What is Staking and Unstaking on Upbit?
Staking: Helping the Network
Staking is like helping your friends keep their promises. When you stake your crypto, you lock it up to support the network. It’s like saying, “I believe in this network and I want to help it stay strong.”
Example: Imagine you have 10 marbles. You can stake (lock up) these marbles to help your friends play a fair game. While your marbles are staked, you can't play with them, but you get extra marbles as a reward for helping out.
Unstaking: Getting Your Crypto Back
Unstaking is like asking for your marbles back so you can play with them again. When you unstake your crypto, you unlock it from the network. It means you’re taking it back from helping the network.
Example: You decide you want to play with your 10 marbles again. So, you unstake (unlock) them. Now, you can use your marbles any way you want, but you won’t get extra marbles anymore for helping the game.
Why Do People Stake?
People stake their crypto because they want to earn rewards. It’s like getting a thank you gift for helping out. The more you stake, the more rewards you can get. But remember, while your crypto is staked, you can't use it until you unstake it.
Summary
Staking is locking up your crypto to help the network and earn rewards. Unstaking is unlocking your crypto to use it again. It’s a way to support the network and get something in return.