How To Earn A Passive Income With Proof Of Stake

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How to earn a passive income with proof of stake

What is Proof of Stake & How does it work?

Proof of stake is an alternative method of validating transactions based on the blockchain. To keep things simple, unlike proof of work where the miners receive the block rewards, Proof of stake rewards users who hold certain cryptocurrencies as a thank you for supporting the network. The reward users receive is determined by the “Weight” you have on the network. For example staking in a pool with thousand of people will receive more frequent rewards then those who stake solo on their own because of the huge difference in the number of coins. With this in mind we can use proof of stake pools to make a passive income. 

So how can we earn from staking?

There are two main ways to earn from staking. Solo staking & staking from a pool. We are going to focus on staking from a pool, as it’s the more straightforward and easiest to do. Staking pools like Simple POS Pool make this super easy to do. They allow users to deposit there coins and send them straight to the pool for you. Once added your coins will join a pool with thousands of others. After a few hours they will mature and start to receive rewards.  A staking pool will have a much higher “weight” then solo staking, giving you a higher chance to stake thus receive more rewards. For more information about staking you can 
Simple POS pool is by far the best staking pool that i have found. They support a large number of Proof of stake cryptocurrencies and charge very little in fees. There is a no minimum deposit amount so you can deposit a small amount just to test the site and see if staking is for you.
 
My recommendation, if your just getting started is to use your faucet earnings to purchase some Proof of stake coins and then send them to Simple POS pool. You can also join their official Discord channel and register for weekly free airdrops and giveaways.
 
To get started all you need to do is generate a deposit address on the website and send over your coins. Once received they will take some time to mature. This process normally only takes a few hours, then they will automatically start staking for you. The rewards will auto-update onto your balance. By default your stakes will be emailed to you, depending on the coin you choose this will be multiple times a day.
 
The fees are very reasonable. Every time you successfully complete a stake you will pay 3% of the stake reward in commission to the website for hosting and maintenance. If you purchase a master-node then the fees for each reward is 5%. There is however no fees for withdrawing.
 
Withdraws are also fairly straightforward, Simply request a withdraw to any support wallet or exchange. However you will have to wait for your coins to finish staking. Once your stake has completed your withdraw will be processed, normally only takes a few hours.
 
Highly recommend this site and i have been using for over a year now. They always payout and have reasonable fees. If your interested then check out my full in-depth review and guide here. Also recommend joining their official Discord here.
 
Stakecube is another great staking platform. I would recommend using this website if your just getting started or have little funds to invest into staking.
 
My favorite feature of Stakecube is their daily faucet. Users can claim from a range of different coins every single day. This is great for people who can’t yet afford to purchase their own coins. Collecting from the faucet everyday will build up your balance and you will get to see the real impact staking can have at growing your balance.
 
For those of you who can deposit your own coins, Stakecube is also very attractive place for you to stake your coins. They have a wide selection of coins you can choose from including many new up and coming projects. Easy to use interface and a friendly development team.
 
Users who deposit $5 or more in value will also get access to daily giveaways and airdrops plus access to the lottery system. Combining the daily faucets plus airdrops to your balance everyday will really increase your daily stakes.
 
For every successful stake you will pay 2% of the reward as a fee. Also 1% of the pool balance will be used to fund daily lottery and airdrop promotions. There is no hidden fees and no fees for withdrawing.
 
I love the withdraw service on this website. There is no manual approval and you can request a withdraw of any amount, just send to a support wallet or exchange address. No fees for withdrawing and is normally sent instantly.
 
If you would like to know more about Stakecube, you can read my full in-depth review and guide located here.