Cryptocurrency Staking: How It Works, Risks, and Real Projects to Watch

When you stake cryptocurrency staking, the process of locking up crypto to support a blockchain network and earn rewards in return. Also known as proof-of-stake participation, it’s how networks like Ethereum and Solana keep running without mining. Instead of using massive amounts of electricity like Bitcoin, staking lets you earn interest just by holding coins in a wallet that helps validate transactions. It sounds simple—until you realize most staking projects are either risky, broken, or outright scams.

Not all staking is equal. liquid staking, a method that lets you stake crypto while still using it in other DeFi apps. Also known as staked token derivatives, it’s popular because you don’t lock your coins away completely. But as seen with stETH and other liquid staking tokens, they can de-peg from their base value, get hacked, or get caught in centralized control. Then there’s DeFi staking, staking through decentralized protocols that promise high yields. Also known as yield farming, it’s where tokens like SHEESHA and CPIE lure users with fake rewards—zero trading volume, no team, and no real liquidity. These aren’t investments. They’re gambling with your crypto.

Real staking means backing networks with actual usage—like Ethereum, Cardano, or even regulated platforms like Coinroom that let you stake Bitcoin safely. But most of what you’ll find online? It’s noise. Projects like Brokoli Network and OmniCat claim to reward you for staking, but their tokens have lost 99% of their value or exist only on paper. Even airdrops tied to staking, like ANTIX or CHY, often require you to give up your private keys or join communities with zero real activity. The truth? If a staking offer sounds too good to be true, it’s designed to take your coins, not reward you.

You don’t need to chase 100% APY to earn crypto passively. You just need to know what’s real. Below, you’ll find honest breakdowns of staking-related projects—the ones that work, the ones that don’t, and the ones that will cost you everything if you’re not careful.