How to earn $SOL without trading

If you are an investor in the currency $SOL and see a long-term future for it, there is no point in keeping your coins in your wallet without generating passive income.

Therefore, in this article, I will explain how to achieve profit from Solana coins with minimal risks.

What is Staking?

All Proof of Stake networks like Solana rely on a system where the network's coins are staked to Validators, aiming for these validators to process network transactions.

In return for their efforts, they receive transaction fees and network rewards in $SOL coins.

Thus, staking is very important in the structure of blockchain networks, as the network's pillar relies on: validators and the proof of stake system.

Consequently, staking yields are stable because they are not affected by coin prices, but rather based on network activity.

If you wish to participate in staking, you can simply stake your coins to a validator and lock them for that validator, and you will receive rewards naturally.

However, some prefer not to do this because they want to receive staking yields but at the same time do not want to give up ownership of their coins, and wish to use them in DeFi applications or for other purposes.

Thus, there are in the market what is called liquid staking coins, and the idea is that you stake your coins and lock them for a validator, which is usually a platform or protocol, and in return, you receive a liquid staking coin that is equivalent in price.