There are many levels to crypto staking or lock-up, but it’s essential for traders and investors looking to succeed by earning rewards for holding certain cryptocurrencies for a period.
Many Cryptos allow staking, meaning you can stake or lock-up some of your holdings and earn a percentage rate reward over time. This is similar to an interest savings account you may have with a bank. Usually you would earn higher rewards for the longer period you stake.
Another form of staking is when certain blockchains work with a mechanism called proof of stake. This is a technique that securely verifies all transactions without a payment processor or bank. Fundamentally stakers are validating and approving transactions on the blockchain. By doing so, the network rewards those investors with more crypto – much like earning interest.