What Is Staking?

Staking is the process of earning rewards on your cryptocurrencies by holding them for a specific period of time.

[{"selector":"#anim-f2442cd0-7dbd-43af-94e6-edb236cd1f71","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-291bb6a6-cc3a-485b-8396-bcd1aa7ddcde","keyframes":{"transform":["translate3d(-114.02985%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9b94cfb-61b5-41c5-a67e-f910a68f5304","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c1f772a3-a245-4d52-8e99-32b0c81e0675","keyframes":{"transform":["translate3d(-157.12144%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Usually, Staking is used as a strategy by investors to earn passive income on the digital assets they hold.

[{"selector":"#anim-97092655-f56a-4acc-80cf-e0ceab70db1d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1182ed32-933b-4db3-9e10-179baf92373e","keyframes":{"transform":["translate3d(-119.28105%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ed54d759-4c24-47f9-b7cd-70133bcb9f01","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0c3f0b49-c551-49a4-94c7-a83e691478ea","keyframes":{"transform":["translate3d(-211.20944%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Staking is only possible for cryptocurrencies that use the proof-of-stake (PoS) mechanism to process payments.

[{"selector":"#anim-770c45b2-2e93-4b6f-ab35-8030ff47dc85","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ccc0e797-580d-454b-bab9-ce66a565c5a7","keyframes":{"transform":["translate3d(-115.87301%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-84bb682f-4598-474a-8d90-77f3388d4ab7","keyframes":{"opacity":[0,1]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2c770618-f8d8-464e-a7ad-dc021230a343","keyframes":{"transform":["translate3d(-210.72465%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Staking is also used as a method to verify the transactions of many cryptocurrencies.

[{"selector":"#anim-82477593-dcac-47f4-af18-34ece76b8692","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-839d931c-ed5e-48a2-a8c8-f7f8e1a8bc1f","keyframes":{"transform":["translate3d(-116.34349%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-64a7f920-f564-488e-a635-2be03269ba6d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d8ee1708-0b68-4fd2-85bc-21df86d81723","keyframes":{"transform":["translate3d(-166.84027%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The proof-of-work (PoW) is not preferred because it is energy-intensive and requires considerable computing power.

[{"selector":"#anim-9b1c840e-def5-4ae2-91ed-a9471b1213c5","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-13222a0a-5393-44fc-ab86-4aba78a2ce49","keyframes":{"transform":["translate3d(-113.75359%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-693a678e-98c5-49ef-9e0f-3f5a9aeb3710","keyframes":{"opacity":[0,1]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5356b2c6-aaef-4a79-be02-5b1dcbf1f6c4","keyframes":{"transform":["translate3d(-169.35484%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The possible rewards investors’ can reap from staking are directly impacted by how much they are willing to put at stake.

[{"selector":"#anim-0670728a-ff98-406e-83d2-36da5724fc26","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9b66b5c3-59b3-49eb-9f8a-4fd5451e47c9","keyframes":{"transform":["translate3d(-122.22222%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ac87e9ce-d30e-4164-80d0-a230c9ccfe75","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6d0a1cd2-39d6-443b-81af-a2ff2457e007","keyframes":{"transform":["translate3d(-170.1275%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Buy a cryptocurrency

[{"selector":"#anim-c5ea7fa5-373f-4ce3-b78d-09e0468788f5","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4bb4bd6c-71f0-4cb2-8ef2-6bb694acccf9","keyframes":{"transform":["translate3d(110.95890%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7faf9248-eae7-4809-bc01-4773f35b05ff","keyframes":{"opacity":[0,1]},"delay":500,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c62660d5-8c35-419f-a5c7-4923b385e74b","keyframes":{"transform":["translate3d(110.95890%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b3094188-69d4-4e43-b403-22ace736b58e","keyframes":{"opacity":[0,1]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9a685290-d348-49a4-89ec-3453eaee2c43","keyframes":{"transform":["translate3d(110.95890%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b885ed86-ca1f-452f-8037-d1adf5901238","keyframes":{"transform":["translate3d(-314.99989%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f352daff-c719-445b-a489-8dee1ff24ce1","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-19278a2c-7e60-4b2c-bc19-4cc5c871b04e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-ba86fd54-f4b0-4977-990b-3cba7dc024f9","keyframes":{"transform":["translate3d(-294.99997%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5648a3ae-dc28-4cfc-a2ad-a0fa9586fdb5","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bd9a2323-9030-4b31-8b85-96748fe9a399","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-35dcd837-9bfe-4eb5-b225-e0eb31a49c48","keyframes":{"transform":["translate3d(-289.99994%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cd322786-4085-4697-9df8-102ee1ccc935","keyframes":{"opacity":[0,1]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7a7f03f5-f6bf-4ec4-9f72-afb23f8f2b82","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":800,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-de3eba16-3255-4b61-ba8e-10cf0170adee","keyframes":{"transform":["translate3d(-144.89801%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-1e21a6db-94d6-4193-93fc-733cef06bf3e","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] [{"selector":"#anim-fcf02d48-02ce-4cab-b7c7-0bbae3ca36c8","keyframes":{"transform":["translate3d(-144.89801%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-1f349ca1-79aa-4a04-89aa-208b830655d0","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":500,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] [{"selector":"#anim-fe833f15-7841-40ee-885f-b202aa5aff73","keyframes":{"transform":["translate3d(-142.85718%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-c9fd37a2-bccb-4d54-8e6b-8236129e76e3","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":1000,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] More Crypto Stories...