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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 — requires significant capital, e.g., 32 ETH for Ethereum) or through delegated/liquid staking (via exchanges like CoinDCX 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.
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Last updated: 2026-03-21
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