What Is Staking Crypto – Basics
Staking crypto is an essential concept in decentralized finance, offering a way for users to earn passive income by supporting a blockchain network’s security and operations. Staking allows those holding crypto assets to increase their holdings through staking rewards. But what exactly is crypto staking, and how does it work? Let’s explore the fundamentals of staking and why it’s a popular option among crypto investors.
How Staking Works
At its core, staking involves locking up your cryptocurrency to support the operations of a Proof of Stake (PoS) blockchain network. By participating in staking, you’re helping the network validate transactions and maintain its integrity. In return, you receive staking rewards as compensation. The more assets you stake, the greater your rewards can be. Some blockchains also allow you to participate in staking pools, where multiple users pool their crypto together to increase their chances of earning rewards.
What Does Staking Crypto Do?
Staking plays a vital role in maintaining the security and decentralization of PoS networks. When you stake crypto, your assets are used by the network to validate new blocks of transactions. In this case, the validators are selected based on the amount of cryptocurrency they have staked, ensuring that those with a more significant stake have more incentive to keep the network secure. Validators in staking are rewarded for their efforts, making it an attractive way for participants to earn from their investments.
Is Crypto Staking Safe?
While staking can be a great way to earn additional crypto, it’s not without risks. The value of your staked assets can fluctuate, and if the price of the cryptocurrency drops, you may experience losses. Furthermore, some staking platforms require you to lock your assets for a certain period, during which they cannot be withdrawn or sold. It’s crucial to assess the staking risks before you commit your assets. Choosing the right platform with robust security measures can help minimize these risks.
What Is Cryptocurrency Staking - Summary
Cryptocurrency staking allows holders of PoS-based cryptocurrencies to earn rewards by contributing to network security. Users participate in the consensus mechanism by staking their assets, securing the blockchain and validating transactions. This process offers an alternative to mining, as seen in staking vs mining, with staking typically requiring less computational power.
Best 4 Wallet for Staking Crypto
When it comes to staking crypto, choosing the right wallet is essential. Below are five wallets that provide great options for staking:
1. Walletverse

Walletverse is a versatile, user-friendly wallet that supports staking for various cryptocurrencies, including Solana SOL. It offers a secure app for storing, buying, and sending crypto and an intuitive interface. With features like self-custody, passcode and biometric authentication, and support for over 600 crypto assets, Walletverse is a convenient choice for beginners and advanced users.
Pros:
- Supports staking for multiple coins;
- Secure app with self-custody;
- DeFi crypto wallet;
- Fast transactions.
Cons:
- Limited to mobile access.
2. Exodus

Exodus is a popular desktop and mobile wallet that allows users to stake various coins, including Cardano and Solana. It has a sleek design and a user-friendly interface, but security features like non-custodial wallets are less robust than Walletverse.
Pros:
- Easy to use;
- Supports staking for popular coins.
Cons:
- Limited to fewer cryptocurrencies.
3. Trust Wallet

Trust Wallet is another mobile option known for its staking features. It supports staking for cryptocurrencies like Binance Coin (BNB) and offers a decentralized asset management platform.
Pros:
- Wide range of supported cryptos;
- Non-custodial wallet.
Cons:
- Lacks desktop version.
4. Atomic Wallet

Atomic Wallet supports staking for coins like Tezos and Cosmos. It is well-regarded for its easy-to-use interface and multi-platform availability.
Pros:
- Supports a wide variety of coins;
- Multi-platform (desktop and mobile).
Cons:
- Limited advanced features.
How to Make Money Staking Crypto
Staking cryptocurrency is one of the simplest ways to earn passive income in the crypto world. By participating in staking, you can earn staking rewards simply by holding and locking up your assets on a Proof of Stake (PoS) blockchain network. Here’s a step-by-step guide to making money through staking:
- Choose the right cryptocurrency. Not all cryptocurrencies support staking. To get started, you must hold coins operating on a PoS or Delegated Proof of Stake (DPoS) network. Popular staking coins include Ethereum ETH, Solana SOL, and Cardano ADA.
- Select a staking platform. Many crypto wallets and exchanges offer staking services. You can choose from dedicated crypto staking platforms, exchanges like Binance, or wallets such as Walletverse, which allows staking for multiple cryptocurrencies.
- Join a staking pool. If you need more crypto to stake on your own or want to increase your chance of earning rewards, consider joining a staking pool. In a staking pool, multiple users combine their staked assets to increase their chances of being selected as validators.
- Stake your assets. Once you’ve chosen your platform and coin, you can lock up your assets by staking them. Depending on the platform, you may need to select the amount of crypto you wish to stake and confirm the lock-up period.
- Earn staking rewards. After staking, your assets will help secure the network and validate transactions. In return, you’ll receive regular staking rewards. These rewards can vary depending on the amount you’ve staked, the network’s reward rate, and the length of your staking period.
- Re-stake to compound earnings. To maximize your profits, you can re-stake the rewards you receive. This allows you to compound your returns over time. The more you stake, the higher your future rewards will be.
Following these steps can earn consistent rewards and grow your crypto holdings over time. Platforms like Walletverse make it easy to stake multiple cryptocurrencies, offering beginners and advanced users a secure and user-friendly experience.
Benefits of Staking Crypto
Staking offers several advantages for crypto holders seeking additional income without actively trading. By participating in staking, you gain rewards and contribute to the security and efficiency of Proof of Stake (PoS) networks. Here are the key benefits:
- Earn passive income without actively trading.
- Support the security and decentralization of Proof of Stake (PoS) networks.
- Receive staking rewards in the form of additional cryptocurrency.
- Participate in staking pools to increase your chances of earning rewards.
- Generally lower energy consumption compared to mining.
Risks of Staking Crypto
While staking can be lucrative, it comes with risks that must be considered carefully. Before committing your assets to a staking platform, it’s essential to be aware of the potential downsides. Here are the main risks:
- Staked assets may be locked for a set period, making them inaccessible.
- Cryptocurrency prices can be volatile, potentially leading to losses.
- Staking risks include network issues or attacks that could affect your holdings.
- Potential loss of funds if the platform or validator is compromised.
- Some networks enforce staking periods during which your funds cannot be withdrawn.
Understanding these risks will help you make more informed decisions about staking your cryptocurrency.