Staking allows individuals to earn crypto rewards on certain crypto they own without selling them. Their staked crypto helps validate transactions and support blockchain security, and in return, they earn rewards.
Types of staking
- Liquid staking: Allows individuals to access liquidity while their assets are staked. By staking through a service or protocol, they receive a tradable token representing their staked assets, which continue earning rewards.
- Illiquid staking: Locks cryptocurrency to earn rewards, making the tokens inaccessible for trading or use until they are unstaked or unlocked.
Using the Stake/Unstake category
You can adjust the category of a transaction to a stake deposit or withdrawal, as needed:
Stake: Deposit assets into a staking contract and potentially receive a staking token in return.
- For liquid staking, you can apply the stake category to transactions with both sent and received assets.
- For illiquid staking, you can apply the stake category to transactions with sent assets.
Unstake: Redeem your staked assets.
- For liquid staking, you can apply the unstake category to transactions with both sent and received assets.
- For illiquid staking, you can apply the unstake category to transactions with received assets.
Disclaimer: Note that this article should not be construed as legal, tax, audit, accounting, or brokerage advice and that any and all information is provided for informational purposes only.