Ibiam Wayas
Feb 12, 2025
The process of locking up cryptocurrency to support a blockchain network and earn rewards is simply known as crypto staking.
Essentially, you "deposit" your cryptocurrency on a blockchain platform, which then uses your funds to validate transactions and maintain network security.
In exchange for this you receive a portion of newly minted coins as a reward, typically expressed as a percentage of your staked amount.
The process of staking your cryptocurrency to support a blockchain network includes the following:
Not all cryptocurrencies support staking. You'll need to choose one that uses a PoS consensus mechanism, e.g., Ethereum.
There are several ways to stake. You can either run your own Validator Node, Delegate, join Staking Pools, or stake using an Exchange.
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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