What is crypto staking?

Crypto staking is locking up your crypto holdings to support a blockchain's security, integrity, and efficiency. It's similar to the concept of earning interest on a savings account. The difference is that, with staking, you earn rewards for helping to secure a blockchain network.

What happens if you stake a crypto?

This means that the value of the staked crypto could drop significantly during the staking period. Competition: As more people begin staking a certain crypto, the competition for rewards increases, leading to a decrease in the reward earned for each stake.

What is centralized crypto staking?

In solo staking, you retain control of your assets, while in the other options, you entrust your assets to a third party. Regardless of your staking decision, you must keep your private keys safe to avoid exposing them to unauthorized individuals or misplacing them. In centralized crypto staking, the staking platform manages your stake.