What is Staking?

Staking has become one of the most popular ways for cryptocurrency holders to earn passive income, while supporting the security and efficiency of blockchain networks. Instead of simply holding your crypto in a wallet, staking enables you to actively participate in a Proof of Stake (PoS) network, earning rewards in return for helping validate transactions and maintain the decentralized network.

In this article, explore what staking is, how it works, and provide a detailed guide on how to stake using Trust Wallet.

Before You Get Started

Remember that you can use Trust Wallet as your secure crypto wallet. Buy, sell, and swap crypto all in one place.

Trust Wallet also lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.

What is Staking?

Staking is the process of locking up your cryptocurrency in a blockchain network to help maintain its operations. It's a fundamental aspect of Proof of Stake (PoS) blockchains, where users are rewarded for staking their coins and participating in transaction validation. Unlike mining, which requires expensive hardware and high energy consumption, staking offers you a more accessible and eco-friendly way to contribute to the network.

When you stake your coins, you essentially "lock" them in the network for a certain period, making them unavailable for trading. In exchange for your commitment, the network rewards you with additional tokens or coins. These rewards vary depending on the coin you stake and the network’s specific rules, offering an attractive incentive to hold onto your crypto longer term.

Staking enables you to earn crypto while playing a role in securing the blockchain. When you stake your coins, you’re actively participating in the network’s governance and security, ensuring it remains decentralized and functional.

What are the benefits of staking?

Staking offers a range of benefits that make it an attractive option for crypto holders who want to earn rewards while contributing to the security of blockchain networks. Here are the key advantages of staking:

Earn Passive Income

Staking enables you to generate regular rewards just by holding and staking your cryptocurrency. Instead of leaving your coins in a wallet, without earning anything, staking enables you to receive returns in the form of additional tokens.

Help Secure the Blockchain

When you stake your crypto, you actively contribute to the security and decentralization of the blockchain. Staking helps validate transactions and keeps the network running efficiently. By participating in the staking process, you play an important role in maintaining a decentralized network and enhancing its security.

Environmentally Friendly Alternative to Mining

Unlike traditional mining, which requires significant computational power and consumes a lot of energy, staking is a much greener option. Proof of Stake (PoS) networks use far less energy than mining-based networks like Bitcoin. Staking enables you to contribute to blockchain security, without the heavy environmental effects.

Easy to Get Started

Staking is generally considered a low-risk strategy, especially when compared to trading or other more volatile investment methods. Once you’ve staked your coins, you don’t need to actively monitor the market constantly. Plus, with platforms like Trust Wallet, staking is easy to set up and manage, making it accessible even for beginners.

What are the risks of staking?

Staking, like other investment-related activities, comes with its own set of risks. These include:

• Slashing: Some PoS networks employ a mechanism known as "slashing", where a portion of the staker's holdings can be taken away if they act maliciously or fail to stay online and uphold network responsibilities.

• Liquidity: While your crypto assets are staked, they are locked up and cannot be sold or traded until the staking period is over or until you decide to unstake them, which could take some time depending on the network.

• Market volatility: The value of your staked assets can fluctuate with the market. If the price of the cryptocurrency drops significantly, so will the value of your staked assets.

As always, be sure to do your own research before staking any asset.

How to Stake Using Trust Wallet

Before you stake, be sure that you get the most up-to-date version of Trust Wallet. In the example below, we show you how to stake ETH using Trust Wallet. If you’re looking to stake a different crypto, the process is almost identical.

Next, if you don’t have any ETH in your wallet, you can deposit crypto using the “Receive” button, or buy crypto directly using Trust Wallet.

Now you’re ready to stake and earn rewards. Staking can be done in just a few steps, and here’s how.

Note: Below we’ll use staking Ethereum (ETH) as the example, but the process is generally the same for each asset.

• Select the “Earn” button from the wallet home screen.

• Select the asset you want to stake, in this example it’s “ETH.”

• Select “Stake.”

• Choose the amount you want to stake, and choose the validator you want to use by selecting the Validator dropdown.

• Once you choose a validator, select “Continue.”

• Follow the remaining instructions to confirm your stake.

How to Unstake ETH in Trust Wallet

If you would like to unstake your ETH, simply follow the steps below:

• Navigate to ‘Earn’ on the main wallet page and select ETH.

• Choose the Unstake option and proceed as per the given instructions.

• Remember, the staked funds become available post the current epoch, usually lasting around 4 days.

In addition to staking crypto, Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.

Closing Thoughts

We hope this guide helps you understand more about what staking is and how to stake using Trust Wallet. With Trust Wallet’s user-friendly interface, staking is accessible to both beginners and experienced crypto holders, making it a seamless way to maximize your crypto’s potential.

As with any investment, it’s important to do your own research, understand the risks, and choose the best staking options that align with your goals. Feel free to explore the coins available for staking on Trust Wallet and start earning today.

Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.

Join the Trust Wallet community on Telegram. Follow us on X (formerly Twitter), Instagram, Facebook, Reddit, Warpcast, and Tiktok

Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.