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What is staking?

When you deploy your coins for the purpose of staking, you are basically lending them to a blockchain network and agreeing to hold them until a certain time in the future. This could be, for example, the period of a month, 3 months or a year. Staking crypto is a way to generate passive income with your crypto.

Staking rewards

In exchange for lending and securing your crypto for the purpose of staking, investors receive rewards, a reward in the form of interest. These rewards are paid out in the same currency, forming a percentage on an annual basis, also referred to as APY (Annual Percentage Yield). This percentage varies by currency and is not constant; it can go up as well as down. The staking rate can never become negative.