Want to earn money staking on blockchains? Here’s how

moneycontrol.com:

After delivering multi-fold returns over the past few years, the cryptocurrency market is in a prolonged bear cycle, one that has prompted many long-term investors to question whether it is possible to generate returns from these digital assets while holding onto their positions.

There are more than a few ways for long-term crypto token holders to generate additional yields and one of the most popular options is investing in staking pools, which promise additional income apart from capital gains through token value appreciation.

Staking is available on blockchains that employ a proof-of-stake (PoS) consensus model and requires holders to lock their crypto tokens in a specific blockchain address (or wallet) in return for an annual percentage yield (APY) that is commensurate with the number of tokens staked.

A suitable option for crypto investors with a long-term investment horizon, staking on blockchains promise a regular income stream, without needing to become a blockchain validator.

What is blockchain?

A blockchain is a decentralised digital system of recording transactions across several computers or nodes on a peer-to-peer network. Blockchains maintain a decentralised and secure record of all transactions, with trust preserved between all parties without the need for a central or third-party authority.

This digital ledger of transactions is distributed across the entire network of nodes, with some nodes acting as validators in the consensus mechanism.

A holder can pledge (or stake) their digital tokens to qualify as a blockchain transaction validator or verifier. Validators maintain the blockchain's integrity by constantly computing the linkage from the first block to the last and earn crypto tokens as a reward for their