The Risk Of Staking
Whether we want to admit it or not, staking coins does incur a fair amount of risk as one has to trust a third party. Staking on an exchange like Binance is still a third party as they now have the controlling keys. Even staking in your own wallet such as the Atomic Wallet is pretty much the same thing as in essence you are still parting with your coins. The reason your coins no longer display in the available balance is because they are no longer there!
Given, some options are safer than others and the Atomic Wallet and Binance are probably reasonably safe compared to some other platforms out there that I would never consider touching. However, the risk still remains and so the question becomes, "can one somehow avoid this?" and that is exactly what we will be looking at.
Pundi X Dividend Airdrops
Pundi X pays holders of the Pundi X token a monthly dividend straight into their wallet, where they hold the private keys. So there is no sending your coins outside of your wallet and giving up your private keys. Pundi X enable you to maintain control and that is very attractive to an investor.
Coins need to be held in an ERC20 wallet and need to be there an entire month to receive the full dividend. If the coins are only stored in the wallet for say 26 days, the dividend will be reduced. The average monthly dividend is approximately 0.88% which is 10.5% per annum, not taking compounding into consideration. Obviously if you continue to hold your dividends in your ERC20 wallet, your annual rewards will exceed 10.5%.
These rewards will also be available on certain exchanges but that would be defeating the intention of this article. We are looking at generating profit from holding/staking coins and maintaining the private keys.
Pundi X has also been pumping recently due to their news of adding PayPal for their point-of-sales devices in America. At a mere 2 sats, there is plenty of growth potential, considering the NPXS price has taken a decent hiding since 2018.
The best place to stake Algorand is in your Coinomi wallet, where once again you control your private keys and have no need to send your coins off to stake. Algorand is a solid project that recently saw Tether announce that a version of their stablecoin is to be built on Algorand.
The average return for staking your Algorand is between 6% and 8%, which is pretty decent compared to most staking alternatives! Once you have your bag of Algorand you will have to take note of your balance as there are no transaction records for your rewards. You will see your balance grow without any transaction history. It's rather different but as long as the rewards arrive, that's all that counts!
SmartCash is a merchant orientated Cryptocurrency that aims to provide a fast and viable payment method. Smart rewards are paid out on a monthly basis to addresses that hold 1000 SmartCash or more. You must hold the private keys in order to qualify and rewards are generally paid out on the 25th of every month.
These rewards are meant to encourage hodlers, so as to increase the value of the token over time. It is advisable to hold all your SmartCash in one address as any address under 1000 SMART will not qualify and so forfeit the monthly reward. Smart rewards are not that amazing,especially when compared to Algorand and Pundi X! Once again the coins need to be held a full month in order to qualify. The average annual return ranges between 1.5% and 2%.
Obviously, if you wish to go the safest route you are going to have to sacrifice a bit here and there. However, Algorand and Pundi X offer quite an impressive rate of return. If you are aware of other similar projects, please let me know in the comments. I am always on the lookout for income generating coins and tokens.