Top Proof of Stake Cryptocurrencies – Earn Staking Rewards [2019 Edition]

Usually, people think that the only way to make a nice amount of money in crypto is to buy them in the lower price and sell them when the price rises. However, there are hundreds of other smart ways to earn money in the crypto space. Passive income paying cryptocurrencies are becoming a dominant, emerging trend because they offer a hint of sustainability and real value.

Here is an article about how and where you can host a masternode.

Different Ways of Earning Passive Income in the Crypto Space

There are different ways to earn passive income from crypto coins or tokens, but these differ from currency to currency because each has its own way of operating and has its own rules and regulations.

A number of cryptocurrency projects offer some form of a reward for their holders. Usually, you hold a certain amount of the tokens in a compatible wallet, and then each designated period (between every day, to every quarter), a deposit is made to your account that holds the coins. It’s extremely important to make sure you use the right type of wallet because if you keep your coins on a crypto exchange, the exchange will probably get the rewards instead of you.

The most popular ways that actually pay you rewards are:

  • Staking – Holding a Proof-of-Stake (PoS) coin in a special wallet (usually the official wallet of the currency) and getting payouts for the length of time you hold.
  • HOLDing – Purchasing and holding a cryptocurrency in any crypto wallet.

Based on these different types, I am listing a few cryptos that have bright future and that are, in my opinion, worth holding.

Best Cryptos to Earn Passive Income

NEO

neo-logo

NEO is a popular cryptocurrency that supports smart-contracts and has been referred to as the “Chinese Ethereum” as it provides similar functionality, including support for DAPPS and ICOs. This platform is being developed by Onchain, a Shanghai-based company, which started out life as “Antshares” and just recently went through a rebrand to become known as NEO.

Alongside the coin “NEO” there is another one called “GAS,” which can be staked in an NEO wallet for a nice return.

To receive the GAS you must hold your NEO in a wallet and not on an exchange (except Binance and Kucoin that let you stake them), but only a few wallets let you claim the GAS. That’s why it’s very important to pick the right wallet to get the GAS as dividends from the official website here. One more thing worth noting is that it doesn’t require you to keep your staking wallets open at all times like in other Proof-of-Stake cryptocurrencies.

The return one earns is in the form of NeoGAS, which is a unique reward paid by NEO to investors that are holding NEO coins. At the time of writing this article, NeoGAS is worth $44.5. Here is our full guide on NEO and another one gas.

NEO stakers can expect an annual return between 4-6%. For a more accurate earnings estimate, see the NEO staking calculator.

Buy NEO Now

PundiX (NPXS)

Pundi X believes cryptocurrency adoption is stymied by a categorical complexity in exchange perceived by the average would-be user. Point-of-sale terminals coupled with a mobile application and smart card are Pundi X’s solution to more rapid cryptocurrency adoption.

This end-to-end system is also open source, something the team believes to be an important feature for any project building in the cryptocurrency space. Pundi X initially plans to distribute merchant hardware to a select demographic for free. Pundi X’s bundle of products (e.g. point-of-sale devices, bank cards, etc.) plan to be gradually announced and sold to merchants and consumers.

At current prices, you can buy 1.5 million of NPXS for $1000 which would give you a ROI of $220 per year. So that is a solid 22.8% yield per year. 

You can trade NPXS on Binance, HotBit, UpBit and many other big exchanges.

Komodo (KMD)

Komodo, a code fork of Zcash, is a privacy-focused cryptocurrency that leverages a menagerie of unique features implemented by different existing blockchains in an attempt to create a more private, secure, interoperable, decentralized blockchain network. Instead of competing directly with leading protocols like Bitcoin, which Komodo believes to be a futile effort, the project is an effort to experiment with a different combination of familiar parameters.

At current prices, you can buy 1050 of KMD tokens for $1000 which would give you a ROI of $50 per year. So that is a modest but stable 5% yield per year. 

You can trade KMDS on Binance, Huobi, Bittrex and many other big exchanges.


Trade while you sleep with two of the best cryptocurrency bots on the market - Cryptohopper or 3Commas.


Nuls (NULS)

NULS is a global blockchain open-source project which is a highly customizable modular blockchain infrastructure; it consists of a microkernel and functional modules. 

NULS provides smart contract, multi-chain mechanism and cross-chain consensus. It aims to break the technical barriers of blockchain, to reduce the cost of development, and to promote the usage of blockchain technology in the commercial field.

The token of NULS will be used to promote the entire ecosystem. It will be used to support NULS based applications, pay for application costs, perform exchange for sub-chain digital assets, support NULS development, reward miners and pay transaction fees. The total supply of Nuls is 100 million.

At current prices, you can buy 2500 of NULS tokens for $1000 which would give you a ROI of $150 per year. So that is a solid 15% yield per year. 

You can trade NULS on Binance, Huobi, OKEX and many other big exchanges.

trading bots

Read our updated guide on best bitcoin trading bots.


Decred (DCR)

Decred forked from the Bitcoin codebase when a proposal for new suite of features to be added to Bitcoin from Company 0 was rejected by the Bitcoin core team.

Named btcsuite, these features became the core of the Decred project. Decred’s governance and consensus mechanism relies on a PoW/Proof-of-Stake (PoS) hybrid, which the project regards as a sort of “second authentication factor for consensus” by enabling coin holders to curb potential miner centralization, Decred employs a governance body called the Politeia to guide the project’s direction and fund operations from its treasury.

The treasury is funded via a block subsidy representing 10% of each block reward. To obtain funds proposals are made to the Politeia which votes to either approve or reject the proposal. Once approved the funding for a proposal is released from the treasury dependent on achievement of agreed upon milestones.

Holders of the projects native token, DCR, can earn block rewards by staking their tokens in exchange for tickets. The rewards mechanism functions like a lottery, assigning the block reward randomly to ticket holders.

To bring greater certainty to earning rewards many users choose to assign their tokens to a staking pool. Which obtains tickets en mass using participants pledged DCR holdings increasing the chances of pool participants receiving rewards.

At current prices, you have to buy at least 109 of DCR tokens which will cost you $1800 which would give you a ROI of $225 per year. So that is a solid 12% yield per year. 

Check out our guide on the next big cryptocurrency.

You can trade DCR on Binance, Huobi, DragonEX and many other big exchanges.

VeChain (VET)

Vechain Thor

VeChain Thor moved to their own blockchain from ETH network. The VeChain Thor platform uses two different tokens:

  • VeChain Tokens (VET)
  • Thor Power (THOR)

The VeChain Token (VET) is designed for companies as the smart payment currency to run business activities on the blockchain. During the transition period, the companies that hold more VET will be given higher priority and more rights on the new VeChain Thor blockchain.

On the other hand, the Thor Power (THOR) will be given to VET holders. They can use it to perform smart contracts and run applications on the blockchain. This is similar to the way NEO produces the GAS token for its holders. Read our beginner’s guide about VEN/VET.

NavCoin (NAV)

NavCoin Coin

NavCoin is a PoS fork of Bitcoin, created back in 2014. You only need to keep your coins in a Core Wallet that is very lightweight and can be done via Raspberry Pi. The rewards are around 5% annually which is not much but since the process is literally just set and forget, it is still a nice boost for your budget with almost no effort.

For a more precise estimate, see the NAV staking calculator.

LISK (LSK)

lisk logo

Read our updated review of Coinmama exchange here.


Lisk is a decentralized network with its own blockchain, like Bitcoin, Bitshares or Nxt. However, Lisk doesn’t use Proof of Work (PoW) like Bitcoin, or Proof of Stake (PoS) like Nxt, rather they use a consensus algorithm called Delegated Proof of Stake (Dpos), which is a simplified implementation of BitShares’ original consensus algorithm. Every LSK holder can vote for mainchain delegates that are securing the network, and only the top 101 users with the heaviest votes (i.e. highest number of Lisks individually owned) have a say in problem solving resolutions and are able to cast votes to carry forward motions. Only these top users can earn block generation rewards, which means there is a financial incentive to become an active delegate. Every other delegate is on standby awaiting to become elected.

ARK

Ark token

ARK pays up to 10% dividends on coins when you stake them and vote for one of the 51 delegates. These dividends are paid out every few days (or sometimes daily) so you’re getting instant growth in your tokens.

There will be a total of 128,694,286 Ark Coins. Currently, 97,444,286 of these are in circulation, with Ark using the delegated Proof of Stake.

ReddCoin (RDD)

reddcoin

Staking RDD is a very user-friendly process – download the Reddcoin Core wallet and load your private keys into the wallet. After the 8 hours waiting time, you will start staking and earning your RDD. Approximate rewards float around 5% per annum.

KuCoin Shares

KuCoin

Based in Hong-Kong, KuCoin is a world-class blockchain asset exchange that pays out 90% of daily exchange fees to their token-holders. The exchange was launched in mid-2017 and is a relatively recent arrival in the world of cryptocurrency exchanges. However, the founding members explored and researched various possibilities as early as 2011. I think KuCoin will be massive in 2018 due to its business model and marketing push. At the time of writing, the daily volume is just 4,622.37 BTC (equivalent to 65,549,835.96 USD), but with the launch of promised features, such as the ability to add trading pairs, the daily volume should quickly grow to a dramatic extent, allowing KuCoin to reach its goal for the end of 2018.

KuCoin offers its own token KCS (KuCoin Shares), which has a total volume at issuance of 200 million, and uses it in a similar way to Binance. However, their mechanism of rewarding its holders is different from Binance.

By holding Kucoin Shares on the exchange, you are entitled and bestowed upon a DAILY bonus called KuCoin Bonus. KCS holders receive 50% of the overall trading fees generated currently, proportional to the number of tokens owned, which means that if the volume and amount of coins traded increases on KuCoin exchange, the bonus of holding the KuCoin Shares will increase as well.

Buy KuCoin Shares

ZenCash

ZenCash Coin

Masternodes in ZenCash ecosystem are called Secure Nodes. There are two types of Secure Nodes – A-Secure Nodes and B-Secure Nodes. The difference is in the amount of coins you need to own for staking and in the reward percentage you get from blockrewards.

A-SecureNodes require 42 ZEN and will give you a 3.5% share of blockreward.

B-SecureNodes

Faced with the issue of quickly diminishing returns for node operators due to the rapid growth of the community, the Zen team recently decided to implement a brand new reward scheme. Under this new system, secure node operators now share 10% of the total mining reward.

BridgeCoin

BridgeCoin is a scrypt-compatible coin that was created in July 2017 as the native token of a new and popular decentralized exchange called CryptoBridge DEX. This coin was created in order to finance the development of the decentralized exchange. BridgeCoin promises advantages like high liquidity and convertibility, fast transaction, a multi-platform support and guaranteed scaling. It was developed by a highly trained international team that wanted to bridge the gap between different types of cryptos in many aspects, including their levels of scaling, arbitrage, liquidity and price discovery, among other factors.

BridgeCoin is designed to share revenue with its holders and its central purpose is to give the owner of the coin the opportunity to stake it and thereby become a part “owner” of the cryptobridge DEX and share in 50% trading revenue.

I like this idea more simply because of the reason that it has a decent revenue sharing model and that it is a decentralized exchange.

Buy BridgeCoin Now

Read our updated guide on most profitable coins to mine.


DigixDAO

DigixDAO is a gold vault services firm and was the first Ethereum-based token that started paying dividends. The Digix Gold Tokens (DGX) are asset-backed Ethereum tokens and each token represents a share of the gold stored. The dividends will come from fees of storage of the gold, and this fee, in the form of earnings of the DigixDAO, is distributed to the DIGIX token holders.

It’s important to note that DigixDAO has a full backing of gold in its vault, which requires costs to maintain, audits, insurance, etc.

In January and February 2018, on a day when Bitcoin saw market reductions of -15% and Ethereum saw -20% reductions, DigixDAO has managed to actually grow more than 50% and  is the only cryptocurrency in the top 100 (by market cap) not in the red.

PIVX

PIVX

PIVX (Private Instant Verified Transaction) is an open-source, decentralized cryptocurrency that is trying to be anonymous by applying Zerocoin protocol. PIVX is forked from DASH and is attempting to build a usable digital means of exchange that is easy to spend privately and securely in everyday life.

And just like almost all PoS crypto, it also has its staking model, which means that you can earn stakes while you sleep by holding your PIVX in a wallet. This model is super simple and pays decently for staking.

It’s important to note that any amount of PIVX can be staked in the wallet. Also, a proposal was recently passed to give some voting rights to all stakers, which means that you don’t need to hold a full 10,000 PIVX to earn rewards and vote. Each block (every 60 seconds) a reward is released at random in chances proportional to the amount of coins being staked, but in this case, the wallets need to be open and online for a certain amount of time to claim the staking rewards.

The list of staking coins keeps growing…

The list of staking coins keeps growing: Neblio, Nulls, PayFair, Ontology, Tezos, Particl, Decred etc.

Conclusion

As you can see, there are quite a few ways to earn a cryptocurrency reward. Holding, staking and running masternodes in 2018 will really take off and through the use of these methods, it’s possible now to hold various cryptocurrencies and earn a relatively regular return by doing so.

 

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Phil Traugott is a staff writer at CaptainAltcoin. As a trained marketing specialist for copywriting and creative campaigns, he has been advising top companies on the following topics: online marketing, SEO and software branding for more than 10 years. The topic of crypto currencies is becoming increasingly important for companies and investors and he found it very alluring and fitting for his skillset which prompted him to pivot his career towards blockchain and cryptocurrencies.

29 Comments
  1. You missed possibly the biggest one which is LISK

    • Linda is another good POS coin, i would recommend adding but all and all good article

    • Not really, Lisk is run by a cartel of delegates who keep the reward. It’s very misleading for Lisk to be in this list as the general holder does not receive any dividend.

    • Thanks for noticing that. LSK will be added!

      • Why have you added Lisk? The only people receiving tge reward are the delegates who rarely, if ever pay out to the voter/staker.

        You can pretty much do a simple search and find that the delegates are controller by a cartel like organisation who vote for each other.

        It is definitively not a dividend paying crypto.

  2. Great 🙂

  3. Truckcoin has the best payout – *up to 200% per year (depending on built-in inflation control).
    Plus rumors of being involved in a multi-billion dollar transportation industry.
    Running strong since 2014, this is one to watch.

  4. The comments below are FUD. Yes, a significant part of the current Lisk delegates are members of a cartel, but that cartel does regularly pay out voting rewards (as long as you vote for all required members), as do other independent delegates. Each delegate has a minimum amount that you need to collect before they pay you, so you might not receive any coins in the first weeks if you don’t have much LSK, but it starts coming eventually.

  5. You missed Steem, you can lend/delegate your Steem and earn 40+% annually, interest payment every day.

  6. You can put your Stellar Lumens into a pool and receive 1%.

  7. Etheroll (DICE) is another that has quarterly dividends of the house wins. If they lose than nothing.

    EtHorse (HORSE) is a new gambling / prediction platform that takes a 5% rake from every “race” and splits that evenly among the tokens. With volume it should generate great dividends.

  8. You forgot Wings which generated over 6M$ in rewards and going to distribute 15M$ more.

  9. Castle coin is another great one given it pays out other crypto coins AND has staking rewards AND masternode rewards!

  10. You should list MineXcoin…they have daily, weekly, monthly and yearly interest payments. A great coin to look into.

  11. And also do an article / review on MinexCoin and LindaCoin… And add them to this article..

    Linda is steadily climbing up in Cryptopia with massive Volume!
    I got in around 10 satoshis and im still getting more. Its ca. 36 sats. Now.. June 15th..

    ReddCoin and SocialSend and Electra are partnering with Linda.. They are making a REAL passive staking platform supporting several coins.. Get your coins now my friends! Before the Bankers get in…

  12. Thanks for the useful information about tokens that generate a passive income. I also would like to share with you and the community this website that keep a curated lists about crypto tokens that give a passive income by holding them: https://haicryptocashflow.com

  13. Great article! I found https://topstaking.com/staking-coins/ helpful when I was searching (staking coins, pos coins, etc)

  14. You forgot about Ontology ONT which is pos I believe. Used to be on NEO blockchain but now has its own chain. Holders are rewarded with ONG similar to the GAS you get for staking NEO.

  15. Im curious if KuCoin and Binance will let you stake other coins besides Neo and benefit from the “dividends” of other coins as well?

  16. You missed nuls currently 15% and a solid project in the top 200

  17. You forgot TRON (TRX). When you freeze TRX and vote for superrepresentatives, you get voting rewards. Also there are token-airdrops, when you hold TRX.
    People received their first amount of BitTorrentToken (BTT) about two days ago. This can be sold on several exchanges. And one should not forget all the tokens that grant you dividend shares in gambling dapps like Tronbet ANTE.
    As far as I know, TRX is the most viable option, when it comes to passive income.

  18. Ardor has a new rewards program going where you get tokens on the Ignis child chain for forging on the Ardor parent chain. Pretty interesting incentive. https://www.jelurida.com/nxt-ardor-forging-rewards

    API info:
    https://ardordocs.jelurida.com/Forging

    Info on Forging: https://ardordocs.jelurida.com/Forging_(f)

  19. Blocknet (block) is a great one for Staking,
    Currently it’s %17-%19
    (Of course this could change like any Staking coin with the amount of stakers)
    No minimum requirements as well.
    Trading at just above $2 now and is predicted to go in the hundreds within a few years..

  20. Aegeus one of them

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