That’s what staking is—investors who actively hold onto, or lock up their crypto holdings in their crypto wallet are participating in these networks’ consensus-taking processes . Stakers are, in essence, approving and verifying transactions on the blockchain. For doing so, the networks reward those investors.
Read moreCan you lose crypto by staking?
1. Falling cryptocurrency prices. One of the biggest risks with cryptocurrency staking is the volatility and that prices could plunge . For example, if you’re earning 20% in rewards for staking an asset but it drops 50% in value throughout the year, you will still make a loss.
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