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What is Staking in Crypto (Definition + Rewards + Risks)The reason your crypto earns rewards while staked is because the blockchain puts it to work. Cryptocurrencies that allow staking use a �consensus mechanism�. Crypto staking allows people that own certain types of cryptocurrencies to earn rewards for helping to validate transactions added to a blockchain network. Crypto staking relies on the proof-of-stake (PoS) consensus mechanism, which means one person is randomly chosen from a pool of willing participants.