What is “Staking”? Simply understand it as online savings!

You have some coins like ETH, ADA, SOL… but if you just let them sit, they won’t earn any profit, right?

So you hear someone say: “Hey, stake your coins, you’ll earn every year!”

Huh? What does that mean?

💡 Think of it this way for simplicity:

Staking is when you deposit your coins into a blockchain network just like depositing money in a bank.

But instead of the bank using your money to lend out, the blockchain uses your coins to verify and secure transactions.

To put it simply: you let the system “borrow the power” of your coins → in return, you earn interest paid in the same coins.

👀 What should you pay attention to?

- Some types of staking do not have a lock-in period, you can withdraw anytime.

- But there are also types that are locked for 7 days, 14 days, or even several months without the option to withdraw in between.

- And if you choose a fraudulent staking platform → you could lose all the coins you deposited.

So don’t just “chase high returns,” make sure to thoroughly research where you are depositing your coins, just like choosing a bank.

✅ In summary:

Staking is a way to use your coins to earn profits like savings, but in the blockchain world. Deposit coins → the network uses them → you get rewarded.