How to make Passive Income by Staking Cryptocurrency

Cryptocurrency continues to be a source of mystery and fascination for many. Most investors who get into this market understand there’s a lot of upside and potential for healthy gains. In addition, the volatility in the price of crypto offers many opportunities if you’re a trader. But did you know there’s a great way to make easy money simply by holding your crypto in a wallet and doing absolutely nothing? It’s called staking. This post will help you understand what that means and how to achieve this new, lucrative form of passive income.

Staking Coins: The New Method

Proof-of-work has many problems. Although it is effective at securing a blockchain network, it is poor at scaling upward when a blockchain becomes popular. It becomes increasingly costly and slow. The network grows congested and transaction fees skyrocket. The recent DEFI boom caused Ethereum transaction costs to hit new highs.

While there are other new forms of consensus, Proof of Stake consensus (Staking) is the most popular at this time. Staking coins is a much easier, more environmentally friendly and less costly way to secure a network than Proof of Work. Not to mention, an easier way to earn passive income. This all results in faster transactions and less bottle-necking.