Passive income strategies for financial freedom

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22 Cryptos that generate crypto passive income

Passive income is the production of cash flow from assets which require little or no input from the investor. Smart passive income is a revenue stream or crypto flow from digital assets such as crypto currencies, security tokens and everything in between.

The term HODL means hold long term, it is a crypto meme encouraging investors to hold their coins rather than pumping and dumping the coins.

The cryptoverse is a complex ecosystem of projects which have blockchain at heart. Each of these projects has an associated digital asset. These projects create incentives associated with their digital assets to make them more attractive over others.

One of these incentives is passive income. There are two main types of crypto passive income the first is created out of thin air, i.e. inflation the second is created from actual economic activity. Projects which are finance by inflation are at a disadvantage because when the market is down revenues shrink making it harder for them to support their road map. A good example is Steemit having to lay off 70% of the staff in the bear market of Nov 2018.

1. EOS

EOS is “Everyone’s Operating system” this project aims to be the leader in dApp development. EOS main competitive advantage is the weel funded block.one, with a 4 billion war chest, there are no other crypto projects with such strong financial fundumentals at this time. There are several ways to earn a passive income in EOS. These include

  • Airdrops
  • Lending EOS on Chintai
  • There are several projects which share their profits with token holders
  • The REX system, which is yet to be released
  • Writing on Trybe.one
  • Staking varies cryptos such as EDNA and HorusPay

Type: Inflation and Economic Activity
Symbol: EOS
ROI: Varies

2. Ethereum

Ethereum is a platform which allows developers to create dApps, it is a competitor to EOS. On Ethereum there is a culture of ICOs rather than Airdrops. Airdrops are free while ICOs are paid for. In 2019 Ethereum will upgrade to Proof of Stake, this will allow investors to stake their coins in exchange  which means that ETH coins can be staked, in the process more ETH will be generated.

Type: Inflation
Symbol:  ETH
ROI:  Yet to be announced

3. NEO

NEO is the “Chinese Ethereum”. When NEO in placed in a wallet, the token GAS is generated and deposited in the same wallet. NEO does cold staking meaning a wallet does not need to be online for it to generate GAS. Not all wallets allow GAS to be claimed. Some exchanges do not give the gas generated from wallets.

Type: Inflation
Symbol:  NEO
ROI:  Approx 5%
Staking Wallet: https://neotracker.io/wallet
Profit Calculator: https://neotogas.com/

4. MUE

Monetary Unit is a cryptocurrency which has recently moved to PoS. They have several ongoing projects. The project is a masternode project , masternodes generate a stream of smart passive income. 1,000,000 MUE are needed but MUE masternode shares of 10,000 MUE are also available at MyMue.com

Smart Passive Income: Inflation
Ticker Symbol: MUE
Annual Return: 35 %

5. Neblio

Neblio is the “The Blockchain Platform for enterprise records” This is an open-source blockchain platform built for distributed application development. The focus is on enterprise-level clients that want to create and run their own dapps.

Neblio staking system varies from standard staking. The amount of time that the coins have been in the wallet influence the rate of return for the better.  Learn more on Neblio staking.

Wallets need to be online all the time to generate passive income but  there are raspberry pie (mini computers) Neblio Stakeboxes on the market. These allow you to stake without having to have a laptop or a desktop switched on.

Type: Inflation
Ticker Symbol – NEBL
Annual Return – 10 %
Staking Wallet – Neblio qt (Windows, Mac, Linux)
Profit Calculator – http://nebliostats.com/calculator.php

6. Komodo

Komodo is creating an open-Source Infrastructure for An Interoperable Blockchain Ecosystem

Komodo is a turn key blockchain solution, it’s modular design allows it to be future proof. Komodo is a turing complete smart contracts will operate at protocol level and have a seamless cross-chain interoperability. This operability will be between chains inside and outside the Komodos federated chains. Komodos federated chains are independent sister chains. dPow allows Komod to use Bitcoins hashing power to secure its chain. Learn more about Komodo’s passive income stream through free interest payments.

Smart Passive Income: Inflation
Ticker Symbol: KMD
Annual Return: 5 %
Staking Wallet: Agma Wallet & Swing Wallet

7. PIVX

Pivx is a privacy focused crypto currency it uses the Zerocoin protocol. The passive income opportunities here are both from staking and masternodes. Interestingly both PIVX and zPiv can be staked. zPiv ensures total privacy when staking. Pivx wallets need to be online for staking to take place. Privacy is important because it keeps all tokens fungibile. There are several third parties which offer PIVx Masternode shares. Learn more about PIVX staking guide and Pivx Masternodes. Pivx wallet has been forked 100s of times and used by other crypto projects, this shows that they are a technological leader in their field.

Smart Passive Income: Inflation and Dex fees
Ticker Symbol:  PIVX
Annual Return: Approx 4.8%
Profit Calculator: PIVX earning

8. Coss

The Coss token entitles the holder to a fee split between the exchange and the token holder. The fee split system is the Smart Passive Income from Coss. The fees are given to the users in the currency they are paid in on a weekly basis. Some users have complained It is a hassle to convert all the dust into ETH or BTC. An way to track the decline or rise of an exchange is by checking their traffic, see for Coss

Smart Passive Income: Trading fees
Annual Return:  Variable
Calculator: http://www.coss-stats.com/

9. KuCoin

There are two ways to make a passive income from Kucoin the first is through a referral system and the second through the KuCoin Bonus. The KuCoin Bonus is based on the amount of trades done on the KuCoin exchange. 50% of the fees generated on the platform go to the token holders giving them a smart passive income stream. The KCS need to be staked on the platform in order to be eligible to the bonus. The fees on Kucoin are considerable less than other mainstream exchanges. Example kucoin 0.1% and Bittrex .25%) Kucoin is planning to build a decentralized exchange (See Risks of decentralized exchanges). Learn about more opportunities for Passive income from Crypto Exchanges.

Smart Passive Income: Exchange Fees
Ticker Symbol: KCS
Annual Return:  Variable.
Profit Calculator – https://kucoinshares.com

10. Lisk

Lisk platform is a decentralized platform which facilitates the creation of dApps and smart contracts using JavaScript. JavaScript is a very popular programming language, which gives Lisk a substantial community of developers that could build dApps on it.  Each dApp in Lisk has its own side chain, this gives the developers the freedom to customize their blockchain according to the needs of their.

Lisk uses a DPos (Delegated Proof-of-Stake system) where the top 101 delegates can create blocks. Each block gives a reward to the block producer, in turn the block producer distribute these rewards to the voters. There is a minimum of 4 LSK are needed to vote. Learn more about Lisk dPoS.

Becoming a LISK delegate is more profitable than being a simple voter

Smart Passive Income: Inflation
Ticker Symbol:  LSK
Annual Return: Approx 10%
Lisk Wallet: https://lisk.io/hub

11. ARK

Ark generates passive income for the Ark token holders through a Dpos System (Similar to EOS and Lisk). Lisk token holders can vote for delegates, in turn delegates forge blocks and receive a reward, this reward is then distributed on a pro rata basis to the voters.

Ark is positioning itself as a blockchain connector similar to Blocknet. It has a technology called smart bridge which allows it to connect both to Arks “cloned” blockchain. Becoming an Ark Delegate will generate more passive income but it requires more work.

Smart Passive Income: Inflation
Symbol: Ark
Annual Return:  Approx 10%
ARK wallet: https://ark.io/
Profit Calculator: http://calculator.reconnico.com/
Delegate monitor: https://explorer.ark.io/delegate-monitor

12. Decred

Decred is an autonomous digital currency focused on Governance. This means that Decred can more easily plan ahead, navigate hard times and ultimately deliver a service to its end users. This focus decreases the likelihood of a fork, i.e the division of a network into two. Such incidents can decapitated network because it losses it’s economies of scale.

The modular approach to building decred allows the community to be included in the next modules to be created for the cryptocurrency. Decred passive income model is through voting. Decred pools vote on behalf of others to influence the evolution of Decred, in return a reward is sent to the pools which is then split with the individuals voters. Decred has a mix of PoS and PoW consensus algos. It has also features such as Smart contracts, Cross-chain atomic swaps and Cross-platform wallets.

Smart Passive Income: Inflation
Symbol:  DCR
Annual Return: Approx 30%
Links: Decred Staking Guide

13. Stratis

Stratis is an end to end solution for enterprise level blockchain creation and serving using the c# and the .net framework. The startis academy provides all support with code libraries, webinars and documentation. Stratis is a proprietary blockchain which is always developing the latest cutting edge blockchain tech. $Strat is used to pay fees for services on the stratis blockchain.

Hyperledger Fabric is an open source platform which was initially developed by IBM. This software allows anyone to build their own blockchain for free and customized to their own needs. This is an important competitor to Stratis.

Stratis passive income is low, below 1.5% a year in Stratis, investors who have invested when the price is low are hoping that the price of $Strat goes up in the future. This will result in a higher ROI in the end. Investor can join a startis pool. Learn more about Stratis staking.

Smart Passive Income: Inflation
Symbol:  Strat

Annual Return: sub 2%

14. PUNDIX

Pundix is a decentralized ecosystem, it has several components including; an operating system, custom devices, dApps and nodes. 5,000 XPOS devices are being delivered to merchants across the world starting from Mid 2018. Through these devices customers will be able to pay for products and also buy and sell cryptocurrencies.

Smart Passive Income: Inflation
Symbol: NPXS
Annual Return:
First 12 months – 7.316%
Second 12 months – 2.116%
Third 12 months – 0.881%
Links: Airdrop details

15. Minex Coin

Minex is a company trying to make crypto payments easy in 2018 they gave struggled to set up their Credit Card System because of regulation and jurisdictional issues. The card will allow deposit and usage of multiple cryptocurrencies and not just Minex coin. The minex project includes atomic swaps and a market and minex bank.

Minex bank functions as a central bank for minex, it issues interest rates in order to stabilize the currency. In their lingo this is called parking, i.e. a pledge is done on their system not to move the coins from the wallet for a period of time, if this pledge is maintained then the interest is provided at the end of the period. This interests provides a passive income from this coin.

Smart Passive Income: Inflation
Symbol: MNX
Annual Return:
0.19% Daily
5.83% Monthly
47.2% six months.

16. Smart Cash

SmartCash is a cryptocurrency which wants to become the leader in crypto payments, it is a competitor to BTC, BCH and Dash and a host of other small time projects such as Electroneum. The system uses the ZeroCash protocol, this means private and fast transactions. Their claim to a competitive advantage is their level of decentralization, they have achieved compared to other crypto projects for example they have no core team or foundaiton. Decentralization has a cost, progress moves slower because coordination is more difficult, but on the other hand it the project makes more resilient.

SmartCash offers opportunities in both passive income and side hustles. Smart cash has a treasury system which is funded by the block reward. $250 million worth of projects have been allocated. To be awarded a share of this pot, bidders post a project, then the masternodes vote on these projects. If there are enough votes then the funds are allocated to the project.

Passive income can be earned through Smart Rewards. These are allocated to those who hold at least 1000 SMART for more than 30 days. This reward is also funded through the block reward. A snapshot to determine the elgibitlity is taken on the 25th of every month.

Smart Passive Income: Inflation
Symbol: MNX
SmartCash MasterNodes require 10,000 SMART collateral, whose ROI is around 35%

18. BridgeCoin

Crypto Bridge is a decentralized cryptocurrency exchange. Bridge Coin holders who stake their coins on the platform earn a share of the fees charged to traders. This passive income is from economic activity rather than inflation. Decentralized exchanges are a hot issue especially if they trade any cryptocurrencies which have attributes similar to securities. The previous owners of ForkDelta have been fined because of this.

Ticker Symbol: BCO
Annual Return: Varies according to exchange trading volume

19. Exscudo

Exscudo is a crypto project hosting a suite of applications; including an exchange, a messaging app, a debit card  and a FIAT gateway.

There are 100s of exchanges today, so it has a hard road ahead for Exscudo. However this project has several competitive advantages compared to others. FIAT gateways are difficult to setup because of all the regulatory hurdles, Exscudo is well on it’s way to have this done. Exscudo exchanges focus is on reguratory complicance and security, all transactions are recorded on a blockchain. The blockchain that records the exchange transactions is a masternode system, the masternodes earn a part of the block reward.

Low volumes on the exchange however have resulted in these returns being very low.

Smart Passive Income: Trading Fees
Annual Return: Varies according to exchange trading volume

20. Boscoin

Boscoin is a Korean crypto platform, which will compete with the likes of Ethereum and EOS . It has two competitivue advantges, the first is that it defines itself as a “self-developing platform for trust contracts” meaning it does not have a particular end goal other than to serve its users. The second is Trust contracts, these contracts can be wtitten and read in  SDLang – Simple Declarative Language which is user firendly even for the non technical users. This means that smart contracts will be accessible to a larger community and this may result in more dApps being deployed on BosCoin.

BosCoin investors could initially count on smart passive income from Boscoin masternodes but now it will be based on frezzing and membership rewards. This has been done to avoid BosCoin from being classified as a security. To rewards 10,000 BOS needs to be frozen, this generates the frezzing reward. If KYC and voting are done this entitles the wallet holder to the membershpi reward. These rewards will need to be reviewed at the end of 2019.

The amount of passive income will be calculated as ” Reward per member per 17,280 blocks: 440,640 BOS X (The number of frozen BOS in Frozen accounts linked in a Membership account) / (The total number of frozen BOS in the Mainnet).”  Source: https://boscoin.io/pf/pf_r_00-000-a/

Distribution of the frezzing reward will take place every 10th day and the membership reward every 28th day i nthe cycle.

Smart Passive Income: Inflation
Ticker Symbol: BOS
Annual Return: for both frezzing and confirmaiton rewards circa 25%

21. Restart Energy

Restart energy’s objective is to become the Amazon of consumer and commercial electricity sales. They are doing this by expanding by franchising sales branches. Individuals and businesses can create a franchise by staking coins, then they are allowed to sell electrictiy that Restart energy has aquired from power plants.

The companies trading their electricity on the platform will maitain a pool of funds which is shared on a pro rata basis to the energy holders. Restart energy token holders can earn smart passive income by staking their tokens on the platform.

Smart Passive Income: Prorata share from pool of funds
Ticker Symbol: MWAT
Annual Return: Unkown

22. WePower

WePower is involvded in financing energy projects. The companies which are financed through the platform will donate 0.9% of their energy to a donation pool. This donation poolwill create a smart passive income stream for the the token holders.

Smart Passive Income: Trading Fees
Ticker Symbol: BOS
Annual Return: Varies according to exchange trading volume

Conclusion

22 crypto currencies to hodl for passive income. They have not been selected on any kind of criteria, we tried to put in a variety of projects some storng and others are still finding their feet. These examples will inspire your own research.

Investing without through research will most likley result in disaster and instead of a stream of smart passiv eincome all you will end up wiht is a capital loss. There are a few key attributes to take into account including the reguratory aspect, the source of the passive income, the team and it’s history. Diversificaiton may shield you from some risks.

See Also:

Not investment advice. Not financial advice. Consult your financial advisor. Not a recommendation to buy, sell or hold. The staff of this site may own this digital asset/s mentioned on this page. Investing is risky and you may lose all your capital. See full disclaimer.

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