How to earn income through cryptocurrency staking

There are many ways to earn with blockchain and cryptocurrencies. I published a post on how to earn free cryptocurrencies worth over $200 . I also published another on how to make more cryptocurrency by trading them.

The earning possibilities are abundant with cryptocurrency.

The above are some out of the many of the effective ways you can earn free cryptocurrency.

Staking Cryptocurrency

What if you could quickly and easily set up a side stream of passive income? With blockchain and cryptocurrencies, this is now possible. You can generate passive income by staking cryptocurrency. You sit down, and the money keeps rolling in.

Blockchains employ different methods of rewarding users for participating in their networks. Bitcoin uses the Proof of Work (POW) to reward miners for confirming transactions.

There is Delegated Proof of Stake (DPoS) that rewards delegates for confirming transactions and signing blocks. Chains like Hive, Steem, and Scorum utilize DPoS.

There is also Proof of Stake that Ethereum wants to switch to.

The Proof Of Stake (PoS) algorithm uses an election process to select the validator of the next block based on a combination of factors that could include the staking age, randomization, and the validator’s wealth.

In this article, we will talk about the best coins that can be staked for passive income.

After reading this guide, you should have a good knowledge of the technology behind these coins, their staking requirements, annual return, and how you can earn passive income by staking the coins.

How does Staking work?

Staking is an incentive mechanism that rewards holders of specific cryptocurrencies for their contribution to the network. The size of the reward depends on several factors. They include

  • the number of coins these network participants are holding in their wallets,
  • the staking age, and
  • randomization.

In summary, in most PoS environments, validators are rewarded based on the number of coins that are locked in. The more coins they lock in the network, the higher their potential rewards.

The Best 3 Staking Coins for 2020

There are many coins that you can stake for passive income out there. Coins like Tron, Decred, Tezos, Algorand, and Waves can be staked for around 5% annual reward.

Below are the best 3 coins you can stake for a higher annual reward.

ChainX (PCX)

ChainX staking

ChainX aims to facilitate asset interoperability with other blockchains. ChainX believes any chain can have asset interoperability with all other chains as long as it establishes a connection with ChainX.

Annual Reward

ChainX currently has an annual reward of 89%. This means you get 89% of your locked coins back after a year.

How ChainX staking works

  • Import your wallet or create a new wallet
  • Click the PCX staking and enter the amount of PCX you want to stake
  • Vote for the Staking Provider/nodes of your choice inside the wallet to start receiving rewards.
  • You can only switch votes once every 3 days.

ICON (ICX)

icon staking

ICON is a decentralized blockchain network focused on interoperability. It is a decentralized network of blockchain communities.

ICON’s blockchain works on a PoS system, and the staking process is similar to that of ChainX.

Annual Reward

ICON currently has an annual reward of 15.45%. This means you get 15.45% of your locked coins back after a year.

How ICON staking works

  • Download and install the Iconex wallet which is available on iOS, Android, and also as a Chrome extension.
  • You can create a new wallet as a new user, or load a wallet if you have an account already. The other option is to Connect to Ledger.
  • Click on the Voting button on the wallet toolbar to stake your preferred amount of ICX.
  • Use the Staked ICX to vote for a P-Rep
  • Users who staked ICX tokens will be rewarded in I-Score. The I-Score can be converted into ICX tokens once a sufficient amount has been reached.
  • You can unvote a P-Rep and also unstake the ICX tokens. Unstaking takes 11 days before your tokens can be released for you to use.

Ark (ARK)

Ark staking

Ark is another blockchain that offers a collection of tools to create an ecosystem of interoperable blockchains. Ark uses the Delegated Proof of Stake (DPoS) consensus algorithm, and 51 delegates secure its network. ARK token holders appoint these 51 delegates through voting.

Annual Reward

ARK currently has an annual reward of 8.73%. This means you get 8.73% of your locked coins back after a year.

How ARK staking works

  • Download and install the Ark desktop client
  • Create a wallet or import a wallet you want to vote from
  • Click on the vote tab and choose a delegate you will vote for.
  • 1 ARK equals a voting weight of 1. The more ARK you hold in your wallet, the more weight your vote carries. Each vote and unvote costs 1 ARK, and an ARK address can only vote for 1 delegate at a time.

One thought on “How to earn income through cryptocurrency staking

  • May 9, 2020 at 12:17 pm
    Permalink

    Okay. How can I deposit token to the wallet respectively after downloading the apps?

    Reply

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