This method is somewhat different from mining because it does not require the use of special hardware, plus all that entails. This form of generating passive income, is based on keeping in possession the cryptocurrency in your official purse usually and set it in staking mode, with this action, you will receive a reward for being a node in the network and support the cryptocurrency with your purchase and maintenance .
Today there is a large number of profitable cryptocurrencies to make use of this method, the most popular on the network are Diamond, Factom, Gridcoin, Lisk, Nav Coin, NEO, Nxt, Okcash, PIVX, Stratis to name a few.
With the participation test there are some advantages and disadvantages. For example, if at any time you wish to sell your cryptocurrencies, you can do so without any problem, in addition to that its value will not be reduced in stacking mode, which would not imply a recovery of losses to maintain it, unless there is a variable in the market that reduces its price considerably.
Despite this advantage some cryptocurrencies may require a large investment to be able to use the stacking mode regularly.