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Staking

Intermediate

Staking is the process of locking up cryptocurrency in a blockchain network to help secure it and validate transactions. In return, users earn rewards, often in the form of more tokens. Staking is fundamental to Proof of Stake (PoS) systems, such as Ethereum and Solana. It helps keep networks decentralised and efficient while giving users opportunities to earn passive income. Some exchanges and wallets offer simple staking options, though risks include price drops, slashing penalties, or token lock-up periods.

Related Words

Stablecoin

Beginner

A stablecoin is a cryptocurrency pegged to another asset, such as the US dollar or gold. It aims to reduce volatility and is used for savings, trading, or payments.

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