VeChain Staking | How to Stake VeChain

What is Vechain staking?

VeСhain staking is a way to passively earn money using the VeСhain cryptocurrency by allocating or “staking” it on the blockchain. This method of increasing income is good because the risk is minimal, and there is no need for significant initial investments. In fact, this is such lazy earnings for those who do not want to burden themselves with mining or trading. You basically just keep coins in your wallet and don’t think about anything else.

But, of course, everything is not as simple as it seems at first glance, and in order to start the staking process, you need to figure out a few things.

VeСhain staking offers two main ways to earn free cryptocurrency. The first method is running the VET masternode. It is more rewarding but more difficult and not suitable for a beginner who does not have technical knowledge. 

The second method is more popular with the average users as it takes less time and experience to get started. All that you need to get a reward is to stake VET in your wallet. 

In each case, users who stake their VET get VTHO tokens for this, usually on a monthly basis.

How does VeChain staking work?

Basically staking is available for coins whose blockchains run on a Proof-of-Stake (PoS) consensus algorithm, but this is not the case with VeChain. It uses a Proof of Authority (PoA) algorithm that relies on the reputation of validators called Authority Masternodes (AM). To generate blocks, validators do not use the power of computing equipment or the number of coins, but their own reputation, which makes the process cost-effective. 

There are two tokens in VeChain: VET, the main value transfer token and VTHO that represents the cost of performing transactions on the blockchain. All owners of VET tokens will automatically get VTHO coins, which they can use to pay transfer fees. If needed, VTHO can be exchanged for VET.

How much can I earn with VeChain staking?

Holding VeChain to earn VTHO tokens will bring you around 1.34% annually, while node launch offers a reward of 1.8% to 2.27% annually. 

Let’s consider examples of specific figures:

If you take 10,000 VET for example, which is $ 1.185 at the time of writing, then you get $ 19.92 or 1.68% annualized for VeChain holding.

Let’s consider an example of a specific figure:

If you take 10,000 VET for example, which is $ 1.185 at the time of writing, then you get $ 19.92 for VeChain’s annual hold, or 1.68% annualized. For Running a Strengthnode you will receive 2.27% annualized, but the minimum staking amount for this type is 1,000,000 VET and the total reward value, in this case, is $ 2,684. For Running a Thundernode with a minimum staking amount of 5,000,000 VET, the staker receives $ 15,151 (or 2.56% annualized). For Running a Mjonlnirnode, a staker can expect $ 50,640 in annual earnings for staking 15,000,000 VET tokens. 

For staking 25,000,000 VET under Running a Authoritynode, the annual potential earnings will be $ 84,401 (or 2.85% annualized).

Pros and cons of staking VeChain

Advantages:

Maximum simplicity. “Lazy” investing is ideal for people far from IT and all related issues.

Significantly lower risk level. At least due to the fact that you are not “tied” to expensive equipment, which tends to fail in mining mode.

Guaranteed profitability, which can be roughly calculated.

There is no dependence on geographic location. You can log into the network and manage your account on the exchange from any device. In doing so, you pay your regular electricity bills. 

Disadvantages:

Crypto cannot be used for trading or payments when it is frozen until a certain period of time has passed.

In case of premature withdrawal of VET tokens from staking for the purpose of using them in a different way, you will lose the remuneration accumulated for the month.

How to stake VeChain?

As you already know, there are two ways to passively earn money using VeChain staking. The first method is relatively difficult as it requires a large number of VET tokens and technical knowledge. It’s about starting a masternode. This method is divided into four levels of ownership, depending on the number of tokens:

Strength (minimum 1 million VET)

Thunder (minimum 5 million VET)

Mjolnir (minimum 15 million VET)

Authoritative node (minimum 25 million VET)

At the time of writing, the lowest level would be worth $ 136,000.

But if you don’t have that many VETs, don’t be discouraged, you can still earn some free crypto quickly and easily using the second method. It’s like a bank deposit that earns you interest on the amount you don’t spend but keep in your account. 

There are digital wallets with staking functionality. Plus, they’re not only safe, they’re free.

VeChain has two official wallets:

• Sync desktop wallet;
• VeChainThor mobile wallet (compatible with Android and iOS devices).

These wallets are easy to set up and use. After installing the wallet, you can proceed to buying VET tokens on a reliable exchange. Then send the purchased coins to the public address of your wallet and hold them there to generate VTHO tokens. The larger the amount the longer they are in the wallet, the more income.

Best Places to Stake Vechain(VET)

As the phenomenon of staking is getting more and more popular, there are more and more places that provide this service. We will look at the places with the best conditions for this kind of passive income. There are several places for staking VeChain: these are special wallets with the necessary function, as well as exchanges that charge for staking on them. 

Exchange platforms with the best features and the lowest fees include Binance and the Crypto.com app.

Among the wallets offering the best annual returns and investment security, users note Ledger Nano, Exodus Wallet and Atomic Wallet.

Staking Vechain at Cryptocurrency Exchanges

In terms of convenience and simplicity, an exchange is the best place to hold VET tokens, since all the backstage work is done for you. 24/7 support is at your service, so after placing the tokens on the exchange, you do not need to think about anything.

Binance

Binance is one of the most popular and arguably largest exchanges. Along with staking, you can use the platform to trade, lend and store your digital assets in one of the in-built wallets. If you don’t have VETs to stake, you can buy them right away, which is very convenient. In addition, it charges low fees for its services – 0,03%. You can start staking with only 1 VET and expect an estimated annual yield of 1.1% VTHO.

Crypto.com

Another nice, albeit less popular, crypto exchange is Crypto.com. You can use this platform by downloading the app to your mobile phone (it is compatible with Android and iOS devices) or by visiting it from your computer/laptop. To start staking there, you should have at least 18,000 VET which will bring you ROI of 0.5% VTHO.Be aware that you will have to pay a 0.10% commission to stake via Crypto.com.

Although, in terms of security, exchanges are still inferior to a reliable wallet. Therefore, if you decide to use a large amount of VET currency for staking, it is better to use one of the wallets listed below.

Staking VeChain(VET) from Wallets

Ledger Nano

Ledger Nano hardware wallet is one of the safest in the world. By “freezing” a large amount of VET token you can be sure that it will not be stolen by intruders. Of course, you will have to pay for security. Depending on the version of the wallet, the cost can range from $ 59 to $ 119. In addition to the fact that the wallet is known for its reliability, it also has a wide range of useful functions with which you can receive and send various cryptocurrencies (not only VET or THOR). 

However, since the wallet uses an intermediary (Coinify), you will have to pay a commission for such services, which varies from 1.7% to 4.5%.

In order to start staking using the Ledger Nano wallet, you need to install the VeChain application using the ‘Manager’ on Ledger, make sure that the device is fully synchronized and deposit at least 1 VET.

Atomic Wallet

Another notable wallet for staking VeChain is Atomic Wallet. Although, being an online wallet, it is not as secure as the previous one, it still beats it in some respects. Firstly, it is absolutely free. You can simply download it to your device. Secondly, the annual return on investment of VeChain on Atomic Wallet is 1.41% which is the highest in the entire market.

In addition to staking, the wallet also offers other services such as buying or selling various cryptocurrencies. However, this also happens through the intermediary company Changelly, and for its services the company also charges a 2% commission.

In order to start staking, you need to download Atomic Wallet from the official website and install it on your device. Then you need to buy VET tokens, which can be done directly in the wallet itself or on any other exchange by sending the cryptocurrency to the address of your wallet. Click on the “Stacking” button, scroll down to find VeChain, since the wallet supports 15 other cryptocurrencies to stake, and click “stake now”. To start staking on Atomic Wallet, you need to have at least 10,000 VET tokens.

Exodus Wallet

Exodus wallet has a reputation for being a secure vault for digital assets. In addition, its security features can be improved by syncing with the Trezor hardware wallet. And to make managing your assets even more convenient, you can use a software wallet using the application. The wallet supports a huge number of different cryptocurrencies that you can buy and sell. The staking function is possible for 6 cryptocurrencies including VET. To start staking with the Exodus Wallet is really easy. You need to install it on your device, deposit VET, which by the way can be purchased right in the wallet by using the built-in exchange, and staking will start automatically.

VeChain Staking Pool

If you know anything about bitcoin mining, you’ve probably heard of the “pools” in which miners join together to increase collective computing power and increase the chances of receiving mining rewards, which are then shared among the participants. Since staking rewards do not depend on computing power, there is no point in such staking pools.

On the other hand, given that to run a masternode, a certain minimum amount in a token is required, which varies from 1 million to 25 million, depending on the level, the formation of VeChain staking pools with others may make sense. However, now there is no such possibility.

VeChain Calculator

One of the advantages of staking over mining is that you can calculate your income fairly accurately using online VeChain staking calculators. It’s better to use multiple calculators before you start staking. For example, the very handy Thor Calculator and the calculator at StakingRewards.com. 

Thor calculator

The Thor calculator provides you with the number of VTHO tokens that can be earned per day / week / month / year. You can also calculate the potential monthly income in dollar currency. To do this, you just need to enter the number of available VETs that you are ready to use for staking.

StakingRewards.com

The calculator at StakingRewards.com has more advanced features. To calculate the number of passive earnings, you need to select the amount and type of currency for staking, the period of time for which you are ready to “freeze” your assets and the type of staking. The calculator shows us the average remuneration as a percentage.

Conclusion

Staking can be compared to a bank deposit. The more coins are frozen on the network, the higher the reward. For validators, this is an opportunity to earn passive income. To become a validator, you must have the minimum required number of coins. These coins must be kept locked in the wallet or at the exchange for at least a few months. You will also need to configure your equipment and keep it connected to the network at all times.

VeChain staking is quite safe as your VET is locked in a smart contract. However, this does not mean that there are no risks. Perhaps the biggest risk in betting is that the market price of either VET or VTHO will fall rather than rise in the long run. 

With respect to all blockchain technologies, there is always the possibility that the code is vulnerable. Thus, while there were no problems with VeChain staking, such a scenario is always likely when interacting with any cryptocurrency or blockchain.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.