Our guide will help you understand VeChain staking effectively as much as possible. Today, it is one of the most popular cryptocurrencies based on blockchain technology. In 2015, when this asset was launched, no one could have imagined that such recognized giants as Louis Vuitton, BMW, and Deloitte would cooperate with it.
This is the first cryptocurrency which was originally conceived and created to meet the needs and demands of big business. It started out in the Ethereum ecosystem, but now the cryptocurrency runs on its own platform.
What is staking
Staking stability is provided by the PoS technology. There are two types of tokens operating simultaneously on the VeChain platform: these are actually VeChain (VET) and VeThor (VTHO). The creators have taken steps to prevent profits from transactions between these two tokens. By staking in VET, the trader is rewarded in VTHO. This gives the opportunity to participate in the governing decisions which relate to the network’s operation.
How to perform staking in VET
There are two main ways of staking:
- running the mastrnode;
- staking VET on cryptocurrency exchanges in order to receive dividends.
Let’s look at both of these options.
Running the masternode
Running the masternode is a way that requires more effort than placing coins on a cryptocurrency exchange, but promises more interesting profits in the long run. In addition, it demands quite a serious initial investment, on which the level of the holder depends:
- Strength — from 1 000 000 VET;
- Thunder — from 5 000 000 VET;
- Mjolnir — from 15 000 000 VET;
- Authority node — from 25 000 000 VET.
Considering that at the time of writing this review, the price of one VET coin is 1 cent, it is easy to calculate that even to achieve the minimum level you would have to spend two hundred thousand dollars. Most average users can only launch masternode at the start of a new asset, when the price is minimal.
Staking VET in a cryptocurrency wallet
If you don’t have $200,000 to spend, the only available way for you is by staking VET coins in a wallet for prizes. There are numerous of these wallets, but we recommend you, first of all, to pay attention to two of those which cooperate with VeChain officially:
- Sync — for PC users;
- VeChain Thor wallet — for those who have a preference for Android and iOs devices.
We also offer you wallets, which are not official VeChain employees, but they are worth of your attention:
- Trust is a digital wallet with the ability to store keys on a smartphone or other device, allows you to keep 13 different currencies, in addition to VeChain;
- Atomic is a digital wallet, the main advantage of which is the ability to store about 300 types of cryptocurrencies;
- Exodus is a digital wallet with staking support and the ability to store up to 3 types of currencies;
- Crypto.com is a crypto exchange with a wallet function (the ability to store cryptocurrency in exchange accounts), supports all currencies which are represented on the exchange, the exact number of which varies.
Each of the wallets has its own characteristics, but the steps are about the same:
- open a wallet;
- duplicate VET address;
- buy VET coins on a cryptocurrency exchange (for example, LetsExchange.io);
- make a profit from staking.
The amount of profit varies, but do not count on super profits. So, the wallet VeChain Thor will bring 0.000432 VTHO daily for each stored VET.
What is the point of staking VeChain?
Staking is a passive income that accumulates automatically on the coins that are stored in a wallet. All you have to do is put coins into a staking wallet. It gives a possibility to get a small daily profit for each coin.
How much profit can you expect?
To find out the amount of profit, it is necessary to use a special calculator, for example, The Thor calculator is presented directly by VeChain owners and is deservedly considered the most accurate. To receive the maximum reward, it is essential to start masternode, but this will require high (estimated at hundreds of thousands dollars) initial investments. On average, the income from staking is about 1.3% a year, from the start of masternode – doubled.
How safe is staking?
At the moment, there is no reason to talk about any danger of staking. The wallet guarantees the complete safety of assets, the user’s task is to ensure that digital keys are not available to criminals. Of course, this will not protect investments in case they fall in value, but the same applies to any financial assets, both cryptocurrency and traditional (fiat).
What are the main advantages and disadvantages of staking?
The main advantage of VeChain staking is the ability to earn passive income without any additional actions. Just place coins on a certain wallet and receive a percentage. The disadvantage is the blocking of invested coins for a certain period of time with a smart contract system. It is possible to withdraw your own funds ahead of time, but it will zero out the accumulated profit for the period. It basically seems like a term deposit in a bank.
VeChain is a rapidly developing project at the initial stage, that is, it is preferable for investment. After all, investing in cryptocurrency at the start can bring maximum profit in the long run. To get timely information about changes in trends, follow updates on the our website.