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#Staking cryptocurrency involves depositing and holding your digital coins on a platform to earn rewards from the blockchain. With a minimum required balance of the cryptocurrency, one can participate in staking and receive specific crypto rewards.

It is akin to buying crypto coins and holding them in a wallet for a predetermined period. It bears similarities to a fixed deposit in traditional finance, comparable to an IRA, where you commit your funds for a set duration to earn interest.

In the context of staking, the mechanism is known as "Proof of Stake," where participants support the network by holding funds in their wallets. In return for this support, the network rewards them. Consequently, the number of coins in your wallet increases over time based on the duration you keep them staked.