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What is Staking?
स्टेकिंगStaking means locking up your cryptocurrency to help validate blockchain transactions. In return, you earn staking rewards, similar to earning interest.
Full Explanation
Staking involves locking cryptocurrency in a proof-of-stake (PoS) blockchain to help secure the network and validate transactions. In return, stakers earn rewards (typically 3-15% APY). You can stake directly (running a validator node, which requires significant capital, e.g., 32 ETH for Ethereum) or through delegated/liquid staking (via exchanges or protocols like Lido). Staked assets are typically locked for a period and can be "slashed" (penalized) if the validator misbehaves.
Example
Staking ETH through Lido earns ~3-4% APY and gives you stETH (liquid staking token) that you can still use in DeFi while your ETH earns rewards.