What is staking?
Staking is the process of locking cryptocurrencies in a Proof-of-Stake network to participate in transaction validation. In return, stakers receive rewards — similar to interest on a bank account, but with significantly higher yields and greater risks.
How does staking work?
On PoS networks (Ethereum, Cardano, Solana), validators must "lock up" (stake) a certain amount of tokens as collateral. If they attempt to cheat the network, they lose part of their stake — this is called slashing. Validators who behave honestly receive rewards in new tokens.
Staking on exchanges — Earn products
Binance Earn and OKX Earn automate staking — you don't need to run your own validator.
- Flexible — you can withdraw at any time, lower APY
- Locked — fixed period (30, 60, 90 days), higher APY
- Auto-compound — automatic reinvestment of rewards
Typical yields (APY)
- Ethereum (ETH): ~4-5% annually
- Solana (SOL): ~6-8% annually
- BNB: ~3-5% annually
- Stablecoins (USDT/USDC): ~5-12%
- Cardano (ADA): ~3-4% annually
Staking risks
- Lock period — locked funds can't be sold if the price drops
- Slashing risk — a bad validator can lose part of their stake
- Smart contract risk — a bug in the protocol can lead to losses
- Custodial risk — Binance/OKX Earn are custodial (trust the exchange)