What Is Staking?
Learn how crypto staking works and why it matters in the blockchain ecosystem.
What is Staking?
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. By staking your crypto, you help secure the network and, in return, earn rewards.
How Does It Work?
Users lock up (stake) their cryptocurrency in a wallet or exchange. This stake supports network security and consensus, and in return, participants receive staking rewards—often in the form of more of the same token.
Popular Staking Coins
Examples include Ethereum (ETH), Solana (SOL), Cardano (ADA), and Polkadot (DOT). Each network has different rules for staking, rewards, and lock-up periods.
Benefits of Staking
- Earn passive income
- Support network security
- More energy-efficient than mining
Risks to Consider
While staking can be rewarding, it also carries risks such as slashing (loss of funds due to validator misbehavior), token lock-up periods, and market volatility.
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