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 depositing money in a savings account that pays interest, except you're helping secure a crypto network instead of a bank holding your cash. You'll encounter staking when exploring cryptocurrencies that use "proof of stake" systems—a way networks confirm transactions without energy-intensive mining. It matters because staking can generate passive income on your crypto holdings, but your funds are locked up for a set period and the crypto's value can still drop. For example, if Maya stakes 10 Ethereum tokens, she might earn 5% annual rewards while helping the network run, but she can't sell those tokens until the staking period ends.