Publication date: February 26, 2026

Crypto staking is a way to earn rewards from your cryptocurrency by tying them to a blockchain network. Instead of selling your tokens, you put them in a staking pool, where they help verify transactions. As a reward for supporting the network, you receive additional cryptocurrency.

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How does staking work?

Staking is a way to use your cryptocurrency to help a blockchain network without having to sell it. Instead of actively trading your crypto, you stake it in the network. This helps control and secure transactions on the blockchain.

On staking, you are selected to help validate transactions based on the number of coins you have staked. The more crypto you stake, the more likely you will be chosen to add a new block to the blockchain.

As a reward for your contribution, you receive additional cryptocurrency. This works similar to interest on a savings account, but for crypto. Staking is thus a way to passively earn extra crypto, without having to actively do anything for it.

Example strike Cardano

Imagine you are an investor in Cardano (ADA). Cardano also operates on a Proof-of-Stake mechanism, which means you can strike ADA to earn rewards. You can place your ADA in a staking pool and then receive rewards based on the amount of ADA you have staked. For example, if you strike 10,000 ADA in a pool that offers 6% rewards annually, you would receive 600 ADA each year, on top of the value of your original investment.

Benefits of Staking

• Passive income: Staking offers the opportunity to generate passive returns on your crypto assets without trading them. This can be attractive to long-term investors.
  
  
• Higher returns than traditional investments: The returns from staking can in some cases be higher than traditional investment vehicles, such as savings accounts or bonds.
  
  
• Network security: By staking your tokens, you help the security and decentralization of the blockchain, contributing to a stronger network.

Disadvantages of staking

• Market volatility: The value of the tokens you strike may fluctuate, which means you may not receive as much return as you had hoped. If the price of your tokens falls, the return you receive from staking may not be enough to offset the loss.
  
  
• Validator risk: When you strike tokens through a strike pool, you rely on the validators responsible for processing blocks. If a validator performs poorly or does not act fairly, it could result in a loss of your staked tokens.
  
  
• Lock-up periods: Some strike programs have lock-up periods, meaning you cannot move or sell your struck tokens until the period ends. This can be problematic if you want to react quickly to market conditions.

Conclusion

Crypto staking offers an interesting opportunity to generate passive returns by locking in your cryptocurrency and supporting the network. It is an attractive way for long-term investors to earn extra crypto without actively trading. However, as with any investment, there are risks, such as market volatility and the reliability of validators. It is important to properly research strike programs and weigh the risks before you decide to bet your crypto.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.