Staking
Staking locks or delegates proof-of-stake coins to help secure a network in exchange for rewards.
What Is a Staking?
Staking commits coins of a proof-of-stake network (Ethereum, Solana, Cardano, Polkadot, Cosmos and others) to validating blocks. Holders either run a validator themselves or, more often, delegate to one, and receive a share of the network's rewards.
The risks depend on the network: some lock coins for an unbonding period before they can be moved; on networks with slashing, a misbehaving validator can lose part of the stake. Staking through an exchange or a liquid staking token adds custodial or smart contract risk on top.
Many hardware wallets can stake natively: the delegation is signed on the device and the keys never leave it, so the staked coins stay in self-custody.
Ethereum is a decentralized blockchain platform that enables smart contracts and decentralized applications (dApps). Its native cryptocurrency is Ether (ETH).
Read full definitionSolana is a high-performance layer-1 blockchain platform that enables fast, low-cost transactions using Proof of History and Proof of Stake. Its native token is SOL.
Read full definitionCardano is a proof-of-stake blockchain platform that prioritizes research-driven development, scalability, and sustainability. Its native cryptocurrency is ADA.
Read full definitionPolkadot is a multi-chain blockchain protocol that connects independent blockchains (parachains) to a central relay chain for interoperability and shared security. Its native token is DOT.
Read full definitionCosmos is a blockchain ecosystem enabling interoperable chains via the Cosmos SDK and IBC protocol. The Cosmos Hub serves as its central chain with the ATOM token.
Read full definitionA validator is a node in a proof-of-stake blockchain that stakes cryptocurrency to verify transactions, propose blocks, and secure the network.
Read full definitionA crypto exchange is a company that lets users buy, sell and trade crypto and, by default, holds the keys to their coins.
Read full definitionLiquid staking lets users stake crypto assets to secure a network and receive a liquid derivative token, like stETH from Lido, usable in DeFi while earning rewards.
Read full definitionA token is a digital asset on a blockchain that represents value, ownership, utility, or access rights. Examples include ERC-20 tokens on Ethereum.
Read full definitionA smart contract is a program stored on a blockchain that runs exactly as written when a transaction calls it.
Read full definitionA hardware wallet is a dedicated device that keeps private keys offline and signs transactions internally, so the keys never reach an internet-connected computer or phone.
Read full definitionSelf-custody means users control their own private keys to manage cryptocurrency assets directly, without third-party custodians. It embodies 'not your keys, not your coins.'
Read full definitionReal-World Examples
Example 1: A user delegates ADA from a hardware wallet to a stake pool; the coins stay in their wallet and rewards arrive every epoch.
Example 2: A user unstakes ATOM and must wait out the unbonding period before the coins can be transferred.
Cardano is a proof-of-stake blockchain platform that prioritizes research-driven development, scalability, and sustainability. Its native cryptocurrency is ADA.
Read full definitionCosmos is a blockchain ecosystem enabling interoperable chains via the Cosmos SDK and IBC protocol. The Cosmos Hub serves as its central chain with the ATOM token.
Read full definitionReady to Choose a Secure Wallet?
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