Using an exchange
Crypto exchanges can be used to stake cryptocurrency. Bear in mind that you do not actually hold the cryptocurrency to earn rewards for staking. Rather, you are providing liquidity for the exchange to stake on your behalf.
Coinbase would be a popular example.
Using a wallet
Some wallets also permit staking. LedgerLive is one of the most popular choices for users looking to stake cryptocurrency directly from their web3 wallet.
If you are worried about slashing (losing your funds due to price drops), you can employ a staking service provider that will closely monitor your funds around the clock to avoid that doomsday scenario.
As mentioned, an L2 Ethereum defi protocol like Aave allows you to easily stake cryptocurrency. There are a plethora of defi platforms that enable staking.
Similar to an exchange, when using a defi platform, you are lending your cryptocurrency to the protocol. The most secure way to stake an asset is directly on a cold-chain wallet. Defi protocols, however, are popular because of their ease of use.
Some tools like Binance offer flexible versus locked staking. If you choose flexible staking, you earn lower APYs but can more easily liquidate your funds.
Ultimately, there are many options for staking in the Defi space. It's up to you to decide which option is right for you and understand the risks that are involved in the staking process.