Actively trading cryptocurrencies gets the lion’s share of attention these days. It is, after all, a high-risk-high-reward endeavor filled with the drama of rising value spikes and depressing price plummets.
There is, however, a calmer side of cryptocurrency investing worth taking a look at. Passive income through staking makes it possible to earn simply by holding onto your coins. Focus on the right proof-of-stake cryptocurrency and you can effortlessly earn for months on end.
Passive Income and Staking
Proof-of-Stake (PoS) is essentially a lighter and more energy-efficient alternative to Proof-of-Work (PoW). Instead of utilizing mining to discover blocks and validate transactions, PoS forges through a lottery-like process where each staked coin works like a raffle ticket.
In the simplest version of PoS, users who own a coin will stake a certain amount on the network, setting the currency aside where it cannot be spent. When the platform needs to create a new block, wallets with…