You must have heard about mining since the introduction of Bitcoin to the world. But, with the advent of blockchains like Cardano, Ethereum, crypto enthusiasts can earn passive income by staking their holdings or coins. But, what does this staking mean? In simple terms, staking is a way of validating the transactions (instead of mining in PoW blockchains). Those who validate the transactions in PoS blockchains are called validators. Staking cryptocurrencies is a technique for investors to build their cryptocurrency holdings without buying more. Investors that participate in staking get higher interest than they would in a traditional bank account; earning maximum passive income is a legal approach to increase the yields on one’s current crypto assets. Staking cryptocurrency can be done in a variety of ways. To begin, you have the option of validating transactions on your own computer. You can even ‘assign’ your crypto to someone you know and ask them to verify your identity. Sounds Interesting? Let’s understand how to pick coins for staking in this article. Guidelines for picking coins to stake Before you pick coins for staking, follow the tips below. But again, as the crypto industry is volatile, you shouldn’t invest more money than you can lose. Choose proof-of-stake cryptocurrencies For staking, you need to buy cryptocurrencies that use the proof-of-stake consensus method instead of PoW for mining. Ethereum 2.0, Cardano, So...
