The most profitable PoS coins to Forge
If you are starting to read this, I assume you have an understanding of what forging is, what PoS entails, and how its reward system works. After becoming familiar with those topics, you will see that generating a passive income with cryptos is easier than you think, but also that the research is time consuming. We have prepared for you an overview of the most profitable PoS coins to forge so that you get a first impression of how your passive income could look like.
So, now that you caught up, you’ve learned that you can earn a reward by staking PoS coins and verifying transactions (the equivalent of Mining on first generation Blockchains, like Bitcoin). As good as it might sound, PoS Blockchains and forging still face some major disadvantages. Amongst these, you have probably heard that in most cases you need to have a minimum amount of coins to start forging, that you usually have to stay online 24/7 in order to receive rewards, that sometimes you need to wait for your coins to age and your client to sync, and amongst other difficulties, your client will have to sync again to the blockchain every time you lose internet connection. We will address a solution to all these issues at the end of the article, but first, let‘s find out which are the most profitable coins to forge. The coins we will be dealing with are NEO, PIVX, NAV Coin, Reddcoin, OKcash, and Hawala Today. Let’s get started!
NEO is China’s first open-source blockchain. It is a smart contracts ecosystem that allows users to automate the storage and exchange of digital assets. The NEO blockchain includes an additional token called GAS, which is the reward paid for staking.
- A very charming detail is that you do not need to keep your staking wallet open all the time like in other PoS blockchains.
- Separate reward token (GAS) creates trading opportunities.
- There is no minimum amount needed to start Forging.
- Lowest yield on our list.
- Tracking an additional token adds complexity.
Annual yield on investing 1 ETH = 3.59%
Average RAM used in Forging = 1.2 Gb
Reward calculator: https://neotogas.com/?p=profit
This is a community-centric cryptocurrency with a special focus on privacy. It is the first PoS coin with the zerocoin protocol. When it comes to privacy-focused digital currency, PIVX stands out as the second one with the shortest transaction time. There are two ways to get rewarded for forging on PIVX. One is normal staking, which has 1 PIVX as entry requirement; the other one is running a masternode, which requires having 10,000 PIVXs. Doing normal staking will have an approximate yearly return of 4.8%, while running a masternode will yield around 5% annually.
- Outstanding transaction speed.
- Users with smaller stakes get the chance to forge.
- Running a masternode is expensive.
- Low masternode yield compared to the staking yield makes running masternodes unattractive.
Annual yield on investing 1 ETH = 4.8%
Average RAM used in Forging = 1 Gb
Reward Calculator: http://pivx.cryptonode.co
This project also focuses on privacy and anonymity, but adds a focus on simplicity of use. NAV coin has the shortest transaction time, beating PIVX by 30 seconds on Block Time. It requires you to run the NAV Coin Core client in order to forge, but alternatively, you can use a Raspberry Pi to save some energy. NAV Coin has a fixed 5% annual return on forging.
- Exceptional transaction times.
- Focus on simplicity makes the NAV Coin Core accessible.
- New Valance application will offer a suitable method to present smart contracts.
- Confusing staking terms and categories take points from ease of use.
- Low adoption and Market Cap compared to other privacy oriented cryptos.
Annual yield on investing 1 ETH = 5%
Average RAM used in Forging = 1 Gb
Reward Calculator: https://navtechservers.com/navtech-tools/staking-calculator/
OKcash started as a Proof of Work blockchain but eventually changed to a full PoS project. Its focus is on speed and low fees. Their mission is to become internet cash. It offers some interesting additional features, like encrypted messaging, optional anonymous tokens, and plans a release focused for the upcoming IoT code named ROKOS. Okcash used to give an amazing 20% yearly reward. Unfortunately, it gets periodically halved. We just missed the chance to get 10% annually since rewards halved on the 7th of March, 2018 to 5%.
- Focus on social economic interactions facilitates fast payments.
- Additional features, like the chat, foment more use.
- The block reward has been halved twice, considerably lowering rewards. We no longer have 20% and 10% annual returns.
- No reliable reward calculators!
Annual yield on investing 1 ETH = 5%
Average RAM used in Forging = 600 Mb
Reward Calculator: https://okcashblockhalf.com/
This project aims to tokenize the social network industry. It’s objective is to create a tipping system in which all kinds of participants in social networks can pay each other for any given interaction. This can include influencers, companies, publicists, etc. The project developed Proof of Stake Velocity (PoSV), which creates a decreasing slope on the coin age accumulation, compared to the linear slope of normal PoS coin ageing.
- Coin ageing time decays, daily rewards are visible.
- PoSV gives incentives for more active network participation.
- Higher than average annual returns.
- Not very user friendly, there are several complaints regarding usability, and complex procedures to tip.
- Downloading the whole Blockchain to stake is very time consuming.
Annual yield on investing 1 ETH = 6.18%
Average RAM used in Forging = 800 Mb
Reward Calculator: http://jsfiddle.net/yE6Vp/8/
Hawala.Today is an interesting project aiming to create a P2P crypto to fiat exchange allowing safe and near-instant currency swaps anywhere in the world. The project is using an incentive model that they call Incentive for Stake (IFS). Hereby stake rewards and token supply are being inversely related, guaranteeing a 7% yield when maximum supply is met. It is a relatively new token, so the easiest way to acquire it is by using Metamask.
- Highest staking reward on our list.
- IFS incentivates adoption and transaction verification
- It aims to become the most practical way to exchange Cryptos to Fiat.
- Wallet can be offline and still Stake.
- Staking wallet is in Beta, the project is not mature yet.
- Possible regulatory restrictions in the future due to diligence and tax issues that can arise from their model.
Annual yield on investing 1 ETH = 15%
Average RAM used in Forging = Unavailable
Reward Calculator: https://www.hawala.today/blog/staking_guide/
PSK, stop investing so much time on research and start forging
Now that we have the data on the rewards we can get by forging, the next step would be how to get the coins, and which client or wallet to use in order to receive the rewards. This is time intensive. To put it into context, it would take a few days to do the research necessary to find the best yielding coins. After doing this, you would then have to install the wallets in order to start staking. Each staking client is different, and a lot of them are not very user friendly. Some coins might even make you desist just because of the impracticality of the wallet. After that, you have to wait even more. Your wallet needs to sync to the blockchain. Then your coins need to age, which consequently, can take ages. After all this, you can start staking, but… imagine your cat accidentally disconnected your router and you lost internet connection. Now you have to sync your wallet again, and in some cases wait for your coins to age again. It gets even more annoying. In some cases, if you don’t separate your staked coins before doing a transaction, all your staked coins can lose their maturity. The point is clear, forging with many coins consumes too much time. You probably also noted that we included “Average RAM used in Forging”. This is the RAM that the client will use while forging. With 1 GB being more or less the average, you are looking to waste a lot of your computing power while staking. If you plan on running two or more different clients, your CPU usage can easily be 100%.
Fortunately, Pool of Stake (PSK) is working on a solution. PSK’s main goal is to create a forging pool, secure by ERC20 standards, where PoS coin holders will be able to stake together on a given PoS blockchain in order to raise their forging rewards. This lowers entry requirements for forging and secures decentralization. PSK also plans on saving research time and increasing revenue through the Smart i.o. Database and platform. The platform will provide an analytics platform that tracks the performance of the different PoS coins. PSK users will be able to track which coin generated the most rewards on a daily, weekly, and yearly basis. PSK users do not have to trust the calculators of the native PoS blockchains about the proportion of their reward but can check for themselves through the block explorer function of the PSK platform. The platform will save users time and help them maximize their forging profits. No more eternities spent on researching yields, installing wallets, learning to run nodes, or even protecting your internet connection!
Note: Yields and additional numerical data here presented were obtained either on the reward calculator links here shown or on the token’s official website, at the time of writing this article.