Crypto staking can be lucrative. See how much I earned staking Energi over the past year …
Cryptocurrency has grown to disrupt the banking and finance industry in less than a generation. Following on the runaway success of Bitcoin are thousands upon thousands of competing coins. The early investors of many of these coins were richly rewarded in the spring of 2021 with the quick rise of the markets.
Since the computer networks that support these cryptocurrencies are decentralized, rewards for participating in the network are baked into recording the transactions and securing the blockchain ledger.
One such means is called “proof of stake” meaning that participants acquire the coin, put it in a crypto wallet, register the wallet with the network, and then keep node software running that acts to handle the network bookkeeping. As the ledger blocks are created, particular nodes (and their registered wallets) are chosen to validate the transactions, and are rewarded for doing so.
About a year ago, I began staking a cryptocurrency called Energi (NRG). The participants in the network acquire part of what draws, About a year ago, I (finally) tried my hand at some cryptocurrency investing. Specifically, I bought some NRG and began staking it to earn the crypto staking rewards.
What has been my return with the staking?
I started with a purchase of 644.82 NRG a year ago. I've earned 131 staking rewards at 2.28 NRG apiece, for a total of 298.68 NRG.
In the next section I'll talk about the Discord channel in more detail. I earned 59 NRG participating in the Discord channel.
Adding these up, I have 644.82 + 298.68 + 59 = 1002.50 NRG, or a little over 1000 NRG.
Based on the initial purchase, this is a staking return of 298.68 / 644.82 = 46.3%, which isn't bad for a year's return. However, as I mentioned before, I ended up buying kind of at the wrong time, as the value of NRG in dollars is now down 75-80% from where I bought it.
Participating in the Discord channel
I mentioned above that I joined the Discord channel for NRG. I had wanted to do this since the beginning of my staking adventure, but wasn't able to. Why not? Because the phone plan I had was a voice over internet protocol (VOIP) phone, and these kinds of phones are often the kind used by scammers. A fair number of services, including some Discord channels, don't allow registration without a “real” cell phone number. Last fall, my family took advantage of an offer from T-Mobile, which is a non-VOIP plan.
The Discord channel has a room called Energi Arcade, which is a mostly social chat room with people from all over the place. After signing up, I was eligible to receive “NRG rain” for participating in activities in the room. It was a low-stress, fun way to learn more about NRG and what it stands for. Over the course of a few months, I've earned 59 NRG participating on the channel. I transferred this NRG to my main wallet so that I could use it for staking.
The NRG Discord channel is a remarkably supportive, uplifting place. It's well-managed and well-maintained. It's a pleasant way to spend time.
Switching from a VPS to my computer for staking crypto
Based on the how-to article I read initially when I began staking, I signed up for a Linux virtual private server (VPS) to run the core staking software. This cost me $10/month, after credit for the first month.
It took a bit to set up, but once it was working, it just kept going, which was what I was hoping for.
After the price of the NRG dropped, though, it was harder to justify the cost of the VPS. After the blockchain size got big enough, I didn't have enough provisioned hard drive space and I needed to upgrade the server (for more per month).
At this point, it really wasn't worth it, so I installed the Windows client on my computer. Looking back, I should have done this in the first place, because the setup was far easier on Windows. And all it cost me was electricity (no additional monthly cost). The program works in the background and doesn't turn my computer into a space heater (because the algorithm is proof of stake rather than proof of work).
What does the future hold for my participation?
The price slide in NRG over the time I've held it is a bummer, obviously. Over the same time, though, most cryptocurrencies have slid in price, so I'm taking it as the tide going out and lowering all the ships.
The staking is automatic for the most part, so it doesn't take a lot of attention. I do have to watch when my computer updates and restart the core node, but that's not a big deal as I'm always using the computer.
Since I've begun staking, the Energi team has created EnergiSwap, a platform for exchanging NRG for other coins at low exchange fees and for participating in yield farming. I have yet to dabble in that as I don't fully understand it, but yield farming is an exciting prospect in general.
Another open question is whether or not I'll try running a master node now that I have 1000 NRG, which is the minimum for running one. I'm probably going to hold off because having the smallest master node probably will result in not a lot of rewards (even though they're four times as big as the normal staking rewards). I'll ask around on the server to see if this suspicion is correct.
What ventures have you gone on in cryptocurrency? How has it gone for you?
