I found this staking feature while browsing Binance but I don’t understand how this staking works. 
TIA!
Imagine it is a percentage return on a deposit. You make a deposit (stake) and over time you get interest paid to you on the amount you stake. You promise not to use the crypto and you get rewarded as a result.
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Thank you @igillman for your explanation! This is great for those hodling their coins. Have you tried using this?
Nope, I have never had enough in crypto to make it worthwhile. Also, it used to be that in order to stake your wallet (which was local) had to be online 24/7. Now you can use an online place and your wallet really is online 24/7.
Just remember that the interest is calculated in the cryptocurrency. So if you get a 5% rate of return but the value of the cryptocurrency drops 10% then you end up losing money.
Staking in cryptocurrency involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. In other words, it is the act of locking cryptocurrencies to receive rewards. You can stake your cryptos directly from your crypto wallet like Coinbase.