Introduction to Crypto Staking

Explaining how a crypto holder can earn rewards on their assets

Overview

What is Staking?

Your crypto-assets earn while you sleep!

Staking is an umbrella term used to denote the act of pledging your crypto-assets to a cryptocurrency protocol to earn rewards in exchange. Staking allows users to participate in securing the network by locking up tokens. Consequently, users are rewarded for securing the network in the form of native tokens.

The higher the amount of crypto-assets you pledge, the higher the rewards you receive. The rewards are distributed on-chain, which means the process of earning these rewards is completely automatic. All you have to do is to stake them. This means your crypto-assets earn while you sleep!

Simplified Staking

Where do these rewards come from?

Every time a block is validated new tokens of that currency…