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Crypto

Staking

Locking up cryptocurrency to help secure a proof-of-stake network in exchange for rewards.

In depth

Replaces energy-intensive mining for PoS chains. Annual yields typically 3-8% (ETH, SOL, ADA). Risks: slashing (losing stake for misbehavior), illiquidity (lock-up periods), smart contract risk for liquid staking protocols (Lido, Rocket Pool).

Frequently asked about Staking

What is Staking?

Locking up cryptocurrency to help secure a proof-of-stake network in exchange for rewards. Replaces energy-intensive mining for PoS chains. Annual yields typically 3-8% (ETH, SOL, ADA). Risks: slashing (losing stake for misbehavior), illiquidity (lock-up periods), smart contract risk for liquid staking protocols (Lido, Rocket Pool).

Why does Staking matter for investors?

In crypto, Staking is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Staking used in practice?

Replaces energy-intensive mining for PoS chains. Annual yields typically 3-8% (ETH, SOL, ADA).

Recent news mentioning Staking

Ethereum ETF Staking Proposal Advances as SEC Begins Formal Review Process

The SEC has begun formal review of proposals to allow staking within spot Ethereum ETFs. Ethereum offers staking yields of roughly 3.5-4% annually which ETF holders currently forgo. Approval could dri

Apr 22, 2026

Related terms

Mining (Crypto)

The process of validating blockchain transactions by solving computational puzzles, earning crypto rewards.

Slashing

Penalty mechanism in proof-of-stake networks that confiscates staked tokens for validator misbehavior.

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