Get Newton.
The crypto trading platform you can trust.
Sign up now
Staking can feel confusing when you first encounter it. The terminology is technical, rules differ by blockchain, and rewards are never guaranteed. This guide is here to give Canadians a plain-language starting point on what staking is, how it works at Newton, and what to watch out for.
This Fall 2025 edition of Newton Learn reflects the most current regulatory context, Canadian developments, and the specific staking options available on Newton. We publish refreshed guides regularly to help Canadians stay informed as the digital asset landscape evolves and as Newton adds new assets for staking.
Staking is a way to put your crypto to work. When you commit tokens by locking them you help validate transactions and keep the blockchain network secure. It is one of the key components of the Proof of Stake (PoS) consensus mechanism. In exchange, you may receive rewards in the form of more crypto. This can include validating transactions or supporting network security. Returns come in the form of additional crypto assets issued in the same cryptocurrency as the staked asset.
You might also hear people talk about “Total Value Locked,” or TVL. Think of it as the scoreboard for how much crypto is currently tied up in staking, lending, or other blockchain activities. The bigger the number, the more people have committed their assets to staking on that network or protocol. It’s a rough way of measuring trust and activity, not a guarantee of safety or returns.
On networks that use a PoS model, validators play a crucial role. By locking up your crypto you support a validator and the blockchain network. Validators are responsible for creating new blocks and validating transactions.
Validator Slashing: Depending on the asset, staked assets may be lost due to penalties for validator issues or technical errors (e.g., going offline or attempting to validate conflicting transactions). Newton mitigates this by partnering with reputable validators known to our cold-wallet custodians who have historically maintained high uptime and follow blockchain rules. However, it’s important to understand that slashing, while rare, is a risk inherent to some PoS networks. These validators have been selected as historically they have been reputable, widely used, and not yet displayed \signs of general unreliability.
In PoS, validators lock up their own crypto to secure the network. In Delegated Proof of Stake (DPoS), users like you delegate tokens to validators who handle the technical work. Newton uses a DPoS-like approach, where your staked assets are delegated to trusted validator partners, simplifying the process for you.
Having personal funds committed helps align participants' behaviour with the best interests of the network. Even so, staking does not eliminate all risks, as validator influence can still become uneven over time. The idea is that participants put up their own cryptocurrency, so they have a direct incentive to protect the network. This process allows the system to reach agreement without the high energy use of Proof of Work mining, like that used by Bitcoin.
Staking also creates the potential for participants to generate a passive income stream. By locking up assets and supporting the network, staking participants may receive periodic rewards in the same cryptocurrency that was staked.
On some blockchains, your staking rewards are added back into your staked balance automatically. This lets your rewards start earning their own rewards over time, like compounding interest. In other cases, you may need to restake your rewards manually. At Newton we offer users an autostaking function.
HODL stands for “Hold On for Dear Life” and describes a passive strategy of keeping an asset for the long term, even when markets swing. The phrase began as a typo of the word “hold” in a Bitcoin forum and has since become a well-known expression in crypto. The most serious “hodlers” are said to have “diamond hands”.
For investors who already plan to hold their tokens, staking allows for the generation of additional returns. Instead of leaving assets idle, some people choose to lock them to support the network, which may also provide periodic rewards. These rewards are never certain and can change based on market conditions, how validators perform, and the rules of the blockchain.
When you stake with Newton, your assets are held with trusted third-party cold storage custodians and delegated to validator partners. This means you don’t need to run code, research validators or manage private keys to participate in staking.
Rewards are distributed to token holders after a commission is deducted, and the payout schedule follows the blockchain’s reward cycle. You can get started with as little as the $10 CAD equivalent in a supported token.
The process to lock and unlock tokens doesn’t happen instantly. Each blockchain has its own unique waiting periods where your assets cannot be moved, traded, or used for a set period of time. In some cases, Newton may, at its discretion, pre-fund staking wallets to shorten certain of these periods. While this can shorten the warm-up stage, it is not guaranteed and may vary by asset.
The warm-up period is a brief waiting period that begins when you stake your cryptocurrency. During warm-up, assets cannot be unstaked. Once this period ends, your crypto is set to earn rewards.
Estimated Warm-up Periods
The cool-down period begins when you choose to unstake. During this time, assets remain locked but will continue earning rewards. Tokens stay locked for the full period, which means you can not re-stake or transfer them until the period ends.
Estimated Cool-down Periods
Additionally, network congestion or validator issues could occasionally delay the release of your funds. Plan your movements, especially if you anticipate needing quick access to your crypto.
Note: Warm-up and cool-down periods are estimates only and may change with network conditions or validator rules.
What you can earn is not fixed and rewards are not guaranteed. Any rewards depend on factors such as the crypto asset staked, how much crypto you commit, how long you keep it locked, validator performance, wallet refunding and the rules of the network. Most of the time, you’ll earn in the same token you staked. What ends up in your account can be lower once fees and network conditions are applied.
We have called out challenges along the way because it is important to understand the full picture. Staking can be a useful tool, but it also comes with uncertainties that every investor should keep in mind. Refer to our crypto asset statements to learn more.
The way staking rewards are taxed can vary from one person to another. The Canada Revenue Agency (CRA) provides guidance, and a qualified tax professional can give advice based on your circumstances.
Newton does not provide tax advice. For information specific to your situation, please consult a tax professional.
If you would like to stake assets, our recent September 2025 app rollout makes it easier than ever to get started. From the main menu, you will now see Stake listed with familiar options like Trade, Transfer, Add Cash, and Withdraw. With just a few taps, you can stake or unstake eligible assets in your account and begin earning network rewards in one place. Staking comes with risks, please review the risks outlined in the applicable Crypto Asset Statement prior to staking any crypto assets.
Yield Farming: The process of earning interest through crypto investments in decentralized finance (DeFi) markets. It most often involves lending crypto into liquidity pools, where rewards come from other users’ borrowing or trading activity. It does not secure a blockchain network but instead provides liquidity to decentralized applications. Unlike staking, liquidity pools carry risks like impermanent loss, where the value of your paired assets may decrease compared to holding them separately due to price divergence. This type of yield farming is not offered on Newton’s platform. Staking on Newton focuses on network / protocol staking and security, not DeFi trading.
For long-term holders, staking allows for the participation in potential rewards. It connects crypto assets to the network and helps support its security. Staking also gives Canadians a way to take part in blockchain networks beyond simply holding tokens. By learning how it works, you can make clearer choices and explore whether staking fits your goals and risk appetite. Newton Learn will continue to share updated guides so you can navigate crypto markets with confidence.
.png)