What is Staking?
Staking is a way to earn passive income from your cryptocurrency holdings. When you stake your crypto, you're participating in the network's proof-of-stake consensus mechanism.
How Does Staking Work?
When you stake coins, you lock them up to help validate transactions on a blockchain network. In return, you receive rewards, similar to earning interest in a savings account.
Popular Staking Coins
- Ethereum (ETH) - 4-5% annual yield
- Cardano (ADA) - 3-5% annual yield
- Polkadot (DOT) - 10-14% annual yield
- Solana (SOL) - 6-8% annual yield
Staking with Ledger Live
Ledger Live makes staking simple and secure. Your coins remain in your control while earning rewards. You can start, stop, or claim rewards anytime directly from the app.
Risks to Consider
While staking is generally safe, be aware of lock-up periods and potential slashing penalties. Always research the specific requirements for each cryptocurrency.