I have been successfully trading in Binance. I started with a few hundred dollars, and now have doubled my base. If that isn't success, I'm not sure what is. But this came at a price. Trading consumes a lot of time. Not to mention some skill requirements on the technical analysis side of things.
That prompted me to look for ways to earn crypto coins, in a more passive manner -- a bit closer to "set it, and forget it" type of deal. I found proof-of-stake coins and started my journey toward learning how to set-up one for myself -- for now let's tackle "staking" and save the "masternode" for later.
Staking (the "S" in Proof-of-Stake)
There are a lot of PoS coins out there. If Bitcoin is the king of crypto, Dash is the king of PoS. Staking is basically keeping your wallet open, so that it aids in the decentralization of the blockchain.
And keeping your wallet open is how you earn passive income. How? Let me share with you my experience. Let's start with setting up a VPS.
Lease a VPS (Virtual Private Host)
Keeping your wallet open 24x7 is not easy. But having a VPS, makes this possible. A lot of people are more comfortable running Windows-based VPS instances, so a lot of tutorials are there to follow. Let's go the Linux route.
One critical reason to go with Linux VPS instances they are cheaper. A headless, terminal-based Linux instance does not consume a lot of resources. It can run with as little as 1CPU and 512MB of memory!
I wrote about the most cost effective Linux VPS instance in my previous post. You may want to check that out.
Linux VPS Set-up
The instance I got was the tiny 1CPU, 1GB and 1TB of bandwidth. This seems to be ample enough to start the PoS. Given the promo I got, I have about 5-6months of free VPS instance, giving me enough time to recoup (or even EARN!) for the future costs of the investment.
I selected the Ubuntu 16.04 LTS setup. Having the instance ready, download the PuTTY SSH client to connect to the VPS instance.
Update Ubuntu 16.04 LTS
First and foremost, install the necessary updates!
sudo apt-get -y update
sudo apt-get -y dist-upgrade
Install Pre-requisite Packages
After the above do a reboot, then install the necessary packages.
sudo apt-get install nano htop git
sudo apt-get install build-essential libtool autotools-dev automake pkg-config
sudo apt-get install libssl-dev libevent-dev bsdmainutils software-properties-common
sudo apt-get install libboost-all-dev
sudo apt-get install libzmq3-dev libminiupnpc-dev libssl-dev libevent-dev
Add the BitCoin Package Repository
Additional software packages are not readily available in Ubuntu and have to be imported from another repository.
sudo add-apt-repository ppa:bitcoin/bitcoin
sudo apt-get -y update
sudo apt-get -y install libdb4.8-dev libdb4.8++-dev
Download the NYEX Wallet
Download the Linux x64 NYEX wallet and extract the pre-built binaries.
wget https://github.com/nyerium-core/nyerium/releases/download/v1.0.1.0/nyerium-1.0.1.0-x64-linux-tar.gz
Extract the contents to /usr/local/bin.
tar zxf nyerium-1.0.1.0-x64-linux-tar.gz -C /usr/local/bin
Configure Wallet
The wallet configuration file needs to be manually created in Linux. First create the directory .nyerium in your home folder.
mkdir $HOME/.nyerium
Now create the file nyerium.conf with the following lines:
rpcuser=YOUR_CUSTOM_NYERIUM_USER
rpcpassword=YOUR_CUSTOM_NYERIUM_PASSWORD
rpcallowip=127.0.0.1
rpcconnect=127.0.0.1
rpcbind=127.0.0.1
listen=1
staking=1
Sync NYEX Wallet
Next, run the wallet and sync it to the blockchain.
nyeriumd -daemon
Deposit Some NYEX
Lastly, deposit some NYEX to the wallet. The bare minimum required to stake is 2000 NYEX. This is according to the developers. I started staking with 2250 NYEX.
The deposit address can be retrieved via command line interface:
nyerium-cli getaccountaddress ""
NYYJc31kdp9BVdjGuWRZv91b4SYG1pTVWu
(NOTE: Please don't deposit to that address. Otherwise I will gladly accept your donation.)
Staking will not immediately occur, until the transaction of this deposit matures with several blocks. The status can be checked via:
$ nyerium-cli getstakingstatus
{
"validtime" : true,
"haveconnections" : true,
"walletunlocked" : true,
"mintablecoins" : false,
"enoughcoins" : true,
"mnsync" : true,
"staking status" : false
}
Then, after about 300 blocks staking will commence. The clue is when mintablecoins becomes true from false. The value of staking status also flips to true. Every now and then, your wallet earns 50 NYEX (less txn fees).
Why NYEX (Nyerium)?
NYEX promises a daily income of US$20 for a masternode. It fluctuates but generally, that is reflected in the masternodes.online.
While staking earns 50 NYEX and masternodes earn 200 NYEX, you will see that building a masternode really has its rewards. Staking ain't too bad with 20% share of the pie!
Enjoy staking NYEX!
If you like this post, you know what to do.
Support:
- Bitcoin (BTC) - 3Kyjg1Wj1PNGN3KhiRprxYvvQpdjC5kT3k
- Etherium (ETH) - 0x5F168F895C63ccC5FbEf921047bc2b63f6780c3F
- SmartCash - SbgqBUuGBVaaFERmc5zPn8XStxXe7vE1SL
