What is crypto staking and how does it work?

What if your crypto could work for you — even while you sleep? That’s the idea behind staking. But what exactly is staking, how does it work, and is it worth it?

Staking is a way to earn potential rewards by helping secure blockchain networks, and it's one of the easiest ways to potentially earn passive income with crypto. With us, you can explore staking without needing technical skills or complicated setups. Let’s break it all down.

Crypto staking explained

Crypto staking is a process that allows you the possibility to earn rewards by locking up your coins to help support the operation and security of a blockchain network.

Instead of solving complex maths puzzles like in traditional mining (used in Bitcoin), staking is based on a system called proof of stake.

In simple terms, by staking your crypto, you’re giving it to the network to prove you have a vested interest. In return, the network might reward you with more of that cryptocurrency over time — a bit like earning interest in a savings account.

How does crypto staking work?

Staking is made possible by a type of blockchain consensus mechanism called proof of stake (PoS). Let’s walk through what that means.

What is proof of stake?

PoS is a way for blockchains to agree on which transactions are valid, without using the energy-heavy process of mining. Instead of relying on powerful computers, PoS works by having users stake their cryptocurrency — meaning they lock up some of their coins as a kind of deposit.

These users, called validators, are then randomly chosen (with better chances if they stake more) to confirm new transactions and add them to the blockchain. If they do this honestly, they can earn rewards. But if they try to cheat, they can lose some or all of the crypto they staked.

The role of validators

Validators are the ones chosen to validate and add new blocks to the blockchain. The more crypto a validator has staked, the higher the chance they have of being chosen.

But not everyone who wants to stake becomes a validator. You can also stake by delegating your crypto to an existing validator — this is how it works on Revolut. Revolut will continue holding staked cryptoassets on your behalf and you'll remain the beneficial owner of your cryptoassets.

Where does your crypto go?

When you stake your crypto, it stays on the blockchain but becomes locked (or delegated) to a specific validator. You still own it, but you can’t move it until the staking period ends or you choose to unstake. Unstaking simply means telling the system that you want to stop staking and unlock your funds.

The amount of time your funds stay locked varies by token. Some have no lock-up period, while others require you to wait days or weeks before you can access your funds again.

Types of staking

There’s more than one way to stake your crypto. Each method comes with different levels of control, complexity, and reward potential. These are the most common types:

• Delegated staking: let someone else (called a validator) do the technical work for you. This is one of the easiest and most beginner-friendly options
• Validator staking: set up and run your own validator, which means you do all the work to help keep the blockchain running. This needs technical know-how and a larger amount of crypto, but you might earn more rewards
• Liquid staking: stake your crypto, but get a special token back that you can still use or trade. You have the potential to keep earning staking rewards while also staying flexible with your funds
• Centralised staking: a crypto exchange or app takes care of staking for you. You just hold your crypto there, and they handle the rest

Each type suits different needs — from hands-off investing to more advanced crypto participation.

Want to learn more before you dive in? Explore our guides to cryptocurrency, blockchain, and crypto wallets.

What can you stake?

Not all cryptocurrencies can be staked — only those that use the proof of stake mechanism. Some of the most popular options include:

Staking Ethereum

Ethereum is the second-largest cryptocurrency by market cap, and it transitioned from PoW to PoS in 2022 during a major upgrade called The Merge.

To stake Ethereum (ETH) directly, you would usually need to stake a minimum of 32 ETH and run a validator node. But with us, you can stake as little as a few pounds' worth of ETH, without the need to manage infrastructure or worry about slashing (penalty) risks.

Other popular tokens that can be staked

In addition to Ethereum, here are other popular cryptocurrencies you can stake with us:

• Solana (SOL): known for its fast transaction speeds and growing ecosystem
• Polkadot (DOT): aims to connect multiple blockchains into one network
• Cardano (ADA): focuses on academic research and peer-reviewed technology

Each crypto has its own staking conditions, potential rewards, and risks.

Benefits of staking crypto

Staking is a popular choice for crypto holders who want to do more with their assets. Here’s why:

• Earn passive income: by staking, you can earn crypto rewards over time
• Support the network: your stake helps secure the blockchain and process transactions
• No extra hardware needed: unlike mining, staking doesn’t require expensive computers or lead to high electricity bills
• Compound growth: some platforms (like ours) allow you to reinvest your rewards for potential compounding returns

With us, you can start staking quickly and manage everything in-app.

What are the risks?

Like all investments, staking carries some risks to be aware of:

• Price volatility: the value of your staked crypto can rise or fall
• Lock-up periods: some crypto has lock-up periods, meaning your funds are temporarily unavailable
• Validator performance: if your chosen validator behaves dishonestly or makes errors, it could reduce your rewards
• Slashing risk: on some blockchains, misbehaving validators can lose a portion of their staked crypto (and their delegators may be affected too)

Crypto staking rewards aren't guaranteed. Tax may be payable on the rewards received.

How to get started with staking on Revolut

Staking with us is designed to be simple, and flexible — even if you’re just getting started with crypto. Here’s how it works:

1. Open the Revolut app and head to the Crypto section, then tap Earn
2. Choose a token available for staking (e.g. Ethereum or Polkadot)
3. Tap Stake and follow the steps to confirm your amount
4. Track your rewards over time — you’ll see your earnings in-app

There’s no need to set up validator nodes or manage private keys. We handle the technical bits behind the scenes, while you keep full visibility and control.

Crypto staking is a way to earn passive income while supporting your favourite blockchain networks. Whether you’re holding Ethereum, Polkadot, or other PoS-based tokens, staking can help you make more from your crypto.

And with us, you don’t need to be a blockchain expert to take part. We’ve made it simple to start staking from your phone — with transparent rewards, no complicated setup, and expert support every step of the way.

The information provided is accurate as of 23 July 2025.

Not all cryptoassets carry the same risks. Before investing, read our cryptoasset specific risk summaries to make sure you understand the different risks associated with different types of cryptoassets.

Information is provided by Revolut Ltd (Registration No. 08804411, UK). However, Revolut Ltd is not liable for any claims, offerings, or services described herein. The representations made and opinions expressed in this content do not necessarily reflect the views of Revolut Ltd or any of its subsidiary companies registered and licensed to provide Revolut products in local jurisdictions. For more information about Revolut and its current product offerings in your country, please visit https://www.revolut.com/.

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