The working principle of mining

[Camila1688]

I don’t know much about cryptocurrencies, but I participate in simple liquidity mining on Coinbase, and they can indeed bring me income on a regular basis.
But I want to know how it works and what kind of risks I should be aware of. I need help from experienced people.
Should I continue to participate in mining or change to other better projects?

[GreatArkansas]

For OP, I think what you want to mean is the Staking feature of Coinbase.
Even other exchanges also offer this kind of feature, staking but I do believe you will get a very small APY here but overall it's still good to compare to just holding your coin with no interest at all.
But be aware that if you stake your coins on a centralized entity such as Coinbase exchange, you should be aware that your coin is holding by Coinbase not you.

Read more about staking on Coinbase here: https://help.coinbase.com/en/coinbase/trading-and-funding/staking-rewards/staking-inflation

[Sollaes]

I don’t know much about cryptocurrencies, but I participate in simple liquidity mining on Coinbase, and they can indeed bring me income on a regular basis.
But I want to know how it works and what kind of risks I should be aware of. I need help from experienced people.
Should I continue to participate in mining or change to other better projects?

Coins that use Proof-Of-Work consensus (BTC,ETH) need miners who confirm transactions and add them into blockchains. But consensus that is more popular today is Proof-Of-Stake. It requires validators that stake their coins and get APYs for that. I know that coinbase is a platform with a good reputation, so you I think you can continue staking there. But again, don't forget about risk management and don't deposit everything in one pool on one platform.