What is crypto staking?
Crypto staking is the process of locking up cryptocurrency to support the operations of a proof-of-stake (PoS) blockchain network. In return for securing the network, stakers earn rewards — typically paid in the same asset — expressed as an annual percentage yield (APY). Popular assets for staking include Ethereum (ETH), Solana (SOL), and Cardano (ADA).
What is liquid staking?
Liquid staking lets you stake assets while receiving a tradable receipt token (e.g., stETH for Ethereum) representing your staked position. Unlike native staking — which often imposes an unbonding period of several days — liquid staking tokens can be sold or used in DeFi protocols at any time, giving you liquidity without sacrificing staking rewards.
Staking vs. crypto lending: what's the difference?
Staking rewards come from participating in a blockchain's consensus mechanism, so the yield is tied to network activity and inflation. Crypto lending, by contrast, earns interest by loaning assets to borrowers through a platform or protocol. Staking is generally considered lower counterparty risk than centralized lending, but it still carries slashing and smart-contract risks.
How are staking rewards taxed?
Tax treatment varies by jurisdiction. In the United States, the IRS has indicated that staking rewards are generally treated as ordinary income at the fair market value of the tokens at the time they are received. When you later sell the staked assets, capital gains tax may also apply on any appreciation. Always consult a qualified tax professional for advice specific to your situation.
What APY can I expect from staking?
Staking APY varies significantly by asset and platform. Ethereum staking typically yields 3–5% APY, while Solana has historically ranged from 6–8%. Bitcoin does not support native PoS staking, but some platforms market wrapped, synthetic, lending, or fixed-term Earn products for BTC. Those returns are not native Bitcoin staking and should not be compared directly with PoS rewards. The homepage's higher BTC headline is a Lune fixed-term Earn APR, not a Bitcoin staking rate. Rates change with network conditions, validator commission, and platform fees — which is why comparing live rates across providers matters.
EarnPark rates: Up to 22% APY (with auto compounding).
Is there a minimum amount required to stake?
Native Ethereum staking requires 32 ETH to run a full validator node. However, pooled staking platforms and exchanges let you stake any amount by combining deposits across users. Solana has no formal minimum for delegated staking, though platforms may set their own thresholds. Always check the terms of the specific platform you use.