In this article, you will read about how to earn passive income by staking and holding.

Holding cryptocurrencies means you buy the coins and hold it for its value to rise.  
Staking is holding crypto coins for a certain period and in return, you earn interest (more coins).

You can then decide to sell the coins and earn fiat from this.

Reading time: 22 minutes (130 wpm).

1. What is needed?

1. You need the money that you can and are willing to set aside for some time.

2. You need to decide which coins you want to own and stake/hold.

3. You need to sign up on one or more crypto exchange sites to buy the coins.

4. You need wallets to store the coins in and use them to stake.

Some of the crypto exchange sites offer to stake directly inside of the platform, like Kucoin.

2. Decide which coins to stake

Top 15 coins

A lot of websites have mentioned the following coins (in brackets the number of sites). 
I guess that those coins are worth investing in.

  1. NEO (7)
  2. PIVX (7)
  3. NAV coin (6)
  4. Komodo (6)
  5. Lisk (5)
  6. Kucoin shares (4)
  7. Neblio (4)
  8. Decred (3)
  9. VeChain (3)
  10. ARK (3)
  11. Ontology (3)
  12. Qtum (3)
  13. Stratis (3)
  14. Dash (2)
  15. Binance Coin (2)

Note that the top 15 list of coins is one that I made up based on the reviews of others.
I compiled the list based on the number of websites that mentioned the coin is worthy to invest in.

I excluded the bigger players: Bitcoin, Ethereum and Bitcoin Cash.
However, they can be invested in as they are stable players in the crypto market.

Sites I used

https://medium.com/datadriveninvestor/top-ten-proof-of-stake-coins-to-invest-in-2019-start-earning-with-dividend-cryptocurrency-441a45c42047
Date: Aug. 6, 2019

https://coinsutra.com/proof-of-stake-cryptocurrencies/
Date: Dec. 4, 2019

https://captainaltcoin.com/best-proof-of-stake-coins/
Date: Nov. 24, 2019

https://medium.com/altcoin-magazine/the-5-best-cryptocurrency-coins-to-buy-stake-in-2019-and-2020-5348e4ac0081
Date: Sep. 22, 2019

https://www.bitcoinmarketjournal.com/top-proof-of-stake-coins-by-roi/
Date: Dec. 4, 2019

https://medium.com/in-bitcoin-we-trust/6-cryptocurrencies-to-buy-for-2020-and-beyond-565c7f68b1b1?
Date: Dec. 10, 2019

https://www.bitcoinmarketjournal.com/best-staking-coins/
Date: Dec. 3, 2019

https://paybis.com/blog/best-staking-coins/
Date: Nov. 27, 2019

https://www.coinjoker.in/bitcoin-news/top-cryptocurrencies-to-hodl-for-passive-income-in-2020
Date: Nov. 27, 2019

https://coindoo.com/top-cryptocurrencies-to-hodl-for-passive-income/
Date: Nov. 26, 2019

WalletInvestor.com predictions

I happened to encounter the website walletinvestor.com. 
It gives per coin predictions how the coin will do: growing or going down.

Like for example for NEO:
https://walletinvestor.com/forecast/neo-prediction.

And these are the results from January 2020 and the latest updated version on the 14th of February.

Coins that continue to grow:

Last update: 14 February 2020

Coin nameEarning potential a yearLong-term (1-year) investment
* NEO226.71%, -18%Awesome, bad
* Kucoin Shares130.49%, -65%Awesome, bad
* Neblio862.28%, -95%Awesome, bad
* Binance Coin64.26%, 21%Awesome, good



TRON9.27%, -63.02%Awesome, bad
* Bitcoin7.2%, 6.69%Acceptable
* Ethereum1.78%, -32.96%Not so good, bad
* Netbox Coin142.62%, 130.80%Awesome
* Nexo18.83%, 0.561%Good, not so good
* StakeCubeCoin34.31%, 20.88%Very good, good
* Tezos62.91%, 37.22%Awesome, very good

(*) These are the coins I own.

In the list also some coins that are not on the top 15 coins list, starting from TRON.

Coins that will drop:

Last update: 14 January 2020

Coin nameDrop potential a yearLong-term (1-year) investment
PIVX-80.68%, -89.55%Bad
NAV Coin-92.98%, -95.33%Bad
Komodo-92.64%, -89.89%Bad
Lisk-90.41%, -91.10%Bad
Decred-68.55%, -92.05%Bad
VeChain-13.56%, -17.94%Bad
ARK-82.68%Bad
Ontology-73.97%Bad
Qtum-16.19%Bad
Stratis-95.42%Bad
Dash-87.36%Bad



XRP-95.94%, -93.42%Bad
* BAT-2.21%, -24.54%Bad
* Bitcoin Cash-85.23%, -62.86%Bad
Stellar Lumens-93.94%, -82.88%Bad

(*) These are the coins I own(ed).

I also added some more coins that are not in the top 15 list above.
Starting from XRP.

I mainly followed WalletInvestor’s predictions and bought the coins that might go up.
Some of the coins that are considered as a bad investment, I got them for free.

Read more about those coins under the section “2. The coins that I am using”.

3. Crypto exchange services to buy coins

Below are a few of the exchange services where you can buy your coins.

Some of the exchange services offer staking functionality.
For these services, the staking fee is mentioned.

Binance 

Staking fee: 0%
NEO, Nav coin, VeChain, PIVX, ARK, Lisk, Neblio, Decred, Ontology, Qtum, Komodo, Stratis, Tezos, Dash, Binance coin

Kucoin

Staking fee: 10% 
Coins: NEO, VeChain, Lisk, Kucoin shares, Neblio, Decred, Ontology, Dash

eToro

NEO, Dash, Binance Coin

OKEx

NEO, ARK, Lisk, Decred, Ontology, Qtum, Dash 

Bit-Z

NEO, ARK, Lisk, Ontology, Dash

4. Wallets to store the coins in and staking it

Most if not all coins have their wallets to store the coins in and a staking functionality.
For instance, the NEO coin has the NEON wallet and Neblio the Neblio wallet.

As mentioned earlier in 3, some exchange services have a staking functionality.
These services store your coins in your wallet created on their website.

In the next sections, you can read about the coins I use.
The exchange services I used to buy them and the wallets I have been using.

2. The coins I am using

NEO coin

Buy NEO coin

Crypto exchange service: Binance
Wallet: NEON

The idea behind staking NEO is actually to earn GAS, not to earn NEO.
GAS is another crypto coin that is worth some value (as of writing 1.57 USD).

I created a Binance account to buy NEO.

If you want both of us to earn 10% of commission money, then sign up using my link:
https://www.binance.com/en/register?ref=WBJZAXBI

Binance has the exchange pair NEO/BTC. 
This means buying NEO you need to pay using BTC.

So the steps are:

1. Deposit BTC into the BTC address in Binance

It is located under the Wallet (top menu) > Exchange Wallet.

The minimum amount of NEO to withdraw from Binance to send to the NEON wallet is one NEO.

The exchange fee in the trading is quite high.
Therefore make sure to have enough Bitcoins stored in the Bitcoin address in Binance.

As of writing, one NEO costs 8.56 USD in the market. 
However, I bought one NEO with 0.001396 BTC equivalent to 10 USD.

After all the fees were deducted I had only 0.99 NEO in my wallet. 
This is less than 1 NEO and so I will not be able to withdraw this amount.

Therefore, I added more Bitcoins.

2. Buy NEO using the Binance trade functionality

In the Exchange wallet page, you can find NEO.

Then Go to trade > select NEO/BTC.

Then fill in the amount of NEO to buy with the BTC that you will pay for it.
And of course, fill in the NEON wallet address you want to send it to.

How much it will cost is dynamic, as the currencies are changing constantly.

In Orders > Open orders you can see the order you placed.

There is a column “Filled” with a percentage of how many percentages of your order is purchased.

Since not everyone will buy the amount that you offer.
So your order might be exchanged in parts by a variety of exchangers.

We can check a NEO transaction via neotracker.io.

After buying the NEO coins, it’s time to set up the wallet to store the coins in.

Set up a NEON wallet

Screenshot of my NEON wallet

I chose the Neon wallet as it is mentioned in a lot of articles. 
It works on the platforms: Windows, Mac, and Linux. 

If you prefer other wallets, you can choose from the wallets on the official NEO website: https://neo.org/wallets

Installation is pretty straightforward.

After installation is the creation of a new wallet.
Then the private key and the encrypted key need to be stored somewhere safe.

After a successful transaction, which is quickly done, the claim GAS button is available!
Once every 5 minutes you can claim GAS for free.

Don’t worry, you can choose to claim once in a while, like after a few days, weeks, months.
It keeps accumulating GAS.

Neblio coin

Buy Neblio coin

Crypto exchange service: Binance 
Wallet: Neblio

The procedure of buying Neblio is similar to buying a NEO coin using the Binance platform.

Set up Neblio wallet

I used the core desktop wallet, downloaded from https://nebl.io/wallets/.
Platforms supported are Windows, MAC OS, and Linux. 

I’m not describing the steps on how to stake Neblio.

This webpage explains it very clearly:  
https://medium.com/neblio-blog/how-to-stake-nebl-308d7083d472

It is a pity to get to know you need to have your wallet online and unlocked all the time.
Otherwise, you would not be staking.

I don’t leave my computer online 24/7.

The process of setting up the staking was not easy. 
I came across several challenges.

Challenges

1. I Could not connect to the database

I had a problem with starting up the wallet.

When opening the wallet, an error appeared about the connection with the database.
I cannot find a database file or something like that.

For troubleshooting that particular problem, I find this link very helpful:

2. Very slow synchronizing with network

I read somewhere that a minimum of four hours is needed for synchronization.

It took me more than four hours, it was taking days and it was still not finished.
Then I discovered why.

I was in New Zealand in a motel while I was doing this.
It had a good internet connection (23 Mbps download speed) though.

After using a VPN to connect to the Netherlands, the process speeded up.
So if you notice a slow connection, you might try out a VPN to connect to a European country.

This might help in speeding things up.

3. Receiving staking rewards using Neblio wallet takes ages

I have my computer run for at least 5 or more days 24 hours a day.
Still, I haven’t received any rewards yet.

According to the progress bar, I still had 8 or 9 days to go. 
After every single day being passed, this number was not decreasing.

So I finally decided to stop using the Neblio wallet.

Stake Neblio using Kucoin

I decided to stake Neblio using Kucoin instead of the Neblio wallet.

https://www.kucoin.com/staking

As of writing, you will receive a 7.17% annual rate of return by staking Neblio on their platform.

So I sent the Neblio from the Neblio wallet to the Kucoin website.
And it should automatically do the staking for me.

No need to have the computer 24 hours 7 days running. 

Netbox coin

Screenshot Netbox wallet

Crypto exchange service: not applicable 
Wallet: Netbox wallet (comes with the installation of the Netbox browser)

I did not buy any Netbox coins, I earned them by using their Netbox browser.
The Netbox browser comes with the Netbox wallet, this is super convenient!

If you wish, you can even stake the Netbox coins to receive daily staking rewards.
You can unstake any time you want.

Nexo coin

Crypto exchange service: Nexo
Wallet: Nexo wallet on the Nexo website

Buy Nexo coin

Nexo is a trading platform, they have a variety of coins that you can buy and sell.
And a good place to buy Nexo coins is without a doubt their website.

As a Nexo token holder on the Nexo website, you can earn 30% of dividends.

The last time they paid out the dividends was in August 2019. 
Since I joined five months after the payout, I have to wait for the next round.

I’m not sure if they do the payout once a year or half a year. 

After the registration on the website, you can start to buy Nexo tokens.

Screenshot “Buy NEXO Tokens” button

After pressing the “Buy NEXO Tokens” button a pop-up dialog appears.
It uses Changelly, a third party website. 

In the process, a Changelly account will be created for you if you don’t have one.

You decide which currency you want to use to buy Nexo.
You can choose from fiat like EURO, USD, etc. as well as other crypto coins like Bitcoin, Ethereum, etc.

BAT coin

Crypto exchange service: not applicable
Wallet: Uphold & Coinbase

I got my BAT coins for free in two ways:

1. Using the BAT browser and watching advertisements to get paid in BAT daily.
2. Coinbase Earn program once.

The Coinbase Earn program can invite you to earn some BATs.
However, this depends on the country and availability.

Some countries like Japan will put you on a waiting list.
And some countries, for instance, The Netherlands you will automatically join.

The BAT browser is connected to the Uphold wallet. 
The BAT that you have earned will be paid out once a month into the Uphold wallet.

Stellar Lumens coin (XLM)

Crypto exchange service: Not applicable
Wallet: Coinbase

I got my free Stellar Lumens coins via Coinbase Earn program.
Again, depending on the country you are in, you might be invited or not.

In case you would like to join earning Stellar using the Coinbase Earn program, I have this special link for you.

Invite up to 4 friends to join Coinbase Earn. They’ll get special access to earn XLM, and you’ll get $10 in XLM for each friend who completes a lesson.

https://coinbase.com/earn/xlm/invite/1mzhxr5p

EOS token

Crypto exchange service: Not applicable
Wallet: Coinbase

Like Stellar, I earned the EOS token for free via the Coinbase Earn program.

And below is the link in case you would like to earn:

Invite up to 4 friends to earn EOS too! They can be new or existing Coinbase users. You’ll earn $10 in EOS for each eligible friend who completes a lesson.

https://coinbase.com/earn/eos/invite/md874jfy

Binance coin

Crypto exchange service: Binance
Wallet: Binance wallet on the Binance site

I bought the Binance coin at Binance.com.

Then I “staked” the coin using flexible deposits.
See the screenshot below.

Screenshot Binance Flexible Deposits

It’s great to know that you can get your money out any time you want.
With the condition to be staked at least one full day after the deposit.

KuCoin Shares (KCS)

Crypto exchange service: KuCoin
Wallet: KuCoin wallet on the KuCoin site

The process of buying involves exchanging between cryptocurrencies.
You can exchange for instance with Ethereum and Bitcoin.

Not like Binance, KuCoin has three accounts: main, trading and margin.

I chose Ethereum as an exchange token.
It is much quicker in the confirmation than Bitcoin.

Then I deposited Ethereum in the main account. 
After that was successful, I clicked on “transfer” from the main account to the trading account.

Once the Ethereum is in the trading account, we can use it to trade for KuCoin Shares.

In the trading account, click on “trade” at KuCoin Shares.
This opens up the trading site. 

In the box, you fill in the amount of the coin (in my case ETH) you would like to trade.
Once that is done, the KuCoin Shares appear in the trading account.

The last step is to move the KuCoin Shares via “transfer” back to the main account.

You can also stake KuCoin Shares, but you need to have at least 200 KuCoin Shares.
Since I don’t have 200 KuCoin Shares, I will just hold it.

StakeCube coin (SCC)

Screenshot StakeCubeCoin

Crypto exchange service: StakeCube coin
Wallet: StakeCube

As of writing, there are not many places to buy StakeCube coins. 

I bought it on the StakeCube official website.

To buy SCC, you need to already have Bitcoins in the StakeCube account.
Then you exchange BTC with StakeCube coin on the market section on the site.

Once you own the StakeCube coins, you automatically stake them and receive rewards.

The process of buying can take several hours to days.
So don’t be surprised to see your open order for a long period.

Tezos (XTZ)

Crypto exchange service: not applicable
Wallet: Coinbase

I got my Tezos for free via the Coinbase Earn program.

Conclusion

As with everything, everything is changing. 
Especially with cryptocurrencies, there are no guarantees.

The list of top 15 coins I compiled worth investing in is as of writing already outdated.

Staking and holding does not mean we store it for a very long time, like a year.
The length of staking and holding is dynamic.

Once the prediction tells that the value will drop in a month or so, we need to sell it. 
We then have earned the profits we have made so far.

It is, of course, disappointing to see the coin we have invested in will not grow anymore.
To prevent losses, we need to sell it anyway.

And those predictions are also not guaranteed to be accurate.
We can try our luck by using some kind of guidance from the predictions.

Good luck and may you earn some profits from holding and staking cryptocurrencies!

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