Staking

Staking is when you lock up your cryptocurrency in a blockchain network to help validate transactions and earn rewards in return. Think of it like lending your money to a bank, except you're helping secure a crypto network instead. You'll encounter staking when researching crypto investments—it's how some cryptocurrencies generate passive income for holders. The network pays you new coins or transaction fees as a reward for participating. For example, if you stake 10 coins in a protocol, you might earn 5% annually just for keeping them locked up. The catch: your coins are tied up during that period, and if the network has problems, you could lose money.