Staking
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Staking is locking up cryptocurrency to help secure a proof-of-stake blockchain network. In return, stakers earn rewards — typically 3-15% APY depending on the network.
Staking means locking your crypto tokens to participate in a proof-of-stake (PoS) blockchain's consensus mechanism. Stakers help validate transactions and secure the network, earning rewards in return.
How it works: you delegate or lock your tokens to a validator node. That validator uses the staked tokens as collateral to propose and confirm new blocks. In return for putting up collateral and helping secure the network, stakers receive newly minted tokens as rewards.
Popular staking networks and typical yields: - Ethereum: ~3-5% APY - Solana: ~6-8% APY - Cosmos: ~15-20% APY - Cardano: ~3-5% APY
Staking is generally lower risk than yield farming because you're earning rewards directly from the blockchain protocol rather than from a DeFi application. However, risks include: validator slashing (penalties for misbehavior), lock-up periods (you may not be able to sell immediately), and the underlying token's price volatility.
Staking is a good default earning strategy for long-term holders who would otherwise leave their tokens sitting idle.
Related Terms
Yield Farming
Yield farming is the practice of earning returns by depositing crypto into DeFi protocols — through lending interest, liquidity provision fees, or protocol reward tokens.
DeFi (Decentralized Finance)
DeFi is a category of financial services built on blockchain technology that operates without traditional intermediaries like banks. It includes lending, borrowing, trading, and earning yield through smart contracts.
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