Crypto staking can help you earn interest and build passive income.
If you’re involved in the cryptocurrency market, crypto staking is a popular topic that comes up often. Like many concepts in crypto, staking can be simple or complicated depending on how deep you want to go.
Our goal is to make staking as accessible as possible so that everyone can get involved. In this article, you’ll learn how crypto staking works, the benefits it has to offer, and how to get started.
What Is Crypto Staking?
At its most basic, crypto staking is the process of holding funds in a cryptocurrency wallet in order to support the operations of a blockchain network.
When you stake your crypto, you’re committing them to a certain blockchain network. The project then uses your funds to validate transactions on the network.
As an incentive for staking, you’ll receive a reward for letting the blockchain network use your funds — typically, some percentage of the total value of the crypto you staked.
For example, you may choose to stake Cosmos (ATOM) on a certain staking platform. As a result, the platform offers you an annual return on your staked funds.
This makes crypto staking an easy way to use your holdings to generate passive income. And, because certain cryptocurrencies offer high interest rates for staking, you can build wealth without having to rely on trading to make a profit.