Staking crypto is the process of actively participating in the validation of transactions (similar to mining) on a proof-of-stake (PoS) blockchain. By locking up your cryptocurrency in a wallet for a certain period, you help support the network—and in return, you earn rewards, usually paid in the same cryptocurrency.
🔑 Key Concepts of Crypto Staking
Term   Description
Proof of Stake (PoS)   A consensus mechanism where validators are chosen to create new blocks based on the number of coins they "stake."
Validator   A node that confirms transactions and maintains the network by staking crypto.
Delegator   If you don't run your own node, you can delegate your coins to a validator and still earn rewards.
Staking Rewards   Incentives given in exchange for staking—similar to earning interest.
Lock-up Period   Some staking involves locking coins for days or weeks; withdrawing early may incur penalties.
🪙 Common Cryptocurrencies You Can Stake
Coin   Typical APY (Annual Yield)   Notes
Ethereum (ETH)   ~3–5%   After the shift to PoS (Ethereum 2.0)
Cardano (ADA)   ~4–6%   No lock-up (liquid staking)
Solana (SOL)   ~5–7%   Fast-growing PoS ecosystem
Polkadot (DOT)   ~10–12%   Higher rewards, but has bonding/unbonding periods
Tezos (XTZ)   ~5–7%   Known for self-amending blockchain
✅ Pros of Staking

    Earn passive income

    Support the security and decentralization of blockchain networks

    Often less energy-intensive than mining

⚠️ Risks of Staking

    Lock-up period risk: You can't sell your staked assets during this time

    Price volatility: The asset's value might drop while you're staking

    Slashing: If a validator misbehaves, some of your stake may be lost (only on some networks)

    Platform risk: If you stake through an exchange or third-party, you're trusting them with your assets

🔧 How to Stake

    Choose a staking coin (e.g. ETH, ADA)

    Pick a method:

        Through a crypto exchange (e.g. Coinbase, Binance)

        Using a software/hardware wallet

        Becoming a validator (requires technical knowledge + minimum crypto balance)

    Stake your coins and start earning rewards