ETH (Ethereum) can be staking
ETH (Ethereum, hereafter ETH) is a virtual currency () that ranks second in the market capitalization ranking in the virtual currency market.
In fact, until mid-2021, ETH couldn’t stake.
However, with the update of the ETH algorithm, it is now possible to stake in ETH as well. ETH, which boasts the second largest market capitalization in the market and has been in great demand since 2021 with the attention of NFTs and DeFi, is likely to attract attention in staking.
ETH updated to PoS to ETH 2.0
Originally, ETH used a consensus algorithm called PoW (Proof of Work).
PoW is the same consensus algorithm as BTC (Bitcoin), which has the largest market value in the market, but this PoW is a so-called mining where people called miners use nodes to perform BTC blockchain calculations. By doing (mining), a new BTC will be issued and transaction processing will be carried out.
However, PoW has been criticized for being unfriendly because it uses a lot of electricity to calculate transaction processing.
why PoS (Proof of Stake, hereafter PoW) was devised . PoW is a consensus algorithm that performs transaction processing according to the number of tokens held. Therefore, new tokens are issued to miners who have more tokens.
Originally ETH adopted PoW, but due to criticism of power consumption for PoW, an update to move to PoS was started in 2021. As a result, ETH became ETH 2.0, and staking became possible.
Regarding the update of ETH to PoS, the ETH governing body said:
Mechanism of ETH PoS (Proof of Stake)
ETH’s PoS has an update called Shard Chain and is migrating to PoS.
What is a shard chain?
- A mechanism to distribute the network load of ETH to 64 new chains
- Easier node execution by keeping hardware requirements low
- Scheduled to take place after integration of mainnet and beacon chain
It has become.
In addition, this shard chain has made it possible to participate in ETH staking even on a general PC.
ETH staking yield (APY)
The average yield of ETH staking (APY: Annual Pear Yield) is about 4% to 10%.
The current ETH yields are as follows.
real-time ETH staking on ETH’s launch pad site .
Advantages and disadvantages of staking of ETH
The advantages and disadvantages of ETH staking are as follows.
Benefits of ETH staking:
- Since the interest rate does not fluctuate easily, stable rewards can be obtained.
- Steak is possible even from a small amount of ETH
- Relatively stable price volatility
- High reliability of operation by the community
First of all, it can be said that the fluctuation of the staking asset value is relatively small because the price fluctuation is small compared to other stocks. You can also start staking with a small amount of ETH.
In addition, ETH, which has the second largest market capitalization in the market, is very well known and the community is very active in network management activities. Therefore, it is possible to perform staking in a very reliable environment compared to other brands.
Disadvantages of ETH staking:
- Low yield (APY)
ETH yields are relatively low compared to other stakeable stocks. Therefore, if you want to get more staking rewards, it’s not a good stock.
| Brand | Average yield |
| ETH | About 4% to 10% |
| AVAX | About 8% -12% |
| DOT | About 10% -12% |
However, while all stocks carry the risk of fluctuations in the value of staking assets, ETH also has a low yield and stable prices.
When doing staking, be sure to carefully consider the price fluctuation risk and yield (APY) of the stock.
There are three ways to stake ETH
There are three ways to stake ETH.
- Solo staking with 32ETH
- Delegating ETH validators for staking
- Steak using exchanges such as Binance
Solo staking with 32ETH (for advanced users)
- Benefits: Earn new ETH
- Disadvantages: Must have 32 ETH or more, require equipment for staking
By owning 32 ETH, you can stake ETH as a validator (mandate).
If you stake as a validator (delegator), when you are appointed as a validator, you will be given a newly issued ETH by performing transaction processing in the same way as PoW mining work.
However, if you want to stake as a validator, you need to have a high ETH of 32 ETH, and you need to prepare a server or PC that will be a node by yourself.
In addition, when staking as a validator, there is a risk that ETH held as a penalty will be recovered if staking etc. is not performed normally.
Entrust ETH validators for staking (for intermediate users)
- Advantages: Steak is possible even for a small amount, validator can be selected
- Disadvantages: Influenced by validator activities
It is very difficult to own 32ETH.
On the other hand, ETH staking can be done by delegating ETH to a validator even if you do not have 32 ETH.
The specific procedure is as follows.
- Purchase ETH at domestic exchanges, etc.
- Send money to your ETH wallet and connect to a staking service
- Select a validator and stake ETH
With this method, you can easily participate in staking just by owning ETH.
You can also choose your own validator with a high interest rate. However, there is also the risk of relying on the validator, such as penalties and zero rewards if the validator does not stake.
Steak on exchanges such as Binance (for beginners)
- Advantages: Steak is possible even for a small amount, there is no need to select a validator, you can select a course for each period
- Disadvantages: There is a minimum staking amount, and the interest rate (APY) is relatively lower than doing it yourself
Major crypto exchanges such as Binance also offer staking services.
With the staking function of the exchange, if you have an account on the exchange and a staking brand, you can easily start staking without any other remittance work.
Exchange staking is a mechanism for indirectly staking through the exchange. Therefore, there is no need to choose a validator as the exchange will manage the staking.
In addition, there are disadvantages such as the minimum staking is set and the interest rate is low compared to the method of staking by yourself.
If you are new to staking, we recommend staking functions such as Binance.
How to stake on the ETH network (for intermediate users)
Here’s how to stake ETH yourself.
- Buy ETH
- Send ETH to ETH wallet
- Register and log in to Staking Wise
- Send ETH to ETH Pool and validate
Buy ETH
Let’s buy ETH first.
If you want to buy ETH, Binance is a good place.
Binance is a worldwide crypto exchange.
Send ETH to Metamask
Once you have purchased ETH, send it to Metamask.
Metamask is a blockchain wallet that anyone can use for free. You can easily use it by installing the Chrome extension.
Please refer to this article for details on how to register Metamask .
The procedure for sending money to Metamask is as follows.
- Log in to Metamask and copy the destination address
- Activate the remittance function of the virtual currency exchange of the remittance source and enter the destination address
- Apply for remittance
It will arrive about 5 minutes after you apply for the remittance.
Please be careful when entering the remittance address. This is because if you send money with the wrong remittance address, the remittance amount may not be returned. So be sure to send a small amount to Metamask first to make sure your destination address is correct.
Also, if you are worried about copying and pasting the address, it is recommended to display the QR code of the destination address from the Metamask setting and read it with the application.
Register and log in to Staking Wise
There are so many ETH staking destinations that you can’t decide which service to use.
this article, we will introduce ” StakingWise ” as a recommended staking destination.
There are three reasons why I recommend Staking Wise.
- Easy to log in with Metamask
- You can stake ETH as much as you want
- Easy to see UI and easy to understand staking situation
The second reason, “You can stake ETH as much as you want,” is very attractive. This is because some other staking services have a minimum staking amount of 32 ETH.
Once you have sent ETH to Metamask, use Metamask to log in to Staking Wise.
Open StakingWise, select Metamask from “Connect Wallet” on the upper right, connect Metamask, and login is complete.
Enter the staking amount and validate
Once you have connected StakingWise and Metamask, validate ETH.
The procedure for staking ETH is as follows.
- Enter the staking amount
- Pay GAS fee
GAS (gas) fee will be charged for using the ETH network . Therefore, it is recommended to leave ETH for GAS in the wallet.
How to stake ETH in Binance (for beginners)
Staking in Binance is much easier than Staking Wise.
In fact, there are three types of Binance ETH staking.
- Regular staking: regular staking
- Liquidity staking: Staking to prepare other brands equivalent to ETH
- DeFi staking: Staking using the DeFi project
In this article, we will introduce “regular staking” that makes it easy to start staking.
All you need is a Binance account and ETH.
The procedure for staking ETH with Binance is as follows.
- Buy ETH
- Use Binance’s regular staking
Buy ETH
First, buy ETH on Binance.
Use Binance’s regular staking
From here, I will explain how to stake with the Binance app.
- Tap at the bottom of the menu bar to launch the wallet
- Tap “Revenue” in the upper right
- Enter ETH in the search window next to “Flexible Savings”
- Enter the staking amount and start staking
The minimum deposit for Binance’s regular staking is 0.001 ETH.
How to check Binance’s regular staking rewards
You can check your staking rewards on the Binanc app.
When you open the regular staking page, you will see the cumulative rewards so far.
Summary
Finally, I will summarize the main points of this article.
- With the update to ETH2.0, staking is possible even with ETH
- If you want to stake ETH individually, Staking Wise is recommended
- Binance is recommended for exchange staking
The price of ETH may increase due to multiple updates planned in the future. So buy ETH and spin staking now to earn long-term profits.
This site introduces staking methods for brands other than ETH, so please refer to them.
