Imagine earning additional income from your crypto assets without having to constantly monitor the market or trade daily. This is the appeal of crypto staking. For those new to this, staking is a method of generating passive income from crypto that is becoming increasingly popular among investors.

By simply “locking up” or holding crypto assets on a specific platform, you can earn stable returns. Curious how? Let’s delve deeper into what staking is and how it works in this article.

What is Crypto Staking?

Simply put, staking is a process where you “lock up” a certain amount of crypto assets within a blockchain network to support its operations, such as transaction validation. In this concept, crypto asset holders actively participate in maintaining network security by staking their assets. In return, they receive rewards in the form of additional crypto, similar to interest from a bank deposit.

Typically, staking is a mechanism that applies to cryptocurrencies using the Proof of Stake (PoS) consensus algorithm. The more assets you stake, the greater the potential rewards you can earn. Staking is an attractive option for investors who want to earn passive income without actively trading. 

Compared to simply holding crypto in a wallet without additional benefits, staking allows you to generate extra income while still holding your assets. Furthermore, staking is a way to support the crypto ecosystem you believe in, as this process helps maintain the security of the blockchain network.

How Crypto Staking Works

To better understand this concept, here are the steps involved in crypto staking:

1. Choose Crypto Assets that Support Staking

Not all crypto assets can be used for staking. Therefore, you need to choose assets that support this mechanism, such as Ethereum 2.0, Cardano, or Solana.

2. Select a Trusted Staking Platform

After determining the asset, the next step is to choose a secure and reputable staking platform. This is important because staking involves locking up assets, so security must be a top priority.

3. Delegate Crypto Assets to the Network

At this stage, you will lock your crypto assets in the blockchain network through the chosen platform. During this period, your staked assets will help validate transactions and support network security.

4. Transaction Validation Process

Once assets are locked, they begin to contribute to the transaction validation process. In a PoS system, staking is a crucial factor in determining which validators are eligible to process transactions and earn rewards.

5. Receive Staking Rewards

In return, you will receive rewards in the form of additional crypto assets. The size of the reward depends on the amount of assets staked and the staking duration.

6. Monitor and Manage Staking

After staking has begun, you can monitor the results and consider the re-stake option, which means re-locking the received rewards to earn even greater income.

How Much Can You Earn from Crypto Staking?

The profits from crypto staking can vary depending on several factors, such as the type of crypto asset you are staking, the platform used, and the reward rate offered. Here are some key benefits of crypto staking:

1. Staking Rewards (Yield Staking)

The main benefit of staking is earning rewards in the form of additional crypto assets. This reward rate can vary, usually ranging from 5% to 20% per year, depending on the asset and platform you use. Staking is a method where you can lock up crypto assets to support blockchain network operations and, in return, receive rewards. On the Reku platform, you can earn staking profits of up to 12.5% per year. 

Additionally, Reku offers users the flexibility to stake and unstake at any time without rigid lock-up periods. Staking rewards are distributed daily, allowing you to see your crypto asset growth regularly. With the staking feature on Reku, you not only gain passive income from staking rewards but also potentially earn additional profits if the value of your staked crypto assets increases over time.

2. Helps Network Stability

When you stake, you also help improve the security and stability of the blockchain network. In this way, staking is a beneficial method for individuals as well as the crypto industry as a whole.

3. Potential Asset Appreciation

Besides earning rewards, there’s also a chance that the price of the asset you’re staking will increase. This means that in addition to gaining extra crypto, you can also profit from the asset’s price appreciation.

However, before staking, it’s important to consider risks such as price volatility, lock-up periods, and platform risks. Make sure you choose trusted assets and staking platforms to maximize your profits.

Risks of Crypto Staking

However, staking also has risks that you need to be aware of. Some risks of staking are as follows:

1. Market Volatility
Volatility is an inseparable part of the crypto world, and this is one of the main risks in staking. Although you can earn rewards from staking, if the price of the crypto asset you are staking suddenly drops, the total value of your portfolio can be significantly affected. This volatility can make staking profits less lucrative, or even cause losses. This is something you should always consider, especially if you are staking with highly volatile assets.

2. Lock-up Period
When you stake, your crypto assets will be locked for a certain period. During this period, you cannot sell or move those assets, which can be an issue if you need quick liquidity or if the market experiences drastic changes. This means you must be prepared for situations where you cannot access your assets, even when market conditions change or there is an urgent need. This lock-up period makes staking not always suitable for everyone, especially for those who need flexibility in managing their crypto portfolio.

3. Platform Risk
In addition to external factors like market volatility, there are also internal risks related to the platform or blockchain network you use for staking. While staking can be a secure way to earn passive income, if the platform or network experiences technical issues, hacker attacks, or other failures, your staked assets could be at risk.

This can lead to significant losses, especially if you use a platform or network that is not fully tested or trustworthy. Therefore, it is crucial to choose a staking platform with a good reputation and guaranteed security.

Platforms for Crypto Staking

Platforms in the world of crypto staking are bridges that connect you to the blockchain network where your assets are staked. They offer features such as user-friendly interfaces, guaranteed security, and access to various crypto asset options. In addition, many platforms also provide transparent information regarding potential earnings, risks, and other staking conditions, which helps you make informed decisions. One platform that stands out for crypto staking in Indonesia is Reku.

Reku is the first crypto application recognized by BAPPEBTI to offer crypto staking features with rewards up to 12.5%, as well as the flexibility to stake and unstake at any time, allowing you to manage crypto assets as needed without being locked in for a certain period. With secure and reliable services, Reku is an ideal choice for those who want to start crypto staking easily and optimize their profits.

In the crypto world, staking is one of the best ways to earn passive income. By simply locking crypto assets within a blockchain network, you can earn additional rewards while still supporting the security of the crypto ecosystem.

However, despite its profitability, you must still understand the inherent risks, such as price volatility and lock-up periods. Therefore, before staking, make sure you choose trusted assets and platforms. With capital starting from just IDR 5,000, anyone can start staking, whether beginners or experienced investors. Don’t let your assets sit idle, and start staking now on Reku!