# Staking Explained

**Staking** is a yield-generating mechanism that allows you to earn passive income over time (i.e **APY%** or **Yield**) without having to sell your cryptocurrency.

This is achieved by essentially ‘putting your coins to work’ - i.e staking coins - in various CeFi and DeFi projects, where they can participate in processes known as Proof of Stake, Liquidity Mining, Yield Farming and more.

* Proof of stake is a ‘consensus mechanism’ used by cryptocurrencies to ensure that all transactions on a blockchain are secured and verified without the need of a middle-man such as a bank or centralized payment processor.
* Liquidity mining is a way of providing liquidity to DeFi protocols, and in exchange for the provided liquidity, users are awarded with fees generated from the pair they provide liquidity on.
* Yield farming is based on automated market makers (AMMs). AMMs are smart contracts that facilitate the trading of digital assets using algorithms.
* Other 

At its core, staking is essentially the cryptocurrency equivalent of allocating funds into a high-yield savings account in a bank, but with much higher yields on average.

Learn more about staking make sure to check out our additional articles on staking:\ <br>

<table data-view="cards"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>What is APY% (Yield)?</strong></td><td>Learn about staking (APY%) and how it works</td><td></td><td><a href="/pages/hYKOM6nz3Ut7c35VukJX">/pages/hYKOM6nz3Ut7c35VukJX</a></td></tr><tr><td><strong>How to Stake</strong></td><td>Learn how to stake or unstake your coins</td><td></td><td><a href="/pages/Ez28kxeO0IuHOoqnqe8C">/pages/Ez28kxeO0IuHOoqnqe8C</a></td></tr><tr><td><strong>Staking Yield Calculator</strong></td><td>Find out how yield is calculated using a Yield calculator and examples</td><td></td><td><a href="/pages/288DsfCj6P1LxNhLZWD0">/pages/288DsfCj6P1LxNhLZWD0</a></td></tr><tr><td><strong>Boost Your Staking Yield</strong></td><td>Find out how you can maximise your profit potential while staking</td><td></td><td><a href="/pages/nlhpVw5BsNpifT7teOee">/pages/nlhpVw5BsNpifT7teOee</a></td></tr><tr><td><strong>Advantages of Staking on Margex</strong></td><td>Learn about the various advantages of staking on Margex</td><td></td><td><a href="/pages/8cF4EMUP21lqOvl6N8Le">/pages/8cF4EMUP21lqOvl6N8Le</a></td></tr></tbody></table>


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