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The Complete Guide to Crypto Staking in 2024

Sep 3, 2024·8 min read

What Is Staking?

Staking is the process of locking up cryptocurrency to help secure a Proof-of-Stake (PoS) blockchain. In return, validators and delegators receive rewards — typically paid in the same asset — proportional to the amount they have staked.

How Rewards Are Calculated

Annual Percentage Yield (APY) on staking depends on:

  • ·Network inflation rate — new tokens minted to pay stakers
  • ·Total staked supply — the more tokens staked, the lower individual rewards
  • ·Validator commission — fees taken by node operators (typically 5–10%)

Top Staking Assets (2024)

AssetEst. APYLock-up Period
Ethereum (ETH)3–5%Flexible (withdrawals enabled)
Solana (SOL)6–8%~2–3 day unstaking
Cosmos (ATOM)14–18%21-day unbonding
Polkadot (DOT)12–15%28-day unbonding
Cardano (ADA)3–5%Flexible (no lock)

Flexible vs. Fixed-Term Staking

Flexible staking allows you to unstake at any time (or after a short cooldown). Yields are usually lower but suit investors who may need liquidity.

Fixed-term staking locks assets for a set period (30, 90, or 180 days) in exchange for higher APY. Best suited for assets you plan to hold long-term regardless.

Risks to Understand

Slashing: Validators who misbehave can have a portion of staked funds destroyed. Delegating to reputable validators mitigates this.

Price risk: A 10% APY means little if the asset drops 30% in price. Always evaluate staking in the context of your overall conviction on the asset.

Smart contract risk: Liquid staking protocols (e.g., Lido, Rocket Pool) introduce an additional layer of contract risk.

Liquidity risk: Fixed-term positions cannot be sold during market downturns without penalty.

Getting Started on Orexis

Orexis supports one-click staking for ETH, SOL, and several other assets directly from your portfolio dashboard. Rewards compound automatically and are visible in real time. Flexible positions can be unstaked with no fees.

Conclusion

Staking is one of the most straightforward ways to generate passive income from your existing crypto holdings. The key is matching the lock-up period and risk profile of each asset to your financial goals.

    The Complete Guide to Crypto Staking in 2024 | Orexis