Crypto Staking

What is Staking in Crypto?

Staking is depositing crypto tokens to help validate transactions using Proof of Stake (PoS) on a blockchain. Staking tokens earn rewards and give voting powers to decide the future of the blockchain protocol.

Staking rewards depend on block generation. It also has penalties like slashing (forfeiting some staked tokens) if the staker doesn’t contribute actively or misbehaves.

The minimum staking requirement could be too high for the average user. Staking pools allow users to collectively create a stake.  
Like all cryptocurrency income, staking income is taxed according to local laws.

Learn More Crypto Terms

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