Family that is staking

Staking in the crypto world is a way to earn passive rewards by participating in the security and operation of a blockchain that uses the Proof of Stake (PoS) consensus mechanism or one of its variants (like Delegated PoS).

What does "staking" mean?

In English, "staking" means something like "putting at stake" or "betting" your cryptocurrencies. Basically, you lock (or temporarily lock) your coins in a network to help validate transactions and keep the network running. In return, you receive rewards, usually in the form of more cryptocurrencies.

How does it work?

1. You lock your cryptocurrencies (for example, ETH, ADA, SOL) in a compatible wallet or platform.

2. These cryptocurrencies are used as collateral to validate transactions on the network.

3. If you successfully help validate blocks, you earn rewards (like interest).

4. In some cases, you can delegate your coins to a validator without having to operate one yourself.

Risks

1. Your funds may be locked for a period of time.

2. If the price of the crypto drops, your rewards may not compensate for the loss.

3. If the validator fails or acts maliciously, you may lose part of what was staked (slashing).

Popular cryptocurrencies for staking

Ethereum (ETH) – after the upgrade to PoS

Cardano (ADA)

Solana (SOL)

Polkadot (DOT)

Avalanche (AVAX)

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