Staking is probably the best, modern technique to earn a stable passive income without much effort on your part. You can start staking with any amount and receive regular interest on your funds.
Staking is much like bank deposits, where you can stake (lock-up) your funds in the form of cryptocurrencies in a Smart Contract in order to keep the blockchain network secure through transaction validation. In exchange for your funds, you get paid in newly mined cryptocurrencies on a regular (monthly/yearly) basis.
One of the best things about Staking is that you can start with any amount and don’t need a costly setup (like mining) or technical knowledge of the blockchain.
If you’re already intrigued, let me tell you about the top proof of stake (Staking) cryptocurrencies that you can invest in today in order to start earning a stable side income.
Top Proof of Stake Coins for Staking in 2020
Unlike PoW (Proof of Work) that uses mining for validation of transactions in the blockchain, a proof of stake (PoS) system uses staking, which is a more efficient, cost-effective, and profitable validation mechanism.
Here are some of the best PoS Coins you can choose for staking:
In addition, the stake value (share price) is automatically increased by 15% on the third day of the Circulation Epoch, as a one-time event, giving an extra incentive to users who open their stakes on the first or second day.
DASH is one of the most popular PoS cryptocurrencies. Thanks to the fast and private transactions of Dash, it is quickly being adopted by people and businesses globally.
Dash was the coin that made the concept of masternodes famous. Instead of investing huge amounts of money in the mining equipment, it suggested a better, easier and cheaper way of confirming transactions on bitcoin networks using masternodes.
All you have to do is lock up your Dash in the contract and transactions will be automatically validated by the assigned nodes. As a Dash masternode owner, you can also provide services like quick transactions, payments, etc.
Staking in Dash can earn you interest at the rate of 6% per year.
Tron is a high potential blockchain project that was launched by Justin Sun in 2017. It has grown in popularity because of high-end Tron DApps. In 2018, Tron created history by purchasing the world’s most popular and used Torrent software BitTorrent. Also, the company purchased Steemit (blogging and social media platform) in 2020, added another feather to its cap.
Investing in the TRX stake can be a great way to generate a good side-income, as the staking rewards per year with Tron are in the range of 3-4%.
NEO is a relatively newer PoS coin that can give you an interest of up to 2% per year through staking. It may not be much, but it’s still better than traditional investments like bank deposits. Moreover, you get the flexibility to manage or change your stake during the period.
The increasing popularity and significance of the NEO coin make it one of the safest PoS systems for long-term investment. And you never know when the value and returns on your NEO stakes might increase abruptly in the future.
WISE is an ERC-20 token based on the Ethereum blockchain. It employs the proof of stake mechanism for validating transactions in its blockchain. Interested users can stake their tokens in the contract and earn interest over the stake period.
WISE Staking is flexible, as investors are allowed to withdraw their interest at any time during the period of a stake. The cumulative interest rate in the WISE stake is around 5% per year. The interest amount increases linearly based on the stake length, to a maximum of 25% for a 5+ year stake.
VeChain is another suitable proof of stake system for beginners. It does not offer interest as high as most other PoS coins, but the potential is really good. And the coin has been increasing at a steady rate ever since it was launched in 2015.
VeChain aims to bring the entire supply chain on blockchain in order to make the supply process transparent and increase efficiency. In the future, it could allow consumers to track the very origins of the products they use, including their authenticity and cost.
It has already been working with a number of businesses on the same concept. For instance, VeChain’s latest project with BMW called VerifyCar allows users to transparently track their vehicle mileage on the blockchain, thus preventing mileage fraud.
Staking in a Proof of Stake coin is certainly a better and more affordable way to earn than mining cryptocurrencies. At least, you don’t have to buy costly equipment with no promise of returns. Staking gives you guaranteed interest over the staking period along with the possibility to get high returns from your invested tokens/coins.
In order to start with staking, you first need to choose the right coin. You can select from the top PoS coins list above.
If you already have some proof of stake coins, you can create a stake by depositing your coins in the contract. At the time of stake creation, you’ll have to select the stake length (period) and the number of coins/tokens.
If you don’t already have PoS coins, you can buy some from the respective cryptocurrency websites.