As with any type of investing, there are risks as well as benefits. Discover the benefits of staking cryptocurrency below:

Validates transactions with the least amount of energy.
Internal security for a cryptocurrency network that does not rely on external hardware.
Allows users to earn passive income from their cryptocurrency holdings.
It contributes to the scalability of cryptocurrency networks.
Encourages users to participate in blockchain security by lowering the entry barrier to just their tokens.

Staking crypto offers several advantages, making it popular for both new and experienced investors. One key benefit is earning passive income through rewards, similar to interest, by holding and “staking” coins on a blockchain network. Staking can be more profitable than traditional savings, with potential yields varying by the cryptocurrency and network. It also supports blockchain security and functionality, as stakers help validate transactions, which can increase the network’s resilience and decentralization. Additionally, staking requires less equipment and energy than crypto mining, which has higher barriers to entry. For long-term holders, staking adds value by compounding returns over time and, in some cases, granting governance rights. Through governance, stakers gain influence in decision-making, contributing to the network’s development, protocol changes, or new feature implementations.