Crypto staking is the process of holding onto or "staking" a certain amount of cryptocurrency in order to participate in transaction validation. This occurs on a Proof-of-Stake (PoS) blockchain network, often considered a less resource-intensive alternative to mining in proof-of-work networks. By staking, individuals can earn rewards in the form of newly minted coins and help to secure the network. The key and simple takeaway for crypto investors is that staking is a means of earning rewards for holding onto cryptocurrencies.

Staking rewards are incentives paid to validators for participating in a blockchain network's proof of stake consensus mechanism. They are a reward for helping to secure the network and validate transactions by locking up their coins as a stake in the network. The rewards received are often proportional to the number of coins staked, with larger stakes earning a greater share of rewards. Staking rewards can come in the form of the blockchain's native currency, sometimes a separate token. They are typically distributed on a regular basis, such as daily, weekly, or monthly.

Staking with Netcoins is just as easy as using the rest of the platform. Navigate to your Staking tab within the Netcoins mobile app and you can begin staking in a matter of clicks! If you are new to Netcoins, you can start staking your funds in a few simple steps: Create a Netcoins account. Download the mobile app and deposit your crypto or fiat holdings (you can buy crypto easily using market or limit orders right on the platform). Navigate to the “Staking” tab of the mobile app. Select a crypto asset offered through our staking service and complete your staking request with just a few clicks. Keep your crypto staked to earn rewards, or easily stop staking whenever you want to transfer or trade your funds. By staking with Netcoins, you can earn passive income from your cryptocurrency holdings while supporting the security of the network. Start adding funds to your Netcoins account today and explore the world of staking!

When staking, it is typical for a lockup or "vesting" period to be required, during which your cryptocurrency cannot be transferred for a certain period of time. This can be a drawback for some investors, as they will not be able to trade their staked tokens if prices shift. Therefore, it is crucial for investors to thoroughly research the specific staking requirements and rules for each project they are interested in before deciding to stake their assets. Understanding all the rules and limitations is essential, so you can make an informed decision and determine whether staking is right for you and your investment goals.

For more information about staking, check out our staking 101 page or find our helpdesk here.