The staking industry has grown by leaps and bounds with time. Staking cryptocurrency assets is a win-win from all perspectives. Rewards help investors generate passive income on their holdings, while at the same time, it bolsters the security and efficiency of the network.
At the moment, there are many ways via which you can stake Ethereum. In this article, we will look into three such routes.
Also Read: Latest Ethereum Shadow Fork Provides Testing Ground for Shanghai Upgrade
Ethereum client
Using the Ethereum client route will help you directly stake Ethereum, as there is no middleman involved. However, if this option is chosen, you will have to stake at least 32 tokens as collateral. Additionally, you will also have to cater to the uptime part and make sure that it is decent enough. Having a good internet connection will help. Once the conditions are met, you will be directed to the launchpad site. Here, you’ll be onboarded to the validator software.
Follow the said steps to stake your ETH tokens:
- Read and agree to the T&Cs
- Pick client
- Generate keys
- Upload deposit data
- Integrate wallet
Post the network’s transition to PoS, miners were eliminated from the ecosystem and validators were thrusted with most responsibilities. So, once you become a validator, you will assist in storing data, adding new blocks on the blockchain, and assist in processing transactions. In return, the network will reward you.
Also Read: Ethereum Shanghai Public Testnet Likely to be Out by February End
Coinbase
Using platforms like Coinbase makes the whole staking process simpler. Additionally, there is no minimum staking threshold on Coinbase. This means you do not have to abide by the 32 ETH rule.
To stake on Coinbase, you have to:
- Possess ETH in your account
- Stay in a jurisdiction that’s eligible for staking. At the moment, North America, South America, Europe, the Middle East, Asia, and Africa are qualified
- Do the identity and document verification
- Read and agree to the T&Cs
- To start staking, navigate to the Ethereum asset page under your “Portfolio” on the web or mobile and follow the prompts. Once you’re signed in, you will be able to start staking
Make sure you’re explicitly using the latest version of the mobile app to steer clear of issues.
Also Read – Ethereum: Over 16 million ETH Staked as Shanghai Update nears
Binance
On Binance you can start staking with a minimum of 0.0001 ETH. The exchange will cover all validator operating expenses and bear the risk of on-chain penalties. Follow the given steps to start staking on this platform.
- Log in to your Binance account
- Click on ‘Earn’ and then on ‘Stake Now’
- Enter the amount you want to stake
- On Binance, BETH is the tokenized representation of staked ETH. So, you will get it in a 1:1 ratio. So, the next step is to cross-verify the BETH amount you’re entitled to
- Read and agree to the T&Cs
- Click on ‘Confirm’
- Once done, another confirmation window will pop up. Again, go through the T&Cs
- Check the boxes and click on ‘Confirm’
You can redeem the staked ETH once the network’s Shanghai Upgrade is complete. The same is slated for the first quarter this year.
Also Read – Ethereum Shanghai Hard Fork Upgrade Set for March 2023