Staking is a way to put your crypto to work and earn rewards on it.
Staking is a process in which network participants lock up cryptocurrency in order to support the operation of a blockchain.
Many blockchains use a consensus mechanism called proof of stake, in which participants offer to lock up set amounts of cryptocurrency to increase the security of the blockchain and earn rewards for doing so.
If participants validate incorrect or fraudulent data, they may lose some or all of their stake as a penalty.
However, if they validate correct and legitimate transactions, they may earn more cryptocurrency as a reward.
Staking is more energy-efficient alternative to the original proof-of-work model.
Staking is only available with cryptocurrencies that use the proof-of-stake model.
Well-known proof of stake cryptocurrencies such as Solana (SOL) and Ethereum (ETH) use staking as part of their consensus mechanisms.
Staking can be a great way to generate passive income, as some cryptocurrencies offer high-interest rates.