Am I understanding staking correctly?

So bought my first Crypto last night pops party popper

I've went with

70% Bitcoin 20% Ethereum 10% Alt coins (SOL, SUI, XRP)

Im already up £5 so it's all very exciting! What I've seen on the app I'm using (Kraken Pro) is on option to STAKE my Ethereum for 2.5-7%.

Struggling to find a solid answer on what this actually means so I'm going to explain it the way I understand it and someone please tell me if I'm right.

I can STAKE all 20% of my Ethereum for a period of time (maybe someone could clarify if I choose how long I want to STAKE my crypto for?) and after that period of time, I get 2.5-7% return on my 20% Ethereum?

During that STAKING period, my crypto is no longer traded/invested and does not gain any extra value.

The end product is I willl now have an extra 1.7 Ethereum if I had earned the 7% and this can now be traded/invested.

I also have the option for Bonded and Bonded Restaking if someone can simply what that means and what one is better or if either is more risky than the other.

Finally, is STAKING worth it? I plan on holding my crypto for a long period of time, adding to it from time to time.