What is staking in crypto? Staking is like putting your crypto to work instead of letting it sit idly in your wallet. It’s a way to earn rewards by locking up your cryptocurrency in a blockchain network that uses a proof-of-stake (PoS) consensus mechanism. 

Instead of miners doing all the heavy lifting like in proof-of-work, PoS relies on validators who get chosen to verify transactions and create new blocks based on the amount of crypto they’ve staked. The more you stake, the higher your chances of being picked to validate and earn rewards.

It’s not without risk, though. If the network detects bad behavior, like trying to validate fraudulent transactions, you could lose a portion of your staked crypto. This process, called slashing, is designed to keep everyone honest. On the flip side, staking helps secure the network and validate transactions while giving you a way to earn passive income.

Depending on the crypto you’re working with, you can stake through wallets, exchanges, or staking pools. The rewards vary based on factors like the coin’s inflation rate and how much of the supply is being staked. For crypto holders, staking is a compromise — you give up some liquidity in exchange for potentially earning more over time.