Ethereum (ETH) staking has become a popular activity among crypto users. By locking up your coins, you contribute to the security of the project’s blockchain network by helping validate blocks. In exchange, you receive Ethereum staking rewards in the form of ETH.
In this guide, we will take a deep dive into ETH staking, exploring what it is, how it works, as well as the best platforms to stake Ethereum.
Moreover, the Ethereum staking landscape has gone through significant development in recent months, introducing new ways to stake ETH. This guide will also cover them, including both liquid staking and ETH restaking.
Key Takeaways
- By staking ETH, you can generate a passive income by locking up your coins and helping secure the Ethereum network.
- You can stake Ethereum in multiple ways, including solo staking, pooled staking, liquid staking, restaking, as well as staking via CEXs and Staking-as-a-Service (StaaS) providers.
- Based on our extensive research, the five best platforms to stake ETH are Lido, Nexo, Binance, EigenLayer, and Coinbase.
What Does it Mean to Stake Ethereum (ETH)?
Ethereum staking refers to the process of locking your ETH tokens as collateral for validation. In exchange for helping maintain the ecosystem, you earn rewards as a staker or a validator. For that reason, many have turned to ETH staking to generate a passive income by putting their idle coins to work.
Staking on the Ethereum mainnet has been possible since the Merge, the most significant update in the project’s history. As part of the event, the blockchain transitioned from the energy-intensive and mining-based Proof-of-Work (PoW) consensus mechanism to the power-efficient and staking-based Proof-of-Stake (PoS) algorithm.
With the PoS mechanism, staking has completely replaced mining for validating blocks in the Ethereum ecosystem. This way, validators don’t have to purchase, set up, and maintain expensive physical equipment to secure the blockchain. Instead, each validator must lock 32 ETH in their wallets.
After locking the necessary amount of ETH in their wallets, the validator becomes eligible to validate the blockchain. In every slot, the network randomly selects a validator to create a new block and send it out to the other nodes within the ecosystem. For reference, a new block is created on Ethereum approximately every 12 seconds.
Besides the proposer, the network also randomly chooses a committee of validators who will verify and vote on the validity of the newly proposed block.
If the validator proposing the block was honest and successfully completed their task, they will be rewarded in ETH rewards. However, slashing will occur if the committee discovers malicious activity or the validator fails to perform its obligations. Slashing is a penalty for misbehavior, in which the network imposes a fine on the validator’s staked ETH.
For that reason, when you stake ETH, you don’t just help secure the ecosystem or generate passive income. You also use your Ethereum tokens as collateral to make sure that you act honestly and efficiently when validating blocks.
How To Stake Ethereum
There are many ways you can stake Ethereum. To make things easier, we have collected the most popular methods for staking ETH in this section, summarizing the pros and cons of each in the table below:
| Method | Pros | Cons |
|---|---|---|
| Solo staking as a validator | – Full control over your staking activity – No counterparty risks – No third-party commissions or service fees – Decentralized and non-custodial | – Requires technical knowledge and expertise to operate the validator node – Must deposit a minimum of 32 ETH to start staking Ethereum |
| Staking via a centralized exchange (CEX) | – Easy to get started – No minimum requirements for the amount of staked ETH – The service provider operates the node – Flexible lock-up periods | – Custodial – Less rewards as with solo staking – Slashing risks |
| Staking-as-a-Service (StaaS) | – No need to worry about the technical operation of the hardware – Non-custodial (in some cases) – Easy to get started as a validator | – Custodial (in some cases) – You still have to deposit a minimum of 32 ETH to start staking – Service provider fees |
| Pooled ETH staking | – Convenient – Non-custodial (in most cases) – No need to operate your node by yourself – No need to deposit at least 32 ETH | – Slashing risks – Smart contract risks – Service provider fees |
| ETH liquid staking | – Non-custodial – Easy to get started – No minimum requirements for ETH deposits – Ability to maximize your earnings by putting your LST coins to work via DeFi protocols – No need to operate your own validator node | – Slashing risks – Smart contract-related risks – Using your LST tokens in DeFi protocols comes with increased risks |
| Restaking Ethereum | – Non-custodial – No minimum requirements for the staked ETH amount – Maximize your earnings while helping extend Ethereum’s cryptoeconomic security to other solutions – If combined with liquid staking, you don’t need to operate your own validator node | – Slashing risks (when combined with liquid staking) – Increased risks due to reusing your staked tokens – Risks of smart contract exploits |
1. Solo Staking
Solo staking is the original method for staking ETH. Here, you run your own validator node and deposit all the Ethereum tokens that are needed to propose blocks.
While this method is the most decentralized with the least counterparty risks, it requires technical knowledge to operate your validator node.
Moreover, you must stake a minimum of 32 ETH, which is worth nearly $128,000 as of March 13, 2024. Thus, it requires a significant initial investment that makes solo staking inaccessible for many.
How to Solo Stake Ethereum
To solo stake ETH, you should follow the steps below:
- Install Geth (Ethereum software) and configure it to set up your validator node. Make sure that you meet Geth’s hardware requirements.
- Fund your validator node with 32 ETH.
- Next, your validator node will be activated, which can take up to 24 hours.
- Once your node is activated, you will start earning Ethereum staking rewards each time the network selects you to propose a new block.
- Maintain your node to continue earning rewards and avoid slashing penalties.
2. Staking via a Centralized Exchange (CEX)
One of the easiest ways to get started with staking ETH is through a centralized exchange. Most top CEXs have vast ecosystems, processing over $100 million of transactions every day.
Beside offering trading services to users, they also enable their customers to stake Ethereum without running their own validator nodes. Instead, the service provider operates the node. This way, you can stake as much ETH as you like with flexible lock-up periods and without any minimum requirements.
However, as CEXs are custodial services, the major downside of this method is that you don’t have full control over your funds while staking. Also, as you have to share the rewards with the service provider, APYs are lower at centralized exchanges than with solo staking.
How to Stake ETH via a Centralized Exchange (CEX)
Here’s what you should do to stake ETH via a CEX:
- Register an account at the centralized exchange and verify it.
- Deposit fiat currency, ETH, or another cryptocurrency to the exchange via one of the available payment methods.
- If you deposit an asset other than ETH, you should first convert it to Ethereum tokens via the CEX’s trading page.
- Head to the “Staking” menu of the exchange, select the amount of ETH to stake, and confirm the transaction.
- While some CEXs offer staking services with fixed periods (e.g., your ETH stays locked for seven days), others have flexible terms that allow you to withdraw your coins from your wallet at any time.
- As CEXs are custodial services, make sure to withdraw your Ethereum tokens after you have stopped staking them via the exchange.
3. Staking-as-a-Service (StaaS)
Instead of managing your own node, Staking-as-a-Service (StaaS) solutions handle the technical responsibilities on your behalf. You don’t have to set up, manage, and operate your own validator node, making ETH staking more accessible to a broader audience.
While StaaS rewards are generally higher than with pooled staking and CEXs, the provider takes a cut from your rewards in exchange for providing the service. Also, some staking-as-a-service solutions are custodial, which can increase counterparty risks.
Moreover, while StaaS providers handle the technical tasks, using such services still requires you to stake a minimum of 32 ETH to become a validator and start earning rewards.
How to Stake ETH via a StaaS
You can stake ETH via a Staking-as-a-Service this way:
- Register an account with the StaaS provider or connect your wallet to the service.
- Deposit 32 ETH to the wallet that you will be using to stake ETH through the StaaS solution.
- The StaaS provider will take care of the technical responsibilities and start staking ETH on your behalf.
- You can track your staking activity via a dashboard.
- The StaaS provider will distribute staking rewards minus its commission to your wallet.
4. Pooled Staking
Pooled ETH staking works similarly as Bitcoin (BTC) mining pools. Instead of operating your own validator node and locking up a minimum of 32 ETH by yourself, the participants of the service pool their Ethereum coins together and share the rewards proportional to each user’s contributions.
The solution’s operator uses the tokens in the pool to participate in native ETH staking. Upon receiving rewards for validating blocks within the Ethereum network, the operator distributes them to the pool’s participants based on their initial stake.
The key advantage of pooled staking is that it makes it more accessible to stake ETH. You neither have to worry about the technical operation of the node nor must fulfill the minimum deposit requirements for validators within the Ethereum network.
However, the above benefits come with certain sacrifices. First, you must trust the operator of the pool that it acts honestly when validating blocks on Ethereum. In case it isn’t efficient or involves itself in malicious activity, your staked ETH may be at risk due to the slashing mechanism.
While ETH staking pools charge a fee for maintaining the service, you should also take into account that many of them utilize smart contracts for pooling participants’ funds. On the one hand, they enable users to stake their Ethereum via the service in a non-custodial way. However, unless they have been audited regularly, there is a risk that the contract has a vulnerability that can be exploited by an attacker.
How to Stake Ethereum via a Staking Pool
Follow the below steps to stake Ethereum via a staking pool:
- Deposit ETH tokens to your Ethereum wallet.
- Head to the staking pool’s website or open its app.
- Connect to the staking pool via your Ethereum wallet.
- Select the amount of ETH to stake and confirm the transaction.
- You will start receiving staking rewards on your Ethereum tokens. Please note that the pool’s operator will deduct a fee from the rewards for offering you the service.
5. Liquid Staking
ETH Liquid staking is a subcategory of pooled Ethereum staking. Instead of simply pooling tokens together to share validator rewards, liquid staking protocols also provide users with a receipt in the form of new assets called liquid staking tokens (LSTs).
LSTs work similarly in nature to liquidity provider (LP) tokens on automated market maker (AMM) protocols like Uniswap, Osmosis, or Orca. You receive a receipt (an LST) representing your staked ETH, which you can redeem at any time for your Ethereum tokens, plus the rewards (or minus the penalties, in case the validator fails to perform its obligations).
And here comes the main benefit of liquid ETH staking. Normally, if you stake Ethereum, the coins you lock up as collateral remain locked in your wallet until you withdraw them from the pool or the CEX. But with liquid staking, you can put your LST to work on decentralized finance (DeFi) protocols through various activities, including borrowing, lending, restaking, trading, yield farming, and more.
Thus, liquid staking unlocks the liquidity of your staked ETH, empowering you with the ability to maximize your rewards through DeFi opportunities. All this while providing the same benefits (no need to worry about the technical side or staking or lock up at least 32 ETH) as staking pools.
Despite accounting for over 60.5% of the $104 billion DeFi market with a $63 billion total value locked (TVL), liquid staking also has potential caveats you should be aware of. Besides the risk of slashing and smart contract exploits, reusing your staked liquidity is riskier than simply leaving your coins locked in your wallet as a validator.
How to Stake ETH via a Liquid Staking Protocol
To get started with liquid staking, follow the below steps:
- Head to the liquid staking protocol’s website and open the app.
- Connect your wallet to the service.
- Head to the “Staking” page and select your preferred amount of ETH.
- Confirm the transaction via your wallet.
- The liquid staking protocol mints LST coins representing your staked ETH.
- Optionally, you can move your LST to other DeFi protocols to earn additional rewards.
- When you believe you have earned sufficient staking rewards, you can redeem your staked ETH through the liquid staking protocol’s “Redeem” page.
- The liquid staking protocol burns your LST and unlocks your ETH.
6. Restaking
With the concept being introduced by EigenLayer, restaking is one of the newest ways to stake ETH. As a new primitive in cryptoeconomic security, restaking refers to the process when you rehypothecate your staked Ethereum on the network’s consensus layer. In practice, this means that:
- You are staking ETH either natively as a validator or via a liquid staking protocol.
- You reuse your staked ETH by opting into a restaking protocol’s smart contracts through a process called restaking.
- On the one hand, restaking ETH extend the Ethereum blockchain’s cryptoeconomic security to solutions that would otherwise couldn’t take advantage of it.
- In exchange for restaking Ethereum, you receive additional rewards, providing an opportunity to maximize your staking earnings.
Without restaking, bridges, data availability layers, as well as blockchains with alternative consensus protocols and chains that rely on their own actively validated systems (AVSs) can’t benefit from Ethereum’s pooled security. But by restaking your ETH, you extend Ethereum’s cryptoeconomic security to these solutions while earning increased staking rewards.
However, restaking comes with its own set of risks. These include delayed withdrawals (EigenLayer has a 7-day delay before you can withdraw your funds), as well as potential risks related to smart contracts and the price fluctuations of liquid staking tokens (LSTs).
How to Restake Ethereum
Here’s how you can restake ETH via a restaking protocol:
- Stake ETH either natively as a validator or via a liquid staking protocol.
- Connect your wallet to the restaking protocol.
- Select the amount of ETH to restake and deposit the required amount of LST coins to the protocol using smart contracts.
- For native restaking, you should utilize a solution like EigenLayer’s EigenPod.
- Monitor your rewards via the dashboard.
- Once you withdraw your coins, be sure to take potential delays into account (such as EigenLayer’s 7-day delay mechanism for withdrawals).
Where To Stake ETH: The 5 Best Platforms
Now that you know how to stake ETH, let’s look at the 5 best platforms for staking Ethereum.
We have conducted extensive market analysis to select the staking platforms in this guide, including a review of each in its respective subsection. Our methodology is based on the following factors:
- Geographical coverage
- Staking APY
- Potential risks
- Security features and audits
- Fees
Here’s a quick look at the 5 best platforms for staking ETH:
| Lido | Nexo | Binance | EigenLayer | Coinbase |
|---|---|---|---|---|
 |  |  |  |  |
| Best For: Liquid Staking ETH | Best For: Smart Ethereum Staking | Best For: Staking ETH On A Leading CEX | Best For: Restaking Ethereum | Best For: Staking ETH For US Users |
| Coverage: Global | Coverage: 60+ Countries | Coverage: 100+ Countries | Coverage: Global | Coverage: 100+ Countries |
| ETH Staking APY: 3.6% | ETH Staking APY: 3.5 – 12% | ETH Staking APY: 1 – 2.79% | ETH Staking APY: 3.6% + Restaking APY | ETH Staking APY: 3.19% |
| Staking Fees: 10% | Staking Fees: Included In The APY | Staking Fees: Included In The APY | Staking Fees: TBD | Staking Fees: Included In The APY |
| Security Audit Status: Audited | Security Audit Status: Audited | Security Audit Status: Audited | Security Audit Status: Audited | Security Audit Status: Audited |
| Learn More | Learn More | Learn More | Learn More | Learn More |
1. Lido: The Best For Liquid Staking ETH
Lido
The best for liquid staking ETH
ETH Staking APY
3.6%
Lido is the top DeFi protocol by TVL across all blockchains. With nearly $35 billion of value locked into the decentralized application (dApp), it is also the leading liquid ETH staking platform.
Review
Coverage
Global
Staking Fees
10%
Audit Status
Audited
Pros:
- Liquid staking’s flexibility
- One of the highest APYs on the market
- Available in nearly all countries
- Non-custodial
- You can stake as many ETH as you’d like
Cons:
- 10% fee on rewards
- Liquid staking involves slashing risks
As a DeFi protocol with decentralized community governance, Lido is available in most nations, except for the US and the “usual” restricted jurisdictions like North Korea, Iran, and Iraq. Due to this very reason, it is not regulated in any countries.
Founded in 2020 by Konstantin Lomashuk, Vasiliy Shapovalov, and Jordan Fish, Lido offers one of the highest APYs among the ETH staking protocols listed in this guide. At 3.6% per annum, only EigenLayer provides higher returns than Lido. However, the prior is a restaking protocol that reuses your staked ETH across other platforms to earn you additional rewards.
While Lido offers 3.6% APY for liquid staking ETH, it charges a 10% fee on rewards. This commission is not taken from your staked amount but the yield you earn on your coins. As a result, this translates to a 3.24% annual reward rate after covering Lido’s fees.
The key advantage of Lido is that you don’t have to operate technical hardware or fulfill Ethereum’s minimum staking requirements while you can reuse your staked ETH on other DeFi protocols. Thus, it enables you to maximize your rewards through solutions like EigenLayer.
In terms of security, Lido has been extensively audited by prominent third party firms. According to the project’s GitHub, over 10 auditors have completed the analysis of the liquid staking protocol’s code, which is a quite high number compared to other DeFi protocols. Regular auditing significantly enhances the security of staking providers, especially decentralized services.
Moreover, Lido is a non-custodial protocol, meaning that you have full control over your staked ETH. Thus, you don’t have to face counterparty risks while staking Ethereum via the service, bolstering your overall security.
With one of the best APYs on the market, the enticing nature of liquid staking, and extensive security audits, Lido is an excellent choice for staking ETH.
- Nexo: The best for smart Ethereum staking
- Binance: The best for staking ETH on a leading CEX
- EigenLayer: The best for restaking Ethereum
- Coinbase: The best for staking ETH for US users
2. Nexo: The Best For Smart Ethereum Staking
Nexo
The best for smart Ethereum staking
ETH Staking APY
3.5 – 12%
Founded in 2018, Nexo is among the few centralized finance (CeFi) lending providers that have survived the last bear markets.
Review
Coverage
60+ Countries
Staking Fees
Included In The APY
Audit Status
Audited
Pros:
- Numerous licenses in major jurisdictions
- High APYs
- No additional fees for rewards
- Smart Ethereum staking
- Optionally, you can boost ETH staking APY with higher loyalty tiers and opting in to receive rewards in NEXO tokens
Cons:
- Staking is only available in only a little more than 60 jurisdictions out of the over 200 countries Nexo supports for lending and borrowing
- Counterparty risks
As a DeFi protocol with decentralized community governance, Lido is available in most nations, except for the US and the “usual” restricted jurisdictions like North Korea, Iran, and Iraq. Due to this very reason, it is not regulated in any countries.
It serves over six million users worldwide and also offers ETH staking services to its customers with an APY between 3.5% and 12%.
You can stake Ethereum via two different ways on Nexo. While standard staking is available in the form of ETH tokens, you can take advantage of Nexo’s ETH (NETH) Smart Staking tool.
The key difference between the two is that your staking APY depends on your loyalty tier and preferences and can range between 4% and 8% per annum. Loyalty tiers are based on the ratio of NEXO tokens in your account against the rest of your portfolio. The higher this ratio is, the better your ETH staking APY is. Also, opting in to earn yield in NEXO allows you to earn more rewards on the platform.
On the other hand, NETH’s APY can be anywhere from 3.5% to 12% and doesn’t take your loyalty tier and preferences into account. Also, you have the option to borrow against your NETH while earning rewards on your staked Ethereum tokens.
ETH staking fees on Nexo are included in the APY, meaning that you don’t have to cover additional costs before your rewards are paid.
Security is something that Nexo considers a top priority. Besides being regulated in multiple major jurisdictions, the CeFi service overcollateralizes loans, employs various risk management strategies, and has features like address whitelisting, two-factor (2FA) authentication, and biometric identification in place to protect users.
Moreover, Nexo has three ISO certifications (ISO 27017, ISO 27018, and ISO 27001) and has a completed Service and Organization Controls (SOC) 2 Type 2 compliance audit. At the same time, the company offers insurance on custodial assets through its partnership with Fireblocks and Ledger Vault.
If you are looking for a convenient service to stake ETH, Nexo might be the perfect choice for you. Besides featuring multiple licenses, as well as ISO and SOC 2 certifications, it offers high APYs without charging additional fees on your earned rewards.
- Lido: The best for liquid staking ETH
- Binance: The best for staking ETH on a leading CEX
- EigenLayer: The best for restaking Ethereum
- Coinbase: The best for staking ETH for US users
3. Binance: The Best For Staking ETH On A Leading CEX
Binance
The best for staking ETH on a leading CEX
ETH Staking APY
1 – 2.79%
With a global availability in over 100 countries, Binance is the world’s leading crypto exchange. In the last 24 hours, the company accounted for $114 billion of digital asset trading volume on the spot and derivatives markets. Besides trading, the CEX also offers ETH staking via its massive ecosystem.
Review
Coverage
100+ Countries
Staking Fees
Included In The APY
Audit Status
Audited
Pros:
- Leading CEX
- Massive ecosystem of crypto products and services
- Licensed in multiple jurisdictions
- SAFU insurance fund
- Wide range of security features
Cons:
- Low APYs for ETH staking
- Custodial service
Founded in July 2017, Binance has licenses in numerous jurisdictions, from Dubai and Lithuania to Japan and Australia.
While Binance’s fees are included in the staking APY, its yield is much lower than that of most platforms we have reviewed in this guide. Ranging between 1% and 2.79% per annum, your ETH staking rewards are based on the terms of the contract.
While fixed terms will earn you a higher APY, flexible agreements enable you to unstake your coins and withdraw them at any time.
Besides regulatory compliance, the company has multiple security features in place to protect users. These include cold storage facilities, a risk management system with real-time monitoring, access control, advanced data encryption, and organizational security.
Binance also has a Secure Asset Fund for Users (SAFU) to protect users from the negative impacts of exterme circumstances. SAFU was topped up to $1 billion at the end of 2022. A year later, the company has completed a successful SOC 2 audit.
Despite the potential risks and the lower APYs, Binance might be a good choice if you are looking to stake ETH on a leading CEX that places an emphasis on users’ security.
- Lido: The best for liquid staking ETH
- Nexo: The best for smart Ethereum staking
- EigenLayer: The best for restaking Ethereum
- Coinbase: The best for staking ETH for US users
4. EigenLayer: The Best For Restaking Ethereum
EigenLayer
The best for restaking Ethereum
ETH Staking APY
3.6% + Restaking APY
Following Lido and Aave in the race, EigenLayer is the third-largest DeFi protocol by total value locked, featuring a TVL of nearly $11 billion. At the same time, it is by far the top restaking dApp on the market (although this is still a very new sector).
Review
Coverage
Global
Staking Fees
TBD
Audit Status
Audited
Pros:
- Maximize your APY with ETH restaking
- Leading restaking protocol
- Non-custodial
- Audited
- Global availability
Cons:
- Mainnet launch phase hasn’t been completed yet
- No accurate data on restaking APYs and fees
Founded in 2021, EigenLayer is available globally. As it is a decentralized protocol, it is not licensed in any jurisdiction.
Compared to the other staking providers listed in this article, the key advantage of EigenLayer is that it enables you to earn ETH staking rewards while putting your staked Ethereum to work across other protocols to receive extra interest on your coins.
This is due to the platform’s restaking mechanism, which helps you extend Ethereum’s cryptoeconomic security in exchange for additional yield.
For that reason, EigenLayer offers the highest APYs across all listed providers. However, there’s no accurate information on the actual interest to earn or the fees to pay via the service, as the project’s mainnet launch phase is still in progress.
You will be able to take advantage of restaking’s full potential after the emergence of EigenLayer’s AVS ecosystem, which will occur soon after the development team rolls out the EigenDa data availability service.
Until the mainnet launch phase is fully complete, ETH restaking is available on EigenLayer but with a few temporary differences.
First, you can’t earn any financial rewards at the moment. Instead, you receive restaked points, which represent your share in the pool among all restakers. Based on your points, you will be rewarded retrospectively after EigenLayer’s mainnet launch phase is complete.
Moreover, liquid restaking deposits are currently paused on EigenLayer. That said, you can still restake ETH natively via the protocol through EigenPods. At the same time, there’s currently a 7-day withdrawal delay in place during the early stages of EigenLayer’s mainnet to optimize the safety of assets.
The restaking protocol has been audited two different auditors: Consensys Diligence and Sigma Prime. Also, it has a live bug bounty program, which helps the team identify and eliminate errors, as well as enhance its dApp’s code.
Overall, EigenLayer is a leading restaking protocol that enables you to maximize your ETH staking APY by putting your staked coins to work on various platforms to extend Ethereum’s cryptoeconomic security.
- Lido: The best for liquid staking ETH
- Nexo: The best for smart Ethereum staking
- Binance: The best for staking ETH on a leading CEX
- Coinbase: The best for staking ETH for US users
5. Coinbase: The Best For Staking ETH For US Users
Coinbase
The best for staking ETH for US users
ETH Staking APY
3.19%
Founded in May 2012, Coinbase is among the most established centralized exchanges on the market, which accounts for $5.5 billion 24-hour digital asset spot trading volume.
Review
Coverage
100+ Countries
Staking Fees
Included In The APY
Audit Status
Audited
Pros:
- Excellent choice for staking ETH in the US
- Licenses in multiple jurisdictions
- US-based publicly traded company
- Staking fees included in the APY
- Advanced security features
Cons:
- Second-lowest ETH staking APY among the providers listed in this article
- You don’t maintain full control over the funds you deposit to the platform
Besides operating a regulated CEX with licenses in the United States, France, Singapore, and Bermuda, the publicly traded company also offers ETH staking services across the US and many other countries. In fact, Coinbase’s geographical coverage extends across over 100 jurisdictions.
With fees already being included in the interest rates, Coinbase features a 3.19% APY for staking ETH via the platform. While this rate is lower than on Lido, Nexo, and EigenLayer, it is significantly higher than on Binance.
Coinbase puts a great deal of focus on user security. In addition to holding regulatory licenses in multiple major jurisdictions, the CEX holds its customers’ assets at a 1:1 ratio, meaning that the coins deposited to the exchange are fully backed and not lent out to other parties without users’ permission.
Moreover, you can take advantage of features like 2FA, password protection, and multi-approval withdrawals, as well as benefit from Coinbase’s state-of-the-art encryption.
As a publicly traded company based and licensed in the United States, Coinbase is an excellent choice for staking ETH in the US.
- Lido: The best for liquid staking ETH
- Nexo: The best for smart Ethereum staking
- Binance: The best for staking ETH on a leading CEX
- EigenLayer: The best for restaking Ethereum
The Verdict
ETH staking enables you to generate a passive income on your coins by putting them to work across various protocols. By doing so, you also help secure the Ethereum network through validating blocks on the blockchain.
In this guide, we have reviewed the best ways and platforms for staking Ethereum. Regarding the latter solutions, here’s a quick recap of the top services for staking ETH:
- Lido: The best for liquid staking ETH
- Nexo: The best for smart Ethereum staking
- Binance: The best for staking ETH on a leading CEX.
- EigenLayer: The best for restaking Ethereum
- Coinbase: The best for staking ETH for US users
Frequently Asked Questions (FAQ)
How does Ethereum staking work?
Ethereum staking refers to the process of locking your ETH in your wallet via a validator node or staking service to validate blocks on the blockchain. In exchange for helping secure the ecosystem, you receive staking rewards.
How do you stake Ethereum?
There are numerous ways to stake Ethereum, including:
– Solo staking
– Staking-as-a-Service (StaaS)
– Pooled staking
– Staking via a centralized exchange (CEX)
– Liquid staking
– Restaking
How much can I earn by staking Ethereum?
The APY you earn by staking Ethereum is based on the current market conditions, such as the total staked amount and network activity. If the total amount of staked ETH decreases and the network activity surges, you will likely earn more rewards.
In any case, it is a good idea to check the Ethereum staking APY via the websites of various providers to calculate your potential earnings.
How often are ETH staking rewards paid?
The frequency at which ETH staking rewards are paid depend on the method and platform you utilize for staking. For example, while liquid staking rewards are distributed instantly, you will likely have to wait multiple days until you can realize earnings with solo staking.
Where do ETH staking rewards come from?
ETH staking rewards are covered through the issuance of new Ethereum tokens. After the successful validation of a new block, the network rewards the validator with ETH.
How much ETH should I stake?
If you are solo staking or utilizing a Staking-as-a-Service (StaaS) provider, you must deposit at least 32 ETH to be eligible for staking rewards. However, you can stake a significantly lower amount of Ethereum tokens at CEXs and liquid staking, restaking, and pooled staking providers.
When did Ethereum switch to Proof-of-Stake (PoS)?
Ethereum switched from the energy-intensive and mining-based Proof-of-Work (PoW) consensus mechanism to the energy-efficient and staking-based Proof-of-Stake (PoS) on September 15, 2022. This is the date when the Merge took place, the most significant Ethereum hard fork to date, which reduced the blockchain’s power consumption by approximately 99.95%.
WRITTEN
Benjamin Vitaris
Seasoned crypto, DeFi, NFT and overall web3 content writer with 9+ years of experience. Published in Forbes, Entrepreneur, VentureBeat, IBTimes, CoinTelegraph and Hackernoon.
