Let’s break it down simply:
Staking is when you lock up your crypto to help support the operation of a blockchain network—kind of like putting your money in a savings account, but instead of a bank using it, the network uses it to validate transactions.
In return, you earn staking rewards, usually paid out in the same crypto you staked.
Most staking happens on proof-of-stake (PoS) blockchains like:
- Ethereum (ETH)
- Cardano (ADA)
- Solana (SOL)
- Polkadot (DOT)
- Cosmos (ATOM)
If you’ve heard of mining in crypto, staking is a greener, more efficient alternative. No giant computer farms needed.
Why I Got Interested in Staking
- A few months after I bought some Ethereum and Cardano, I noticed something strange: I was just… holding them. Watching the charts. Hoping they’d go up.
- Then a friend said, “You know you can stake those and earn passive income, right?”
- I had no clue. I thought staking was super technical. But turns out, many crypto wallets and exchanges make it incredibly easy.
- So I did a little digging, tried it with a small amount, and now I’m staking regularly across a few platforms. It’s not making me rich—but it’s compounding, and that’s the magic.
How to Stake Crypto as a Beginner: Step-by-Step
Let’s go through how I got started staking—no tech degree required.
Step 1: Pick a Stakable Coin
Not all cryptos can be staked. You’ll need a proof-of-stake coin. Some beginner-friendly options include:
- Ethereum (ETH) – Now uses PoS after the Merge. Staking ETH usually requires 32 ETH if doing it solo (ouch), but you can join staking pools with way less.
- Cardano (ADA) – My first staking experience. Low barrier to entry.
- Solana (SOL) – Fast, popular, and good staking options.
- Polkadot (DOT) – Great rewards but a slightly steeper learning curve.
- Tezos (XTZ) – Known for easy, flexible staking.
I started with ADA because I had some sitting in my wallet and the staking process was simple.
Step 2: Choose Where You’ll Stake
You’ve got three main options:
Option 1: Staking on a Centralized Exchange (Easiest)
If you use Coinbase, Binance, or Kraken, you can stake directly on the platform with just a few clicks.
Pros:
- Very beginner-friendly
- No need to manage wallets or validators
- Auto-payouts
Cons:
- Lower rewards in some cases
- You don’t hold the private keys (less control)
- My first time staking ADA was on Coinbase. I literally just clicked a button that said “Stake” and started earning around 4% APY.
Option 2: Staking Through a Wallet (More Control)
You can use wallets like:
- Daedalus or Yoroi (for Cardano)
- Phantom (for Solana)
- Keplr (for Cosmos)
- MetaMask + Lido/Rocket Pool (for Ethereum)
You usually delegate your crypto to a staking pool. You’re not giving them your coins—they stay in your wallet—but you’re saying “Hey, use my coins to help run the network.”
Pros:
- You control your crypto
- Potentially higher rewards
- More decentralization
Cons:
- Slightly more complex setup
- You need to research good pools
- Once I got comfortable, I switched from Coinbase to Yoroi Wallet to stake ADA directly. I liked having more control and earning slightly better rewards.
Option 3: Running Your Own Validator Node (Advanced)
If you’ve got technical chops and enough crypto, you can run your own validator node. But for beginners, this is overkill—think servers, uptime requirements, and risk of slashing (losing part of your stake if you mess up).
How Much Can You Earn from Staking?
It depends on the coin, network demand, and the platform you use. As of now:
- ETH staking: ~3–5% APY
- ADA: ~3–5% APY
- SOL: ~6–8% APY
- DOT: ~10–14% APY
- ATOM: ~15% APY
I started with $100 worth of ADA, and after a few months, I’d earned a few bucks in rewards. Nothing life-changing—but it’s free money on coins I was already holding.
Plus, staking rewards compound over time if you keep restaking them.
Lessons I Learned Along the Way
1. Don’t Stake Everything
You want to keep some crypto liquid (unstaked) in case you need to sell or trade quickly. Some platforms have lock-up periods or unbonding times (7–21 days).
2. Watch Out for Fees
Some exchanges or staking pools take a cut of your rewards (5%–15%). It’s worth comparing before you jump in.
3. Start Small and Learn
I made the mistake of throwing a few hundred bucks into a random Solana validator without reading the reviews. The rewards were fine, but the pool had downtime issues and I could’ve done better.
Now I check:
- Pool reputation
- Commission rates
- Community feedback
4. Don’t Stake Sketchy Coins
If a coin is promising 100% APY, it’s probably too good to be true. Stick to reputable coins with strong use cases and active communities.
Is Staking Safe?
Generally, yes—but there are still risks:
- Price volatility: Your crypto can go down in value even if you’re earning rewards.
- Platform risk: Exchanges can get hacked. Validators can go offline.
- Slashing: On some networks, validators can be penalized for bad behavior (affecting your rewards).
That’s why I never stake anything I’m not comfortable holding long-term.
Tools That Helped Me as a Beginner
- CoinMarketCap/CoinGecko – To check staking yields
- Staking Rewards (stakingrewards.com) – Compare coins and validators
- Wallet apps – Like Daedalus, Phantom, and MetaMask
- Crypto subreddits – Like r/CryptoCurrency or r/Cardano for beginner tips
Final Thoughts: Why I Recommend Staking
If you’re already holding crypto, why not put it to work?
- Staking is one of the easiest ways to earn passive income in the crypto world—without trading, chasing pumps, or staring at charts all day. You don’t need a ton of money, and with the right tools, it’s accessible even to complete beginners.
- If you’re curious, just try staking a small amount on a trusted platform. That’s exactly how I started. A few bucks turned into a few more—and more importantly, I felt like I was actually participating in the crypto ecosystem, not just watching from the sidelines.
- Keyword used: how to stake crypto as a beginner
- Want a follow-up article on the best staking coins in 2025, or a deeper comparison between platforms like Coinbase vs. Lido vs. self-custody staking? Just let me know!
Next Article To Read: Why Crypto Gas Fees Are So High — And How I Avoided Them