This is a step by step guide how to stake or mint Reddcoin.
First of all, there are two common ways you can use to stake Reddcoin.
- Stake in a pool
- Stake solo
Let’s discuss which scenario is best for you.
You should stake in a pool when …
- you don’t want to manage a server
- setup a wallet for staking
- be comfortable to trust somebody else with the staking rewards
- want multiple coins to stake (Most of the time, staking pools offer more than one coin and you could invest in each of them and earn rewards for it)
You should stake alone when…
- you don’t want to rely on the staking pool
- you have enough funds to find a new block
- you have experience with server setups/management
Okay, now you know if you could stake alone or you should join a staking pool. The conditions above are just suggestions, not rules.
#1 Buy Reddcoins: Where & How
Before we can stake coins, we actually need to own coins.
Therefore, we have to buy Reddcoins.
You can buy Reddcoins on the following exchanges
|Simpleswap.io||Over 100 assets to Reddcoin (Including BTC, ETH, LTC, XMR, EOS, NEO, Tezos, ADA and much more)||Dynamic|
An instant exchange, as the name already says, is an exchange that trades your assets instantly. Instant exchanges have the advantage that they offer users a better trading experience, especially for beginners.
You don’t even have to open a new account on most instant exchanges. You insert the amount you want to send, for instance, 0.1 BTC, the desired coins you want to get, and the receiving address. Afterward, the system generates an address where you have to send exactly 0.1 BTC.
That’s it. Now you have to wait until the network confirms the transaction and you will receive your Reddcoins as soon as possible.
Tip: If you are a beginner, start with instant exchange. If you want to learn more and get experience with trading, use a “normal” exchange. Also, have a look at the exchange prices if you start trading. There could be a difference of +-5% of the coin price and you don’t want to overpay.
#2 Staking Reddcoins
Okay, now you have some coins. Great.
There are two options to stake your Reddcoins: in a pool or alone. If you can’t decide which option you should choose, read my suggestions above.
If you decided to stake alone, jump to Staking Reddcoins on your own.
#2.1 How to start staking Reddcoins in a staking pool
First of all, I chose FireStake.com as the staking pool provider. However, this step by step instruction works for every other staking pool too.
- Create an account and verify it: To do that on FireStake, click on signup, fill in the form, and verify your account with the e-mail you got after the signup process.
- Search for Reddcoin and click the deposit button: On the top left, you can filter for coins. Just insert “Reddcoin” or “RDD”. Afterward, click the deposit button.
- Deposit coins to the given Reddcoin address: Now, you have to transfer your funds from the exchange to the given Reddcoin address. If you use an instant exchange, you can instantly insert this Reddcoin address as the receiving address.
- Wait until your transaction is confirmed by the network: Wait until the crypto transaction is confirmed by the nodes of the network. You can see the unconfirmed transaction and the confirmed transaction on your FireStake dashboard.
- Enjoy your staking rewards: If your transaction is confirmed, you get a daily payout depending on how much coins you deposited to the Reddcoin pool.
To get more security for your account to prevent getting hacked, enable two-factor authentication. It gives your account extra security.
Also, you could set up an auto-withdraw strategy to withdraw daily profits from the pool. You can do that by clicking the withdraw button and navigating to the tab “AutoWithdraw”.
#2.2 How to start staking Reddcoins alone
#2.2.1 Install the Reddcoin wallet
To get started with staking alone, you need the Reddcoin wallet. Download it from the official Reddcoin website: reddcoin.com.
Wallets are currently available for these operating systems:
- Windows (32/64 Bit)
#2.2.2 Configure the Reddcoin wallet
Before we start the wallet, we add some nodes to the configuration file. We do that to support the wallet connecting with the network. It could take up to 30 minutes until the wallet finally connects with the network. Sometimes, it doesn’t even work without adding a node list to the configuration file.
Therefore, we do it anyway.
To do that, locate the configuration file on your computer/server. Here is a list where your configuration file usually is:
- Windows: C:\Users\USER NAME\AppData\Roaming\Reddcoin
- macOS: /Users/USER NAME/Library/Application Support/Reddcoin
- Linux: ~/.reddcoin
Now, add this peer list to the config file:
Okay, now you can start the Reddcoin (RDD) wallet.
If your wallet connects successfully to the network, it will instantly start to download the blockchain. You can only start staking if you have the blockchain fully synced. It could take hours to download the whole Reddcoin blockchain, depending on the internet connection.
If you don’t want to wait this long, consider using this alternative.
You can download the blockchain from the official Reddcoin website. Usually, this method is way faster than download the blockchain from other nodes.
Here is the link: https://drive.google.com/file/d/1ItVFGiDyIH5SfCNhfrj29Qavg8LWmfZy/view (original source: https://github.com/reddcoin-project/bootstrap_files).
If you downloaded the files, insert them into the configuration directory (Paths above).
Now, start the wallet. You should notice that the wallet is already nearly fully synced. It shouldn’t take long to download the rest of the blocks from the other nodes.
Just to explain the process we just did: Let’s say the blockchain is currently 500k blocks long. We could synchronize the blockchain with other peers or we could bootstrap our wallet. Depending on how old the bootstrap file is, it could include 400k or 450k blocks. However, the other blocks have to be downloaded from the network.
Okay, let’s secure our wallet.
#2.2.3 Securing the Reddcoin wallet
To secure your wallet, navigate to “Settings->Encrypt wallet”. Insert a secure password. This password is used to start staking and to withdraw your Reddcoins from your wallet.
Therefore, NEVER lose this password or you will lose access to all your coins.
After you encrypted the wallet, you have to restart it.
#2.2.4 Start staking with the Reddcoin wallet
To start staking, navigate to “Settings->Unlock wallet” and insert your passphrase.
Now, you are able to earn stake rewards.
However, the following conditions have to be met:
- The wallet has to be online and connected with the network
- The blockchain needs to be fully synced
- Your coins need to be matured: The Reddcoin mature time is 8 hours. Meaning, you have to wait 8 hours until your coins are mature and you can earn rewards.
#2.2.5 Backup your wallet
I should mention that you have to make backups of your private keys.
Your private keys are not your passphrase you used to encrypt the wallet.
To make a backup of your wallet, copy the wallet.dat file from your wallet directory. I suggest making at least two backups of this file.
Remember, if you lose this file, your Reddcoins are lost forever.~ Max
I would recommend using a small USB stick. Also, backup your passphrase.
If you made a backup before you encrypted the wallet, all backups before are worthless and you have to replace them with the encrypted version of the wallet.dat file.
That’s it. Now you have to wait until you stake a new block. Depending on your stake size (coin amount), it could take longer or less time to find a new block.
#2.2.6 Command line (Reddcoin daemon usage)
This section is for developers and users who want to use the command line or have no graphical interface.
Here is a quick overview of commands you need to start staking, encrypt the wallet, etc.
- Start the wallet: /path-to-wallet/reddcoind -daemon
- Get information about the wallet: /path-to-wallet/reddcoin-cli getinfo
- Encrypt the wallet: /path-to-wallet/reddcoin-cli encryptwallet <passphrase>
- Unlock wallet for staking: /path-to-wallet/reddcoin-cli walletpassphrase <passphrase> <time_to_unlock_wallet>
- Stop wallet: /path-to-wallet/reddcoin-cli stop
#3 The best staking strategies
There are thousands of staking strategies out there.
However, here are the two most common staking strategies.
- Selling every profit
- Reinvesting 100%
Every strategy has it’s own strengths and disadvantages.
Selling every profit strategy
- You profit from pumps: If the price of a coin suddenly increases 100%, you can profit because you sell your profits anyway.
- For instance, you could sell 50% of the profits instantly at market price and place selling orders for the other 50%. Therefore, you would profit from a pump because you still have selling orders in the market.
- You generate a consistent cash flow
- You don’t risk that the price of a coin falls dramatically and it never recovers. At least you sold some coins at a higher price.
- You don’t profit from compound interest: Compound interest is a really strong financial tool. Let me explain how it works with an example.
- Let’s say you get 5% on your investment every year. Also, you have 100 coins.
- 1. year: 105 coins (5 coins profit)
- 2. year: 110,25 coins (5,25 coins profit)
- 3. year: ~115,76 coins (~5,51 coins profit)
- 4. year: ~121,55 coins (~5,79 coins profit)
- 5. year: ~127,63 (~6,08 coins profit)
How often should you sell your coins?
I would recommend selling coins weekly or monthly. Depending on how high your stake is and if you use a staking pool, you could even sell daily. However, it’s probably not worth it.
If you make 10x the network fee of a coin, you can sell it.
For instance, if you have >10 Reddcoins and the network fee is 1 Reddcoin, you could sell it. Before that, it’s not worth it. Network fees would eat up your profits.
- You profit from compound interest: You can boost that process even more by investing more.
- If the price of a coin is stable or increases, you profit even more
- You risk missing pumps and profit from them: However, if you are fast enough or have price alerts, you can transfer the coins when the pump happens
- You risk that the price of a coin drops: Maybe the price of a coin falls and never recovers. Usually, this doesn’t happen with good projects, but you never know.
My favorite staking strategy
Let me introduce you to the staking strategy I’m using.
I use a combination of reinvesting and selling. I do in-depth research before I start investing in a coin. I decide based on my research on how much I keep reinvesting and how much I cash out. For instance, I cash out a higher amount of coins (~50-75% of profits) when the coin has a small market cap. I would still profit from compound interest, but not that much.
If the coin has a good development team, excellent development process, and unique innovations, I cash out 0-25% of my profits.
If you want to learn how to research any crypto, token, or ICO, consider reading my guide on how to research cryptocurrencies. You get a free PDF template that you could use for every project. I crafted it from my experience and with the help of top investors.
How long do you have to wait until you find a new block?
There is no fixed time until you receive earning from a new block. It depends on the staking amount and the coinage. Check out our Reddcoin profit calculator to get an idea of how much you would get with a specific amount of Reddcoins.
Is it hard to start staking Reddcoins if you are a beginner?
No, especially if you are using a staking pool. However, if you want to stake alone, you need experience with the basics of your computer. Especially if you rent a VPS (Virtual private server) which is most of the time Linux based and has no GUI. Therefore, you need experience with the use of the command line.
If you need a starter guide for the Linux command line, feel free to read this article: Linux command line for beginners.
What is the minimum amount to start staking Reddcoins?
There is no minimum you need to start staking. Theoretically, you need 1 Reddcoin and you can start staking. However, the chance to find a new block with only 1 Reddcoin is extremely low. It is recommended to start with $50-$100 worth of Reddcoins.
Do I need expensive hardware to start staking?
No, you can stake with every device that is capable of storing the whole blockchain and runs 24/7. Furthermore, the wallet needs to be on the newest version so your wallet doesn’t create unexpected forks of the blockchain and you stop earning rewards.
Is Reddcoin mineable?
No, Reddcoin uses the Proof of Stake algorithm. It doesn’t have a Proof of Work algorithm implemented and is therefore not mineable.