From “Just Bitcoin,” the cryptocurrency sector has grown into a trillion-dollar industry. There are tens of thousands of different types of decentralized apps and a variety of investment opportunities. Nevertheless, one thing that has remained the same over time is the idea of “Hodling.” To date, crypto investors all over the world have held on to their crypto assets for longer periods of time in order to mitigate short-term volatility risks and benefit from substantial returns. But what if there was a way to keep holding cryptocurrencies for the same period of time and still generate passive income from them without having to trade them or undertake any kind of risks? Enter Staking Staking cryptocurrency is similar to depositing money in a bank in that an investor locks up their assets and gets incentives, or “interest.” in exchange. Crypto staking is a way to contribute to a blockchain network’s consensus mechanism by “locking up” some of your cryptocurrency for a certain amount of time. In return, those who stake earn rewards, which usually come in the form of more coins or tokens. Before we get into why staking is a slightly better way to invest in the cryptomarkets over simply holding, let’s get to know staking a bit better. Staking is only feasible through the proof-of-stake consensus mechanism, which is a method used by some blockchains to select honest participants and validate new blocks of data uploaded to the networ...
