Staking Explained

Staking is a yield-generating mechanism that allows you to earn passive income without selling your crypto. Staking on Margex provides multiple advantages - most importantly - no lock up periods!

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:

What is APY% (Yield)?

Learn about staking (APY%) and how it works

How to Stake

Learn how to stake or unstake your coins

Staking Yield Calculator

Find out how yield is calculated using a Yield calculator and examples

Boost Your Staking Yield

Find out how you can maximise your profit potential while staking

Advantages of Staking on Margex

Learn about the various advantages of staking on Margex

Last updated