NEO is a Proof of Stake POS Coin with a dual token system, NEO, and GAS. Locking up or staking NEO will enable the token holders to earn GAS, which can then be used for transaction fees in the NEO blockchain. Both of these tokens are supported in many of the largest exchanges in the world. Strictly speaking, NEO is not a mineable token; however, in this article, we will show you how to mine NEO and get rewarded with NEO.
We’re talking about doing the impossible and getting paid in NEO for mining other blockchains. While this does sound like a scam, we can assure you, it isn’t. It’s simply the rented mining model.
Where hashing power is rented out or used to mine the highest profiting coin in mining and exchanging them with NEO.
NiceHash has been doing this for years using Bitcoin or BTC. With unMineable, you can mine over 40 coins and be paid in the coin of your choosing. Today we are looking at getting paid in NEO, previously known as Antshares, which become one of the most promising cryptocurrency projects after changing its name in 2017.
In this article, we're going to share the process of NEO mining and how its consensus works.
What is NEO, and what wallet can we use for NEO?
NEO is possibly an Ethereum killer, also known as the Chinese Ethereum. Unlike Ethereum, NEO can't be directly mined because it is purely Proof of Stake. While this article sounds like clickbait (since you came here to find out how to mine NEO), we have found a way you can get paid directly in NEO. That is if you can run a mining rig or mining farm. It's an amazing, anonymous way to diversify if you are up for the mining challenge.
The Neo Ecosystem is very developed, and you are spoilt for choice selecting wallets. Just remember to select a wallet that has the ability to stake. There are many staking options out there, we don’t believe in staking if it comes at the expense of security.
It is a widely known fact that hardware wallets are the safest way to stake; hence we recommend them.
With NEO, your options are limited with hardware wallets, but you still have many options. New manufacturers have come to the NEO party, the Ledger Nano S and the Ledger Nano X can safely store and stake Neo, along with the sleek Spatium Biometric Wallet which is to be released, and the larger SafePal S1.
How to mine NEO exactly?
Mining NEO isn’t as complicated as it sounds; you need a spare graphics card or cards or even just a CPU. If you are lucky enough to have an ASIC unit that can mine Ethash, you're in business and can begin the process of mining NEO.
In our definition, we mentioned that you couldn’t mine NEO, however, you can stake NEO for GAS. This isn’t what we were talking about. What we are going to do is to rent out hashing power to a mining pool. We are going to be rewarded in NEO.
This means you can rent out your CPUs, GPUs, ASICs, or FPGA cards and get paid in NEO.
This process requires no KYC and what makes mining the preferred choice to acquire cryptocurrencies.
Mining NEO Algorithms
The first choice you have to make is how will you be mining. Ethash, RandomX, and X16Rv2 are the mining algorithms available to choose from. Ethash can be mined with GPUs; however, it’s a lot harder for GPU’s to make a real profit because ASIC miners are also mining the same algorithm. ASIC are more powerful and efficient devices that graphic cards could not compete with.
There have been talks of ProgPoW for a while now, but we have seen nothing but failures trying to level the playing field for both ASIC and GPU miners. To mine using Ethash, we use Claymore Miner, and we can’t say enough good things about this miner.
This time we're going to use Simple Miner OS or SMOS with Ethash to get in some variety. SMOS is a Linux based OS that also uses Claymore. Ethash is the algorithm used by Ethereum and a host of other coins.
X16Rv2 is a GPU and FPGA mined coin. FPGA miners do make for an unfair playing field as they have a considerable electricity advantage. FPGA miners perform at speeds up to 5 times better than GPUs, using the same amount of electricity.
X16Rv2 is the algo behind Ravencoin and a host of other coins. The Ravencoin algorithm has been changed multiple times, just like Monero, to avoid the centralized nature of ASIC mining farms.
Unfortunately, FPGA cards are just better graphics cards and do have an advantage in the space. This would be because they use less electricity and perform far greater than standard graphics cards.
Fortunately, there are not that many because of the cost, and unfortunately, that cost is very steep, so even if they were plentiful, people would not buy them.
RandomX, on the other hand, is a CPU only algo. RandomX is used by Monero and a host of other coins. This algo seems to be the most fairly mined coin without unfair advantages. Like we have seen with Ethash and GPUs vs ASICs and with X16Rv2 and GPUs vs FPGA.
While the playing field is more level, this does not mean you won’t need an excellent CPU to earn enough coins to be profitable. There is still an intense difficulty level to deal with. CPU mining is still a competitive space.
UnMineable will manage the coin selection of the coins and select the most profitable network to mine, earning themselves and you the most rewards. They will also do this for Ethash, RandomX, and X16Rv2. This takes a lot of the management out of mining, which can either be a good or a bad thing.
How to Mine NEO Using Simple Miner OS SMOS
This method requires a dedicated machine to install SMOS. This tutorial should go a long way to show you how to complete the setup and get the miner running. SMOS can use Claymore to mine Ethash, you need to copy the following code and place it where it needs to go;
./EthDcrMiner64.exe -epool ethash.unmineable.com:3333 -ewal NEO:YourAddress.YourWorkerName -epsw x -mode 1 -allpools 1
To double-check your setup, you can look at this tutorial if you need help. It's for Tron, but the only difference is the address type.
NEO Mining Calculator
You can use WhatToMine to calculate each of the estimated earnings, or you can use the mining calculator on unMinable for NEO. Both will help your cause. WhatToMine will break down your costs, and unMineable will show you your revenue.
A healthy and safer rule of thumb is to half your revenue and see if you will still be profitable. Miners fail, and systems don’t always do as they are supposed to plus, life finds a way to interrupt your mining operations. With this buffer, you can really see if you can stay afloat.
Once you’ve done the math, let us know how you did. Mining is an extremely complex business with lots of variable costs and corners to cut. Using FPGA might be more expensive to start up but after the card is paid off, the profits are insane.
How to Stake NEO
Today we will walk through the steps you need to take to stake your NEO crypto and earn passive income. To stake NEO, you need a wallet and exchangers that supports both currencies, NEO and GAS.
The wallet that supports NEO and GAS
Top exchanges that support NEO
How to stake NEO on Exodus Wallet
1. Download exodus wallet
2. Open the Exodus client and send some NEO that you would like to stake to your account.
If you don’t see NEO when you open the client, you can click on the dashboard search tool to find your wallet address.
3. Once you have added some NEO to your wallet, you will immediately start earning a cryptocurrency called “GAS.”
This token can be exchanged for more NEO or sold on an exchange site to make fiat. There is nothing else that is required from you on your side.
4. Claim your funds
On the top right corner of your NEO wallet, you will see a gear icon. If you click it, you will see an option that will allow you to claim the gas tokens you received. Once you click “Claim,” the gas tokens will be added to your wallet and are ready to be exchanged.
How to stake Neo for Gas on the Binance exchange
All NEO holders on Binance will get GAS, which is produced by NEO monthly. The details are as follows.
GAS distribution amount= total distribution amount of GAS * NEO holder position ratio (with 8 digits after the decimal point)
NEO holders position ratio = sum of daily position amount for NEO holders/ sum of daily position amount for all NEO users
The daily position amount is based on a daily snapshot of NEO Balance.
Binance will have corresponding announcements after monthly distribution, please be subject to announcements.
The calculation will start from the first day Binance.com is online. The time of the first snapshot is 00:00 on July 14th, 2017.
Example of the calculation
User A holds NEO for three days, he/she has 30, 300, and 60 NEO respectively on those 3 days. Therefore, the sum of the daily NEO position is 390. Assuming that the total distribution number of GAS is 1000 in this month, and the sum of daily position amount for all NEO users is 600000;
Thus, the actual distribution amount of user A = 1000*390/600000=0.65
Mining NEO can be an enjoyable experience. If you have leisure time to optimize your machines and have the extra cash laying around, investing in a well-researched mining rig can be a fun and fulfilling endeavor.
You never know, maybe you start a full-blown mining farm down the road. Always be mindful of your cost: mining is expensive and highly competitive. However, depending on the market conditions, cryptocurrency mining can be a very lucrative business down the road. This is on top of participating in securing decentralized networks that may, in the future, replace existing financial networks.
Using the tools we have discussed earlier, you direct your miner to the coin you want to mine. Select a pool, and you're off to the crypto mining races. UnMinable really gives flexibility and power to the people who choose to mine using their pool.
Using unMinable has been eye-opening. We really enjoy their services; the ability to get paid in a POS coin while mining is simply marvelous. And does seem to poke fun at the whole establishment of POS vs POW. Miners will always favor the POW consensus mechanism, which is understandable.
This is not to say the technology of POS coins is not amazing but simply, how does a miner mine POS coins? At least with unMinable, you can.
As a bonus, GAS is a Cryptocurrency that is distributed by holding NEO in your wallet, GAS is used to fuel transactions on the NEO blockchain. With each NEO Block getting generated, GAS will be distributed to all NEO holders, and Staking has been made accessible on the platform that supports both currencies, NEO and GAS.