What is bitcoin staking

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The latter also minimizes the risk of the pool getting putting money in a high-yield.

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Every blockchain has its own set of rules for validators.

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Staking is a way of earning rewards for holding certain cryptocurrencies. Staking is a way for people to lock up their cryptocurrencies or digital assets in order to earn rewards over time. Staking crypto is akin to depositing. Crypto staking is the practice of locking your digital tokens to a blockchain network in order to earn rewards�usually a percentage of the tokens staked.

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Our experts have been helping you master your money for over four decades. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity. Other trading platforms have different rules and rewards. Staking offers crypto holders a way of putting their digital assets to work and earning passive income without needing to sell them. Related Articles.