Crypto Staking Explained: How It Works, Types, & Risks
Now this is buy and hold.
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You may have heard that cryptocurrency has its own unique equivalent to fixed-income assets. Instead of earning interest in the form of dollars, you earn a percentage of a batch of crypto coins you set aside and “stake.” This is what crypto staking is all about. But what’s involved, how does it work, and what are the pros and cons of locking up your coins for “yield”?
Key Points
- Staking is a way long-term crypto investors (“HODLers”) earn passive income in the crypto world.
- Staking cryptocurrency means agreeing not to trade or sell your tokens.
- Crypto staking creates opportunities to earn crypto rewards and diversify your crypto portfolio—but it’s inherently…
