Staking crypto has grown in popularity in recent years. Staking refers to the process of locking funds in a cryptocurrency wallet or smart contract to support the operations of a blockchain network or project. Stakers are rewarded in different ways for contributing their funds to the health and functionality of the protocol.
There are many different avenues for staking cryptocurrencies these days, but the most common method is through staking pools. Staking pools are groups of cryptocurrency holders who come together to pool their resources and increase their chances of being selected to validate blocks on a Proof-of-Stake (PoS) blockchain.
With many newer blockchain projects opting for Proof of Stake consensus mechanisms over the original Proof of Work models, staking crypto has become a novel way to earn passive income and rewards from digital assets.