Dear friends of the well-kept Steemit-reading,
today I would like to familiarize you with 10 interesting cryptocurrencies, which can passively increase your own position , without the constant need of buying. True to the motto "Here's something I prepared earlier.", you will get confronted with a data-loaded excel sheet, in which I tried to summarize all relevant facts succinctly.
But before this, however, a small excursion:
I know that the cryptomarket currently has a strong monthly menstrual cycle and there is a brutal bloodbath, but personally I'm actually enjoying it right now and feel like a toddler who has been in the candy shop left by his parents! I don't know what to grab first :D
So delete the welfare number from the speed dial key, look at the fundamental facts behind your investment and "buy the fucking dip" (btfd), if you support your investment.
So much to this and now here comes the announced list:
Oh lord, you couldn't write this smaller, right? I'm almost pushing 60 and my eyes have the elasticity of a dried plum!"
No problem, navigate to the image and hold down "Ctrl" on the keyboard while scrolling forward with the mouse wheel, or pressing "+". This should definitely help and when you are finished, simply press "Ctrl" + 0 (zero) and everything goes back to normal.
Here are a few comments about this list:
Some explanations like "Node", "Masternode" and "PoS" (Proof of Stake) can be found here.
Bitcoin:
The lending of Bitcoins can be risky because you are not in the control of your private keys. So if an exchange where you lend gets hacked, a hardfork (if you have questions about this simply comment on it) happens, or the site on which you can borrow simply goes offline, then you have no way to get these lent Bitcoins back. However, for this risk, a respectable annual return up to an average of 20% can be achieved (even more in very volatile market phases).
How to lend Bitcoins e.g. on Poloniex is quite well explained here: Description for Bitcoin lending. Thanks to @cryptomancer.Ethereum:
Ethereum is expected to change the consensus algorithm from "Proof of Work" to "Proof of Stake" this year with the introduction of the protocol update called "Casper". One advantage of this change is the fact that you don't need any expensive mining hardware to get a share of the Ethereum emissions. It's enough to vest your own Ethereum position to a "node" and let it do the computation for the network. In the first iteration, it is currently assumed that up to 1000 ETH are needed in order to be profitable, because so-called smart contracts have to be executed for the network and they involve horrendous "gas costs ".
A possibility to still get a slice of the pie will probably be provided by "staking pools". A good example of this would be the RocketPool, that is explained here. This future change to "PoS", however, entails its very own risks, but more on that in a future post.Dash:
Dash is, in my opinion, the undisputed queen of marketing and has fascinated me for quite some time. Charmed by the sound of the siren song, I am as pleased as Punch and looking forward to the release of the long awaited Evolution Wallet. More information about the future release can be found here. Once the Evolution Wallet has been implemented with all its functionalities, you can directly vest your Dash in so-called "masternode shares", thereby earning an annual return of up to 6.5% (the yields are declining as they are linked to the inflation rate of Dash and this also falls continuously).
Currently, this can be achieved by hosting a master node or by acquiring master node shares from third parties (not risk-free), but a minimum of 25 Dash per share is required (or 1,000 Dash for a whole masternode).NEM/XEM:
New Economy Movement (NEM) has an interesting "Proof of Importance" concept that rewards people on the network who actively participate in transactions. This way, not only the thickness of the wallet determines rewards and returns, but also the activity of the user. Unfortunately, the possibilities of active use are currently still very limited, which is why the concept is not yet proved to be successful. There is no distribution by inflationary increase in the amount of coins, but you receive incurred transaction fees as a reward, if you provide services for the network. In order to participate in such a distribution you need at least 10,000 XEM. Afterwards, a random procedure, while doing the so-called "harvesting", determines whether you are rewarded or not.
If you can afford 3,000,000 XEM, there is also the possibility of acquiring a so-called "supernode", which yields more reliable returns (currently 300 XEM per day). Due to the strong randomness it is difficult to make precise forecasts, but currently you can expect about 3.8% return per year. The more active the users of this currency are, the higher the profit can be.Stratis:
Stratis is similar to Lisk in the way that they try to offer its blockchain as a service (BaaS). Thereby, applications can be written in all Microsoft .NET compatible programming languages (mainly C #) on both provided chains, the regular blockchain and so-called sidechains. Stratis will also offer masternodes in the future, but up to now, simple staking can yield a return in the investment. The rewards are not consistent here and you have to imagine it like a lottery ticket with a certain profit probability (similar to NEM), but over a long period it averages to approx. 1.75% per year.Steem:
To write an honest opinion about Steemit here on this platform is like a delicate tango on a mining field, so I remain reserved. In any case, it's very positive that the chances to increase your own investment are pretty good! Those who are diligently writing and curating can currently expect an increase of over 100% of their vested SteemPower. Anyone who is too comfortable to do so can also easily use services that pay off returns when delegating your own SteemPower. @minnowbooster has, for example, a very interesting project, which I am watching with excitement.
What I have to critically think about is, however, the fact that we have nothing to say in the case of protocol changes and we are presented with a fait accompli. Imagine the hypothetical scenario that after the next hardfork you can only vote for other posts, but not for your own articles and comments. From this point onwards, there would be a complete paradigm shift with a focus on more curation and some users would feel offended. In addition, the platform is centralized (at least the website), which also gives me a bad gut feeling.
There must also be initiatives to ensure that Steem is purchased not only by the individual users but also on a large scale from outside via institutional investors or advertising companies to guarantee a stable price development (measured by FIAT money).
Last but not least, I'm also curious about the scalability here, as the current number of users grows by about 5% per week and the rewards that are distributed are limited. This means that the amount of weekly payouts can be indirectly proportional to the number of users and directly proportional to the Steem / SteemDollar price. Nevertheless I am still very enthusiastic so far and I always like to watch the developments of Steemit.Waves:
Waves uses a so-called "leased proof of stake" approach (lPoS) and allows a guaranteed return by renting your own currency, which can yield up to 11% per year. So if you have at least enough currency to pay the initial transaction fees, you can lease your Waves without risk. If you have at least 10,000 Waves, then you can also host your own masternode. Similar to NEM, the network lives off transactions and their fees, which means that with more distribution and mass adoption, the returns can rise significantly.Lisk:
Even if I make some enemies with it, you can compare Lisk and Stratis as distantly related. However, Lisk's programmable applications are based on JavaScript and another small, but subtle difference also exists in the consensus algorithm. Because here you use "delegated proof of stake" (as in Steem), which means that you will vote for 101 representatives of the network and then they receive the block rewards. Anyhow, such delegates are often no fiends and share these rewards with their loyal voters (lobbyism sends its greetings...!).
Whomever you want to give your vote to is ultimately left to you. 30 Votes for various delegates cost a total of 1 Lisk and a small overview can be found here. Since the delegates and their voting pools are very dynamic, the return is difficult to estimate, but with very conservative expectations and own experience, it is currently about 25% per year for the small fish.Decred:
The mother of the so-called governance coins allows flexible and fair voting of future protocol changes. However, in order to be able to make a profit there, you have to overcome barriers of entry. You must buy so-called tickets and the price of a ticket is bound to a specific number of Decred. Here you can see the current price, for example, 74 DCR today. Such a ticket then has a voting right and if it's chosen (randomly selected by the network) and you vote in time, then you get a reward for it.
If you can afford these tickets then the current yield is approx. 30% per year and that is almost worth the whole exertions. Unfortunately, I personally find the mechanisms behind it unnecessarily complicated and not yet very user-friendly.Pivx:
Oh Pivx is my little darling! This sparkling gem has been created by a fork from Dash and tries to put a new focus on its governance model (everyone can vote and not just masternodes). Furthermore, a successful test run with the so-called Zerocoin protocol was done, in order to significantly improve the possibilities of anonymity. You can generate returns from the first Piv here, but the chance for yields increases the more you possess (the same as Stratis).
If you have 10,000 PIVX then you can also host a ** masternode ** and thus get a fixed proportion of the rewards of the network. Interesting statistics about this can be found here. A so-called "see-saw" algorithm always ensures a fair balance between the distribution to masternode owners and "stakers".
"Go PIVX go!" *doing cheerleader-gestures*
This has been a "short" summary of some of the cryptocurrencies, which offer a "passive" opportunity to achieve returns within the crypto universe. Of course, you should never think about the link to FIAT money here, because in this case other investments could be more sensible, or could yield certain interest rates with less volatility.
However, if you believe in one of these projects, you will have a great opportunity to get your own faith financially rewarded ("...the church should try think about such a concept...!").
As always I'm open for all your questions. If you have any incomprehension, just comment here or contact me directly in the steemit chat. If I do not discover the endless love of crocheting in the near future, then you can continue to count on me posting more about the crypto space.
Kind regards
@cobalus
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