Staking, also called forging or minting, gives crypto holders a source of passive income.
Staking on Proof-of-Stake (PoS) blockchains also secures the blockchain and validates transactions. Many hybrid chains (blockchains with both PoS and PoW) are also available. A few other consensus protocols also allow for staking rewards.
Let’s Dive In
Rewards are usually given in proportion to the amount staked. But this isn’t always the case.
Some chains take other factors into account, like “ Coin Age”. The length of time staked or how long an Unspent Transaction Output has not been spent on the blockchain. For example, Peercoin takes Coin Age into account, while NXT does not.
The requirements and maintenance for staked coins vary greatly among the different options.
Some coins are also compatible with cold staking, staking from a hardware wallet (or other cold storage method). Some coins require you to stay connected to the blockchain 24/7 to remain eligible for rewards.
Certain exchanges, like Binance, allow you to receive staking rewards by simply leaving your coins in the exchange.
For PoS coins, the max supply is often created during the initial distribution, and forgers collect transaction fees. Some coins allow forgers to create new coins, using those as a reward.
The initial distribution of coins can also be done through an ICO, or the chain might start as PoW and switch to PoS at a later point.
ROI can have sizeable fluctuations, depending on a variety of factors. The total number of staked coins on the network and your “weight” on the network are factors. You will generally earn more if your staked coins are larger as a percentage of the total staked coins.
When looking for a coin/token to stake, the percentage of the yield shouldn’t be the only factor. Medium to long-term potential should also come into play. The ROI you earn (denominated in the coin itself) can be added to the USD value increase of the coin. Also, if a coin has a high yield, profits can be wiped out by the death of the coin.
Different coins also require different amounts of capital to begin staking. Keep in mind; things can change. It’s wise to double-check current information before beginning on your journey.
Staking pools are also sometimes used but it’s important to exercise caution before choosing a staking pool. Some coins have pools recommended by the coin team. If you must use a pool, use one that is officially recommended.
Just remember, staking ROIs are subject to change; make sure you check current numbers. ROIs in this guide are given in a percentage of the coin itself, not USD, with the exception of NEO.
This list of coins/tokens is in no particular order.
NavCoin has been around for a while now, being forked from Bitcoin in 2014. It uses Proof-of-Stake Version 3 (PoSv3). There was no ICO or premine, it started out using Proof-of-Work.
NavCoin uses ZeroCT (a privacy protocol) to increase its anonymity capability.
NAV is also fast and very cheap to send. Coins can be reliably sent for a small fraction of a penny.
Cold-staking is available with NAV. Staking coins from a cold wallet makes it so you don’t have to stay connected to the blockchain 24/7. If you are interested in staking NAV, check out this list of wallets. There is also a Dedicated Raspberry Pi wallet (NavPi).
NAV has no minimum to begin staking.
The NavCoin staking ROI is currently 8.99% per year.
NEO was developed by a Chinese company. The intention was to create a scalable DApp network and digital identities platform. The team believes that a scalable smart contracts platform will be useful for a wide variety of industries.
NEO was sold during an ICO in 2014. It was known as Antshares at the time. The token sale raised $17.5M. Neo uses the Delegated Byzantine Fault Tolerance (dBFT) consensus protocol.
Staking NEO doesn’t actually earn you NEO. It earns you NeoGAS (GAS).
NEO is used to convey voting and dividend rights. GAS is used to pay the fees for smart contract execution.
7 GAS tokens are created with each new block, it reduces by 1 block every year until it reaches 1 GAS per block. It will remain at 1 GAS per block until GAS reaches a 100 million supply. GAS will then be distributed via transaction fees.
Neo is easy to set up for staking. Staking NEO does not require you to leave your wallet online.
Based on current NEO and GAS prices, in USD, the ROI for a year would be 2.2%. Check this link for up-to-date info.
You can stake with the NEON Wallet, there are also other options available. This guide gives some examples of where you can receive your gas rewards. Binance allows you to receive staking rewards as well.
Pivx was forked from DASH in 2016. It rebranded from DarkNet to Pivx in 2017. PIVX Transitioned from PoW to PoS in August 2016. It uses the Zerocoin protocol.
6 coins are created in each new block; the transaction fees are burned. There is no coin supply cap.
Staking standard PIVX isn’t the only option. Users can also stake zPIV. The rewards per block are higher with zPIV. Due to the nature of zPIV, you can’t reliably calculate your earnings because you can’t see your weight on the network. Staking PIVX nodes get 2 PIVX as a reward for finding a block. zPIV gives 3 zPIV for each block.
Some users refer to staking zPIV as “stealth staking”. Since you can stake PIVX and remain anonymous. zPIV can easily be converted to PIV and vice-versa.
Coin Age and your network weight are factors that affect your earnings potential. You can stake using the desktop wallet.
To stake, your wallet needs to be connected 24/7, but cold staking is currently being developed. Staked PIVX coins also provide voting rights.
There is no minimum amount required to stake PIVX.
The current staking yield is about 8% APR.
PundiX is a coin focused on user adoption. Point of Sale machines already exist and retail adoption is on the roadmap.
The ICO took place on January 21, 2018. The token sale raised $35M USD.
NPXS is an ERC20 token. There is an automatic monthly airdrop that delivers rewards to all holders. All you need to do is hold NPXS in your Ethereum wallet, and you will receive these rewards.
The yearly staking yield is currently 14.24%.
Komodo was forked from the Zcash source code. Coins were distributed in an ICO that took place in 2016.
Komodo aims to provide blockchain infrastructure solutions with a focus on interoperability, scalability, and security.
Komodo makes it easy to create your own blockchain. These blockchains also include cross-chain capabilities with other chains within the Komodo federation.
Komodo uses Delayed Proof-of-Work (dPoW) as the consensus algorithm. Proof-of-Stake dominance on the network is currently about 5%.
To Stake KMD, you aren’t required to run a node or maintain an active wallet. But you do have to hold the coins in your wallet and make at least one transaction per month.
The minimum staking amount is 10 KMD, worth $6 at the time this article was written.
The current Komodo staking yield is 5.1% a year.
Decred was forked from Bitcoin when a proposal from Company 0 (based in Chicago) was rejected by the core team. This occurred in February 2016.
Decred is a PoW/PoS hybrid. PoW is used to generate new coins as well as validating and authenticating transactions. PoS validates and authenticates transactions, but it is also used to generate consensus on important network changes and other developmental matters. Stakers earn a percentage of the block reward.
It is governed by a body known as the “Politeia”. Politeia operations are funded by the treasury. 10% of the Decred block reward goes to the treasury. Anyone can submit proposals for protocol amendments or the use of project funds. The cost of a proposal is 0.1 DCR.
The max coin supply for DCR is 21 million, the same as Bitcoin.
Decred successfully executed an atomic swap between Decred (DCR) and Litecoin (LTC) in September 2017.
The current staking yield is approximately 9.5%.
ARK was originally forked from LISK, but over time many changes have been implemented. It was originally sold during an ICO, with $1M being raised. The token sale ended in December 2016.
ARK uses a Delegated Proof-of-Stake consensus (DPoS) model. It also includes support for 18 different programming languages. The block reward is 2 ARK.
To earn ARK rewards, you need to hold ARK in your wallet and vote for a delegate. This can be done from the mobile or desktop wallet.
There are 51 Delegates. They are responsible for validating transactions and creating new blocks. A wallet address can only vote for one delegate.
You can use different wallets to vote for different delegates. This could lower the risk of you not receiving rewards.
Payout frequency depends on the delegate. Some delegates also have other requirements. For example, a delegate might require a minimum amount of earned ARK to be eligible for voting rewards.
The payout depends upon who you vote for. Different delegates share different percentages of the block reward. Currently, the average yearly staking yield is about 10%.
Staking cryptocurrency is one of the best ways to earn passive income in the crypto space. Staking allows you to become more active within a community, rather than being just a passive holder.
Choose your coins wisely. If you are interested in staking, it might be a good idea to diversify the coins that you stake.
Don’t forget to checkout Best Coins for Cryptocurrency Staking 2020: Part 2.
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