# Staking

### How does staking work?

If a cryptocurrency you own allows staking — current options include Tezos, Cosmos, and now Ethereum (via the new [ETH2](https://www.coinbase.com/learn/crypto-basics/what-is-ethereum) upgrade) — [you can “stake” some of your holdings and earn a percentage-rate reward over time](https://www.coinbase.com/staking). This usually happens via a “staking pool” which you can think of as being similar to an interest-bearing savings account.&#x20;

The reason your crypto earns rewards while staked is because the blockchain puts it to work. Cryptocurrencies that allow staking use a “consensus mechanism” called Proof of Stake, which is the way they ensure that all transactions are verified and secured without a bank or payment processor in the middle. Your crypto, if you choose to stake it, becomes part of that process. \~[Coinbase](https://www.coinbase.com/learn/crypto-basics/what-is-staking)


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