Crypto Staking is one of the blockchain industry’s most misunderstood concepts. Staking has become a buzzword that entices holders and investors to lock up their tokens with the promise of generous passive income and crypto rewards.
Many staking reward contracts and platforms don’t technically offer any staking at all. You can’t stake Bitcoin (BTC), for example, so take care around any provider who tells you it’s possible.
Crypto staking is a broad topic, with different blockchain networks living by slightly different staking rules. What is true for Ethereum (ETH) staking is not set in stone on Cardano (ADA).
With the SEC cracking down on crypto exchanges like Kraken and Coinbase over their staking programs, there’s never been a better time to revisit the basics.
What is staking in cryptocurrency? What on earth does Proof-of-Stake even mean and what are the risks?
