Is staking and delegating crypto the same thing

Is staking and delegating crypto the same thing?

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Dec 23, 2025 - 13:25
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Is staking and delegating crypto the same thing

If you’re earning passive income with crypto, you’ve probably seen the terms staking and delegating used—sometimes interchangeably. While they’re closely related, Is staking and delegating crypto the same thing?. Understanding the difference can help you choose the right strategy, manage risk, and maximize rewards.

Let’s break it down in plain English.

What Is Staking?

Staking is the process of locking up your cryptocurrency to help secure a blockchain network and validate transactions. In return, you earn rewards—similar to earning interest.

Staking is most commonly associated with Proof of Stake (PoS) and related consensus mechanisms.

How staking works

  • You lock (stake) your tokens in the network

  • Your stake helps validate transactions and produce blocks

  • The network pays rewards for honest participation

Who stakes?

  • Validators (nodes that run the network)

  • Regular users, depending on the blockchain

Some networks require large minimum stakes and technical expertise, which is where delegation comes in.

What Is Delegating?

Delegating is a type of staking.

Instead of running your own validator node, you delegate your tokens to a validator who stakes on your behalf. You still earn staking rewards, but the validator does the technical work.

How delegation works

  • You keep ownership of your tokens

  • You assign (delegate) them to a validator

  • The validator stakes them and earns rewards

  • Rewards are shared between you and the validator (after a commission)

Delegation lowers the barrier to entry for staking.

Key Differences Between Staking and Delegating

Feature Staking (Direct) Delegating
Who runs the node You Validator
Technical setup Required Not required
Minimum stake Often high Usually low
Control Full Limited
Risk of slashing Direct Shared/indirect
Ease of use Advanced Beginner-friendly

Are They the Same Thing?

Short answer: No—but they’re closely related.

  • Staking is the broader concept of locking tokens to secure a network

  • Delegating is a method of staking where you rely on a validator

All delegating is staking, but not all staking involves delegation.

Examples by Blockchain

  • Ethereum:

    • Run your own validator → staking

    • Use a staking pool or service → delegated staking (or pooled staking)

  • Cardano (ADA):

    • Most users stake by delegating to stake pools

  • Cosmos (ATOM):

    • Delegation is the standard staking method

  • Solana (SOL):

    • Users delegate SOL to validators

Risks to Consider

Even with delegation, staking isn’t risk-free:

  • Slashing: Validators can be penalized for downtime or malicious behavior

  • Lock-up periods: Tokens may be illiquid for days or weeks

  • Validator risk: Poor validator choices can reduce rewards

Choosing a reputable validator is crucial when delegating.

Which Is Better?

It depends on your goals:

Choose direct staking if:

  • You have technical expertise

  • You want maximum control

  • You can meet minimum stake requirements

Choose delegation if:

  • You want passive income without technical work

  • You have a smaller amount of crypto

  • You prefer simplicity and flexibility

Final Thoughts

Staking and delegating crypto are not the same, but they work toward the same goal: securing blockchain networks while earning rewards.

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