How to stake Neo | KoinX

how to stake neo guide
A step-by-step guide to stake Neo

Neo Staking Overview

Neo is an Ethereum-like blockchain focusing on smart contract implementation and asset digitization. Staking NEO entails storing NEO currencies in a compatible wallet and waiting for them to earn rewards. Rewards are awarded GAS, the second coin in the Neo ecosystem. It makes use of Delegated Byzantine Fault Tolerance (dBFT).

All NEO token holders vote for a small set of network validators. Consensus Nodes are the designated validators who verify transactions and add new blocks to the blockchain.

This is an in-depth guide to stake Neo.

How to Stake Neo (NEO)?

You should know that NEO differs somewhat from other Proof-of-Stake (PoS) blockchains if you consider stake. Neo doesn’t lock your tokens as most PoS blockchains do in exchange for payouts; they do this to ensure security. In this case, a two-token system is being implemented, one for transaction fees and one for governance. 

NEO is the exchange token, and GAS is the transactional currency utilized in this network. Staking incentives are paid out in GAS. Users wishing to profit from Gas rewards can access closed NEO staking vaults on centralized exchanges, which abstract the back-end procedure. Here are steps that you can take to stake Neo:

Step 1: Buy NEO

The purchase of NEO currency is the initial stage. For this, you can explore various cryptocurrency exchange platforms and select the one that best suits you based on transaction and withdrawal costs, usability, etc. Create an account and fund it using one of their many flexible funding options, such as credit cards or bank transfers. Swap your fiat for NEO on their exchange after depositing.

Step 2: Stake NEO

Next, add NEO to any of the available vaults. Most exchanges that accept NEO staking provide a wide range of vaults with lockup times and percentage payouts ranging from 30 days to 120 days in increments of 30 days. However, you can infrequently come with a lock-up of 15 or 45 days. Before enrolling with an exchange, you might want to compare yields across time, pools, and exchanges.

Step 3: Unstake your NEO when you’re ready

Different methods are used to distribute the awards depending on your chosen platform. Some only pay once a month, while others don’t provide the NEO and its GAS incentives until the lock-up time has passed. An effective tactic here is to bet for fewer days and then retain the principle and interest for a long term to earn bigger returns than you would have by initially staking for a longer period.

Also read: Where to buy Neo?

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Best Places to Stake Neo (NEO)

1. Binance US
binance us crypto exchange

In Forbes Advisor's finest staking platforms, Binance.US is among the top staking exchanges. It has officially initiated a new round of high-yielding staking activities. So you can effortlessly stake NEO coins and get rewards through Binance.

  • Unlike other cryptocurrency exchanges, Binance cuts down the minimalistic amount of rewards, making staking Neo generally profitable for you.
  • Setting up your staking account is really easy.
  • You can’t hold 100% of your Neo staking rewards.
2. OKX
okx crypto exchange

OKX is a popular cryptocurrency exchange with millions of customers. It just upgraded to accommodate proof-of-stake for Ethereum 2.0 users. It's a quick and simple platform for beginners to stake NEO coins and receive incentives.

  • Reliable and trustworthy
  • Multiple choices of staking cryptocurrencies are available, even Neo
  • 24-hour customer support
  • Staking NEO here is comparatively difficult as compared to Binance.

Benefits of Staking Neo (NEO)

  • To stake NEO, there is no minimum requirement. Any quantity of NEO tokens can start reaping benefits.
  • The process of staking NEO is simple enough and people new to cryptocurrencies can easily get started.
  • NEO staking is affordable compared to other blockchains.

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Most frequently asked questions on Neo Staking

Does NEO use proof of stake?

Yes, NEO uses Proof-of-Stake (PoS) consensus mechanism.

Do you get GAS from holding NEO?

You can earn 1.61% yearly GAS “interest” from holding and staking 100 NEO.

Can NEO be mined?

No, NEO cannot be mined but staked. However, with each new NEO block generation, a certain amount of GAS tokens is created and distributed to all NEO holders.

How many NEO coins are left?

The total amount of NEO coins left is 70.53M, which is also the current circulating supply available.

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