You are about to see my top list of proof of stake coins for 2020. This post might just be the pointer to where you can start on your passive cryptocurrency income journey.
Attaining financial freedom is at the top of the list of almost every person. This can only happen when one has several streams of income. If you are among people aiming at financial freedom, you have probably come across several passive income options. Some of them include stocks, selling eBooks online, network marketing, creating apps, and affiliate marketing.
Of all the passive income streams in 2020, cryptocurrencies remain the best one. Under crypto passive income, we have mining, staking, lending, and affiliate programs. However, the easiest and best option is staking.
Staking is a process where one holds crypto coins in a Trustwallet to receive rewards. The concept behind this is the proof of stake. This is where new blocks in a chain are validated through staking and therefore does not rely on mining. The more significant the number of coins one stakes, the higher the chance of being chosen as a block validator.
In this article, we?ll bring you closer to your financial freedom by introducing you to the best proof of stake coins for 2020. So, here?s the top list.
1. Fusion (FSN): 19% Annual ROI
Fusion (FSN) is on the top of the list for several reasons. Fusion is a crypto platform aimed at bringing all blockchains together. It provides cross-organization, cross-data source, and cross-chain smart contracts, thereby providing an inclusive crypto platform. Additionally, it provides the infrastructure for financial functions on the blockchain.
Connecting to the fusion network is quite easy, all you need is to buy some Fusion coins.
You have different options for staking ? staking with one of the Fusion pools, staking with wedefi.com, staking on exchanges, or running your own node.
Staking Fusion With Pools
Fusion has few community pools all offering great service they charge a small fee of around 5%.
All you need to do is send you timelocked Fusion to the pool and they will do the rest.
Staking With Wedefi
Wedefi.com is a great and easy to use app offering easy staking with just a few clicks.
You need to install the app and make a new wallet (please write down your seed words).
Once you have the Wedefi wallet access and your main wallet, send your timelocked FSN coins to your Wedefi address.
When you have coins in Wedefi you can stake and get returns daily at around 19% RIO at the moment.
Staking on Exchanges
Some exchanges offer staking to their users too ? currently Hotbit offers this type of staking for Fusion more exchanges will be added soon.
You need to buy FSN coin on Hotbit (or transfer your FSN to your Hotbit account) and then simply stake on the platform. Your tokens will be locked for a month.
Returns are paid monthly Hotbit charges small fee currently they are offering 15.93% RIO for FSN Fusion coins.
Running Fusion Node
If you have more than 5,000 FSN you can run your own node. Setting up a node is pretty easy it can be done in minutes but you will need some basic technical knowledge to do it.
You start earning in seconds while improving the security of the Fusion network at the same time.
There is a very good article explaining how to set up your own node. Currently, if you are running your own node you will receive a 20.2% reward per year.
There are more reasons why Fusion is on the top of the list of POS coins for 2020, but I?m going to write about them in one of my future posts.
2. Fantom (FTM): 42% Annual ROI
Fantom (FTM) is another Proof of Stake coin that focusses on solving speed and scalability. It aims at providing fast transactions and a secure network. Fantom uses the POS algorithm to secure its system as well as validate transactions.
You can participate by staking FTM as a crypto passive income source. In exchange for staking you will be rewarded with FTM tokens. In staking, one doesn?t need specific devices or hardware. You can stake from your smartphone or your home computer.
The steps for staking FTM involve downloading a mobile app if you are using an android powered phone. You can also access a web wallet from the browser on your PC. The second step is transferring FTM from an ERC20 wallet or an exchange to the new opera address. The last step is finding a good validator and clicking on the stake.
Fantom encourages users to stake by locking rewards until the lowest staking amount within the network is reached. This smallest staking amount reduces by 1% every week.
It is exciting that the percentage interest you earn for staking FTM is as high as 42%. This makes it one of the best crypto for staking.
3. Chromia (CHR): 20% Annual ROI
Chromia is a crypto platform that focusses on solving the problem of scalability for decentralized applications. The platform is relational and designed primarily to facilitate the generation of decentralized applications (dApps). CHR is the utility token for Chromia.
The current use of the decentralized app in Chromia involves real estate, finance, healthcare, and gaming. Chromia has put in place strategies that are likely to increase its popularity and use. These strategies include hosting gaming conferences, meetups, and workshops within the blockchain.
Secondly, they will provide tutorials to interact with decentralized Apps developers. Continually engaging the crypto community through the various social media channels and facilitating staking for the Chromia CHR.
Chromia?s blockchain consensus is realized through delegated POS. Investors have the opportunity to leverage their crypto through staking. Chromia is currently offering staking rewards. Staking CHR is where earning that passive income comes in. Now, the yearly staking reward for staking CHR is at 20%.
The latest news on Chromia shows plans to team up with Pool X (crypto exchange platform) for a staking campaign. The campaign is about users staking CHR and earning up to 30% APR. Also, the users will be given daily mining rewards of 250,000 POL during the staking period. As it continues to gain users, CHR seems to be a good investment opportunity.
4. Tezos (XTZ): 6% Annual ROI
Tezos is a crypto platform for applications and assets, and it evolves by upgrading itself. It is usually ranked very well on many lists of best Proof of Stake coins and there are several reasons for that. Here are some of them.
The consensus mechanism that Tezos uses is called Liquid proof-of-stake. Liquid POS refers to the fact that your balance is not locked and can be transferred at any time.
Investors or token holders have an easy time staking with Tezos. This is because they can delegate managing accounts to the validator (also referred to as bakers in Tezos), who will do the staking for the investors. When the investor is rewarded, the validator charges a small validator?s fees.
Staking of XTZ became more popular in 2019, and therefore more exchange platforms (such as Binance, Kraken, and Coinbase) engaged in providing validation services for users. Currently, Coinbase is the leading validator with XTZ stacking of about 65M XTZ
For the first time you stake XTZ, you receive rewards after 21 days. Afterward, you start receiving rewards as soon as within three days. If you are thinking of crypto passive income, Tezos XTZ should be one of the POS coins you invest in this year.
5. Algorand (ALGO): 5.1% Annual ROI
Algorand blockchain and ALGO token aim at solving scalability, security, and decentralization at one go. The blockchain consensus is achieved through pure POS meaning investors and users can earn passive income through staking ALGO. Also, the project focusses on transparency to ensure the success of all ALGO users.
This pure POS ensures high speed of transactions, full participation, and protection within an entirely decentralized network. Algorand is competing with popular payment and financial systems but may have a competitive advantage due to decentralization.
Staking ALGO simply involves sending ALGO to a personal Algorand wallet on your smartphone. Holding ALGO in the wallet automatically generates rewards. The required minimum amount for staking is 1 ALGO. Holding 100 ALGOS for a year will probably earn you 10 ALGOs as a reward depending on your frequency of transacting and changing your balance.
Currently, the yearly interest of staking ALGO is 5.1%.
5. Decred (DCR): 6.16% Annual ROI
Decred attempts to yield the best results by using both Proof-of-stake and Proof of Work in an innovative hybrid. This makes it more secure than blockchains using pure POS or pure PoW. It has a system that allows the blockchain to change at stakeholders? will while incorporating new technology gradually.
The DCR rewards are divided such that POW miners get 60% of the rewards while POS DCR ticket holders get 30%. Ten percent goes into the project treasury. Stakeholders delegate validation work to Stakepool. Stakepools cannot steal or spend DCR. Stakepools don?t get any access to your funds.
Delegation is suitable, especially since for passive income, you don?t have to be online always. The Decred website provides a list of voting service providers that one can delegate to.
Currently, DCR staking annual reward is at 6.16% and would be a good investment. The required minimum for staking is 138 DCR. The minimum lock-up period for DCR is 28 days.
6. Cosmos (ATOM): 8.34% Annual ROI
Cosmos focuses on addressing scalability, usability, and interoperability. Concurrently, Cosmos allows for an innovative blockchain network. It will enable developers to create new blockchains as well as applications.
The various blockchains communicate with each other through the Tendermint protocol which Cosmos is based on. Tendermint core is made up of 4 modules, namely; POS module, governance module, fees and rewards module, and inter-blockchain interaction module.
Cosmos ATOM is one of the POS coins that investors can leverage through staking. Ownership of ATOMs gives you the right to delegate, vote, or validate. There are two options for earning that desired crypto passive income and staking rewards investing in Cosmos. You can either delegate Cosmos ATOM or run a validator node. The delegation is a way of staking.
When one stakes their ATOM tokens, the rewards are generated automatically. Currently, the annual rewards are at about 8%. Considering Cosmos relevance in solving both interoperability and scalability, it is bound to become more popular with time.
7. Synthetix (SNX): 52.5% Annual ROI
Synthetix is a platform for trading tokens and is built on Ethereum. It allows users to create real-world assets such as stocks, valuable metals, shares, currencies, and other crypto assets. SNX investors earn rewards every week. The latest report on Synthetix Dashboard showed that by February 2020, approximately 80% of SNX tokens were staked.
To receive rewards, you need to maintain your ratio of collateralization above 800%. However, some services can monitor this for you, such as Staked. They send you to reward updates as well as updates on your collateralization ratio.
Synthetix has been performing well, especially in 2019 that it nearly reached $1b in trading volume. Also, there has been a rapid growth in the collateral value of SNX and numerous dApp upgrades. Synthetix aims at competing against wall street who are the major players in stock and other assets exchange. Since it offers more in terms of security and transparency, the adoption of SNX may increase rapidly soon.
The annual reward for staking is 52.5% which is a high percentage compared to other POS coins. Considering how well investors received this token, now might be the time to include SNX staking as part of your passive income source.
8. Loom (LOOM): 17% Annual reward
Loom Network is a crypto platform intended to enable Ethereum-based dApps to run on sidechains. It aims at making scaling dApps easier and faster while still on the Ethereum network.
For Loom, blockchain consensus is realized through Delegated Proof-of-Stake. Staking is the only way of earning passive income within the Loom Network.
The available LOOm token is approximately 300 million. The percentage of staking rewards will increase depending on the period of staking. It will range between earning 5% reward for two weeks to earning 20% for a staking period of one year.
At the time of writing this post, Loom Network has a 24 hours market volume of $6,528,923, and the staking annual reward is at 17%. Just like most of the other POS coins on the list, it employs delegation for staking. The process is easy.
9. Icon (ICX): 13.43% Annual ROI
Icon focusses on building a decentralized network of blockchain that is powered by cryptocurrencies. Often, it is referred to as a ?digital nation?.
Icon uses a Delegated POS consensus mechanism to choose the nodes that can add blocks to the blockchain. Users can leverage their ICX by creating new blocks or voting. You can earn more Icon coins trough staking ICX, running a sub-P-Rep Node, and running the main P-Rep node. Of the three, staking has the highest reward. At the moment, the Icon?s annual ROI is 13%.
Having gone through the top list of Proof of Stake coins for 2020, I believe you are ready to start investing. What is more existing is that 90% of the coins in this list use delegation. You, therefore, do not need to be online all through. You can stake and sit back as your rewards stream in on a daily, weekly, monthly, and yearly basis. Crypto passive income may just be the best income source so far.