Crypto and derivatives · updated October 21, 2026
What is crypto staking and how much can you earn from it
Staking means locking up crypto on a proof-of-stake network so it helps validate transactions, and getting newly created coins in return. It looks like interest, but the reward comes in the same coin, whose price can fall a lot.
Staking formula
- Rewards
- The new coins you get for validation, after the platform's or validator's fee.
- Coins staked
- How many coins you locked up.
Worked example
You stake 10 ETH and get 0.35 ETH in rewards over a year.
You now hold 3.5% more ETH. If the price of ETH fell 30% that same year, your holding is still worth less in dollars.
Worth knowing
The yield is always paid in coins, not dollars. A high yield on a small coin usually comes from creating lots of new coins, which pushes the price down.
When staking can fool you
The coin's price: rewards do not protect you from a fall. Lock-up period: on some networks you wait days or weeks to withdraw. Staking on a platform: the platform holds the coins; if it goes bust, you can lose them. Yields of 20% or more: are almost always a sign of very high risk.
Related terms
Learn it in the Academy
Questions about staking
Is staking safe passive income?
No. You get new coins, but what they are worth depends on the price. There is also platform risk, and the risk that part of the coins gets penalised if the validator makes a mistake.
Can I stake Bitcoin?
Not directly, because Bitcoin uses mining, not proof of stake. "Bitcoin yield" offers are really loans to the platform, with all the risks that come with that.
These explanations are for information only. They are not a recommendation to buy or sell.
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