Passive Income with Proof of Stake mining

What is Passive Income?

Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. – Wikipedia

The two most known forms of passive income are capital gains from rent and interest from owning financial assets. Businesses that do not require year round participation can be considered passive income as well. With the advance of the internet, the number of tools and variety of businesses are increasing. Trading and other internet related activities that require little to no time, also qualify.

Financial Independence

In the past few years lifestyle movements like FIRE (Financial IndependenceRetire Early) have gained momentum and are going mainstream.

Financial independence is a term used to describe the status of having enough income to pay one’s living expenses for the rest of one’s life without having to be employed or dependant on others. Income you earn without having to work a job is commonly referred to as passive income. – Wikipedia

We talk about passive income as a secondary measure to increase our financial well-being, however, due to technological advancements in robotics and AI, many jobs are in danger of being replaced by automation. Due to this, experiments like universal basic income are undergoing in countries like Finland.

Most of the personal finance books talk about and encourage building income streams that do the work for you while you sleep. Getting a head start in building passive income streams can help your financial portfolio tremendously.

Is Proof of Stake Passive Income?

Proof of stake (PoS) is a type of consensus algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake). – Wikipedia

You can think of staking as making a bank deposit. With a bank deposit, a portion of your capital gets locked for a set period of time, and you gain interest for keeping the funds locked. The same principle applies to staking, although the process is a bit different and varies based on what coin you are staking.

Staking rewards are generally a lot higher than bank deposits, but as you probably know, high reward equals high risk. A bank deposit is considered safe, but there are situations like Greece, where people couldn’t withdraw their money from the bank. With staking a lot more things can go wrong. Cryptocurrencies are volatile and staking rewards could be negated by a drop in the price of the coin, or you can get hacked and lose your coins.

Proof of Stake Cryptocurrencies

Peercoin first introduced Proof of Stake in 2012. An ever increasing number of coins have adopted the POS model entirely or using a hybrid approach.

There are probably hundreds of cryptocurrencies that implement a POS model. You view a comprehensive list on StakingRewards. Some of the most profitable staking cryptocurrencies are:

  • WebDollar
  • Tezos
  • Cosmos
  • Tron
  • Dash
  • Neo

Staking with WebDollar

WebDollar is a cryptocurrency fully native to the World Wide Web, entirely written in JavaScript, built around the concepts of simplicity, lightness and portability.

Staking with WebDollar is as simple as going to WebDollar.io and keeping the browser window open. The staking rewards are at 35% per year, making WebDollar one of the most profitable POS coins.

You can simplify the staking process further by following this simple tutorial: https://www.hostero.eu/docs/webdollar-pos-mining.

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