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What Does STAKING Even Mean? Types of Crypto Staking EXPLAINEDstaking income. 21% use a custodial staking service (i.e. depositing their crypto-assets in a third- party wallet) versus 8% using non-custodial staking. On-chain Staking solution providing a way to earn passive income by locking up a portion of tokens. 1. 2. 4. 3. 5. Business Strategy. � Positioning and Market. The proof of stake consensus mechanism provides holders of the crypto assets the ability to validate transactions based on their proportionate.