Crypto Staking Explained (Beginner Guide 2025)
A simple guide to crypto staking in 2025 — how it works, risks and rewards, and which platforms to use.
What is Staking?
Crypto staking means locking up your coins to support a blockchain network (usually proof-of-stake) and earning rewards for participation.
How Staking Works
Validators lock assets, secure transactions, and receive rewards. Users can stake directly or delegate through services.
Types of Staking
- Native staking: Running your own validator node (technical, requires 32 ETH for Ethereum).
- Delegated staking: Delegating to a validator (e.g. Cosmos, Solana).
- Liquid staking: Services like Lido or Rocket Pool that issue liquid tokens (stETH, rETH).
Risks & Rewards
Rewards range 3–6% APY on major networks, but risks include:
- Slashing (if validator misbehaves).
- Protocol or smart contract bugs (in liquid staking).
- Volatility of underlying asset (ETH, SOL).
Best Staking Platforms
- Lido — liquid staking for ETH, most popular.
- Rocket Pool — decentralized staking pool.
- Binance Earn — easy CeFi staking option.
- Coinbase Earn — beginner-friendly, lower yield.
FAQ
Can I lose money staking?
Yes. While rewards are predictable, asset prices can drop, and validators can be penalised.
What’s the difference between liquid staking and regular staking?
Liquid staking provides a tradable token (such as stETH) that represents your staked assets, offering liquidity while still earning rewards.