🧠 Topic: What is staking, how does it differ from farming, and where to stake wisely and profitably
🔐 What is staking (#staking )?
It is the process of 'freezing' tokens in a Proof-of-Stake (PoS) blockchain to support its operation and receive rewards.
You are essentially saying: 'I trust the network — and I earn a percentage for my participation.'
⚙️ How it works:
You delegate your tokens (for example, $ETH , $ATOM , $SOL ) to a validator
The validator confirms transactions and receives a reward
You receive a portion of that reward — in the same token
📌 No LP tokens, farming, or trading — everything is transparent and simple.
🌾 How does staking differ from farming?
🔗 Mechanism: Staking - Participation in PoS consensus. Farming - Providing liquidity in DeFi
💸 Income: Staking - Fixed (depends on the network). Farming - Depends on demand and tokens
⚠️ Risks: Staking - Volatility, slashing. Farming - IL, token scams, hacks
🔄 Complexity: Staking - Simple (1 token → stake). Farming - Often requires pairs + strategies
💡 Where to stake:
🔹 Through exchanges (CEX):
#Binance : the simplest way, but with a fee
OKX, Bybit, KuCoin - similarly
🔹 Through wallets (DEX / self-custody):
#keplr (for $ATOM, $OSMO)
Phantom (for $SOL)
#MetaMask (with Lido, Rocket Pool)
🔹 Through DeFi protocols:
Lido - liquid staking ETH, SOL
Rocket Pool - decentralized staking $ETH
Marinade - staking $SOL with liquidity
🧠 What is important to consider when choosing:
🔸 Validator reliability
🔸 Token unbonding conditions (unbonding period)
🔸 Network yield (APR)
🔸 Availability of 'liquid staking' - can the tokens be used further
📌 Conclusion:
Staking is the most straightforward way to earn DeFi income. It is simpler than farming but still requires analysis.
Do not forget about network risks and choose reliable platforms.
📖 In the next issue, I will tell you:@Cryptoland_88
What is DAO - how decentralized organizations work, who makes decisions and how to participate in them (and earn).
👆This article is for informational purposes only and is not investment advice. Thank you for your subscriptions, likes, and comments!