Crypto investors often ask if staking and delegating crypto are the same thing. While these terms are related and sometimes used interchangeably, they represent different approaches to participating in proof-of-stake blockchain networks.
Staking involves directly locking up your cryptocurrency to become a validator on the network. As a validator, you verify transactions and create new blocks. This requires technical knowledge, dedicated hardware, and a minimum stake amount.
Delegating allows you to assign your tokens to existing validators without running any technical infrastructure yourself. The validator does the work while you share in the rewards.
Both methods earn rewards, but they have different requirements and risks. Staking typically earns higher rewards but demands more resources and expertise. Delegating is simpler but offers lower returns since validators take a commission.
Before choosing either option, I recommend researching the specific requirements on your preferred crypto exchange. Different platforms have varying minimum amounts and lock-up periods.
This is especially relevant for international students who may wonder if they can invest in crypto on F1 visa since delegating requires less maintenance while studying and offers more flexibility with your funds.
