Ibiam Wayas

What is the Process of Staking Crypto to Earn Rewards?

Feb 12, 2025

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The process of locking up cryptocurrency to support a blockchain network and earn rewards is simply known as crypto staking.

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Essentially, you "deposit" your cryptocurrency on a blockchain platform, which then uses your funds to validate transactions and maintain network security.

How does staking work in blockchain?

In exchange for this you receive a portion of newly minted coins as a reward, typically expressed as a percentage of your staked amount.

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The process of staking your cryptocurrency to support a blockchain network includes the following:

1 Choosing a Cryptocurrency

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Not all cryptocurrencies support staking. You'll need to choose one that uses a PoS consensus mechanism, e.g., Ethereum.

2 Selecting a Staking Method

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There are several ways to stake. You can either run your own Validator Node, Delegate, join Staking Pools, or stake using an Exchange.

3 Lock-up and Reward

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Some staking platforms require you to lock up your funds for a certain period, which can limit liquidity. However, once your cryptocurrency is staked, you'll begin earning rewards based on the network's rules.

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