Staking: definition and meaning
Staking means locking crypto to help run a proof-of-stake network or protocol in exchange for rewards.
Why it matters
Rewards are not guaranteed, and locked coins may be hard to withdraw quickly or can be penalized if a validator misbehaves.
Related terms
- Proof of stake
Proof of stake is a consensus method where validators lock up coins as a deposit for the r… - Validator
A validator is a participant in a proof-of-stake network that checks transactions and prop… - APR and APY
APR is a yearly rate without compounding. APY includes compounding. Both estimate how much…
Guides that explain more
Educational content only, not financial advice.