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—many coins offer staking rewards as an incentive. It matters because staking can generate passive income, but your coins are locked away during that time, so you can't sell them quickly if the price drops. For example, if Maya stakes 10 Ethereum coins for 6 months, she might earn 5% in rewards, but she can't access those coins until the period ends.