Earning with Proof of Stake cryptocurrencies
Earning with Proof of Stake cryptocurrencies
Crypto

Earning with Proof of Stake cryptocurrencies

By Marco Cavicchioli - 12 May 2020

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What are the Proof of Stake-based cryptocurrencies that can be staked to earn money? 

On cryptoslate.com there is a list of all the major PoS-based cryptocurrencies: there are 371, but not all of them allow earning through staking. There is also a list of the 36 that offer DPoS

For example, the main Proof of Stake-based cryptocurrency for market capitalization is Binance Coin (BNB), but it does not offer everyone the chance to participate in staking.

In fact, the income from staking comes from commissions paid for transaction validation, but with Binance Coin it is not possible for everyone to participate in this validation. Nor does it have the Delegated Proof of Stake (DPoS), which allows delegating the staking of tokens to validators. 

Therefore, although there are 371 PoS-based cryptocurrencies, and 36 DPoS-based ones, only a few of them offer a chance for everyone to earn money by staking. 

Cryptoslate.com, besides the names, also contains the so-called PoS APR, which is the possible annual rate of profit as a percentage of staking, giving a complete picture.

However, there are two ways to earn money with staking: becoming validators, and thus directly running the Proof of Stake, or entrusting tokens to a validator so that they can use them to collect commissions and distribute a percentage to those who delegate them.

The site mentions the percentages earned by validators, while those of users who delegate the staking of their tokens vary from validator to validator. 

For example, some exchanges, such as Binance, Coinbase, Bitfinex, offer this service, as well as Ledger

On stakingrewards.com is also possible to find a list of all the main providers of this service. 

The main difference is technical. Delegating your staking tokens to a validator is much easier. In fact, it’s enough to follow a special procedure, often very simple, and leave them in staking without using them. 

By contrast, to become a validator, things are much more complex and require much more effort to perform the Proof of Stake. 

The most profitable Proof of Stake cryptocurrencies

In 2020, the most interesting Proof of Stake cryptocurrencies seem to be Tezos (XTZ), with about 6% annual gain, DASH, with about 6.5%, TRON (TRX), with about 4%, NEO, about 2%, Ontology (ONT), about 3.5% and VeChain (VET), about 1.5%, whereas Cosmos (ATOM) arrives to offer almost 8%. 

But these are not the ones with the highest percentage. For example, on cryptoslate.com at the moment it appears that PundiX offers more than 20%, and Shift even 27%, although these are variable percentages. 

In addition, it must always be remembered that the gains are obtained in the cryptocurrency put in stake, so the change in its price can also change very significantly the true value of the profit obtained in this way. 

Therefore not only the percentage of profit varies over time, but also the value of the tokens that are earned. For this reason, there are cryptocurrencies, such as Tezos, Dash, TRON, Neo, Ontology, VeChain and Cosmos, which offer greater stability than others, while for example PundiX and Shift could easily have much greater variability. 

This applies both when deciding to become a validator and perform Proof of Stake, and when delegating tokens to a validator. 

The Trust Wallet Staking Calculator can be used to perform updated calculations on the potential earnings. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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