What Is Staking in Crypto? How It Works and Why It Pays

In crypto, the phrase "make your money work for you" isn’t just a cliché it’s a real strategy. It’s called staking, and it’s one of the simplest ways to earn passive income without actively trading. But what is staking, how does it work, and why does it matter? Let’s break it down.

Please note: This article does not constitute investment advice. Laws governing crypto, derivatives, and other forms of trading and investments as well as taxation vary by region and are subject to change. You are responsible for complying with the laws in your jurisdiction. Ouinex’s services and offers, including those mentioned in this article if any may vary by location and are subject to change. All investments carry risk.

Key Takeaways

Staking is locking up crypto to support a blockchain and earning rewards in return.
It’s a popular way to earn passive income without trading.
Risks include price volatility, lock-up periods, and platform reliability.
On Ouinex you can stake $OUIX, as well as make use for our EARN offering for many different tokens

What Is Staking?

Staking is the process of locking up your crypto in a blockchain network to help keep it secure and running. In return, you earn rewards kind of like earning interest in a savings account.

Staking is a key feature of proof-of-stake (PoS) blockchains. Instead of using massive energy-hungry mining rigs (like in Bitcoin’s proof-of-work), PoS networks rely on staked assets to validate transactions and secure the network.

Some tokens are off-chain representations, but you can still stake them meaning you lock them up within a platform or protocol, which may contribute to the network’s stability and potentially support the token’s value.

If that sounds like technical mumbo-jumbo, just remember this: When you stake your crypto, you're essentially locking it away to support the network and you get rewarded for it.

How Does Staking Work?

Here’s the simple version:

You choose a crypto that supports staking (like ETH, ADA, $OUIX, or SOL).
You lock it into a staking pool or validator.
You earn rewards, usually paid out in the same token you staked.

Different blockchains have different staking periods, reward rates, and rules. Some have flexible staking (unstake any time), while others use fixed terms where your assets are locked for a set period. On Ouinex, there are several options just go to our EARN page to find out about them (while EARN isn’t technically the same as staking, it’s very similar).

If you stake our native token, $OUIX, you will increase your OUIXPower, which leads to lower spot trading fees, discount on $OUIX, higher referral rates, and more.

Why Stake?

Passive Income: Staking lets you earn yield just by holding your crypto.
Low Effort: No trading, no charts, no constant monitoring.
Network Support: You help secure the blockchain and validate transactions.
Compound Growth: You can often restake your rewards to grow your holdings over time.

It’s one of the few ways in crypto to earn without taking high levels of risk especially if you’re staking established tokens.

What Are the Risks?

Lock-Up Periods: Some platforms lock your crypto, meaning you can’t move or sell it until the term ends.
Volatility: Even if you earn staking rewards, the token price can drop.
Slashing: On some networks, bad behavior by validators can result in a penalty where part of your staked amount is lost.
Platform Risk: Not all staking providers are equal. Some may offer high yields but lack transparency or security.

Staking on Ouinex

On Ouinex, you can stake $OUIX. You can also make use of our EARN offering, which is similar to staking in that you lock up your tokens in return for an APY and rewards. Our EARN offering offers:

Simple Onboarding: Make it happen in just a few clicks no need to set up a validator or manage technical details.
Trusted Tokens: We offer vetted, high-quality tokens not speculative coins that promise sky-high (and unsustainable) APYs.
Flexible Options: Choose between fixed-term and flexible staking options depending on your strategy.
Transparent Yields: Know exactly what you’ll earn no hidden fees or fuzzy math. You can even use our calculator to check current APYs.
Secure Custody: Your staked assets are protected with top-tier security protocols.
Stake $OUIX and Get Rewarded: Apart from getting a yield, you will increase your OUIXPower when you stake, which leads to lower spot trading fees, discount on $OUIX, higher referral rates, and more.

If you're not ready to trade actively, staking and EARN offerings are a smart way to stay invested and still grow your portfolio.

FAQs About Staking on Ouinex

What is staking in crypto?
Staking usually means locking up your crypto to support a proof-of-stake blockchain, but you can also stake some off-chain tokens. In return, you earn rewards similar to earning interest but some platforms, like Ouinex, also offers other perks when you stake their native token (in this case: $OUIX).

Is staking safe?
Generally yes, especially when done through trusted platforms like Ouinex. But there are risks, including price drops and network penalties. It’s similar to locking up your USD for three months in a bank account you’re earning interest by doing it, but in three months time the value of USD might have gone down…or up!

Which cryptos can I stake?
This depends on what’s offered at the time, but popular staking tokens include ETH, SOL, ADA, and others. Ouinex only offers vetted, high-quality tokens for our EARN offering. Of course, staking our native token, $OUIX, you earn lots of rewards beyond APY.

How are staking rewards calculated?
Rewards depend on the token, staking period, and network participation. On Ouinex, you’ll always see the estimated yield before you stake.

Can I unstake anytime?
Some tokens offer flexible staking, others have fixed lock-up periods. We’ll always tell you the terms before you confirm.

What happens to my crypto while it’s staked?
It’s locked and can’t be traded or withdrawn until the staking period ends (unless it’s a flexible option). But it continues to earn rewards during that time.

Is staking the same as earning interest?
It’s similar, but instead of lending out your crypto, you’re helping secure a blockchain network. Rewards come from network incentives, not borrowers. EARN works slightly differently.

Can I stake using the demo platform on Ouinex?
No, demo mode is for trading. But you can explore how our EARN offering works and preview reward rates using our calculator without committing real assets.