocurrency that tries to ensure anonymity using the Zerocoin protocol.
The PIVX project is a fork of DASH and is trying to create practical digital media that can be easily, privately and safely spent in everyday life.
And, like almost all PoS cryptocurrencies, it also has a stacking model, that is, you can make money even when you sleep, just by holding PIVX in your wallet.
This model is very simple and users get a decent fee for staking.
It is important to note that you can place any number of PIVX for stacking in your wallet.
In addition, a proposal has recently been made to grant some voting rights to all participants, that is, you do not need to keep a full set of 10,000 PIVX to earn rewards and participate in the vote.
Each block (every 60 seconds) issues a reward in a random order, and the chances of getting are proportional to the number of coins that were allocated for stacking tokens.
This is one of those cases when wallets must be open and connected to the network for a certain time in order to qualify for a reward.
As you can see, there are several ways to capitalize on cryptocurrency staking.
In 2020, token stacking (what it is, we discussed in other articles) and masternode hosting have become very popular, and users can now keep various cryptocurrencies in their wallet and receive relatively regular income for it.