What Is the Difference between Solo Staking and Liquid Staking?
Solo staking involves running your own validator node and locking up the required minimum amount of native cryptocurrency (e.g. 32 ETH for Ethereum).
It offers maximum rewards and control but requires technical expertise and capital. Liquid staking involves depositing funds into a staking pool, receiving a liquid staking derivative (LSD) token in return, which can be traded or used in DeFi.
It offers liquidity and lower capital requirements but introduces smart contract risk.