Staking is a way to put your crypto to work and earn rewards on it.
If you're a crypto investor, staking is a concept you'll hear about often. Staking is the way many cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings.
But what is crypto staking? Staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions.
Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking. But before you get started, it's important to fully understand how crypto staking works.
It's an easy way to earn interest on your cryptocurrency holdings
You don't need any equipment for crypto staking like you would for crypto mining
You're helping to maintain the security and efficiency of the blockchain
It's more environmentally friendly than crypto mining
Crypto prices are volatile and can drop quickly. If your staked assets suffer a large price drop, that could outweigh any interest you earn on them
Staking can require that you lock up your coins for a minimum amount of time. During that period, you're unable to do anything with your staked assets such as selling them.