Imagine owning cryptocurrency and receiving additional coins as rewards for helping maintain a blockchain network. That is the basic idea behind crypto staking. But how does it actually work, where do the rewards come from, and is staking a safe way to earn passive income? This beginner-friendly guide explains everything you need to know before staking your first cryptocurrency.
Most people enter the cryptocurrency market because they want to buy digital assets and potentially benefit from future price increases.
However, purchasing cryptocurrency is not the only way to participate in the blockchain industry.
Some networks allow coin holders to stake their assets to help secure the system and process transactions. In return, participants may receive additional cryptocurrency as rewards.
This process is known as crypto staking.
You may have seen cryptocurrency exchanges advertising staking opportunities with attractive annual percentage yields. Some platforms make the process look as simple as clicking a button, while others require users to understand validators, delegation, wallet management, and network rules.
But there is an important difference between earning rewards and making a guaranteed profit.
Staking does not eliminate cryptocurrency market risk. Your rewards may increase your coin balance, but the market value of those coins can still fall.
In this guide, Crypto Quetzra explains how staking works, how rewards are generated, which cryptocurrencies support staking, and what you should check before committing your funds.
1. What Is Crypto Staking?
Crypto staking is the process of committing cryptocurrency to support a blockchain network that uses a consensus mechanism called Proof of Stake (PoS).
These networks use validators to help verify transactions, participate in block production, and maintain agreement about the blockchain’s current state.
Instead of depending on energy-intensive mining hardware, Proof of Stake networks use cryptocurrency holdings and protocol rules to help secure their systems.
Participants who stake eligible cryptocurrency may receive rewards for contributing to network security.
Think of staking as providing a security commitment to a blockchain network.
Your cryptocurrency is committed according to the network’s rules, and validators use their participation to help maintain the system.
In return, the protocol may distribute rewards.
However, staking is not identical across all cryptocurrencies. Each blockchain has its own rules regarding minimum amounts, reward calculations, validator selection, withdrawal periods, and penalties.
Does Staking Mean Simply Holding Cryptocurrency?
Not exactly.
Keeping cryptocurrency in a wallet does not automatically mean that you are staking it.
You must actively participate through a supported staking mechanism, such as:
- Running your own validator.
- Delegating cryptocurrency to an eligible validator.
- Joining a staking pool.
- Using a supported exchange staking service.
The method you choose determines how your funds are handled and what responsibilities or risks you take on.
For example, simply holding Bitcoin in a regular wallet does not generate native Bitcoin staking rewards. Bitcoin uses Proof of Work rather than Proof of Stake.
Some services offer returns on deposited Bitcoin through lending or other financial arrangements, but these are not the same as native Bitcoin staking.
Understanding this distinction can help you avoid misleading cryptocurrency advertisements.
2. How Does Crypto Staking Work?
To understand staking, it helps to look at what happens behind the scenes.
Imagine a blockchain network that processes thousands of transactions.
It needs a reliable method to decide which transactions are valid and which blocks should become part of its permanent transaction history.
A Proof of Stake blockchain uses validators to perform this work.
Here is how the process generally operates.
Step 1: Cryptocurrency Is Committed to Staking
A participant selects an eligible cryptocurrency and commits it through the network’s staking mechanism.
Depending on the blockchain, this may involve depositing tokens into a protocol, delegating them to a validator, or operating a validator independently.
Step 2: Validators Participate in Network Operations
Validators help check transactions, maintain consensus, and participate in producing or approving new blocks.
Their responsibilities differ depending on the blockchain.
For example, Ethereum validators propose blocks and attest to the validity of the blockchain’s state.
Step 3: The Network Distributes Rewards
When validators perform their duties correctly, they may qualify for staking rewards.
The rewards are determined by the network’s protocol and can depend on several factors, including:
- Total cryptocurrency staked across the network.
- Validator performance and availability.
- Network issuance rules.
- Transaction fees.
- Validator commission.
- Applicable network penalties.
Step 4: Rewards Accumulate
Depending on the network or staking provider, rewards may be distributed regularly or added to a staking balance.
Some systems allow rewards to be automatically compounded. Others require participants to claim or withdraw their earnings.
Step 5: You Decide When to Unstake
When you want access to your cryptocurrency again, you may need to request an unstaking or withdrawal process.
The waiting period depends on the blockchain and the service you use.
Some networks process withdrawals relatively quickly, while others have waiting periods that can change according to network demand.
The important point is that staking involves more than simply depositing coins and waiting for a payment.
You should understand the complete process before committing your assets.
3. What Is Proof of Stake and Why Do Blockchains Use It?
Proof of Stake is a consensus mechanism designed to help blockchain networks agree on valid transactions and maintain network security.
In a traditional Proof of Work system, miners compete using computing power to solve cryptographic challenges.
Bitcoin uses this approach.
Proof of Stake takes a different route.
Instead of requiring miners to continuously perform energy-intensive calculations, the network uses validators that commit eligible cryptocurrency according to its protocol rules.
This creates a different economic security model.
Why Do Networks Use Proof of Stake?
Lower energy requirements
Proof of Stake does not rely on the same competitive mining calculations used by Proof of Work networks. This significantly reduces the energy needed for consensus.
Economic accountability
Validators have financial value committed to the network. Certain forms of misconduct can lead to penalties, including the loss of some staked funds.
Network participation
Token holders may be able to participate in network security through delegation, even when they do not operate their own validator infrastructure.
Protocol-based rewards
Networks can distribute rewards according to participation, validator performance, and their economic rules.
However, Proof of Stake is not automatically safer or better than Proof of Work in every respect. Both approaches have different security models, decentralization considerations, and technical trade-offs.
4. Which Cryptocurrencies Can You Stake?
Not every cryptocurrency supports native staking.
Only networks with suitable Proof of Stake mechanisms, or related protocol-level staking systems, allow participants to earn native staking rewards.
Here are some well-known examples.
Ethereum (ETH)
Ethereum uses Proof of Stake to secure its blockchain.
ETH holders can participate in staking by operating a validator or using other supported staking arrangements.
Running an independent Ethereum validator generally requires at least 32 ETH. However, staking pools and other services provide ways to participate with smaller amounts.
Ethereum staking rewards depend on network conditions, validator performance, and the staking method.
One important consideration is that pooled and exchange-based options introduce additional risks beyond those of operating your own validator.
Solana (SOL)
Solana also uses Proof of Stake as part of its network security model.
SOL holders can delegate their tokens to validators, which participate in maintaining the blockchain.
Rewards depend on factors such as network inflation, the amount of SOL staked, validator performance, and commission.
Selecting a validator with a reliable operating history is important because poor performance can affect the rewards you receive.
Cardano (ADA)
Cardano allows ADA holders to delegate their cryptocurrency to staking pools.
Delegation allows users to participate in the network’s staking system without operating their own block-producing infrastructure.
Pool performance, fees, saturation, and network reward parameters can affect the results.
Polkadot (DOT)
Polkadot uses a nominated Proof of Stake model.
DOT holders can participate through its staking system by supporting validators.
The system includes specific rules around nominations, validator selection, reward distribution, and unbonding.
These rules should be reviewed before participating.
Other Staking-Supported Networks
Other blockchain ecosystems also offer staking opportunities.
Examples include:
- Cosmos (ATOM).
- Avalanche (AVAX).
- Tezos (XTZ).
- NEAR Protocol (NEAR).
However, the availability, requirements, reward rates, and risks differ significantly across networks.
Always verify staking eligibility and current protocol conditions using official documentation rather than relying on old reward-rate comparisons.
5. How Do You Earn Rewards From Crypto Staking?
This is one of the most important parts of understanding staking.
When a network distributes staking rewards, the source of those rewards depends on its economic design.
There is no universal reward system shared by every cryptocurrency.
Common sources include newly issued tokens and transaction-related fees.
New Token Issuance
Some Proof of Stake networks create new tokens according to their monetary policy.
A portion of those tokens may be distributed to validators and other eligible staking participants.
For example, a network may distribute newly issued tokens to participants based on their contribution to securing the blockchain.
This means that rewards can increase the circulating supply of the cryptocurrency.
Existing holders should therefore consider how token issuance affects their overall ownership percentage and purchasing power.
Transaction Fees
Some blockchain networks distribute eligible transaction fees to validators or staking participants.
When users pay fees to interact with the network, part of the resulting revenue may become available to participants who help maintain the system.
The exact arrangement depends on the blockchain’s rules.
Validator Rewards
Validators may receive rewards for successfully performing network responsibilities.
Depending on the protocol, these can include:
- Attesting to valid blocks.
- Proposing new blocks.
- Maintaining validator availability.
- Participating honestly in consensus.
A portion of these rewards may be shared with delegators after the validator’s commission is deducted.
6. What Is APY and APR in Crypto Staking?
When comparing staking opportunities, you will frequently encounter two terms: APR and APY.
They look similar, but they represent different ways of describing returns.
What Is APR?
APR stands for Annual Percentage Rate.
It represents an annualized rate before the effect of compounding.
For example, an illustrative 5% APR on 1,000 tokens would produce approximately 50 tokens in rewards over one year, assuming the rate stays constant and the rewards are calculated on the original balance.
What Is APY?
APY stands for Annual Percentage Yield.
It accounts for compounding, where earned rewards are reinvested to generate additional rewards.
When rewards are compounded regularly, the resulting number of tokens may be higher than under a simple APR calculation.
However, neither APR nor APY tells you how much money you will ultimately make in your local currency.
That depends on the cryptocurrency’s market price and the actual rewards you receive.
Example: How Much Can You Earn From Staking?
Imagine you own 1,000 units of a cryptocurrency.
A staking service advertises an illustrative 5% APR.
Assuming the rate stays constant and no fees or penalties apply:
| Measurement | Amount |
|---|---|
| Starting balance | 1,000 coins |
| Illustrative annual APR | 5% |
| Estimated annual rewards | 50 coins |
| Total after one year | 1,050 coins |
This example is designed to explain the calculation, not to represent a current market offer or guaranteed return.
Actual rewards can change because of network conditions, validator performance, commissions, and protocol rules.
An important detail: Receiving 50 additional coins does not guarantee that your investment becomes more valuable.
If the cryptocurrency price falls enough, your total holdings could be worth less in dollars even after receiving rewards.
7. How to Start Crypto Staking as a Beginner
You do not need to operate a professional blockchain infrastructure company to participate in every staking system.
Several methods are available, depending on your experience, available funds, and willingness to manage technical responsibilities.
Step 1: Choose a Cryptocurrency That Supports Staking
Start by selecting a blockchain with a native staking mechanism.
Research what the network does, how its validators operate, and where the rewards originate.
Do not choose an asset simply because it advertises the highest percentage return.
A high reward rate may reflect greater inflation, additional risk, or temporary incentives.
Step 2: Choose Your Staking Method
The main options include independent validation, delegation, staking pools, and exchange-based staking.
For beginners, delegation or a reputable staking service may be easier than operating a validator.
However, convenience often introduces additional fees or reliance on another party.
Step 3: Research the Validator or Platform
Before transferring your cryptocurrency, investigate the provider.
Check:
- Its operating history.
- Validator performance.
- Commission charges.
- Security practices.
- Unstaking conditions.
- Reward distribution methods.
- Available support and documentation.
A professional website is not proof that a staking service is trustworthy.
Step 4: Transfer or Select Your Cryptocurrency
Depending on the chosen method, you may need to move your cryptocurrency to a compatible wallet or select it directly from an eligible exchange balance.
Always confirm that the platform supports the exact asset and network you intend to use.
Step 5: Review the Staking Conditions
Read the terms before confirming.
Pay particular attention to lockup periods, withdrawal waiting times, commission, penalties, and whether your assets remain under your control.
Step 6: Confirm Your Stake
Once you understand the terms, follow the network’s official staking instructions.
Keep a record of the amount committed and the transaction confirmation.
Step 7: Monitor Your Rewards
Review your staking performance occasionally.
Check whether rewards are being distributed as expected and whether the validator or service provider has experienced operational problems.
Remember that a changing reward rate is normal for many Proof of Stake networks.
8. What Are the Different Types of Crypto Staking?
Staking is not a single service.
Several methods are available, and each gives users a different balance of control, convenience, and responsibility.
A. Solo Staking
Solo staking means operating your own validator and participating directly in network consensus.
You manage the required hardware or server infrastructure, validator software, security, and ongoing operations.
Advantages:
- Greater control over your staking setup.
- Direct participation in network security.
- Less dependence on third-party operators.
- Potentially higher rewards before personal operating expenses.
Disadvantages:
- Technical knowledge is required.
- Infrastructure must remain reliable.
- Poor validator performance can reduce rewards.
- Protocol penalties may apply.
- Some networks require substantial minimum deposits.
Solo staking is generally more suitable for technically experienced participants.
B. Delegated Staking
Delegated staking allows you to assign your eligible cryptocurrency to a validator.
The validator performs network operations, while your assets remain subject to the network’s delegation rules.
In return, you may receive a share of the validator’s rewards after applicable commissions.
Advantages:
- Easier than running your own validator.
- Allows participation without operating dedicated infrastructure.
- Available on networks such as Solana and Cardano.
Disadvantages:
- Validator performance affects rewards.
- Commission reduces the amount distributed.
- Unbonding rules may delay withdrawals.
- Validator selection requires research.
Delegation can be a practical starting point for users who want to participate without managing network infrastructure.
C. Pooled Staking
Pooled staking combines contributions from multiple participants.
This allows users with smaller balances to participate in systems that might otherwise require larger individual deposits.
For example, Ethereum requires 32 ETH to activate a standard independent validator, but staking pools allow participation with much smaller amounts.
However, pooled staking introduces additional considerations, such as smart contract security, pool operators, reward-sharing rules, and possible withdrawal restrictions.
D. Exchange-Based Staking
Some cryptocurrency exchanges provide staking services directly through their platforms.
Users select an eligible cryptocurrency, review the terms, and activate staking through their account.
The exchange or its staking partners handle validator operations.
Advantages:
- Convenient user interface.
- No need to run technical infrastructure.
- Easier reward tracking.
- May support smaller balances.
Disadvantages:
- You depend on the exchange’s custody and operations.
- Fees or commissions may apply.
- Withdrawal access can be restricted or delayed.
- The provider may impose additional contractual conditions.
Exchange-based staking is convenient, but it should not be confused with holding cryptocurrency in a wallet where you control the private keys.
9. Is Crypto Staking Safe?
Crypto staking can be useful, but it is not risk-free.
The possibility of earning additional tokens should never distract you from understanding what could happen to your original investment.
Here are the main risks.
Market Price Risk
This is one of the most important risks.
Suppose you stake 1,000 tokens and earn an additional 50 tokens during the year.
Your balance increases to 1,050 tokens.
However, if the cryptocurrency loses a substantial percentage of its market value, the total value of your holdings may still decline.
Staking rewards do not protect you from falling prices.
Slashing Risk
Some Proof of Stake networks impose financial penalties on validators that violate protocol rules or engage in serious misconduct.
These penalties are known as slashing.
Depending on the network and staking arrangement, delegators may also be exposed to financial consequences resulting from validator misconduct.
Slashing policies are different across networks, so always review the applicable rules.
Lockup and Withdrawal Risk
Staked cryptocurrency may not be immediately available for sale or transfer.
Some networks have unbonding periods, exit queues, or other withdrawal requirements.
During those periods, the market price could fall while your assets remain unavailable.
This can become especially important during sudden market movements.
Validator Risk
A validator that experiences repeated downtime or operational problems may earn fewer rewards.
In some systems, validator misconduct can also expose participants to penalties.
Research validator performance before delegating your assets.
Smart Contract Risk
Pooled and liquid staking services may rely on smart contracts.
A coding vulnerability, exploit, or protocol failure could result in the loss of deposited assets.
Audits can reduce certain risks, but they cannot guarantee that a contract is completely secure.
Exchange and Custody Risk
When using a centralized exchange, you depend on the provider to safeguard your assets and process transactions.
Security incidents, insolvency, withdrawal restrictions, or operational failures can affect access to your cryptocurrency.
Regulatory and Tax Risk
Cryptocurrency regulations and staking tax treatment vary between jurisdictions.
In some locations, receiving staking rewards may create a tax reporting obligation even if you have not sold the rewards.
Always check the applicable rules where you live.
10. What Is Liquid Staking?
Liquid staking is a method that attempts to make staked cryptocurrency more flexible.
Normally, committing cryptocurrency to a staking system can restrict access to those funds until the required withdrawal process is completed.
Some liquid staking protocols address this limitation by issuing a separate token representing your staked position.
For example, an Ethereum holder may deposit ETH into a liquid staking protocol and receive a liquid staking token in return.
That token represents the user’s claim on the underlying staked assets and applicable rewards, according to the protocol’s design.
Why Do People Use Liquid Staking?
Liquid staking can provide several benefits:
- Participate in staking without necessarily operating a validator.
- Receive a token representing the staked position.
- Potentially trade or transfer that token.
- Access additional decentralized finance applications.
However, there is a major difference between a liquid staking token and freely available ETH.
A liquid staking token may trade below or above the value of the underlying assets.
Its value depends on market liquidity, redemption mechanisms, protocol security, and confidence in the system.
Some protocols may also impose delays or restrictions on redemption.
Liquid staking introduces additional smart contract, market liquidity, and protocol-related risks.
It should not be considered a risk-free alternative to traditional staking.
11. Crypto Staking vs Crypto Lending: What Is the Difference?
Beginners sometimes confuse these two activities because both may advertise rewards for cryptocurrency holdings.
However, staking and lending are fundamentally different.
Crypto Staking
Staking involves committing eligible cryptocurrency to help secure or operate a Proof of Stake blockchain.
Rewards arise from the network’s economic and consensus mechanisms, according to its rules.
Crypto Lending
Crypto lending involves providing cryptocurrency to another party or lending arrangement.
The borrower or lending platform may pay interest for using the assets.
The risks can include borrower default, collateral liquidation, liquidity problems, and platform insolvency.
| Feature | Crypto Staking | Crypto Lending |
|---|---|---|
| Main purpose | Support blockchain consensus | Provide assets to borrowers |
| Reward source | Network rewards and fees, depending on protocol | Borrower interest or lending economics |
| Validator involvement | Usually relevant | Not inherently required |
| Smart contract risk | Possible | Possible |
| Counterparty risk | Depends on staking method | Often significant |
| Withdrawal conditions | Network-specific | Contract or platform-specific |
A platform offering 10% on deposited Bitcoin is not necessarily offering Bitcoin staking.
Bitcoin does not use native Proof of Stake consensus.
It may instead be operating a lending, borrowing, or other financial arrangement.
Understanding the distinction is essential before depositing cryptocurrency anywhere.
12. How Much Can You Earn From Crypto Staking?
Your potential staking rewards depend on the network, amount staked, annual reward rate, validator performance, fees, and duration.
There is no universal staking percentage.
A network advertising a particular annual reward rate today may offer a different rate several months later.
Consider this hypothetical example:
You own 500 units of a Proof of Stake cryptocurrency.
The staking arrangement displays an illustrative 4% APR.
If the rate remains unchanged for a full year and there are no fees or penalties:
500 × 4% = 20 additional tokens.
Your resulting balance would be 520 tokens.
However, the value of those tokens depends on the cryptocurrency’s market price.
Imagine the token price falls by 20% during the same period.
Even though you earned more tokens, your overall position could still be worth less in monetary terms.
This is why investors should evaluate staking in two ways:
- How many additional cryptocurrency units are being earned?
- What happens to the total investment value after accounting for market price changes and fees?
The second question is just as important as the first.
13. Common Crypto Staking Mistakes Beginners Should Avoid
Many staking problems occur because people focus too much on the advertised reward rate.
Here are several mistakes worth avoiding.
Choosing the highest advertised APY
A high APY does not automatically mean a good investment. Investigate how the rewards are funded and whether the rate is sustainable.
Ignoring withdrawal periods
You may not be able to sell your cryptocurrency immediately after requesting an unstake.
Check the unbonding period and possible exit queues before committing funds.
Delegating to an unreliable validator
Poor validator performance may reduce rewards. Research commission rates, uptime, operating history, and network rules.
Confusing lending with staking
A service advertising guaranteed returns on Bitcoin or another non-stakeable asset may be offering a different financial product. Understand what happens to your funds.
Ignoring smart contract security
Pooled staking and liquid staking can expose you to vulnerabilities within third-party contracts.
Staking your entire portfolio
Keeping every token committed to staking may reduce your financial flexibility. Consider how much liquidity you need before choosing an amount.
Assuming rewards guarantee profits
The number of coins you own can increase while their market value decreases.
Never confuse additional tokens with guaranteed financial growth.
14. Is Crypto Staking Worth It for Beginners?
Staking may be worth researching if you already understand the cryptocurrency you own and want to participate in its Proof of Stake network.
It can provide a way to earn protocol rewards while contributing to blockchain security.
However, it is not suitable for every investor.
A beginner should first learn how the network operates, what the rewards represent, and how the withdrawal process works.
It is also important to understand whether the chosen service is self-custodial, custodial, delegated, or based on a third-party smart contract.
There is no reason to rush into staking simply because an exchange displays an attractive percentage.
Before committing your assets, make sure you can explain:
- Where your cryptocurrency goes.
- Who controls the validator.
- How rewards are calculated.
- What fees are deducted.
- Whether penalties can apply.
- When you can withdraw your assets.
If those questions are difficult to answer, spend more time researching before proceeding.
Final Verdict: Can You Earn Rewards by Holding Cryptocurrency?
Yes, you can earn additional cryptocurrency through staking, but the process involves more than simply keeping coins in a wallet.
Staking allows participants to contribute to Proof of Stake blockchain networks through validation, delegation, or supported pools.
In return, eligible participants may receive rewards based on network rules and their contribution.
Ethereum, Solana, Cardano, and Polkadot are examples of ecosystems with staking mechanisms.
However, the rewards are not guaranteed profits.
Cryptocurrency prices fluctuate, network conditions change, validators can experience problems, and some staking arrangements introduce additional custody or smart contract risks.
For beginners, the best approach is to understand the technology first and evaluate the actual risks before focusing on reward percentages.
A good staking decision is not about finding the highest advertised APY. It is about understanding where the rewards come from, what you are risking, and whether the arrangement fits your long-term strategy.
Frequently Asked Questions (FAQs)
1. What is crypto staking in simple words?
Crypto staking means committing eligible cryptocurrency to help support a Proof of Stake blockchain. In return, participants may receive additional cryptocurrency as rewards for helping secure the network.
2. Can I earn money by staking cryptocurrency?
You may receive additional tokens through staking, but that does not guarantee a financial profit. The market price of your cryptocurrency can fall, and fees or penalties can reduce your returns.
3. Which cryptocurrency is best for staking?
There is no universally best staking cryptocurrency. Ethereum, Solana, Cardano, and Polkadot have established staking systems, but each has different requirements, economic rules, and risks.
4. Can Bitcoin be staked?
Bitcoin does not support native Proof of Stake because it uses Proof of Work. Services advertising Bitcoin staking may actually involve lending or other financial arrangements.
5. Do I need 32 ETH to stake Ethereum?
You generally need at least 32 ETH to operate an independent Ethereum validator. However, staking pools and other supported methods allow participation with smaller amounts.
6. Is crypto staking completely safe?
No. Risks include market price declines, validator penalties, smart contract vulnerabilities, custody problems, and withdrawal delays.
7. What happens if I want to withdraw my staked cryptocurrency?
You may need to complete an unstaking or unbonding process. The duration depends on the network and staking method. Some liquid staking arrangements offer tradable receipt tokens, but their market price can differ from the underlying asset value.
8. What is the difference between staking APR and APY?
APR represents a simple annualized rate without compounding. APY accounts for the effect of reinvesting rewards. Actual results depend on changing reward rates and applicable fees.
9. Do staking rewards increase my cryptocurrency balance?
Generally, yes. Depending on the network, rewards may be credited periodically, automatically compounded, or made available for separate collection.
10. Can I stake cryptocurrency through an exchange?
Yes. Some centralized exchanges offer staking services for eligible assets. The exchange typically manages the validators, but you should understand its fees, custody arrangements, terms, and withdrawal restrictions.
Important Disclaimer
This article is for educational and informational purposes only. It does not constitute financial, investment, tax, or legal advice. Staking involves cryptocurrency market risk, technical risk, potential loss of funds, and possible restrictions on withdrawals. Reward rates are variable and are not guaranteed. Always conduct independent research before committing cryptocurrency to a staking service.
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Official Resources and Further Reading
- Ethereum Staking: https://ethereum.org/staking/
- Ethereum Staking Pools: https://ethereum.org/staking/pools/
- Solana Staking Documentation: https://solana.com/staking
- SEC Statement on Certain Protocol Staking Activities: https://www.sec.gov/newsroom/speeches-statements/statement-certain-protocol-staking-activities-052925
- Coinbase Staking Process: https://help.coinbase.com/en/coinbase/coinbase-staking/staking/staking-process
- Coinbase Staking Risks: https://help.coinbase.com/en-gb/coinbase/coinbase-staking/staking/staking-risks