Crypto staking is used on proof-of-stake blockchains. Instead of miners competing with hardware, validators lock or stake coins to help confirm transactions and secure the network.
How staking rewards work
Stakers may earn rewards when the network selects their validator, or when they delegate coins to a validator. Rewards are not guaranteed profit because token prices can fall and validators can charge fees.
Risks of staking
Some networks have lockup periods, meaning you cannot immediately move your coins. Validators can also be penalized for bad behavior or technical failures, a risk often called slashing.
Staking is common with networks such as Ethereum, Cardano, Solana, and many other proof-of-stake systems.