Staking is locking up (pledging) cryptocurrency to help secure a proof-of-stake blockchain or to take part in an exchange or service programme; a reward is paid for it.
In plain words
On a proof-of-stake network (for example Ethereum) a validator puts up a stake, checks blocks and earns a reward; running your own validator takes at least 32 ETH (according to ethereum.org). For dishonest behaviour part of the stake can be destroyed (slashing). Most users stake through an exchange or a pool and receive a share of the income. The risks: the coins are locked for a time, the yield is not guaranteed, the service may fail or be hacked, and withdrawals may be restricted.
Sources
- ethereum.org: Staking — Staking page. Checked 14.10.2026.
Example. You stake part of your ETH through an exchange: rewards are credited each month, but while the coins are locked you may be unable to sell them or must wait for unlocking.