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What is Staking?

Staking: a crypto term, explained in plain English.

In one line

Locking up coins to help run a proof-of-stake blockchain, in return for rewards paid in more of those coins.

Crypto Reviewed by Keshav Aggarwal · Updated

In simple words

Imagine putting your money in a piggy bank that a club uses to keep its games fair. Because you help, the club adds a few coins to your piggy bank now and then.

If you break the rules, the club can take some of your coins. That is staking.

The technical side

On proof-of-stake networks such as Ethereum (since the Merge in September 2022), Solana and Cardano, validators lock coins as a security deposit and are chosen to propose and confirm blocks. Honest work earns rewards; going offline or cheating can be punished by losing part of the stake (slashing).

Running an Ethereum validator needs 32 ETH, so many people stake through exchanges or liquid staking services instead. Rewards are not guaranteed, and staked coins may take time to unlock.

Staking kya hai?

Staking mein tum apne coins lock karte ho taaki blockchain safe chale. Badle mein thoda reward milta hai, par coins kuch time ke liye band rehte hain.

Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.

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