What Is Staking? A Beginner's Guide to Earning Rewards

Education · Informational guide · Updated 2026

Definition

Staking is locking up cryptocurrency to help secure a proof-of-stake network, earning rewards in return.

How it works

Proof-of-stake networks choose validators based on how much they have staked. Validators confirm transactions and earn rewards, which they share with delegators.

What you can earn

Staking rewards vary by network, typically ranging from a few percent to over 20 percent per year, depending on the asset and conditions.

The trade-offs

Staking involves lockup periods and some risk, including slashing if a validator misbehaves and price volatility of the staked asset.

How to start

Most wallets and exchanges offer staking with a few clicks. Choose a reputable validator and understand the unbonding period before you begin.

Bottom line

Staking is a popular way to earn passive yield on coins you plan to hold long-term.

This article is for educational and informational purposes only and does not constitute financial advice. Always do your own research. Cryptocurrency is volatile and involves risk of loss.