🔗 Blockchain & DeFi
What is Crypto Staking?
Staking involves locking up cryptocurrency to support blockchain operations and earn rewards, similar to earning interest.
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 earn rewards.
How Staking Works
- . You lock up (stake) your tokens in a wallet
- . Your tokens help validate transactions on the network
- . You earn rewards, typically in the same token
- . Rewards vary based on network inflation and staking ratio
Staking Rewards
Typical APY ranges from 3% to 20%+ depending on: - The cryptocurrency - Network inflation rate - Total amount staked on network - Lock-up period
Ways to Stake
- . **Direct Staking**: Run a validator node (requires technical knowledge)
- . **Delegated Staking**: Delegate to a validator pool
- . **Exchange Staking**: Stake through Coinbase, Binance, etc.
- . **Liquid Staking**: Protocols like Lido give you liquid tokens while staked
💡 Key Points
- ✓Lock tokens to help secure proof-of-stake networks
- ✓Earn passive income (typically 3-20% APY)
- ✓Some staking has lock-up periods
- ✓Liquid staking lets you use staked assets
- ✓Risks include slashing and opportunity cost
How to Use Staking
- 1Research the staking APY and lock-up requirements
- 2Consider liquid staking for flexibility
- 3Diversify staking across multiple assets
- 4Factor in token inflation when calculating real returns
- 5Use our screener to find stakeable cryptocurrencies