101 TUTORIAL: 3 EASY WAYS TO MAKE PASSIVE INCOME WITH CRYPTO PART 2
What’s up everyone, welcome to part 2! In this part, we’re going to be talking a little bit about staking cryptocurrency and how you can easily begin!
WHAT IS STAKING EXACTLY?
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Did I lose you there? Okay here it is again but much more simpler terms. Staking cryptocurrency generally means that you’re going to hold a specified cryptocurrency to verify the transactions and thus support the network. Since cryptocurrency is all about decentralization, it sometimes needs help from people like you and I!
WHAT’S IN IT FOR ME?
What’s great is while you’re helping to strengthen the network, you get rewarded! It looks basically like interest. This is where the passive income comes in. Once you start holding or staking a coin, you really don’t have to do much anything else! And I’m going to give you probably the easiest example that I actually do to help you get started.
WHAT DO I NEED TO START?
In order to get started, you’ll need a crypto wallet. A crypto wallet is exactly as it sounds. It’s a safe place for you to store your cryptocurrency. Some of the large players are Coinbase, Binance, Simplex, and there are many many more.
I personally use Coinbase and I find it to be extremely easy to use. It’s really known for being an exchange and not just a wallet. So not only can you hold your crypto, but you can buy and sell many different types of currencies and coins on the exchange. You can also keep up with prices and even earn more crypto from learning modules. It’s pretty neat.
If you don’t have a wallet yet, sign up for Coinbase which of course is free! You’ll have to go through the usual registration like you would opening up a bank account etc. Once you’re done with registration you’re almost ready to start staking!
The next step is to fund your account. You can connect your Coinbase to your bank account or use a debit card, whatever’s easiest. Once you’ve funded your account, you are not only ready to buy some cryptocurrency, but you’re all set to start staking!
WHAT ARE WE GOING TO STAKE?!
One of the easiest way to start staking is by simply buying and holding Tezos coin or XTZ. Tezos is a multi-purpose blockchain like Ethereum and Bitcoin, and it uses a Proof-of-Stake protocol to secure its network. Tezos is linked to a digital token called Tez but that’s as far as we’ll go onto what it is. Check out the wikipedia entry to learn more about Tezos.
Simply purchase some Tezos, and you’ll almost immediately start earning rewards in the form of more Tezos. What can you do with gaining more? You can simply exchange it for other cryptocurrencies and of course you can cash out. The price of Tezos also fluctuates so if XTZ goes up, the initial value of your investment can also grow, all while earning up to 4-6% from doing practically nothing. That’s passive!
Let me know how you like Coinbase and staking Tezos. If you’ve never purchased crypto before, you’re going to feel like one of the insiders! And the opportunity to make passive income could not be easier by simply buying and holding Tezos. It’s as simple at that. On to Part 3!
NOTE: Keep in mind, like any investment out there, there are always risks involved and nothing is guaranteed. That’s why it’s always crucial to do your research, and make an informed decision. It’s your money, protect it!