What Is Crypto Staking & How Does Staking Crypto Work?

Crypto staking is the process of holding cryptocurrency funds in a wallet to support the operations of a blockchain network. By doing so, you as a user can earn rewards for helping to maintain the network.

How Does Crypto Staking Work?

crypto staking represented by padlocks
The many locks can represent the locked away or staking crypto accounts

When you stake crypto, you are essentially locking up your coins to help validate transactions and produce new blocks.

In return for your contribution and for locking up your crypto, you earn rewards in the form of newly minted coins or transaction fees. This can be either be a return in the same Coins as you stake, or other types of tokens known as stable coins.

The interest you can earn from crypto staking is typically much higher than what you would earn from a bank deposit or other traditional investment. This is because crypto staking helps to secure the network, and thus, the demand for it is high.

Crypto staking is a great way to earn passive income without having to put up much money upfront. So if you’re looking for an easy way to make some extra money, be sure to check out crypto staking alongside crypto mining.

Getting started with Crypto Staking

getting started with crypto staking akin to starting blocks

To get started with crypto staking, all you need is a wallet that supports the currency you want to stake and a trusted partner to stake with.

There are some guides here that explore in more detail exactly how to start crypto staking with specific platforms or exchanges, both centralized or decentralized. Below you can see the general steps required to start staking crypto with Coinbase.

coinbase logo

MINIMUM DEPOSIT : $2
COINS SUPPORTED :
100+
FEES
: SPREADS 0.5%

SUMMARY : Best for beginners

1. Sign up for an account with Coinbase .
2. Verify your identity.
3. Proceed with at least a minimum deposit or transfer existing assets into your new wallet.
3. Select the asset you want to stake from your portfolio.
4. Choose the amount you want to stake and click ‘Stake’.
5. Earn rewards for helping to maintain the network!

It’s that easy!

By following these simple steps, you can start earning rewards from crypto staking in no time.

Once you have found a suitable site or crypto exchange, simply deposit your cryptocurrency and start earning rewards!

How to find the best sites for crypto staking?

The best crypto staking sites offer high rewards, low fees, and a variety of currencies to choose from.

When looking for a the best sites for crypto staking, be sure to compare different options and find one that suits your needs.

To find the best sites for crypto staking, you will want to consider a few factors:

1.The amount of coin required to stake : Some sites require a minimum amount of coins to be locked in order to start staking, while others have no minimum. If you are just starting out, you may want to look for a site that does not have a high minimum in order to keep things low risk.

2.The length of time required to stake : you will usually be required to stake your coins for a certain period of time. These minimum crypto staking periods can vary between a number of hours, through to months or years for higher rates of returns.

3.The reward structure & ROI: Some platforms will offer fixed rewards, while others offer variable rewards. Fixed rewards means that you will earn the same amount of rewards (in percentage terms) regardless of how many coins you stake, while variable rewards means that the more coins you stake the higher percentage return you can receive.

The ROI (return on investment) is the percentage of rewards you earn compared to the amount of coin you stake. A higher ROI means that you will earn more rewards for your investment.

4.The security of the project: You will want to make sure that the site you choose is secure and that your coins are safe. One way to do this is to look for reviews of the site from other users.

You can find more information on each of these factors by simply searching for the exchange or site you are most interested in either here, or from other trusted sources.

Once you have considered all of these factors, you will then be able to choose the best site for your own crypto staking or feel free to choose our test winner below.

coinbase logo

MINIMUM DEPOSIT : $2
COINS SUPPORTED :
100+
FEES
: SPREADS 0.5%

SUMMARY : Best for beginners