How to stake Neo | KoinX

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.