Earning with cryptocurrencies may be for some still seem difficult, but these new digital assets are always creating new opportunities to be exploited for investors.

It is not then so strange that the market has exploded so much in recent years, considering the advantages and opportunities that cryptocurrencies represent.

The hedge fund in question is not one of the latest arrivals, indeed, we are talking about investments made in the order of billions and billions of dollars.

Now, for the uninitiated, many traders continue to get rich and earn a lot through cryptocurrencies, but it seems that the possible investments with them have been very diversified.

It is not just by buying or selling these digital assets that you can make a lot of money, but there are so many ways to make this market work to our advantage.

An example provided by Forbes with the story of Sam Bankman-Fried, who got rich before the age of 30:

"All of this is part of the work of the richest under 30 in the world. Bankman-Fried's cryptocurrency exchange, Ftx, which allows traders to buy and sell digital assets such as bitcoin and ethereum, raised $ 900 million in funds from lenders such as Coinbase Ventures and SoftBank in July. Its valuation has thus risen to $ 18 billion."

A guy who hasn't bought perhaps the best performing cryptocurrency ever, at the most moment; right, but which allowed others to take advantage of the market, becoming rich in turn thanks to the interest of many others.

This teaches that for the same goal there are often more roads and that you should never believe that once one option is exhausted, there cannot be another.

If you want to earn money by exploiting the crypto market, today I present to you an opportunity to grasp as soon as possible if it is of your interest.

What I am referring to is called "staking" and is more and more in vogue among traders who prefer digital currencies as an asset for their financial operations.

The best part? Hold on tight: thanks to this process, today is possible to generate a passive income with cryptocurrencies!

A new and not so complicated method to understand, which will allow you to earn money simply by holding crypto in your digital wallets.

Now I'll explain what it is and the advantages it has!

From Proof of Work to Proof of Stake

We assume that staking could be compared to a kind of locked fund with interest accruals.

In our case, having cryptocurrencies in our wallets, we make them available to the network by earning real commissions in cash.

But why? Should the network pay us only for the possession of our cryptocurrencies? 

Everything is based on two methods used in this world to validate digital currency transactions: Proof of Work and Proof of Stake.

The Proof of Work, on which for example is based on Bitcoin (and before the ETH2 update also Ethereum) is based on solving complex blocks in which miners compete with each other to be able to finish the task and grab the reward: that is, cryptocurrency.

For the most digital currencies this is fine, but for those more complex, such as Cosmos or Neo, an acceleration is needed, given precisely by the Proof of Stake validation method.

This does not use miners for solving cryptographic puzzles, but takes advantage of who owns crypto and the amount you have in your wallet as a "validator" of transactions.

On Investing.com we also read that more we invest the greater the opportunities to be chosen by the network as such:

"In the PoS model, each user is required to prove possession of a certain amount of cryptocurrency.  Therefore, unlike PoW, Proof of Stake chooses the miner based on his wealth, not to its processing power. Also, miners in PoS do not receive a reward, but instead collect from network fees."

Crypto miners are replaced

A new method introduced that many investors still underestimate, or even don't know about.

This made it possible to put aside all those mining pools that had been created, eliminating the need to have very expensive computers on their side to be able to hope to get crypto as rewards.

This way is not more necessarily monopoly of those great miners the possibility to obtain cryptocurrencies, but the opportunity simply becomes open to all to earn, despite not having available knowledge and expensive and specific tools.

On Coinbase it is emphasized that the more you decide to invest in cryptocurrencies all the more we will be rewarded:

"The network chooses users called validators based on how many resources they have staking and for how long. As a result, it is the participants who have invested the most who are rewarded."

Freezing of crypto funds and passive income

Basically all of you, cryptocurrency holders can take advantage of staking!

If you don't have them, you can buy them, if you have them it will be how to freeze part of your funds and see the interest accrue.

Nothing so complicated isn't it?

In practice, many investors leave their cryptocurrencies in their wallets waiting for the right moment to sell them and make money. However, why leave them still when we can take advantage of them to earn already?

In this way we create a passive income that allows us to earn important figures, if we choose the best crypto for the purpose.

Many Bigs have already done so. moved as reported by Cointelegraph:

"Today Ethereum's native token, Ether (ETH), exceeded $ 3,000, coinciding with some new data suggesting that Three Arrows Capital has staked at least $ 110 million of ETH in the liquidity pools of Lido. "

Among other things, we help the blockchain network, perhaps the one in which we have invested to be safer because we contribute to validation, sometimes even earning tokens that allow us to take part in decisions and meetings aimed at improving the system.

How and where to stake?

Staking part of some blockchains can provide for the purchase (or a priori possession) of some cryptocurrencies in question and, only in some cases, it can be expensive.

Obviously there is a problem: a solution and concerns the large cryptocurrency exchanges with which it is possible to stake according to your available capital.

One solution could be Binance, or the mentioned Coinbase, but there would be another solution as well as surprise for some speculators already: Cryptosmart!

Here's what the Cyptonomist writes:

"The new service offers users the possibility to receive new cryptocurrencies from the blockchain by participating in the production and validation of new blocks of the blockchain, thus guaranteeing its efficiency and security."

The exchange allows you to grow your portfolio in a literally automatic way simply by tying even a small part of it.

Read also: Cryptocurrency Dipping: Right Time to Buy?

Does it applies to all crypto?

There are cryptocurrencies that are still based on Proof of Work while others are based on Proof of Stake.

Unfortunately it is not possible to stake all cryptocurrencies.

Bitcoin and Litecoin for example are based on Proof of Work and until before the update also Ethereum, but now it is also possible to staking with the latter.

While others like Polkadot and Cardano can be used for the purpose!

Obviously the best thing to do is go to the recommended platforms, evaluate the opportunity and see the possible cryptocurrencies to stake on, taking advantage of them after making the right considerations and understanding how the process works.

Some investors may already have known this opportunity, but I appeal to those for whom it is instead a novelty: evaluate it carefully because it could really make you good money!