You’ve seen the word everywhere: “Stake your crypto and earn passive income!”
But what exactly is staking? Is it really safe? And how does that big APY number actually get calculated?
At wmiran.com, where crypto users value both growth and control, we believe it’s crucial to understand what’s really happening when you stake your coins.
Let’s break it all down — simply and clearly.
What Is Staking?
Staking means locking up your cryptocurrency to help secure a blockchain network — and in return, you earn rewards.
It’s like putting your coins to work.
Instead of sitting idle in your wallet, they support the network’s operations (like validating transactions). And you get paid for it — usually in the same coin.
Staking is only possible on Proof-of-Stake (PoS) or similar blockchains, such as:
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Ethereum (ETH, since the Merge)
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Solana (SOL)
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Cardano (ADA)
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Polkadot (DOT)
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Cosmos (ATOM)
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Avalanche (AVAX)
Why Do Blockchains Pay You to Stake?
PoS networks don’t rely on energy-intensive mining like Bitcoin.
Instead, they rely on validators — and to become one, you must lock up (stake) coins.
The more coins staked, the more secure the network. So the systеm rewards stakers for helping keep it safe and decentralized.
What Is APY in Staking?
APY stands for Annual Percentage Yield — it’s how much you could earn in a year if you keep staking and compound your rewards.
Example:
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You stake 1,000 ADA at 5% APY
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After one year, you’ll have about 1,050 ADA
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If the APY is compound-based, you earn rewards on your rewards too
Note: APY ≠ guaranteed profit. It’s a projected return — actual results vary depending on network conditions and validator performance.
How Is Staking Reward Calculated?
Each blockchain calculates rewards differently, but here are common factors:
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Amount staked — more coins = more rewards
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Validator uptime — reliable validators = higher earnings
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Inflation model — how many new coins are minted
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Network activity — more transactions = more fees
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Fees deducted — validators take a small commission
Some platforms also offer fixed staking with predictable returns. Others use variable APY depending on real-time demand.
Types of Staking
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Native Staking (On-Chain)
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You stake directly through your wallet or node
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Example: Staking SOL with a validator using Phantom Wallet
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Exchange Staking
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Centralized platforms handle staking for you
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Example: Binance, Kraken, Coinbase offer staking-as-a-service
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Liquid Staking
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You stake coins but receive a derivative token (like stETH for ETH)
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You can use this token in DeFi while still earning rewards
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DeFi Staking / Yield Farming
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Lock tokens in smart contracts or liquidity pools
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Riskier but offers high APY
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Can I Lose Money by Staking?
Yes, here’s how:
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Price volatility — if your staked coin drops in value, you may lose in dollar terms
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Unstaking delays — some coins have lock periods (e.g., 21 days)
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Slashing — if your validator misbehaves (goes offline or cheats), you lose part of your stake
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Scam platforms — staking with untrusted services can lead to total loss
That’s why platforms like wmiran.com focus on non-custodial swaps — so you stay in full control before choosing any staking option.
How to Stake Safely (Tips)
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Use official wallets or trusted staking platforms
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Research your validator’s uptime and commission
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Avoid staking coins you may need to use soon
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Consider liquid staking if you want flexibility
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Don’t chase unrealistically high APYs — they often come with risks
Final Thoughts
Staking can be a powerful way to earn passive income — if done wisely.
It supports blockchain networks, builds long-term value, and can multiply your holdings over time.
But it’s not risk-free. APY numbers can be misleading, and not all staking is equal.
At wmiran.com, we help users swap into staking-ready coins like ETH, SOL, or DOT without KYC — so you can stake on your terms, in your own wallet, with full transparency.
