We are definitely living in the day and age of hustle culture. If you’re like me, every other article on your Google feed is about how to earn a passive income, or five side hustles that will change your life. One of the best ways to earn money passively is simply by “staking” cryptocurrency on Coinbase.
If you are unfamiliar with this concept, it is pretty easy to get started. The first step is to set up a Coinbase account, then all you need to do is purchase crypto that earns interest. Initially, this, and the wider variety of altcoins offered is what drew me to Coinbase. I discovered Cosmos “The Internet of Blockchains” when I was searching for a way around the volatility of owning cryptocurrency, I discovered that Cosmos will pay a pretty high APR if you simply buy it and hold it. I also love the idea that the crypto in my Coinbase account would constantly be earning interest.
What is Cosmos crypto? What is proof of stake?
According to Coinbase “Cosmos aims to be the ‘internet of blockchains’ by allowing developers to build their own blockchains, each of which are interconnected via the Cosmos network” The currency used on the Cosmos network is called ATOM. Cosmos is community owned and operated, and is essentially a group of independently created, interconnected blockchains. Cosmos aims to bring together a community of developers by allowing developers the ability to choose which blockchain they will use based on the application they are creating.
Cosmos runs on a consensus protocol called Proof of Stake (PoS) which is different from the older, energy sucking consensus protocol, Proof of Work (PoW). Proof of Work is a competitive process which involves many different miners trying to solve the next piece of the block. Instead of using miners to propose new blocks, Cosmos rewards its users for simply buying and holding ATOM, this process is called staking, and it secures the Cosmos blockchain.
How does Cosmos earn interest on Coinbase?
Anyone who buys Cosmos (ATOM) on Coinbase will begin earning interest. When you buy Cosmos on Coinbase, it will stake the Cosmos on your behalf. The more ATOM you buy, the more Coinbase will stake for you, which earns you even more Cosmos as a reward. Cosmos makes it possible to earn money just by owning and holding their ATOM coins. When you stake Cosmos on Coinbase, they receive the rewards from the network and then will automatically credit them to your crypto wallet.
Buying and holding Cosmos may not be the fastest way to see your money grow, but it is less volatile and more consistent than riding the cryptocurrency roller coaster. Using Proof of Stake (PoS) is where future crypto projects are headed, this process not only saves energy, but helps prevent the volatility involved in owning crypto by incentivizing holding onto your coins for longer.
So, to get started on your journey, all you have to do is buy some Cosmos on Coinbase, and watch your money grow.
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