If you are looking for a great source of passive income, staking Navcoin would be an excellent idea. The staking rates for Navcoin are approximated at 14% each year currently.
But, there’s a hurdle – staking insecurity. For you to stake, you have to ensure that your wallet remains online 24/7 and connected with several nodes. Additionally, your risks of getting hacked are higher.
Read on to learn how to cold stake Navcoin.
What Is Navcoin?
Navcoin is a form of decentralized cryptocurrency. With a solid foundation, this Bitcoin Core-based crypto has easy-to-use wallets with lots of features for privacy protection. Your data and identity are safe when using Navcoin because you can transact privately.
Navcoin’s Proof of Stake algorithm guarantees secure transactions so that you can trade confidently. Additionally, you are entitled to 5% in rewards each year for all your investment.
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Beginners Tips on How to Cold Stake Navcoin
You can stake Navcoin in three different ways – easiest, best, and advanced. The easiest way is to stake it from your personal computer or laptop. You can also use dedicated software. Cold staking is considered an advanced option.
How Cold Staking Works
You will need two nodes to cold stake Navcoin – one should have a spending address, and the other – your staking address. You gain a cold staking address by combining the two.
The cold wallet accesses your spending address, whereas the hot wallet refers to the node with your staking address. Simply, your cold staking address is a bridge between the spending and staking address.
Any coins transferred to the cold staking address are still accessible from the spending address. After the transfer, you can use your hot wallet to stake.
How to Choose the Appropriate Cold Staking Environment
To succeed in cold staking Navcoin, you need the right environment.
You can do this in two ways:
- Setting up your node
Having your node gives you total control over the wallet. In this case, you should have a personal computer that runs 24/7.
A Virtual Private Server (VPS) would be ideal here. However, you need to be versed in Linux systems for this to be easy. Make sure that you manage the wallet well. For instance, anytime it gets outdated, you won’t get any staking rewards. Thus, it would be best if you kept the wallet updated.
- Using a node, you get from a staking pool provider
You can rely on a staking pool provider to cold stake Navcoin. This approach is much cheaper compared to the previous one. Additionally, you can use a light wallet to stake Navcoin.
With this method, you don’t have control over the node. Nevertheless, you still control your crypto coins.
Cold Staking Using FireStake
Here is a brief guide on how to cold stake using one of the staking pools:
- Register First: Your first step is to find and register at the most appropriate staking pool provider.
- Determine your preferred contract: The cold staking dashboard offers you two contract options.
You can opt for the global contract or the specific coin contract. With the global option, you have access to unlimited coins. The other contract allows you to use a specific coin.
- Get a cold staking address: This allows you access full functionality. For that, input your spending address.
- Deposit Coins: With the cold staking address generated, you can deposit your Navcoin. That’s it. You are ready for staking rewards, although this depends on the amount you have staked.
Cold Staking Using Your Wallet
Here’s how to cold stake if you opt for the own node method:
- Get a VPS: Find a reliable VPS for this task. You can as well use a PC, but it must run 24/7. However, a VPS is more recommendable because it eliminates the need to manage the server.
- Connect to the VPS: Use an SSH client.
- Navcoin core wallet installation: With the VPS connected, your next step is to install your core wallet.
- Wallet encryption: Once you install your wallet, you should encrypt it. The command below will encrypt your node easily.
~/navcoin/src/navcoin-cli encryptwallet <passphrase>
- Cold staking address generation: To generate a cold staking address, you should have a staking address. Generate a staking address using the command below:
~/navcoin/src/navcoin-cli getaddress
With the staking address, you can now get a cold staking address. Here is the code to use:
~/navcoin/src/navcoin-cli generatecoldstakingaddress <spending address> <staking address>
- Coins deposit: deposit your coins and start receiving stake rewards.
Start Navcoin Cold Staking Today!
Cold staking is a much secure and safer way to earn staking rewards. Whether you choose to use your node or a staking pool, you should learn more about Navcoin staking. If you opt for a pool, make sure you go for a reliable provider. Happy staking!
