What Is Staking?

Staking is a way of putting your crypto to work to help secure a proof-of-stake network — and, usually, earning rewards for doing so. It is one of the most common ways people earn a yield in crypto, and one of the most misunderstood.

How it works

On proof-of-stake blockchains, participants lock up (“stake”) tokens to help validate transactions. In return they earn newly issued tokens and fees. You can stake directly if you run a validator, or delegate to one, or use a liquid-staking service that gives you a tradeable token representing your stake.

The trade-offs

Rewards are not free money: your stake may be locked for a period, the token’s price can fall while it is staked, and validators can be penalized (“slashed”) for misbehavior. Very high advertised yields are a warning sign. Understand what you are staking, with whom, and what can go wrong.

Educational content, not financial advice. Crypto is volatile and you can lose money. Do your own research. Crypto Ruble Coins is a news and education publication — not an exchange, conversion, or off-ramp service.