The crypto space offers numerous methods of earning passive income. Today our main focus is on how to earn income via staking. We would also be reviewing the five best staking crypto to look out for in 2020.
Decentralized technology at its inception rewarded miners for confirming transactions. This system’s name is the Proof of Work or PoW. However, in 2012, the Proof of Stake (PoS) consensus was birthed.
With this in mind, we will be examining the rewarding process of PoS and also what staking coins we should look out for in 2020.
Staking is a system whereby owners of certain cryptocurrencies receive rewards for their contribution to the network. Incentives given to crypto owners depend on the number of tokens they have in their wallets. This method over time has also proved to more democratic than PoW (mining). This is because everyone has a high chance of getting handsomely compensated. Unlike PoW where only large scale miners earn good incentives. Staking also encourages crypto enthusiasts to hold on to certain tokens for a longer time.
PoS Blockchains don’t need to use mining hardware to confirm their transactions. They simply allow users to validate the transaction by depositing and also hodling a certain amount of cryptocurrency.
Staking is a great way to make passive income, but you need to know the right crypto as well as the most profitable. This will ensure you earn the highest amount of dividend possible.
This leads us to the five best coins to stake in 2020.
DASH is one of the first cryptocurrencies to switch over to a proof of stake consensus mechanism. It is also a fork of Bitcoin and was created in 2014. Formerly known as XCoin and DarkCoin, it was renamed to Dash in May 2015. It is also said to provide its users with anonymous, trustless and instant payments. Dash currently yields 7.01% for operating a masternode.
It also prides itself as a decentralized P2P electronic cash with hopes to become as acceptable as fiat.
DASH hodlers can earn staking rewards in it by running a masternode. However, to operate a masternode, you need at least 1000 DASH. One unit of Dash is about $50, at the time of writing. To invest in Dash, you need app. $50, 000 (1000 *$50). This might seem like a lot but for every $50,000 you invest, you receive an annual interest of 7.5%. Besides, Dash price increases over time.
Ticker – DASH
Annual Return – 7.5%
Staking Wallet – DASH Desktop Wallets for staking
NEO is the first Chinese open-source blockchain platform. Formerly known as Antshares, it prides itself as being a “distributed network for the smart economy”. When staking on the NEO, you don’t need your wallet to be open at all times. The NEO blockchain actually supports two native tokens: NEO and Gas. Gas is a reward for people who hold NEO. NEO blocks generate 8 Gas every 15-20 seconds. Staking NEO has an interest rate of 5.5%. Gas issuance is expected to stop in 22 years.
To earn NEO, you will need to purchase some, most likely from a crypto exchange. You will also need to download and install the NEO wallet, this is because it is the only one that can receive GAS. One GAS is worth approx $24.
Ticker – NEO
Annual Return – 5.5%
Staking Wallet – NEO staking wallets (NEON)
3. Ontology (ONT)
Ontology is a digital currency priced at $0.593. Its daily trading volume amounts to $88,451,486.820 with an annual staking reward of 5.6%. To stake ONT, you will need to purchase 500 Ontology first. 500 ONT is approximately $308. You will also need to download and install the latest version of OWallet. Also with the option to join one of the top seven nodes. It is advisable to choose the lowest ranked node (Rank 7) as it is expected to produce a higher monthly reward payout.
Ticker – ONT
Annual Return – 5.6%
Staking Wallet – OWallet
NULS is a worldwide blockchain open-source project, it also has one of the easiest coins for staking. Its price at the time of writing is $0.278 with a daily trading volume of $4,912,752.078. The crypto has an annual yield of about 13.1% to 15%.
Before you start staking, to need to take note of the following:
- Swap your ERC20 NULS tokens to MAINNET NULS coins
- You also need a minimum of 2000 tokens (app. $560) to start staking.
- Download the latest version of NULS wallet (Windows, Mac and Linux) from the official website.
- Finally, you choose a node go join.
You can also purchase NULS on Binance, Huobi, OKEX etc
Annual Return–btw 13.1% and 15%
Staking Wallet–NULS wallet
EOS is a distinct blockchain which makes use of the delegated POS consensus. In staking EOS, the first thing you need to do is to download “Scatter“. Scatter is the main wallet of EOS. Also known as block producing, EOS staking is one of the best in the crypto space. All EOS holders have to vote for a Block Producer (BP). The 21 BP with the highest votes will be allowed to produce blocks.
EOS staking also has an annual reward of app. 4.4%.
Ticker – EOS
Annual Return – 4.4%
Staking Wallet – Scatter wallets.
There are several ways to earn passive income in the crypto space. 2020 is expected to be the year for Hodling, Staking and Running masternodes.
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Source: Altcoin Buzz News
Original Post: What Is Staking? Top 5 Staking Passive Income Ideas for 2020