Today on crypto-market is presented more than one and a half thousand types of cryptocurrencies. Due to the fact that each cryptocurrency supports its own project, mission, blockchain and mechanism of operation, Mining and day trading have long ceased to be the only ways to generate income. Holders of some cryptocurrencies can also receive income due to the support of the algorithm PoSlong investment or masternode launch.
Passive ownership share with PoS
Unlike the Proof-of-Work (PoW) mechanism, where every miner actually has to prove that his node has completed calculations, in the PoS (Proof-of-Stake), the miners, called validators, prove ownership of the blockchain or cryptocurrency. The larger the share, the more likely that the node will get the right to mine the next block. At the same time, the income of validators is exclusively commissions from transactions. The PoS algorithm has several significant advantages over PoW - this mechanism is more resistant to attacks and less expensive in terms of power consumption.
In order to receive passive income from PoS, you only need to keep your computer turned on and your PoS-cryptocurrency wallet activated so that they confirm transactions in the network. One of the key advantages of this type of passive income is that you can sell your cryptocurrency at any time, they do not lose in value because of the steak. You can also delegate your share of ownership to another validator, and in return receive a percentage of the reward for mining. In this case, you need to delegate your ownership share once and then just wait for the charges.
Among the shortcomings, experts note the likelihood that PoS can lead to the accumulation of funds in the hands of one or a group of validators, which will adversely affect the decentralization of the network. Also, depending on the cryptocurrency, the entry threshold can be quite high, and substantial income will require large investments. However, the number of cryptocurrencies that support the PoS consensus algorithm is constantly is growingtherefore, the choice for investors is increasing.
Of the coins presented, it is worth considering separately the cryptocurrency of the Stellar Lumens (XLM) network, which uses its own Stellar Consensus Protocol or SCP, and not PoW or PoS. XLM coins are not miningable, however, the Stellar network runs a target annual inflation rate of 1% of the total XLM supply. Coin holders have the right to vote for the address they think should receive the XLM coins generated during the inflation process. In order to receive them, the address needs to collect more than 0.05% of the votes of all coin holders. As a result, XLMPools pools appeared on the network, which automatically distribute the received coins to the holders who voted for them.
The most popular and profitable cryptocurrency supporting PoS:
BitShares
Factom
Passive income from launch masternody
Masternode, or masternod, is a networked computer with a server running a cryptographic client. Masternody help the network to perform functions that miners can not perform: confirm instant transactions, provide decentralization of the control mechanism and conduct private transfers.
Masternody should have a certain amount of coins in the wallet as a pledge of confirmation of ownership. The network automatically rewards the mastrenod in exchange for supporting the network and blocking a certain amount of cryptocurrency. Masters can support both PoS and PoW.
As for making money on a masterclass, it depends on the type of cryptocurrency, on how this cryptocurrency works with a mastercoin, and how stable the course of this cryptocurrency is. Today, the following cryptocurrencies Support the Work masternodov in your network:
Bata (BTA)
Crown (CRW)
ChainCoin (CHC)
Dash (DASH)
Diamond (DMD)
ionomy (ION)
Monetary unit (Mue)
neutron (NTRN)
Pivx (PIVX)
NEM (Nem)
Vcash (XVC)
Passive income from dividends from cryptocurrency
In the classical sense, dividends are part of the company's profits that each shareholder receives in investing in shares. So on cryptorinka submitted a series of blockchain projects that pay dividends to cryptocurrency holders after a certain period of time — day, week, month, quarter, or year. It is worth noting that in order to receive dividends from cryptocurrency, in most cases it is necessary to keep them in the recommended wallet, and not on the stock exchange. Otherwise, the exchange will receive dividends.
NEO
The NEO platform is often described by crypto market players as the Chinese version of Ethereum, and its cryptocurrency is considered one of the most promising this year. The platform exists to develop and support the "smart economy", and the project partners include Microsoft China, the Hyperledger project, Alibaba and the Chinese government.
The platform provides for the operation of two tokens: NEO and GAS. NEO implies partial ownership of the platform shares, while GAS is used to pay for all operations on the NEO network. To get a GAS, you just need to have the NEO token in the wallet, where the option “Claim Gas” is provided, for example in the wallet NEON. Each month, NEO holders get GAS, and their number directly depends on the time of ownership of the NEO token.
PivX
Private Instant Verified Transaction or PivX Is a secure, decentralized PoS cryptocurrency PIV project focused on privacy. This cryptocurrency appeared as a result of the hard forks network Dash. Cryptocurrency developers have set as their goal to issue a coin with which you can quickly and anonymously carry out operations, and its management system should be transparent and fair.
As in most cases with PoS-coins, PIV holders are charged fixed rates from transaction fees. In accordance with the PoS 3.0 protocol, the system applies both a fixed block reward and an innovative distribution of rewards. There are three ways to get PIV: earn money from a PIV stored in your wallet, launch a master program that requires 10,000 PIV, or assist in developing and launching PIVX projects.
Every 60 seconds, 5 PIV is created, which are automatically divided into three parts: 10% is transferred to the budget fund, which is used to finance and further develop PIVX, and the remaining 90% (4,5 PIV) is distributed between the masters and the owners of active wallets.
Neblia
The Neblio project held an ICO in August 2017 in support of the peer-to-peer blockchain network of the same name. Thanks to Nebilo, users can conduct transactions, launch and work with decentralized applications, conduct ICOs and use smart contracts. The platform operates NEBL cryptocurrency, which is a means of payment on the network, and also provides the ability to instantly transfer information.
The Nebilo blockchain uses PoS, in which users "stake" their tokens to secure the network, which is called staking. Per staking users receive a reward proportional to the number of NEBL tokens delivered.
100% of all tokens were sold during the ICO, after which the only way to get NEBL is to buy from the holders or to participate in staking to get a reward in the form of tokens. Moreover, stacking is the only way to create new tokens in the Nebilo network.
Nav coin
Nav coin - decentralized PoS cryptocurrency based on the latest version of Bitcoin Core. NAV Coin cryptocurrency is completely anonymous, thanks to its technology that removes even the IP address of the computer from which the transaction was carried out.
Nav Coin supports SegWit functionality and easy-to-use wallets that are equipped with advanced privacy features. Thanks to the PoS algorithm, holders can earn up to 5% of their investments simply by holding a wallet that supports this currency in staking mode.
KuCoin
Passive earnings are also possible due to the storage of the cryptocurrency of the same exchange KuCoin. Token KCS (KuCoin Shares) was launched in September 2017, in the role of stock exchange. In this connection, all KCS holders receive a reward - exactly 50% of their profits the exchange distributes among investors, according to the value of their KCS balance. To receive daily remuneration, it is enough to keep the KCS on the exchange. The exchange also plans to buy 100 from 200 million KCS, gradually burning them, by analogy with the Binance exchange.
BridgeCoin
BridgeCoin or BCO is the internal cryptocurrency of the CryptoBridge DEX decentralized exchange. Just as in the case of KCS, the holders of BCO tokens are considered investors, and therefore receive dividends from profits in the amount of 50%. However, the accrual intervals vary depending on the trading volume of the exchange.