Staking is a way to earn on cryptocurrencies without selling assets. Imagine a bank deposit, only instead of fiat money, you lock up cryptocurrency and earn interest.

How does staking work?

Staking is only possible in blockchains with a Proof-of-Stake (PoS) algorithm. Participants lock their coins to become validators - those who confirm transactions and create new blocks.

The principle is simple: the more coins are locked, the higher the chance of becoming a validator and receiving a reward. This motivates participants to act honestly - if they try to cheat the network, they will lose their locked funds.

Two ways to participate

Solo staking - running your own node. Requires technical knowledge and a large amount. For example, for Ethereum, you need at least 32 ETH (about $70,000).

Delegated staking - transferring coins to a validator through pools or exchanges. Suitable for beginners with any amount.

Popular coins for staking

- Ethereum (ETH) - after the transition to PoS
- Cardano (ADA)
- Solana (SOL)
- Polkadot (DOT)
- Cosmos (ATOM)

Yield and risks

Annual yield ranges from 4% to 20% and higher, depending on the project. The main risks are the volatility of coin prices and possible technical failures of validators.

Staking turns cryptocurrencies from a speculative asset into a source of passive income, making them more attractive to long-term investors.
*Tokens are not a means of payment, are not backed by the state, and acquiring tokens may lead to a total loss of funds and other civil rights objects exchanged for tokens (including as a result of token price volatility; technical failures (errors); illegal actions, including theft).