The best proof of stake (PoS) cryptocurrencies let investors earn passive income from staking crypto. In other words, hodlers can make money from simply storing cryptocurrency in their wallet. But which ones are the best?
Proof of Stake Recap
Some cryptocurrencies are transitioning from resource-intensive proof of work consensus to more distributed proof-of-stake consensus mechanisms. Here’s a brief overview of the distinction between the two blockchain protocols:
- Proof of Work: Miners with access to the massive computing power needed to cryptographically hash transactions receive the majority of block rewards.
- Proof of Stake: Holders of much smaller amounts of cryptocurrency can earn rewards for their participation in the network.
Best Proof of Stake (PoS) Cryptocurrencies
Today, most high market cap cryptocurrencies like Bitcoin (BTC) are proof of work. This leaves many investors asking: which ones don’t use this protocol?
Here are the 18 best proof of stake (PoS) cryptocurrencies. Each has different applications.
Cardano (ADA) is a smart contract platform similar to Ethereum. It describes itself as a third generation blockchain developer. Cardano has the highest market cap on our best proof of stake (PoS) cryptocurrencies list.
More specifically, ADA uses a unique Ouroboros proof of stake consensus. This is an algorithm that determines which nodes mine on the network and places an emphasis on security.
Dash is one of the most successful Decentralized Autonomous Organizations, otherwise called a DAO, in existence. A subset of users called masternodes run the DAO, but anyone holding DASH can generate passive income through their PoS self-governing protocol.
The blockchain platform NEO is scalable and focuses on dApps or decentralized applications. Non-divisible NEO tokens generate GAS that can pay for transactions fees for DApps on the network.
According to ICOstats, NEO ICO investors have an 18,372% return on investment.
VeChain (VET)’s objective is to enable all authorized stakeholders to access data on its blockchain platform, enhancing transparency for customers and businesses. It runs on Ethereum, and the passive PoS consensus also generates passive income for this crypto.
In addition to being on our best proof of stake (PoS) cryptocurrencies list, VeChain (VET) is also on Blocklr‘s top ERC20 token list.
Omise is a payment platform and decentralized exchange that allows users to exchange between more traditional financial services and the blockchain with the goal of reducing market spreads.
The OmiseGo (OMG) token facilitates these exchanges with an emphasis on fast transactions, flexibility and affordability, as stated in its whitepaper.
Pundi X (NPSX)
Based in Indonesia, Pundi X aims for ease-of-use and specializes in privacy. Specifically, Pundi X provides privacy coin options for its native NPSX token.
KuCoin Shares (KCS)
KuCoin is a secure cryptocurrency exchange with a native cryptocurrency: KuCoin Shares (KCS). Simply by holding onto KCS, users receive a daily bonus dividend. This is 50% of trading fees according to the KuCoin Bonus Calculator.
This crypto is also a privacy coins since it uses an anonymous PoS protocol. PIVX is actually a fork from Dash (DASH). Its protocol pays dividends to holders in a similar manner. Specifically, an investor needs to hold 10 thousand PIV to run a masternode.
Reddcoin (RDD) is a cryptocurrency with social media platform integration, allowing users to send and receive funds on their content platform. Essentially, users can send and receive RDD for sharing valuable content.
Like other payment coins, this PoS consensus earns holders passive income through staking.
Ark aims to provide all-in-one blockchain solutions for businesses. The network boasts 8 second block times, making it one of the fastest networks in the industry. Native crypto ARK uses a delegated proof-of-stake to issue block rewards.
Bridgecoin is a DEX, or decentralized exchange. And BCO is the exchange’s native token, allowing users to save considerably on fees if they use it. Additionally, users can stake BCO to earn staking rewards, and bonuses increase based on how long a user stakes, making it one of the best proof of stake (PoS) cryptocurrencies.
Bibox Token (BIX)
Similar to other DEXs, Bibox incentivizes participation on the network by issuing rewards and dividends based on holdings of BIX, the platform’s native crypto. Bibox is still a small exchange, serving mostly Asia, but rewards make it one to follow.
Neblio develops blockchain solutions for businesses and enterprise developers. NEBL is the official currency and uses PoS consensus.
Currently, buying Neblio (NEBL) from another user or staking are the only two ways to earn this token.
NavCoin is one of a few truly decentralized cryptocurrencies. The managing and issuing of NAV are carried out by collective governance on the network. Furthermore, the DPoS consensus algorithm issues staking rewards for NAV holders.
Linda aims to be a cryptocurrency for everyday transactions, according to their whitepaper.
Its PoS consensus means their wallets are seeing increasing dividends regularly. LINDA’s whitepaper claims that users can earn approximately 68% additional cryptocurrency through staking.
TaaS is a more unique entry on this list of the best proof of stake (PoS) cryptocurrencies. Specifically, TaaS is “Token-as-a-Service,” meaning that it’s also a cryptocurrency investment fund.
TaaS also claims to be the first-ever closed-end tokenized fund dedicated to blockchain assets.
OKcash (OK) has a reputation for ultra-fast payment services that rival the top networks. Its algorithm is open source and built on staking protocols. Fast transactions rates make it a competitor among Proof of Stake cryptocurrency alternatives.
The Best Proof of Stake (PoS) Cryptocurrencies Encourage Participation
Despite their diversity of applications, the best proof of stake cryptocurrencies have a lot in common with one another. For one, PoS holders receive dividends proportional to their stake. In theory, the more an investor stakes, the bigger their potential gains.
Transaction volume is another key factor when looking at our best proof of stake (PoS) cryptocurrencies list. Those with more engagement have more transactions and therefore higher demand.