You may have heard that you can 'earn crypto by staking', but what exactly is it?

Here is a clear and simple explanation 👇

đŸ§Ÿ What is staking?

Staking is the act of locking (or 'putting at stake') a certain amount of cryptocurrency to participate in the security of a blockchain (like Ethereum, Solana, or Cardano).

âžĄïž In exchange, you can receive rewards (often in crypto as well).

A bit like interest, but beware: this is not a guaranteed investment.


🔐 Why lock up your cryptos?

On certain blockchains (like Ethereum), there are no miners.

It is the validators who verify transactions.

To become a validator, you need to 'stake' cryptos.

The more you put in, the more chances you have of being chosen to validate a block... and receive a reward.

But you don't need to manage this yourself: you can stake via a platform (Binance, Kraken, etc.) or through a staking pool.


⚙ Concrete example (simplified):

Let's imagine you own 100 ABC tokens.


âžĄïž You 'stake' them for 30 days via a platform.

âžĄïž During this time, they are used to validate blocks.

âžĄïž In the end, you get back your 100 tokens + a reward of 2 tokens (i.e., 2%).


💡 But beware:

  • Your funds may be locked for a certain time ⏳

  • Rewards are never guaranteed

  • You must trust the platform

✅ The advantages

✔ No need for a powerful computer

✔ You help secure the network

✔ You can receive rewards in return


⚠ The risks

❌ No guarantee of returns

❌ Your capital may be temporarily locked

❌ If the validator you support cheats or fails, you may lose a part of your stake (slashing)

🧠 In summary

Staking is like becoming a co-actor of the blockchain,

by putting your cryptos to work, without having to mine.


But it's still a decision to be made with full knowledge of the facts.

This is not a magic investment, and it's not without risk.

💬 Do you want to know how a staking pool works?

Or which cryptos are often used for this?

Say it in the comments 👇

#crypto #stacking #Write2Earn #blockchains