Where to stake QTUM coins and earn passive income? In this guide an exclusive view on the best places to stake QTUM tokens!
Over the past decade, we have witnessed the rise of cryptocurrencies and decentralized networks. Also, you may have witnessed the high volatility which is second nature for these very young assets. From an investor’s perspective, this was a good reason to stay away from these risky markets.
As a result of this, the Ethereum blockchain introduced a new way for investors to earn a passive income by holding coins. Moreover, this is a very popular concept that attracts a lot of new investors trying to be profitable in the cryptocurrency markets. Imagine, just the idea of earning additional crypto’s on your bags altogether with high yields makes them willing to take the step to this new industry.
The concept I’m talking about is called staking which in short allows cryptocurrency holders to earn additional cryptocurrency with low risk.
In this guide, I’m going to discuss the best places to stake QTUM with 5 good options. Also, a detailed plan to start staking QTUM tokens on the different platforms.
Best places to stake QTUM
Where to stake QTUM and earn passive income rewards 24 hours a day? Below is the list:
- Binance – World’s most popular cryptocurrency exchange with almost zero fees.
- Kucoin – Cryptocurrency exchange with the most crypto holders on the platform.
- Ledger Nano – The most secure cryptocurrency hardware wallet to store your crypto offline.
- QTUM Electrum – Open source software wallet that stores the private keys on your desktop computer.
- QTUM Web Wallet – Web wallet that also stores the private key in your browser and allows you to hold and stake QTUM.
What is QTUM staking?
Qtum employs PoS (Proof of Stake) consensus mechanism, which is different from Bitcoin’s PoW (Proof of Work). If you are not familiar with crypto mining then you must already know that cryptocurrencies are being minted within a decentralized network.
In short, Bitcoin uses a hardware solution for this which is called Proof of Work. On the other hand, there are software solutions called Proof of Stake(PoS) that Ethereum and QTUM are using to mint new coins.
In detail, the PoS algorithm that QTUM is using allows the block producer to get 1QTUM, as well as the transaction fees and gases as a block reward. So the real reward is usually more than 1QTUM in total. Moreover, every 32 seconds new blocks are generated on the blockchain which contains the new QTUM coins.
How does QTUM staking work?
QTUM users can lock up coins in wallets or on several platforms out there. These coins will be locked for a certain period of time and cannot be moved or traded elsewhere during that period.
In return, users are rewarded with newly minted tokens that will be sent to their wallets automatically.
In other words, no specific technical expertise or investment in costly hardware devices is needed. You just simply lock up your QTUM coins in a wallet and get rewarded while you sleep! 😄
Best platforms to stake QTUM(QTUM): Comparison
This comparison guide provides an overview of where to stake Qtum to earn rewards and a passive income. The research is based on assessing the platform’s features, estimated annual yield, and security.
|Platform||Estimated ROI||Minimum holdings||Locking period||Rating|
|Binance||0.5 – 4.19%||1-100 QTUM||7/30/60/90 days|
|Ledger Nano||5 – 6%||1 QTUM||1 year|
|QTUM Electrum||5 – 6%||1 QTUM||1 year|
|QTUM Web Wallet||5 – 6%||1 QTUM||1 year|
Staking QTUM at Cryptocurrency Exchanges
If you already have an account at Binance, then the easiest way would be to start staking QTUM there. Below I’ll explain the options you have there for staking this altcoin in more detail.
Based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform on a daily basis. Besides trading, Binance offers several other feature-rich products, including custodian wallets, crypto margin trading, lending service, and earning rewards with staking.
Trading a Binance can be done with almost zero fees(0.075%) and you can use this link when signing up. It will give you an additional 10% discount on fees for life 🙂
At the time of writing, Binance offers 25 staking products such as QTUM for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees involved when staking QTUM tokens on Binance.
Additionally, you can lock up your QTUM tokens for several periods starting with 7 days which will give an APY of 0.49%. Of course, if you want higher profits you can lock up for a longer period(see below).
POS staking QTUM on Binance
The benefit of staking QTUM on Binance is that cryptocurrency traders can opt to stake QTUM tokens while waiting for a trade. Traders can benefit from the staking rewards in addition to potential trade profit.
Steps to start staking QTUM on Binance
To start with staking QTUM at Binance, follow these steps:
- Create a
- Navigate at ‘Finance’ at the top menu and choose ‘Binance Earn’
- Enter QTUM in the Dropdownlist(just below ‘Binance Earn‘ header)
- If you don’t have QTUM funds in your wallet ‘market buy’ some or deposit
- Click ‘Transfer’ button and store QTUM tokens here
|🔔 If you are interested in trading, buying or selling crypto(QTUM) but don't have experience with a trading interface. Read my helpful guide: Start crypto trading at Binance.|
Compared with Binance described above, Kucoin is probably a modern platform for trading any cryptocurrency. In addition, this platform was founded by a group of cryptocurrency enthusiasts from Asia aiming to offer comfort and security to your mighty assets.
As of writing the platform ranks at position 12 on the list of exchanges which is based on trading volume for the past 24 hours. In addition, the platform is specializes in offering trading cryptocurrencies, margin trading, trading futures, and also staking cryptos.
Spot trading cryptos can be done at a fee of 0.1% and it is also important to note that withdrawals from the platform can be done at zero fees.
Staking cryptocurrencies is also possible under the ‘Pool-X’ feature. Moreover, Kucoin allows its users to stake in 32 different cryptocurrencies. Additionally, staking QTUM can be done with the ‘Flexible staking‘ feature and allows you to lock it for 7 days in a row. Of course, at the end of the period, you are able to continue staking or send your tokens back to the ‘Main account‘.
How to start staking QTUM on Kucoin
Before you start make sure you have some QTUM funds available in the ‘Main account‘ on the Kucoin platform. If not, make sure you deposit some here or ‘Market buy‘ QTUM coins at the exchange.
- Create a
- Navigate to ‘Finance’ in the upper menu and then ‘Pool-X Earn’
- Scroll down to Staking and click ‘More..‘
- Click on Flexible terms(1) and find QTUM here
- Now click on ‘Transfer‘ button
- Deposit from your QTUM from ‘Main account‘
- Staking QTUM should be starting instantly
|🔔 If you are interested in trading, buying or selling crypto(QTUM) but don't have experience with a trading interface. Read my helpful guide: Start crypto trading at Kucoin.|
Staking QTUM tokens from Wallets
Next, a list of three wallets that allow you to stake QTUM without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake QTUM give you full control over your cryptos.
Ledger Nano hardware wallet
If you favor being in full control of your own cryptos then the Ledger Nano hardware wallet should be it. Particularly, the Ledger Nano wallet is a USB storage wallet with Bluetooth connectivity available.
Also, this way it’s possible to store your cryptocurrencies offline which is the most secure option. Furthermore, the wallet enables users to perform a wide variety of functions, including sending and receiving bitcoin from blockchains or running third-party apps on the device.
Besides storing coins on the wallet, users can also purchase new crypto because of Ledger wallet uses a built-in exchange feature. This feature uses a third party(Coinify) so buying comes at a cost: 4.5% credit card fees or 1.7% for bank transfers.
How to start staking QTUM with Ledger Nano
Firstly, I want to mention that QTUM staking isn’t officially supported by Ledger and therefore you can only store tokens offline with this device. However, if you favor keeping your private keys offline then you can still do this in combination with the QTUM web wallet. This is how it works:
- First, install the firmware of the device
- Start installing the QTUM App by opening the ‘Manager’ on Ledger
- Connect and unlock the Ledger device
- Now deposit at least one QTUM
- Go to https://qtumwallet.org/ (web wallet of Qtum)
- Now click on ‘Restore from Ledger‘ in the left menu
- Press ‘Connect‘ button
- Now click on ‘Offline Staking‘
- Give all data(delegated stake address, fees) and click ‘Confirm‘
- Offline staking will start instantly
More info about the web wallet and Offline Staking later on in this guide.
|⚠️ Warning: Always make sure to buy your Ledger Nano devices from the official online store. In fact, third-party sellers have been known to tamper with Ledgers.|
QTUM Electrum Wallet
Accordingly, if you favor being in full control over your private keys as and want to control everything from a desktop computer then the Electrum wallet will be the best place to stake QTUM.
This wallet is designed by the QTUM project team and is, therefore, the official wallet of this project available for download on their website.
Qtum Electrum is a Qtum light wallet derived from Bitcoin light wallet Electrum. The Electrum wallet is a simple, easy-to-use QTUM wallet.
Particularly, the original wallet(Bitcoin) was released in November of 2011. This makes it one of the oldest Bitcoin wallets available. It’s also one of the most trusted software wallets out there. The Qtum development team used the original source code to create the Qtum Electrum wallet.
Besides holding and sending QTUM coins it is also possible to stake with this wallet. Moreover, most users prefer to use the ‘Offline Staking‘ option which is the most secure one.
Offline Staking with QTUM Electrum Wallet
Firstly, if you want to start using this option then I have to warn you upfront. Configuring offline staking isn’t an easy exercise and can be a bit hard if you aren’t an experienced blockchain user.
Therefore, I’m going to explain the broader concept here which will give you an idea of how to set up and start using it.
Offline staking with QTUM Electrum can be realized by using two versions of these wallets:
- Hot wallet, which is connected online
- Cold wallet(runs on disconnected desktop offline)
A cold wallet is one of the most secure ways to store cryptocurrencies as cold wallets are fully isolated from the internet. In addition, they can’t be touched by malware or hackers. In this case, a cold wallet is used with an online ‘hot wallet‘.
The cold wallet holds the private keys and can sign transactions. The hot wallet is created as a ‘watch only‘ wallet which can connect to the blockchain to create and broadcast transactions.
QTUM Electrum cold wallet address delegation
|Offline cold wallet||Online hot wallet|
|Holds private key||Watch only, no private keys|
|Creates address||Exposed to internet|
|No blockchain/internet access||Reads the blockchain|
|Can sign POD & transaction||Send and receives transactions|
More details on how to configure this interesting concept can be found here.
QTUM Web Wallet
Last in the list of places to stake QTUM is the Web Wallet designed by the QTUM team. In detail, the Qtum web wallet runs in your browser and connects to the Qtum network through a full node interface. The web wallet does not store your private keys so you must manage those with a downloaded Key File or seed words. This is completely your responsibility.
It’s advisable to store these seed words offline or write them down on paper. The seed words are very important and can be used to restore your wallet in case you lost your private keys!
What is Offline Staking with QTUM?
With the Web Wallet, you have the option(on the left menu) to start ‘Offline Staking‘. Qtum Offline Staking allows the address for a non-staking wallet (capable of making the delegation assignment transaction) to be delegated to a Super Staker. Offline Staking is non-custodial: the delegation user keeps full control of their coins and private keys.
In other words, you can assign a ‘Super Staker‘ to do the staking(online) where you don’t have to deposit your coins and keep control over your wallet and private keys.
More info on how to start staking for beginners can be found in this helpful article.
Staking cryptocurrencies is currently a very popular method among crypto enthusiasts to generate passive income with zero risks. In this guide in which I covered staking QTUM in greater detail, I also compared the different platforms in terms of rewards that can make a difference.
All in all, the idea of staking QTUM is simple where every QTUM token will generate new tokens according to the amount being staked. If you believe in this project and own some QTUM tokens already, starting to stake QTUM will be a solution for you to earn additional cryptocurrency.
The following articles might also be a good read for you:
- 7 Best Exchanges to Buy QTUM
- Top 5 Do’s and Dont’s of Cryptocurrency Wallets
- How To Buy Ethereum with Bitcoin(4 Ways)
- Crypto Lending vs Staking: Which concept generates the most Passive Income?
- Confidential: Best Places to Keep my Crypto Safe
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