Staking is locking cryptocurrency in a blockchain network to help validate transactions and earn passive rewards — similar to a bank deposit, but with crypto and typically higher yields.
Staking is the core mechanism of Proof of Stake blockchains. Instead of miners competing with hardware (as in Mining), validators are chosen to create new blocks based on how much cryptocurrency they've staked — locked as collateral. The more you stake, the higher your selection probability. When chosen, you validate the next block and receive a reward.
Ethereum's switch to Proof of Stake in September 2022 (The Merge) brought staking into mainstream awareness. Today, over 32 million ETH — worth over $100 billion — is staked on the Ethereum network alone.
Direct staking requires running a validator node. For Ethereum, this means locking exactly 32 ETH (~$80,000 at current prices) and maintaining 24/7 uptime. Technically demanding and capital-intensive.
Delegated staking lets you delegate your coins to an existing validator and share the rewards without running infrastructure. Most accessible for retail users — minimum deposits as low as 0.01 ETH on some platforms.
Liquid staking (via protocols like Lido or Rocket Pool) gives you a tradeable receipt token (stETH, rETH) representing your staked assets. You continue earning staking rewards while keeping the ability to trade or use your position as collateral in DeFi protocols.
Annual staking yields vary by network: Ethereum ~3-4%, Solana ~6-8%, Cosmos ~14-19%, newer networks up to 20%+. Higher yields typically come with higher risk — newer networks, less proven security, higher inflation rates. Always factor in the coin's price performance alongside the yield.
Slashing — dishonest or offline validators can have part of their stake destroyed. Lock-up periods — some networks require days or weeks to unstake. Market risk — a 10% APY doesn't help if the coin drops 50%. Smart contract risk — liquid staking protocols can have code vulnerabilities.
Eidex offers staking for select assets directly on the platform. No validator node, no technical setup — deposit your assets, choose a staking period, and receive rewards automatically. Start staking on Eidex and put your crypto to work.