What is Staking?

Staking is committing your tokens to support a proof-of-stake blockchain. In return for helping validate transactions and keep the network honest, you earn staking rewards. It is one of the most common ways people earn on crypto without trading.

The appeal is passive rewards, but it is not risk-free. Your tokens may be locked for a period, the token price can fall, and on some networks misbehaviour by a validator can trigger slashing that reduces the stake. Understanding these trade-offs is the difference between informed earning and blind risk.

Example: you delegate your tokens to a reputable validator; the network pays out new tokens periodically, and your balance grows slowly as long as the validator behaves.

Safety note: real staking happens through a wallet you control or a transparent protocol, not by sending coins to a stranger who promises fixed daily profits. Guaranteed high returns are the classic signature of a Ponzi or pig-butchering scam. Related terms include validator, delegation, slashing, and rewards rate.