There are many ways one can make a profit in the Decentraland. Naturally, the very first question to ask is whether one can mine in the platform. However, this is not possible despite the many guides on how to mine in Decentraland.
Luckily enough, there are better options to earn money in this metaverse.
What Is MANA?
MANA is Decentraland’s currency. With it, one can buy and sell NFTs inside its metaverse or buy other coins, which is known as swapping. In fact, this coin works the same way OVR’s coin does, the reason why they’re compared with each other.
Although this currency is like any other, its protocol is quite different from that of Bitcoin’s. That is why it’s impossible to learn how to mine in Decentraland. This coin uses the Proof of Stake (PoS) consensus.
What makes mining possible is another type of consensus: the Proof of Work (PoW) protocol. In this process, a validator uses a lot of computer resources to solve a mathematical problem to create a block. After solving the equation, the validator creates a new block for themselves.
This system is very unhealthy and selective. Only a few with enough money can set up a mining rig and, while creating a new block, use up too many resources. Thus, newer projects decided to steer clear of it and adopted the PoS protocol as a solution.
Namely, the MANA coin is one of those projects. As such, only the process of staking can create new blocks. All in all, this consensus is less reliable than the PoW protocol in terms of constant income; as a benefit, it’s much more accessible and stable.
What is Staking?
Staking is the next step to mining. There’s no need to learn how to mine in Decentreland: a person can earn passively without investing a ton of money.
A PoS protocol is not the same as a Proof of Work (PoW) consensus. The former allows holders to deposit their share in a pool. Later on, a validator mints a new block by choosing one of the coins in that pool. The holder of the coin validated gets rewarded with the transaction fees.
This process is much more cost-efficient than mining: the validator doesn’t have to solve mathematical solutions quickly in order to be selected as the creator of a new block. The only requirement to participate in this consensus is having a minimum set of coins.
This approach was born due to the excessive amount of energy mining required. PoW mining takes too many resources to function. As a result, the energy spent is not only a concern for miners, but also for the environmental sustainability of the whole world.
Do I Need a Rig to Start Staking?
Even though PoS protocols are against mining, both of these processes have something in common: they need a validator 24/7 to work.
Just like in a PoW blockchain, the one who stakes and the one who validates must have their PCs on at all times. Nevertheless, neither will have to overwork their computers. Both will have to run a client that validates transactions. Nothing more.
Hence, there’s no need to get a mining rig nor to upgrade a PC to stake in Decentraland. However, a stable connection to the internet is a must: every coin is selected randomly, and if the one chosen is not available, another coin gets picked.
How to ‘Mine’ in Decentraland
Since it’s impossible to mine in the platfoprm, you’ll have to learn how to stake in it. Fortunately, learning how to get into Decentraland is quite easy.
Get a Wallet
This is relatively simple, but there are a lot of variables before you make a choice.
Wallets are unique. They all have features that make them stand for themselves. For that matter, you’ll have to see which wallet is more convenient for you. For instance, if you want to swap coins constantly, a wallet that works with many coins like Binance is the better option.
Other wallets don’t deal with many coins, but have great returns in terms of staking and holding. The Celsius wallet, for example, offers a great APY for staking MANA. As a consequence, the wallet only works with a few coins and doesn’t allow exchanges between users.
Deposit Your MANA
The only thing left to do is to deposit your money in the wallet you chose.
You’ll have to deposit the MANA you buy or trade to a unique address a wallet gives you. This address lets you sell, buy or swap the currencies you have. It works like a bank account with the bonus of extra features.
The amount of MANA you need to stake depends on the wallet. To give a few examples, Crypto.com only allows users to stake with at least 750 MANA, while Gemini doesn’t have any restrictions.
Do thorough research before going all out with MANA’s staking protocol.
What Other Options Do I Have?
Luckily, staking is not the only option to make a profit in Decentraland. 3D NFTs are viable alternatives for a more forward way of making money.
Creating a 3D NFT
The process of creating and minting 3D NFTs is not as complex as people think.
You can design a 3D NFT on your own with Blender or any other 3D modeling program. As for the minting, you’ll have to get acquainted with Ethereum’s code. Decentraland promotes the creation of non-fungible tokens as well, so it’s a great opportunity for passionate artists.
It’s worth mentioning that you can also arrange a project team to craft a 3D NFT collection.
Selling a 3D NFT
Buying and reselling are the bread and butter of cryptocurrency.
Investors can buy a 3D NFT in Decentraland with the goal of reselling it when the price goes higher. This common strategy is highly speculative and risky. Regardless, if done at the right time, the seller will find staggering success.
Timing is of utmost importance. The market fluctuates every second, and buying an NFT at the wrong time might be a disastrous blunder. Always take this into account.
Despite these details inherent to cryptocurrencies, it’s never too late to get into NFTs. MANA shows a lot of promise, so it’s hard to visualize its value dropping significantly.
There are many programs like Unmineable going around. Many people believe this mining software can mine Decentraland. Nothing could be further from the truth.
In reality, any program that ‘mines’ Decentraland is mining Ether, Ethereum’s coin. After mining one block, the software instantly swaps the obtained Ether to MANA. The mining entity takes a percentage of the earned coins as a fee during this transaction.
Programs like Unmineable are not only not mining MANA; they are reducing the profits, too. Therefore, it’s more advisable to mine Ether independently rather than using third-party software.
Nonetheless, the best option is to stray away from mining at all. This system is no longer profitable, which is why all the newer projects are leaving it behind. It’ll be a ghost of the past eventually.
Mining is a thing of the past. With stabler economies such as MANA’s, there’s no need to grasp how to mine in Decentraland or any other platform.
By staking, investors encourage a friendlier market and heighten their earnings. It’s easy to see why this is the future of the crypto world.