What is cryptocurrency staking


Cryptocurrency staking is a process of locking up cryptocurrency assets in order to participate in the validation of transactions and earn rewards, it’s also a way of securing a blockchain network and earning passive income.

  • Staking is a relatively new concept in the cryptocurrency world, but it is becoming increasingly popular as more and more blockchains adopt proof-of-stake consensus mechanisms.
    *Proof Of Stake (POS) is an alternative to proof of work (POW), which is the consensus mechanism used by Bitcoin and many other cryptocurrencies.
    The Proof Of Work requires miners to use powerful computers to solve complex mathematical problems in order to add new blocks to the blockchain.
    This can also be a very energy-intensive process,and it can also lead to centralization of mining power.

  • Proof Of Stake on the other hand does not require miners instead it relies on validators who stake their cryptocurrency assets to secure the network.
    *The Validators are randomly selected to add new blocks to the blockchain and they are rewarded with new cryptocurrency for their participation.

There are few different ways to stake cryptocurrency which are

(1) Staking your coins directly on the blockchain network. This is the most secure way to stake, but it can also be the most complex.

(2) By using a cryptocurrency exchange or staking pool,is a more user-friendly option but it may offer lower staking rewards.

To stake cryptocurrency directly on the blockchain network, you will need to create a wallet that supports staking. Once you have created a wallet, you will need to transfer your cryptocurrency to that wallet then you will need to follow the instructions provided by the blockchain network to stake your coins.

To stake cryptocurrency using a cryptocurrency exchange or staking pool, you will need to create an account with the exchange or pool. Once you have created an account, you will need to deposit your cryptocurrency into the exchange or pool. Then you will need to choose a staking plan and start earning rewards.

*There are three Benefits of Cryptocurrency Staking.

(1) It is a way to earn passive income,when you stake your cryptocurrency, you are rewarded with new cryptocurrency for your participation in the validation of transactions. It can also be a great way to earn additional income on your cryptocurrency investments.

(2) Staking helps to secure the blockchain network,and when you stake your cryptocurrency you are helping to ensure that the network is running smoothly and that transactions are being processed securely. This is a valuable contribution to the cryptocurrency community.

(3) Staking can also help to increase the value of your cryptocurrency holdings.
When more people stake their cryptocurrency it becomes more difficult for malicious actors to attack the network.
This also makes the network more secure and in turn makes the cryptocurrency more valuable.

Risks of Cryptocurrency Staking

There are some risks associated with cryptocurrency staking which are
(1) You could lose your cryptocurrency if the exchange or staking pool you are using is hacked. This is a relatively rare occurrence but it is always a possibility.

(2) You can also lose your staking rewards if the cryptocurrency network undergoes a hard fork.
A hard fork is a major change to the blockchain protocol, If a hard fork occurs it is possible that your staked cryptocurrency will become worthless on the new blockchain.

(3) Also be aware that staking is a long-term investment, in which your cryptocurrency will be locked up for a period of time in order to earn rewards,in other words you will not be able to access your cryptocurrency during that time.


Cryptocurrency staking is a relatively new way to earn passive income on your cryptocurrency investments.
It is also a secure and reliable way to support the blockchain network and earn rewards. However there are some risks associated with staking, that is why it is very very important for anyone to research very well before getting involved.

There are some additional things to keep in mind when considering cryptocurrency staking:

(1) The amount of cryptocurrency you need to stake varies from blockchain to blockchain. These is to say some blockchains require a minimum amount of cryptocurrency while others do not.
(2) The staking rewards you earn will also vary depending on the blockchain. These is to say some blockchains offer higher staking rewards than others.

(3) The staking period also varies from blockchain to blockchain.
Some blockchains require you to stake your cryptocurrency for a fixed period of time, while others allow you to unstake your cryptocurrency at any time.


Thanks for sharing, good read and write up. Good your Research game is educating, guess you have a YouTube channel to make it complete.

So back to crypto staking… For me it’s Passive Income.
Ever since I met Tron. Have been staking my peanut then.
Until I met NRG @TronNinjas ( a vibrant products and winner of Tron Hackathon) where I currently stake my Tron. Simple to use, even to newbies.

Staking Comes with some benefits not just to user but to the blockchain.

From the risk you mentioned associated with Staking
It is important to weigh the risks and benefits of staking before you decide whether or not to do it.

Not all Cryptocurrency have staking.
I know of ETHEREUM, TRON, BNB…I can recommend them.

Thanks for sharing with us.


Thanks bro no man is an island and knowledge is a combination of idea from different individuals, greatness and success comes from loyalty and interaction with people with vision and goal.lol


Oh wow, kudos to you for this piece, this was enlightening and informative at the same time, you really killed it when your extensive analysis and overview.
Your comprehensive overview of cryptocurrency staking provides a clear understanding of the concept, the comparison between Proof of Stake (POS) and Proof of Work (POW) is well-described, emphasizing the energy efficiency and security aspects of POS, the conclusion underscores the significance of conducting thorough research before engaging in staking.
In essence, this overview is a well-structured and informative piece that offers readers a solid foundation in understanding cryptocurrency staking.
I would like to contribute by mentioning that some projects offer “delegated staking,” where individuals can delegate their staking power to a trusted entity, such as a staking pool, to simplify the process. This might be worth considering in terms of diversifying staking strategies.
A question that arises from this is: Could you elaborate on any particular cryptocurrencies or blockchain projects that have gained significant popularity and success with their staking mechanisms?


Inasmuch as staking is a great way to earn passive income it is also the surest way to be dumped on when your funds are locked and there is nothing you can do about it.

Now let me tell you this story.
Before the onset of the bullrun, i bought this marvelous coin called $IOTX.

It was a gem to me, everything about internet of things was my personal favorite.

I could stake it too and earn passively using their iopay wallet such a great way to make my money work for me.

Soon the bulls came chanting, my $IOTX made a 26x gain. I couldn’t believe what i was seeing. My wallet kept growing every day but the sad thing was i couldn’t touch it since it was locked for year.

Then the grim face of the bears started piercing through the dark like the sharp teeth of dracula, devouring, and sucking the life out of my gem.

I watched on as my newfound fortune melt like shea butter in the sun.

When the locking period was eventually over, i was down 2x from my initial investment.

A wife changing wealth has changed to a life threatening wealth.

Be guided.


Thanks for sharing us the dark side of Crypto staking,.
Yes it fun and passive income untill the bullrun market set in without notification while your gem was lock.

I had same experience, I believe some on us here know of Tron chain?. Then I provided liquidity and stake my Tron to a smart contract in the last Tron bullrun.

Only for me to be seeing my Tron in my dashboard doing magical increased, but I couldn’t do a thing.
Because it was luck for 6month.
Secondary that was my early days in Crypto, I didn’t know the meaning of take profits.

In nutshell, I missed the pump to staking,
Well was a learning experience for me.
Even with the benefits of staking, it’s important to know your strategy in staking

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Thanks buddy I appreciate


Kul bro thanks for your advice


You are welcome brother. Always stake what u can afford to be dumped on :rofl::rofl:

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Very important, no wonder Tron has 15 days lock time when you staked.

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Thanks for this educational content. I would like to see more such content on the forum. :+1: