What is staking crypto?

Keep reading. So, what exactly does staking crypto mean? In simple words, staking is the process in which you agree on granting a portion of your crypto to a blockchain network. The blockchain network uses your crypto for the betterment of the network–for example, conforming transactions in an enhanced way.

Is staking crypto better than depositing money in a bank?

In terms of returns, staking crypto is considered much better than depositing money in a bank. But, keep in mind that staking your crypto comes along with some risk. And, if you are someone who can’t bear risks, then options like bank FD will work fine for you. Remember that the feature of staking is not available in every cryptocurrency.

Which crypto exchanges offer staking?

Of the crypto exchanges reviewed by NerdWallet, three offer staking for at least some crypto assets: Binance.US, Coinbase and eToro. Others offer rewards programs that let users earn additional crypto in a way that's similar to staking. (See our list of exchanges with the best staking and rewards programs.)

Is staking a good way to grow your crypto portfolio?

That said, staking can also be a way to grow your crypto portfolio using assets you plan to hang onto for awhile. Staking is also a more energy efficient way of running a crypto network than the mining process used by Bitcoin and some others. » Ready to get started? See our picks for the best crypto platforms for staking and rewards