What is cryptocurrency staking and why should you know about it?
Staking is a mechanism that allows you to earn rewards for helping to secure Proof‑of‑Stake (PoS) networks by locking your cryptos in the network. It is not a loan or investing with fixed return promises; they work as "interest" paid by the protocol itself.
Main benefits:
Passive income: You add to your holdings while you hold them.
Security and efficiency: You contribute to transaction validation, which strengthens the network and reduces its energy consumption.
Diversification without trading: You have another way to grow your portfolio without buying/selling all the time.
⚠️ Risks to consider:
Limited liquidity: Your assets may be locked for days or weeks, depending on the network.
Volatility: Reward tokens can decrease in price, even if you earn more in quantity.
Slashing: If the validator fails or acts maliciously, you could lose part of your stake.
Tip to start well:
Choose solid and popular networks (like $ETH , $SOL ). For example:
Cardano offers staking without locking and with high decentralization (~3‑5 % APY).
In Solana or Ethereum, staking is already accessible from exchanges, without having to run nodes.
➡️ With staking, you can earn extra yield while holding your portfolio. Ideal for hodlers looking to grow without being glued to the price every day.