Staking is the process of locking up your crypto to help secure a proof-of-stake blockchain, and earning rewards for doing it. Instead of sitting idle, your coins support the network and pay you a yield, often somewhere around 3% to 7% a year. Here's how staking works, what you can stake, how to do it step by step, and the risks to understand first.
What is staking in crypto?
Staking is how proof-of-stake (PoS) blockchains (like Ethereum, Solana, and Cardano) keep themselves secure. Bitcoin uses proof-of-work, where miners spend energy to secure the network. Proof-of-stake replaces miners with validators, who lock up (or "stake") the network's own coins as collateral. In exchange for helping validate transactions and secure the chain, stakers earn rewards.
Think of it as earning a yield for putting your crypto to work securing the network, instead of leaving it idle in a wallet.
How does staking work?
At a high level:
- Validators stake coins as collateral to take part in securing the network.
- The network picks validators to confirm blocks of transactions.
- They earn rewards, paid from new coin issuance and transaction fees.
- Bad behavior is punished. If a validator acts dishonestly or goes offline, it can be slashed, losing part of its stake.
Most people don't run their own validator. Instead, they delegate their coins to a validator and share in the rewards, earning a yield without the technical work of running one themselves.
What can you stake?
Only proof-of-stake coins. The major ones include:
- Ethereum (ETH)
- Solana (SOL)
- Cardano (ADA)
- Polkadot (DOT)
- Cosmos (ATOM)
- Avalanche (AVAX)
You cannot classically stake Bitcoin, because it's proof-of-work, secured by mining, not staking. (You'll sometimes see "Bitcoin staking" advertised for newer BTC-yield products, but that's a different mechanism from the PoS staking described here.)
The types of staking
There's more than one way to stake, and they differ mostly on convenience versus control:
| Type | How it works | Custody |
|---|---|---|
| Solo staking | Run your own validator (e.g., 32 ETH for Ethereum) | Self-custodial, most technical |
| Delegated / pooled staking | Delegate your coins to a validator from your own wallet | Self-custodial |
| Liquid staking | Stake and receive a liquid token (like stETH) you can still use in DeFi | Self-custodial |
| Exchange staking | Stake through a centralized exchange in a few clicks | Custodial (they hold your coins) |
Liquid staking deserves a note: it lets you stake and still get a tradeable token back (for example, stETH for staked ETH), so your capital keeps earning and stays usable. It's one of the fastest-growing corners of crypto.
How to stake crypto, step by step
- Pick a proof-of-stake coin you hold (ETH, SOL, ADA, and so on).
- Choose a method: delegated or liquid staking (self-custodial) if you want to keep your keys, or exchange staking if you want the simplest route and accept custodial risk.
- Delegate or deposit your coins to a validator or staking protocol.
- Earn rewards, usually paid out periodically.
- Unstake when you want, but note that some networks have a lock-up or "unbonding" period before you get your coins back.
Staking rewards and risks
Rewards vary by coin and change with network conditions: Ethereum tends to land around 3% to 4%, Solana around 6% to 7%, and some smaller networks higher. These rates aren't fixed, and they aren't guaranteed.
Risks worth knowing:
- Lock-up periods. Some coins lock your funds for days or weeks when you unstake, so they aren't instantly available.
- Slashing. If the validator you delegate to misbehaves, you can lose part of your stake.
- Price volatility. The coin's price can fall by more than the reward earns.
- Custodial risk. Staking through an exchange means the exchange holds your coins, the same counterparty risk that hurt users when platforms like Celsius and FTX failed.
Staking isn't free money. It's a real yield for a real service, with real trade-offs.
Self-custodial vs custodial staking
This is the fork that matters most. Custodial (exchange) staking is easy, but you hand your coins to the platform, and if it fails, freezes, or gets hacked, your staked assets are exposed. Self-custodial staking (delegating from your own wallet, or liquid staking) keeps your private keys yours the whole time. You take part in securing the network without giving up ownership of your coins.
For anyone who lived through the last few exchange collapses, keeping custody while you earn is the safer default. (New to the concept? See what a self-custodial wallet is.)
Beyond staking: earn on any crypto with Tria
Staking is one way to make crypto productive, but it only works for proof-of-stake coins, and it often comes with lock-ups and setup. If you want to earn on your crypto more broadly, self-custodially, that's where Tria comes in.
Tria's Earn pays yield from audited on-chain protocols, from a wallet you control, and it works on assets that staking can't touch, like stablecoins (see how to earn interest on stablecoins). There's no validator to choose and no separate lock-up to manage: your balance earns while it sits, and it stays self-custodial the whole time.
To be clear, that's on-chain yield rather than proof-of-stake staking, but for most people the goal is the same: make idle crypto earn, without giving up custody. Tria does that across your whole balance, not just your staking coins.
Frequently asked questions
What is staking in simple terms?
Staking means locking up your crypto to help run and secure a proof-of-stake blockchain, and earning rewards for it. It's a way to earn a yield on coins you're holding anyway.
Can you stake Bitcoin?
Not in the classic sense. Bitcoin uses proof-of-work (mining), not proof-of-stake, so it can't be staked the way Ethereum or Solana can. Some newer products offer "Bitcoin yield," but that works differently.
How much can you earn from staking?
It depends on the coin and network conditions. Ethereum tends to be around 3% to 4%, Solana around 6% to 7%, with some networks higher. Rates are variable, not fixed.
Is staking crypto safe?
It carries real risks: lock-up periods, slashing if your validator misbehaves, price volatility, and, with exchange staking, custodial risk. Self-custodial staking removes the custody risk by keeping your keys with you.
What's the difference between staking and liquid staking?
Regular staking locks your coins up. Liquid staking gives you a tradeable token (like stETH) in return, so your capital keeps earning staking rewards while staying usable in DeFi.
Can I stake without giving up custody?
Yes. Delegated staking and liquid staking let you earn from your own wallet without handing your coins to a company. Exchange staking, by contrast, is custodial.
