How to Stake Cryptocurrency -The Epic Guide [Coins & Detailed How-To’s]
Many of the people in the world of cryptocurrencies believe that the best way to make some generous profits from the blockchain technology and the cryptocurrencies is to learn the fundamentals of trading and to start your portfolio as a day trader.
So, in this article, we will go through the ways about how to stake cryptocurrency, which coins are the best for staking, and how to create some passive income through staking crypto.
Because when you buy coins that share the rewards with the coin holders – you can make money on a monthly and weekly basis.
Just think about it – you buy a coin and they give you more because you are keeping that coin in your wallet.
Too good to be true?
Well, it is not!
Generally, in this article, we will show you how to make profits in a way that has more to do with low risk investing instead of the stressful high-risk, high-reward day trading side.
There will be some hyperlinks in the text to define terms that you might not be familiar with so don’t sweat it if you are totally new in cryptocurrency staking.
Let’s go through step by step to learn how to stake cryptocurrency!
How to stake cryptocurrency
We could go into many technical details about the technology and how it works but let’s keep things simple. To be able to stake coins and make profits you have to own some of the so-called POS or Proof-of-stake coins.
The POS coins have a different philosophy than Bitcoin for which you have to use HUGE computing power to validate transactions and make more Bitcoin.
The POS coins use an algorithm where you have to hold and stake your coins in designated wallets so that new blocks are created and transactions are validated on the blockchain.
With POS Cryptocurrency Coins you use the money to make money.
This way you don’t need any powerful computing system to earn rewards. You just have to keep your computer up and running at all times or pay a virtual server to do this for you.
Each coin might have a different approach but the general idea is that the more coins you have and the more time you keep them staked (locked) in the designated wallet the more rewards or possibilities for high-rewards you can have.
Of course, this means that when you stake cryptocurrency you have to “lock” your assets in that wallet meaning that if you decide to move them or use them you will lose future rewards.
Now that we got the basics, let’s have a look at the 5 best coins to stake and receive profits!
Top 6 Proof-of-stake coins!
These are the top Proof of Stake Coins that will make you the most money if you just buy and hold these coins.
“NEO is a non-profit community-driven blockchain project. It utilizes blockchain technology and digital identity to digitize assets and automate the management of digital assets using smart contracts. Using a distributed network, it aims to create a “Smart Economy”.”
How it works;
Staking NEO lets you generate GAS, the platform’s internal currency. A GAS fee is charged whenever someone creates or alters an asset on the NEO blockchain. GAS pays for each action and is then distributed to NEO stakers proportionately.
The more NEO you have staked, the more GAS you’ll earn with each payment. Gas is also a currency that can be traded as well.
Possible returns; 4-6% Annually
- For more information visit Neo Staking Calculator
Here’s a detailed guide on how to stake NEO:
“NavCoin is a decentralized cryptocurrency that uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of NavCoin is carried out collectively by the network.”
How it works;
To stake NAV Coin all you need to do is download their core wallet for your device, transfer your assets in it and after a maturity period, you start earning!
Possible returns; 4% maximum annually
- For more information visit Nav Coin Staking Calculator
Here’s a detailed guide on how to stake NavCoin:
“The Neblio Cryptographic Coin (NEBL) is the lifeblood of the Neblio Blockchain Platform, allowing the instant & secure transmission of information worldwide while securing the Neblio Network.”
How it works;
The network is set to generate new coins at a rate that is variable depending on the number of coins currently being staked on the network at any given time. The more coins you currently have staking, and the longer it has been (up to a limit of 7 days) since the last time those coins have successfully staked, the greater chance you have of receiving a stake reward. You may get small rewards frequently, or infrequently, depending on your total coins.
Possible returns; 10% maximum annually
- For more information visit Neblio staking calculator
Here’s a detailed guide on how to stake Neblio:
“PIVX is an open-source, decentralized cryptocurrency that focuses on privacy, security, anonymity, and instant transactions. The name stands for Private Instant Verified Transaction and is a Dash fork.”
How it works;
- Method 1 – Running a Masternode
Running a Masternode, which requires 10,000 PIV.
(Note: Requires some technical know-how)
But what exactly is a masternode?
Whats this video for in-depth explanation:
- Method 2 – Stake Your PIV
Staking your PIVX, which has no required minimum, but requires you to keep your wallet active.
- Method 3 – Helping Out
There are also opportunities available all the time to help out with community projects funded by PIVX. If you help these projects along, you become eligible to earn PIV for your time and work. These opportunities include development, marketing, customer support, and more.
Possible returns; 4.8% approximately annually
- For more information visit Pivx staking calculator
Here’s a detailed guide on how to stake PIVX:
“Reddcoin makes digital currency easy for the general public. By integrating a digital currency platform seamlessly with major social networks, sending and receiving tips and micro-transactions are cheap, fast and rewarding for everyone.”
How it works;
There are some easy steps on how to stake cryptocurrency with Reddcoin.
- Download the official wallet
- Install the wallet on your computer
- Purchase some Reddcoins and transfer them in the wallet
- Wait for the wallet to synchronize and set it up for staking
- Coins need to mature for at least 8 hours
Possible returns; 5-6% approximately annually
- For more information visit Reddcoin stake calculator
Here’s a detailed guide on how to stake ReddCoin:
How it works;
Lisk uses a Delegated Proof-of-Stake system that varies slightly from standard PoS. Only the top 101 delegates can forge blocks, meaning they get all of the staking rewards. Users stake LSK and use them to vote in delegates. These parties then share forged rewards with voters, giving back anywhere between 6.25 and 100% of their earnings.
It might sound complicated but there are actually only 3 things you need to do to start earning Lisk:
- Transfer Lisk to Lisk’s desktop wallet
- Vote for up to 100 delegates (a rule of thumb is to vote for the first 100 delegates because they are the only ones who receive rewards thus can share with you)
- Voting for 33 delegates cost 1 Lisk
- That’s it – now you will receive your Lisk rewards.
But if you need a detailed guide on How to stake Lisk – watch this video:
Possible returns; 9-10% approximately annually
- For more information visit Lisk staking calculator
So how do you actually earn passive income from staking cryptocurrency?
As you have understood already the process to earn passive income through staking cryptos is long but promising and more secure than day trading or just holding your assets.
You will have to remember some basic principles:
- Make your own research to find the best solution to your passive income plan
- You will need a fair amount of coins to stake to have some fair gains
- Patience is essential
- You have to stay informed about updates and news regarding the project you will choose
And once you have that under control – the rest is simple.
In general staking cryptocurrency is super easy:
- Buy the coin you want to stake – we suggest using the coins from our list
- Transfer the coins to their wallet
- Wait for the rewards to flow in
Wrapping up on how to stake cryptocurrency and POS coins
Generally, the process of crypto staking nowadays is quite easy to set up and start. You only need some funds and you are ready to go just by following the steps of each wallet and coin.
Our list has been compiled by the most promising projects with actual results and gains but be advised that you must always make your own research as the cryptocurrency space changes rapidly month by month.
So, if you made your decision and you are into staking some crypto now is the time to get out there and get started!
Choose a plan, make some profits and share some feedback, reviews or suggestions in the comment section below!
For other ways to earn with cryptocurrencies, check these guides: