Staking is a way to earn passive income by locking up your cryptocurrency to help secure a blockchain network. In return, you receive rewards — usually in the same crypto you’ve staked. This process is central to blockchains that use a Proof-of-Stake (PoS) system, which is a more energy-efficient alternative to mining.
By staking, users either become validators (who confirm transactions) or delegate their tokens to validators. Staking rewards vary by project, with some offering annual returns of 5% to 20%. Popular staking coins include Ethereum, Cardano, Solana, and Polkadot.
Staking offers steady rewards and supports network security, but it comes with risks like token lockups, price drops, or platform issues. Always research the project, staking terms, and potential risks before committing your funds.
