What is Staking?
Staking is the process of locking up cryptocurrency in a proof-of-stake network to help validate transactions and secure the blockchain, earning rewards in return.
What is Crypto Staking?
Staking is a way to earn passive income with your cryptocurrency by participating in a proof-of-stake (PoS) blockchain's validation process. Instead of mining with hardware, you lock ("stake") your tokens as collateral to validate transactions.
How Staking Works
Validators are chosen to create new blocks based on the amount staked and other factors (e.g., randomness). In return for their service and risk, validators earn staking rewards — typically paid in the native token.
Types of Staking
- Solo staking: Run your own validator node (e.g., 32 ETH minimum for Ethereum).
- Delegated staking: Delegate to a validator through a wallet or exchange.
- Liquid staking: Stake and receive a liquid token (e.g., stETH from Lido) you can use in DeFi.
Staking Rewards
Annual yields vary by network: Ethereum ~4%, Cosmos ~14%, Solana ~6-8%. Rewards are paid in the staked token, so real returns also depend on price performance.