3 Cryptocurrencies To Earn Passive Income With — Part 2
Before proceeding any further, I’d like to thank each and every reader of my blog for the enormous support and responses I’ve been receiving over the past few weeks.
As promised in Part 1, which you can find here, I will highlight 3 (more) cryptocurrencies that allow you to earn a passive income. And since this quote was highlighted hundreds of times last time, I’d like to re-iterate and quote Warren Buffett once again — “If you don’t find a way to make money while you sleep, you will work until you die”.
ICON is another project that has been making headlines as of late, which I also see as having great potential. It has been dubbed as the “Korean Ethereum” but has so much more going for it and this tag does not justify it. ICON has recently launched their main net and will soon allow converting (or token swap as they call it) the “placeholder” ICX ERC20 Tokens (these were just used to launch their Initial Coin Offering) to “real” ICX tokens.
Closely tracking ARK.io from my previous post, ICON uses a consensus mechanism called Loop Fault Tolerance (LFT) with an incentive system very similar to Delegated Proof-of-Stake (DPoS). This mechanism requires coin holders to vote for delegates, who are responsible for validating transactions and maintaining the blockchain. You can find more details about LFT here.
Once ICON has fully launched their main net (including their wallet ICONex and token swap mechanism) all you would have to do is set up an ICON account and cast your delegate vote. You will then receive a payout through the delegate as a reward for voting for them. Details on how much you will receive in return has not been formalized yet, as there are no historical data to calculate estimates.
Unlike all other coins discussed above, Crypto One Stop Solution (COSS) is an “exchange token” and these have been gaining popularity over the past few months.
COSS works as follows —Every transaction executed on the exchange carries a small fee (between 0.04–0.2% depending on each individual’s trading volume), for both the price maker and taker. Half of the fees will then be placed into a Decentralized Autonomous Organization (DAO), which are then distributed to COSS Token holders at the end of the week. These dividends are paid out in the respective tokens that the transaction was executed, i.e. if the transaction was on the ETH/OMG pair, you would receive an ETH and OMG payout, instead of COSS.
Depending on where you store your COSS tokens, the procedure to receive your payout is slightly different:
- If your COSS tokens are stored on the COSS.io exchange, then nothing extra is required. The payouts will happen automatically every week (which are cumulative and you can claim with a few clicks).
- If you use an external wallet for storing your COSS tokens (i.e. MyEtherWallet) then you would need to execute a particular function in the COSS Token smart-contact. Details on how this can be done can be found here.
CossCalc has an excellent calculator that allows you to determine dividends, while also allowing you to modify the specific variables that affect payouts (daily volume and fees).
COSS can be, unsurprisingly, purchased on COSS.
Private Instant Verified Transaction (PIVX), is a fork of the Dash (DASH). Unlike Dash, which uses Proof-of-Work (PoW) as a consensus mechanism, PIVX uses Proof-of-Stake (PoS). I will not go into details about PoW but you can find more details here.
From Ethereum’s wiki (which will eventually become PoS as well):
PoS is a category of consensus algorithms for public blockchains that depend on a validator’s economic stake in the network. In PoS-based public blockchains, a set of validators take turns proposing and voting on the next block, and the weight of each validator’s vote depends on the size of its deposit (i.e. stake).
More information about PoS can be found here.
Naturally, those who hold the most amount of coins and are staking will play the largest role in securing the network. As a reward for securing the network, they are paid with newly minted (created) coins.
There are two ways to earn a passive income with PIVX.
- Running a Masternode — Masternodes provide extra services to the PIVX network than normal nodes. In return, Masternodes earn additional rewards. In order to run a Masternode, you need at least 10,000 PIVX. Details on how to set-up your own Masternode can be found here.
- Stake your PIVX — This method is very simple and has no minimum PIVX requirement; you can stake any amount of PIVX. All you need to do is set-up a PIVX wallet and keep your wallet “active” (i.e. online). Detailed steps on how to stake PIVX can be found here.
In order to find out how much you can be passively earning with PIVX, you can visit the PIVX Reward Calculator page here.
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