💰What is staking?

WHAT IS STAKING?

Staking offers cryptocurrency investors a way to put their digital assets to work and earn passive income without having to sell them.

It's like putting money in a high-yield savings account. That's because when you deposit money into a savings account, the bank takes that money and usually lends it to other people. In return, you receive interest earned on the loans – albeit a very, very low percentage.

Likewise, when you stake your digital assets, you “lock” the coins to participate in the execution of the blockchain to contribute to your security.

In return, you earn rewards calculated in percentage yields. These returns are usually much higher than any profitability offered by banks.

Staking has become a very common way to profit from cryptocurrencies without trading them properly. In April 2022, the total value of staked cryptocurrencies crossed the $280 billion threshold, according to data provider Staking Rewards.